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Military

                          105 th Congress  1st Session                      
                            HOUSE OF REPRESENTATIVES                        
                                      Report                                 
                                       105 340                                
                                                                         
                      NATIONAL DEFENSE AUTHORIZATION                     
                         ACT FOR FISCAL YEAR 1998                        
                            CONFERENCE REPORT                            
                               to accompany                              
                                H.R. 1119                                
[Graphic Image Not Available]
                October   23,  1997.--Ordered to be printed              
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998         
                                     44 180                                 
                                       1997                                  
                          105 th Congress  1st Session                      
                            HOUSE OF REPRESENTATIVES                        
                                      Report                                 
                                       105 340                                
                                                                         
                      NATIONAL DEFENSE AUTHORIZATION                     
                         ACT FOR FISCAL YEAR 1998                        
                            CONFERENCE REPORT                            
                               to accompany                              
                                H.R. 1119                                
[Graphic Image Not Available]
           October   23,  1997.--Ordered to be printed AEMD94 AF         
                            C O N T E N T S                             
         JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE       465
            Summary Statement of Conference Action                        465
            Summary Table of Authorizations                               465
            Congressional Defense Committees                              472
         DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS                 472
          Title I--Procurement                                            472
            Funding Explanations                                          478
                               UH 60 blackhawk                             
                                          478                                   
                                Kiowa warrior                              
                                          478                                   
                Aircraft survivability equipment modifications             
                                          478                                   
                       Aircraft survivability equipment                    
                                          478                                   
                               Training devices                            
                                          478                                   
                                   Avenger                                 
                                          482                                   
                                   Hellfire                                
                                          482                                   
                     Multiple launch rocket system rocket                  
                                          482                                   
                    Multiple launch rocket system launcher                 
                                          482                                   
                       Brilliant anti-armor submunition                    
                                          482                                   
                           Bradley base sustainment                        
                                          486                                   
                  Field artillery ammunition support vehicle               
                                          486                                   
                           M109A6 paladin howitzer                         
                                          486                                   
                          Improved recovery vehicle                        
                                          486                                   
                            MK 19 grenade launcher                         
                                          507                                   
                                 Semitrailers                              
                                          518                                   
                 High mobility multi-purpose wheeled vehicle               
                                          518                                   
                      Family of heavy tactical vehicles                    
                                          518                                   
                     Truck, tractor, line haul, M915/M916                  
                                          518                                   
                   Defense satellite communications system                 
                                          519                                   
                             Satellite terminals                           
                                          519                                   
                      NAVSTAR global positioning system                    
                                          519                                   
                        Army data distribution system                      
                                          519                                   
                Area common user system modernization program              
                                          519                                   
                     Information system security program                   
                                          520                                   
                         Ground based common sensors                       
                                          520                                   
                                  Shortstop                                
                                          520                                   
                                 Night vision                              
                                          520                                   
                                   LOGTECH                                 
                                          521                                   
                           Maneuver control system                         
                                          521                                   
                     Automated data processing equipment                   
                                          521                                   
                          Railway car, flat, 100 ton                       
                                          521                                   
                         Training devices, nonsystem                       
                                          521                                   
                        Close combat tactical trainers                     
                                          522                                   
                         AV 8B Harrier remanufacture                       
                                          526                                   
                                T 45TS Goshawk                             
                                          526                                   
                                 EA 6 Series                               
                                          526                                   
                P 3C anti-surface warfare improvement program              
                                          527                                   
                             Power plant changes                           
                                          527                                   
                           Common Avionics Changes                         
                                          527                                   
                              Tactical Tomahawk                            
                                          531                                   
                            Joint Standoff Weapon                          
                                          531                                   
                           Penguin missile program                         
                                          532                                   
                             Hellfire II missiles                          
                                          532                                   
                 Close-in weapon system surface mode upgrade               
                                          532                                   
                           Pioneer logistic support                        
                                          532                                   
                                    LPD 18                                 
                                          492                                   
                          Oceanographic survey ship                        
                                          492                                   
                     AN/WSN 7 inertial navigation system                   
                                          501                                   
                      Self-contained breathing apparatus                   
                                          501                                   
                         Pollution control equipment                       
                                          501                                   
                     AN/BPS 16 submarine navigation radar                  
                                          501                                   
                      Cooperative engagement capability                    
                                          501                                   
                          Information Technology-21                        
                                          502                                   
                             Sonobuoy procurement                          
                                          502                                   
                       Mobile remote emitter simulator                     
                                          502                                   
          NATO sea sparrow missile system low light level television       
                                          503                                   
                           AEGIS support equipment                         
                                          503                                   
                  Light tactical wheeled vehicle replacement               
                                          507                                   
            Chemical/biological incident response force equipment          
                                          507                                   
                                      15E                                  
                                          537                                   
                                    C 130J                                 
                                          537                                   
                       Predator Unmanned Aerial Vehicle                    
                                          537                                   
                               15 Modifications                            
                                          537                                   
                               16 modifications                            
                                          538                                   
              Passenger safety and global air traffic management           
                                          538                                   
                   Defense Airborne Reconnaissance Program                 
                                          538                                   
                       Theater airborne warning system                     
                                          539                                   
                            AGM 130 Powered GBU 15                         
                                          545                                   
                               AGM 65 Maverick                             
                                          545                                   
                      Theater deployable communications                    
                                          550                                   
                     Automated document conversion system                  
                                          555                                   
                        Advanced SEAL delivery system                      
                                          555                                   
                             Night firing scopes                           
                                          555                                   
                                   Overview                                
                                          555                                   
                          Legislative Provisions Adopted                
                                          559                                   
                 Subtitle A--Authorization of Appropriations               
                                          559                                   
        Chemical agents and munitions destruction program (sec.  107)      
                                          559                                   
       Conduct of the chemical agents and munitions destruction program    
                                          559                                   
          Chemical stockpile emergency preparedness program (CSEPP)        
                                          560                                   
                          Subtitle B--Army Programs                        
                                          561                                   
                Army helicopter modernization plan (sec. 111)              
                                          561                                   
   Multiyear procurement authority for specified Army programs (sec.  112) 
                                          562                                   
                    M113 vehicle modifications (sec.  113)                 
                                          562                                   
                          Subtitle C--Navy Programs                        
        562                                                                     
   New Attack Submarine program (sec.  121)                                
        562                                                                     
   CVN 77 nuclear aircraft carrier program (sec.  122)                     
        563                                                                     
   Exclusion from cost limitation for Seawolf submarine program (sec.  123)
        564                                                                     
   Subtitle D--Air Force Programs                                          
        565                                                                     
   Authorization for B 2 bomber program (sec.  131)                        
        565                                                                     
   ALR radar warning receivers (sec.  132)                                 
        565                                                                     
      Analysis of requirements for replacement of engines on military      
   aircraft derived from Boeing 707 aircraft (sec. 133)                    
        565                                                                     
   Subtitle E--Other Matters                                               
        565                                                                     
      Pilot program on sales of manufactured articles and services of      
   certain army industrial facilities without regard to availability from  
   domestic sources (sec. 141)                                             
        565                                                                     
   NATO Joint Surveillance/Target Attack Radar System (sec. 142)           
        566                                                                     
          Legislative Provisions Not Adopted                            
        566                                                                     
   Limitation on obligation of funds for the Seawolf submarine program     
        566                                                                     
   Reduction in authorization of appropriations                            
        566                                                                     
   Airborne self protection jammer                                         
        566                                                                     
      Prohibition on use of funds for acquisition or alteration of private 
   drydocks                                                                
        567                                                                     
    Title II--Research, Development, Test, And Evaluation                  
        567                                                                     
          Funding Explanations                                          
        580                                                                     
   University and industry research centers                                
        580                                                                     
   Combat vehicle and automotive advanced technology                       
        580                                                                     
   Plastic cased ammunition                                                
        580                                                                     
   Electronics and electronic devices                                      
        581                                                                     
   Bioremediation, education, science, and technology program              
        581                                                                     
   Plasma energy pyrolysis system                                          
        581                                                                     
   Radford Environmental Development and Management Program                
        582                                                                     
   Military engineering technology                                         
        582                                                                     
   Medical Advanced Technology                                             
        582                                                                     
   Combat vehicle and automotive advanced technology                       
        582                                                                     
   Information systems technology, superiority, and security               
        583                                                                     
   Missile and rocket advanced technology                                  
        584                                                                     
   Landmine warfare and barrier advanced technology                        
        584                                                                     
   Joint service small arms program                                        
        584                                                                     
   Armament enhancement initiative                                         
        584                                                                     
   Aviation advanced development                                           
        585                                                                     
   All source analysis system                                              
        585                                                                     
   Light tactical wheeled vehicles                                         
        585                                                                     
   Engineer mobility equipment development program                         
        585                                                                     
   Automatic test equipment                                                
        585                                                                     
   Tactical Exploitation of National Capabilities                          
        585                                                                     
   Combined arms tactical trainer                                          
        586                                                                     
   Landmine warfare/barrier-engineering development                        
        586                                                                     
   Sense and destroy armament missile-engineering development              
        586                                                                     
   Fuel cells                                                              
        587                                                                     
   Combat vehicle improvement program                                      
        588                                                                     
   Aircraft modification/product improvement program                       
        588                                                                     
   Digitization                                                            
        588                                                                     
   Missile/air defense product improvement program                         
        589                                                                     
   Healthcare information protection demonstration                         
        589                                                                     
   End item industrial preparedness activities                             
        589                                                                     
   Defense research sciences                                               
        603                                                                     
   Marine mammal research program                                          
        603                                                                     
   Power electronic building blocks                                        
        603                                                                     
   Power node control centers                                              
        603                                                                     
   Second source for carbon fibers                                         
        604                                                                     
   Titanium processing technology                                          
        604                                                                     
   Arctic climate observations                                             
        604                                                                     
   National Oceanographic Partnership Program                              
        604                                                                     
   Antisubmarine warfare technology                                        
        605                                                                     
   Composite helicopter hangar                                             
        605                                                                     
   Project ``M''                                                           
        605                                                                     
   Marine Corps advanced technology demonstration                          
        606                                                                     
   Freeze-dried blood research project                                     
        606                                                                     
   Littoral antisubmarine warfare technology demonstration                 
        606                                                                     
   Beach and surf zone obstacle clearance                                  
        607                                                                     
   High frequency surface wave radar                                       
        607                                                                     
   Visualization architecture and technology                               
        607                                                                     
   Antisubmarine warfare systems development                               
        607                                                                     
   CV(X) carrier system development                                        
        608                                                                     
   Advanced submarine systems development                                  
        608                                                                     
   Cruiser conversion program design                                       
        609                                                                     
   Intercooled recuperated gas turbine engine                              
        609                                                                     
   Automatic target recognition/optical correlation                        
        609                                                                     
   Marine Corps assault vehicles                                           
        610                                                                     
   Marine Corps ground combat/support systems                              
        610                                                                     
   Cooperative engagement capability                                       
        610                                                                     
   Composite engineered materials                                          
        611                                                                     
   Land attack systems technology                                          
        611                                                                     
   Nonlethal weapons and technologies of mass protection program           
        612                                                                     
   CH 60 helicopter development                                            
        613                                                                     
   Parametric airborne dipping sonar                                       
        613                                                                     
   P 3 maritime patrol aircraft modernization program                      
        613                                                                     
   H 1 upgrades                                                            
        613                                                                     
   Advanced ranging source                                                 
        614                                                                     
   High Power Discriminator                                                
        614                                                                     
   Maritime fire support demonstrator/arsenal ship                         
        614                                                                     
   Multi-purpose processor                                                 
        616                                                                     
   Advanced submarine tactical electronic combat system                    
        616                                                                     
   CVN 77 research and development                                         
        617                                                                     
   Ship self-defense system                                                
        617                                                                     
   Safety and survivability enhancements                                   
        618                                                                     
    2 eight-blade composite propeller system                               
        618                                                                     
   Battle force tactical trainer                                           
        618                                                                     
   Joint tactical combat training system                                   
        619                                                                     
   Marine Corps communications systems                                     
        619                                                                     
   Marine Corps ground combat/supporting arms systems                      
        620                                                                     
   Manufacturing technology programs                                       
        620                                                                     
   Integrated High Payoff Rocket Propulsion Technology                     
        631                                                                     
   Military Spaceplane                                                     
        631                                                                     
   Solar thermionics orbital transfer vehicle                              
        631                                                                     
      Joint air-to-surface standoff missile/standoff land attack           
   missile-expanded response                                               
        632                                                                     
   Major test and evaluation investment                                    
        633                                                                     
   Smart monitoring system                                                 
        633                                                                     
   Rocket Systems Launch Program                                           
        633                                                                     
   Cruise missile defense                                                  
        633                                                                     
   University research initiatives                                         
        646                                                                     
   Next generation internet                                                
        646                                                                     
   Chemical and biological defense program                                 
        646                                                                     
   Tactical technology                                                     
        649                                                                     
   Integrated command and control                                          
        649                                                                     
   Materials and electronics technology                                    
        649                                                                     
   Explosives demilitarization technology                                  
        650                                                                     
   Counterterror technical support program                                 
        651                                                                     
      Domestic emergency response to threats of terrorist use of weapons of
   mass destruction                                                        
        652                                                                     
   Counterproliferation support program                                    
        654                                                                     
   Ballistic Missile Defense Organization funding                          
        655                                                                     
   Strategic environmental research and development program                
        660                                                                     
   Advanced electronics technologies                                       
        660                                                                     
   Electronic commerce resource centers                                    
        661                                                                     
   Land warfare technologies                                               
        661                                                                     
   Defense Reconnaissance Support Activities                               
        662                                                                     
   Special operations tactical systems development                         
        663                                                                     
   Special operations intelligence systems development                     
        663                                                                     
          Items of Special Interest                                     
        663                                                                     
   Army research institute                                                 
        663                                                                     
   Aviation advanced technology                                            
        664                                                                     
   BOL expendable dispenser system                                         
        664                                                                     
   Department of Defense science and technology program                    
        664                                                                     
   High temperature superconductor power applications                      
        664                                                                     
      Improving collaboration between the Department of Defense and the    
   Department of Energy laboratories                                       
        665                                                                     
   Interferometric synthetic aperture radar                                
        665                                                                     
   Naval biodynamics laboratory data bank                                  
        665                                                                     
   Strategic systems industrial capabilities                               
        666                                                                     
   Telemedicine                                                            
        666                                                                     
          Legislative Provisions Adopted                                
        667                                                                     
   Subtitle A--Authorization of Appropriations                             
        667                                                                     
   Dual-use technology program (sec. 203)                                  
        667                                                                     
   Subtitle B--Program Requirements, Restrictions, and Limitations         
        667                                                                     
   Manufacturing technology program (sec. 211)                             
        667                                                                     
   Report on operational field assessments program (sec. 212)              
        668                                                                     
   Joint Strike Fighter Program (sec. 213)                                 
        669                                                                     
   Kinetic energy tactical anti-satellite technology program (sec. 214)    
        669                                                                     
   Micro-satellite technology development program (sec. 215)               
        670                                                                     
   High altitude endurance unmanned vehicle program (sec. 216)             
        670                                                                     
    22 aircraft program (sec. 217)                                         
        670                                                                     
   Subtitle C--Ballistic Missile Defense Programs                          
        671                                                                     
   National Missile Defense Program (sec. 231)                             
        671                                                                     
      Budgetary treatment of amounts for procurement for ballistic missile 
   defense programs (sec. 232)                                             
        671                                                                     
   Cooperative Ballistic Missile Defense program (sec. 233)                
        671                                                                     
      Annual report on the threat posed to the United States by weapons of 
   mass destruction, ballistic missiles, and cruise missiles (sec. 234)    
        671                                                                     
   Director of Ballistic Missile Defense Organization (sec. 235)           
        672                                                                     
      Repeal of required deployment dates for core theater missile defense 
   programs (sec. 236)                                                     
        672                                                                     
   Subtitle D--Other Matters                                               
        672                                                                     
      Restructuring of National Oceanographic Partnership Program          
   Organization (sec. 241)                                                 
        672                                                                     
      Maintenance and repair of real property at Air Force installations   
   (sec. 242)                                                              
        672                                                                     
      Expansion of eligibility for the defense experimental program to     
   stimulate competitive research (sec. 243)                               
        674                                                                     
      Bioassay testing of veterans exposed to ionizing radiation during    
   military service (sec. 244)                                             
        674                                                                     
   Sense of Congress regarding Comanche program (sec. 245)                 
        674                                                                     
          Legislative Provisions Not Adopted                            
        675                                                                     
   Strategic environmental research and development program                
        675                                                                     
   Tactical unmanned aerial vehicles                                       
        675                                                                     
   Land Attack Standard Missile                                            
        675                                                                     
   Tactical High Energy Laser program                                      
        676                                                                     
   Advanced anti-radiation guided missile program                          
        676                                                                     
   Federally funded research and development centers                       
        676                                                                     
      Department of Defense/Veterans Administration cooperative research   
   program                                                                 
        676                                                                     
   Multitechnology integration in mixed-mode electronics                   
        677                                                                     
   Facial recognition technology program                                   
        677                                                                     
   Explosives demilitarization technology                                  
        677                                                                     
    Title III--Operation and Maintenance                                   
        678                                                                     
          Items of Special Interest                                     
        702                                                                     
   Arms control implementation                                             
        702                                                                     
   National Defense Sealift Fund (NDSF)                                    
        702                                                                     
   National imagery and mapping agency                                     
        703                                                                     
          Legislative Provisions Adopted                                
        704                                                                     
   Subtitle A--Authorization of Appropriations                             
        704                                                                     
   Fisher House trust funds (sec. 304)                                     
        704                                                                     
   Refurbishment of M1A1 Tanks (sec. 306)                                  
        705                                                                     
      Operation of prepositioned fleet, National Training Center, Fort     
   Irwin, California (sec. 307)                                            
        705                                                                     
   Refurbishment and installation of air search radar (sec. 308)           
        705                                                                     
   Contracted training flight services (sec. 309)                          
        705                                                                     
   Procurement technical assistance programs (sec. 310)                    
        705                                                                     
   Operation of Fort Chaffee, Arkansas (sec. 311)                          
        706                                                                     
   Subtitle B--Military Readiness Issues                                   
        706                                                                     
      Monthly reports on allocation of funds within operation and          
   maintenance budget subactivities (sec. 321)                             
        706                                                                     
   Expansion of scope of quarterly readiness report (sec. 322)             
        706                                                                     
      Semiannual reports on transfers from high-priority readiness         
   appropriations (sec. 323)                                               
        706                                                                     
   Annual report on aircraft inventory (sec. 324)                          
        706                                                                     
      Administrative actions adversely affecting military training or other
   readiness activities (sec. 325)                                         
        707                                                                     
   Common measurement of operations and personnel  tempo (sec. 326)        
        707                                                                     
      Inclusion of Air Force depot maintenance as operation and maintenance
   budget activity group (sec. 327)                                        
        707                                                                     
   Prohibition of implementation of tiered readiness  system (sec. 328)    
        707                                                                     
      Report on military readiness requirements of the Armed Forces (sec.  
   329)                                                                    
        708                                                                     
   Assessment of cyclical readiness posture of the  Armed Forces (sec. 330)
        708                                                                     
      Report on military exercises conducted under certain training        
   exercise programs (sec. 331)                                            
        709                                                                     
   Report on overseas deployment (sec. 332)                                
        709                                                                     
   Subtitle C--Environmental Provisions                                    
        709                                                                     
      Revision of membership terms for Strategic Environmental Research and
   Development Program Scientific Advisory Board (sec. 341)                
        709                                                                     
      Amendment to authority to enter into agreements with other agencies  
   in support of environmental technology certification (sec. 342)         
        710                                                                     
      Modifications of authority to store and dispose of non-defense toxic 
   and hazardous materials (sec. 343)                                      
        710                                                                     
      Annual report on payments and activities in response to fines and    
   penalties assessed under environmental laws (sec. 344)                  
        710                                                                     
      Annual report on environmental activities of the Department of       
   Defense overseas (sec. 345)                                             
        711                                                                     
      Review of existing environmental consequences of the presence of the 
   United States Armed Forces in Bermuda (sec. 346)                        
        711                                                                     
      Sense of Congress on deployment of United States Armed Forces abroad 
   for environmental preservation activities (sec. 347)                    
        711                                                                     
      Recovery and sharing of costs of environmental restoration at        
   Department of Defense sites (sec. 348)                                  
        711                                                                     
      Partnerships for investment in innovative environmental technologies 
   (sec. 349)                                                              
        712                                                                     
   Procurement of recycled copier paper (sec. 350)                         
        713                                                                     
      Pilot program for the sale of air pollution emission reduction       
   incentives (sec. 351)                                                   
        713                                                                     
   Subtitle D--Depot-Level Activities                                      
        713                                                                     
   Definition of Depot-Level Maintenance and Repair  (sec. 355)            
        714                                                                     
   Core Logistics Capabilities of Department of  Defense (sec. 356)        
        714                                                                     
      Increase in Percentage of Depot-Level Maintenance and Repair that may
   be Contracted for Performance by Non-Government Personnel (sec. 357)    
        715                                                                     
   Annual Report on Depot-Level Maintenance and  Repair (sec. 358)         
        715                                                                     
      Requirement for use of Competitive Procedures in Contracting for     
   Performance of Depot-Level Maintenance and Repair Workloads Formerly    
   Performed at Closed or Realigned Military Installations (sec. 359)      
        715                                                                     
      Clarification of Prohibition on Management of Depot Employees by     
   Constraints on Personnel Levels (sec. 360)                              
        718                                                                     
   Centers of Industrial and Technical Excellence  (sec. 361)              
        718                                                                     
      Extension of Authority for Aviation Depots and Naval Shipyards to    
   Engage in Defense Related Production and Services (sec. 362)            
        719                                                                     
      Repeal of Conditional Repeal of Certain Depot-Level Maintenance and  
   Repair laws and a Related Reporting Requirement (sec. 363)              
        719                                                                     
      Personnel Reductions, Army Depots Participating in Army Workload and 
   Performance System (sec. 364)                                           
        719                                                                     
      Report on Allocation of Core Logistics Activities Among Department of
   Defense Facilities and Private Sector Facilities (sec. 365)             
        720                                                                     
      Review of Use of Temporary Duty Assignments for Ship Repair and      
   Maintenance (sec. 366)                                                  
        720                                                                     
      Sense of Congress Regarding Realignment of Performance of Ground     
   Communication-Electronic Workload (sec. 367)                            
        720                                                                     
   Subtitle E--Commissaries and Nonappropriated Fund                       
        720                                                                     
   Merchandise and pricing requirements for  commissary stores (sec. 372)  
        720                                                                     
      Limitation on noncompetitive procurement of brand-name commercial    
   items for resale in commissary stores (sec. 373)                        
        721                                                                     
      Treatment of revenues derived from commissary store activities (sec. 
   374)                                                                    
        721                                                                     
      Maintenance, repair, and renovation of Armed Forces Recreation       
   Center, Europe (sec. 375)                                               
        721                                                                     
      Plan for use of public and private partnerships to benefit morale,   
   welfare and recreation activities (sec. 376)                            
        721                                                                     
          Instrumentalities                                             
        722                                                                     
   Subtitle F--Other Matters                                               
        722                                                                     
      Assistance to local educational agencies that benefit dependents of  
   members of the armed forces and Department of Defense civilian employees
   (sec. 381)                                                              
        722                                                                     
      Center for Excellence in Disaster Management and Humanitarian        
   Assistance (sec. 382)                                                   
        722                                                                     
      Applicability of Federal printing requirements to Defense Automated  
   Printing Service (sec. 383)                                             
        722                                                                     
      Study and notification requirements for conversion of commercial and 
   industrial type functions to contractor performance (sec. 384)          
        722                                                                     
      Collection and retention of cost information data on contracted out  
   services and functions (sec. 385)                                       
        723                                                                     
      Financial assistance to support additional duties assigned to Army   
   National Guard (sec. 386)                                               
        723                                                                     
   Competitive procurement of printing and  duplication services (sec. 387)
        723                                                                     
      Continuation and expansion of demonstration program to identify      
   overpayments made to vendors (sec. 388)                                 
        723                                                                     
      Standard forms regarding performance work statement and request for  
   proposal for conversion of services and functions at military           
   installations (sec. 389)                                                
        724                                                                     
   Base operations support for military installations  on Guam (sec. 390)  
        724                                                                     
   Warranty claims recovery pilot program (sec. 391)                       
        724                                                                     
      Program to investigate fraud, waste, and abuse within Department of  
   Defense (sec. 392)                                                      
        724                                                                     
   Multitechnology automated reader card  demonstration program (sec. 393) 
        725                                                                     
      Plan for reduction in overhead costs of inventory control points     
   (sec. 394)                                                              
        725                                                                     
      Schedule for implementation of best inventory management practices at
   Defense Logistic Agency (sec. 395)                                      
        725                                                                     
          Legislative Provisions Not Adopted                            
        726                                                                     
      Quarterly reports on execution of operation and maintenance          
   appropriations                                                          
        726                                                                     
      Exclusion of Certain Large Maintenance and Repair Projects from      
   Percentage Limitation on Contracting for Depot-Level Maintenance        
        726                                                                     
      Revision of report requirement of Navy program to monitor ecological 
   effects of organotin                                                    
        726                                                                     
      Pilot program to test an alternative technology for eliminating solid
   and liquid waste emissions during ship operations                       
        727                                                                     
      Transfer of jurisdiction over exchange, commissary, and morale,      
   welfare and recreation activities to Under sec.retary of Defense        
   Comptroller                                                             
        727                                                                     
      Authorized use of appropriated funds for relocation of Navy Exchange 
   Service Command                                                         
        727                                                                     
      Prohibition on use of Special Operations Command budget for base     
   operation support                                                       
        728                                                                     
      Availability of funds for separation pay for defense acquisition     
   personnel                                                               
        728                                                                     
   Competitive procurement of finance and accounting  services             
        728                                                                     
      Competitive procurement of services to dispose of surplus defense    
   property                                                                
        728                                                                     
      Competitive procurement of functions performed by Defense Information
   Systems Agency                                                          
        729                                                                     
      Competitive procurement of commercial and industrial type functions  
   by defense agencies                                                     
        729                                                                     
      Consolidation of procurement technical assistance centers and        
   electronic commerce resource centers                                    
        729                                                                     
   Risk assessments under the defense environmental  restoration program   
        729                                                                     
      Tagging system for identification of hydrocarbon fuels used by the   
   Department of Defense                                                   
        729                                                                     
   Report on options for the disposal of chemical  weapons and agents      
        730                                                                     
   Integration of military exchange services                               
        730                                                                     
    Title IV--Military Personnel Authorizations                            
        730                                                                     
          Legislative Provisions Adopted                                
        730                                                                     
   Subtitle A--Active Forces                                               
        730                                                                     
   End strengths for active forces (sec. 401)                              
        730                                                                     
      Permanent end strength levels to support two major regional          
   contingencies (sec. 402)                                                
        731                                                                     
   Subtitle B--Reserve Forces                                              
        732                                                                     
   End strengths for Selected Reserve (sec. 411)                           
        732                                                                     
      End strengths for Reserves on active duty in support of the Reserves 
   (sec. 412)                                                              
        733                                                                     
   End strengths for military technicians (dual  status) (sec. 413)        
        734                                                                     
   Subtitle C--Authorization of Appropriations                             
        735                                                                     
   Authorization of appropriations for military  personnel (sec. 421)      
        735                                                                     
          Legislative Provisions Not Adopted                            
        735                                                                     
      Increase in number of members in certain grades authorized to serve  
   on active duty in support of the reserves                               
        735                                                                     
    Title V--Military Personnel Policy                                     
        736                                                                     
          Items of Special Interest                                     
        736                                                                     
   Personal Finance Training                                               
        736                                                                     
      Sequester of Department of Defense funds as a result of a prohibition
   against military recruiting on campuses of Connecticut State colleges   
   and universities                                                        
        736                                                                     
          Legislative Provisions Adopted                                
        736                                                                     
   Subtitle A--Officer Personnel Policy                                    
        736                                                                     
      Limitation on number of general and flag officers who may serve in   
   positions outside their own service (sec. 501)                          
        736                                                                     
      Exclusion of certain retired officers from limitation on period of   
   recall to active duty (sec. 502)                                        
        737                                                                     
      Clarification of officers eligible for consideration by promotion    
   boards (sec. 503)                                                       
        737                                                                     
      Authority to defer mandatory retirement for age of officers serving  
   as chaplains (sec. 504)                                                 
        737                                                                     
      Increase in number of officers allowed to be frocked to grades of    
   colonel and Navy captain (sec. 505)                                     
        738                                                                     
      Increased years of commissioned service for mandatory retirement of  
   regular generals and admirals in grades above major general and rear    
   admiral (sec. 506)                                                      
        738                                                                     
      Uniform policy for requirement of exemplary conduct by commanding    
   officers and others in authority (sec. 507)                             
        738                                                                     
      Report on the command selection process for District Engineers of the
   Army Corps of Engineers (sec. 508)                                      
        738                                                                     
   Subtitle B--Reserve Component Matters                                   
        739                                                                     
   Individual Ready Reserve activation authority  (sec. 511)               
        739                                                                     
   Termination of Mobilization Income Insurance  Program (sec. 512)        
        739                                                                     
      Correction of inequities in medical and dental care and death and    
   disability benefits for reserve members who incur or aggravate an       
   illness in the line of duty (sec. 513)                                  
        739                                                                     
      Authority to permit non-unit assigned officers to be considered by   
   vacancy promotion board to general officer grades (sec. 514)            
        739                                                                     
      Prohibition on use of Air Force Reserve AGR personnel for Air Force  
   base security functions (sec. 515)                                      
        739                                                                     
      Involuntary separation of reserve officers in an inactive status     
   (sec. 516)                                                              
        740                                                                     
      Federal status of service by National Guard members as honor guards  
   at funerals of veterans (sec. 517)                                      
        740                                                                     
   Subtitle C--Military Technicians                                        
        740                                                                     
      Authority to retain on the reserve active-status list until age 60   
   military technicians in the grade of brigadier general (sec. 521)       
        740                                                                     
   Military technicians (dual status) (sec. 522)                           
        741                                                                     
   Non-dual status military technicians (sec. 523)                         
        741                                                                     
      Report on feasibility and desirability of conversion of AGR personnel
   to military technicians (dual status) (sec. 524)                        
        741                                                                     
      Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit   
   Attrition                                                               
        742                                                                     
   Reform of military recruiting systems (sec. 531)                        
        742                                                                     
      Improvements in medical prescreening of applicants for military      
   service (sec. 532)                                                      
        742                                                                     
   Improvements in physical fitness of recruits (sec.  533)                
        742                                                                     
   Subtitle E--Military Education and Training                             
        743                                                                     
   Part I--Officer Education Programs                                      
        743                                                                     
      Requirement for candidates for admission to United States Naval      
   Academy to take oath of allegiance (sec. 541)                           
        743                                                                     
   Service academy foreign exchange program (sec.  542)                    
        743                                                                     
      Reimbursement of expenses incurred for instruction at service        
   academies of persons from foreign countries (sec. 543)                  
        743                                                                     
   Continuation of support to senior military  colleges (sec. 544)         
        743                                                                     
      Report on making United States nationals eligible for participation  
   in Senior Reserve Officers' Training Corps (sec. 545)                   
        744                                                                     
      Coordination of establishment and maintenance of Junior Reserve      
   Officers' Training Corps units to maximize enrollment and enhance       
   efficiency (sec. 546)                                                   
        744                                                                     
    Part II--Other Education Matters                                       
        744                                                                     
   United States Naval Postgraduate School (sec. 551)                      
        744                                                                     
   Community College of the Air Force (sec. 552)                           
        745                                                                     
      Preservation of entitlement to educational assistance of members of  
   the Selected Reserve serving on active duty in support of a contingency 
   operation (sec. 553)                                                    
        745                                                                     
   Part III--Training of Army Drill Sergeants                              
        745                                                                     
   Reform of Army drill sergeant selection and  training process (sec. 556)
        745                                                                     
      Training in human relations matters for Army drill sergeant trainees 
   (sec. 557)                                                              
        745                                                                     
   Subtitle F--Commission on Military Training and Gender-Related Issues   
        746                                                                     
   Subtitle G--Military Decorations and Awards                             
        746                                                                     
      Purple Heart to be awarded only to members of the Armed Forces (sec. 
   571)                                                                    
        746                                                                     
      Eligibility for Armed Forces Expeditionary Medal for participation in
   Operation Joint Endeavor or Operation Joint Guard (sec. 572)            
        746                                                                     
      Clarification of eligibility of members of Ready Reserve for award of
   service medal for heroism (sec. 574)                                    
        747                                                                     
      One-year extension of period for receipt of recommendations for      
   decorations and awards for certain military intelligence personnel (sec.
   575)                                                                    
        747                                                                     
      Eligibility of certain World War II military organizations for award 
   of unit decorations (sec. 576)                                          
        747                                                                     
   Retroactivity of Medal of Honor special pension (sec. 577)              
        747                                                                     
   Subtitle H--Military Justice Matters                                    
        747                                                                     
    Subtitle I--Other Matters                                              
        748                                                                     
   Sexual harassment investigations and reports (sec. 591)                 
        748                                                                     
      Sense of the Senate regarding study of matters relating to gender    
   equity in the Armed Forces (sec. 592)                                   
        748                                                                     
      Authority for personnel to participate in management of certain      
   non-Federal entities (sec. 593)                                         
        748                                                                     
      Treatment of participation of members in Department of Defense civil 
   military programs (sec. 594)                                            
        748                                                                     
      Comptroller General study of Department of Defense civil military    
   programs (sec. 595)                                                     
        749                                                                     
   Establishment of public affairs specialty in the  Army (sec. 596)       
        749                                                                     
   Grade of defense attache AE1 in France (sec. 597)                       
        749                                                                     
   Report on crew requirements of WC-130J aircraft (sec. 598)              
        749                                                                     
      Improvement of missing persons authorities applicable to Department  
   of Defense (sec. 599)                                                   
        749                                                                     
          Legislative Provisions Not Adopted                            
        751                                                                     
      Time-in-grade requirements for reserve commissioned officers retired 
   during the drawdown period                                              
        751                                                                     
      Grade requirement for officers eligible to serve on involuntary      
   separation boards                                                       
        751                                                                     
   Study of new decorations for injury or death in line of duty            
        751                                                                     
   Suspension of Temporary Early Retirement Authority                      
        751                                                                     
      Treatment of educational accomplishments of National Guard ChalleNGe 
   program participants                                                    
        751                                                                     
      Repeal of certain staffing and safety requirements for the Army      
   Ranger Training Brigade                                                 
        751                                                                     
    Title VI--Compensation and Other Personnel Benefits                    
        752                                                                     
          Legislative Provisions Adopted                                
        752                                                                     
   Subtitle A--Pay and Allowances                                          
        752                                                                     
   Increase in basic pay for fiscal year 1998 (sec. 601)                   
        752                                                                     
   Reform of basic allowance for subsistence (sec. 602)                    
        752                                                                     
      Consolidation of basic allowance for quarters, variable housing      
   allowance, and overseas housing allowances (sec. 603)                   
        752                                                                     
      Revision of authority to adjust compensation necessitated by reform  
   of subsistence and housing allowances (sec. 604)                        
        753                                                                     
      Protection of total compensation of members while performing certain 
   duty (sec. 605)                                                         
        753                                                                     
   Subtitle B--Bonuses and Special and Incentive Pays                      
        753                                                                     
      One-year extension of certain bonuses and special pay authorities for
   reserve forces (sec. 611)                                               
        753                                                                     
      One-year extension of certain bonuses and special pay authorities for
   nurse officer candidates, registered nurses, and nurse anesthetists     
   (sec. 612)                                                              
        754                                                                     
      One-year extension of authorities relating to payment of other       
   bonuses and special pays (sec. 613)                                     
        754                                                                     
      Increase in minimum monthly rate of hazardous duty incentive pay for 
   certain members (sec. 614)                                              
        755                                                                     
   Increase in aviation career incentive pay (sec. 615)                    
        755                                                                     
   Modification of aviation officer retention bonus (sec. 616)             
        755                                                                     
   Availability of multiyear retention bonus for dental officers (sec. 617)
        755                                                                     
      Increase in variable and additional special pays for certain dental  
   officers (sec. 618)                                                     
        755                                                                     
      Availability of special pay for duty at designated hardship duty     
   locations (sec. 619)                                                    
        756                                                                     
   Definition of sea duty for purposes of career sea pay (sec. 620)        
        756                                                                     
   Modification of Selected Reserve reenlistment bonus (sec. 621)          
        756                                                                     
      Modification of Selected Reserve enlistment bonus for former enlisted
   members (sec. 622)                                                      
        756                                                                     
      Expansion of reserve affiliation bonus to include Coast Guard Reserve
   (sec. 623)                                                              
        757                                                                     
      Increase in special pay and bonuses for nuclear-qualified officers   
   (sec. 624)                                                              
        757                                                                     
      Provision of bonuses in lieu of special pay for enlisted members     
   extending tours of duty at designated locations overseas (sec. 625)     
        757                                                                     
   Increase in amount of family separation allowance (sec. 626)            
        757                                                                     
   Deadline for payment of Ready Reserve muster duty allowance (sec. 627)  
        757                                                                     
   Subtitle C--Travel and Transportation Allowances                        
        758                                                                     
      Travel and transportation allowances for dependents before approval  
   of member's court-martial sentence (sec. 631)                           
        758                                                                     
   Dislocation allowance (sec. 632)                                        
        758                                                                     
   Subtitle D--Retired Pay, Survivor Benefits, and Related Matters         
        758                                                                     
      One-year opportunity to discontinue participation in Survivor Benefit
   Plan (sec. 641)                                                         
        758                                                                     
      Time in which change in survivor benefit coverage from former spouse 
   to spouse may be made (sec. 642)                                        
        758                                                                     
   Review of Federal former spouse protection laws (sec. 643)              
        759                                                                     
   Annuities for certain military surviving spouses (sec. 644)             
        759                                                                     
      Administration of benefits for so-called minimum income widows (sec. 
   645)                                                                    
        759                                                                     
   Subtitle E--Other Matters                                               
        759                                                                     
      Loan repayment program for commissioned officers in certain health   
   professions (sec. 651)                                                  
        759                                                                     
      Conformance of NOAA commissioned officers separation pay to          
   separation pay for members of other uniformed services (sec. 652)       
        760                                                                     
      Eligibility of Public Health Service officers and NOAA commissioned  
   corps officers for reimbursement of adoption expenses (sec. 653)        
        760                                                                     
      Payment of back quarters and subsistence allowances to World War II  
   veterans who served as guerrilla fighters in the Philippines (sec. 654) 
        760                                                                     
      Subsistence of members of the Armed Forces above the poverty level   
   (sec. 655)                                                              
        760                                                                     
          Legislative Provisions Not Adopted                            
        761                                                                     
   Space available travel for members of Selected Reserve                  
        761                                                                     
      Implementation of Department of Defense Supplemental Food Program for
   military personnel outside the United States                            
        761                                                                     
   Paid-up coverage under Survivor Benefit Plan                            
        761                                                                     
    Title VII--Health Care Provisions                                      
        761                                                                     
          Legislative Provisions Adopted                                
        761                                                                     
   Subtitle A--Health Care Services                                        
        761                                                                     
      Expansion of retiree dental insurance plan to include surviving      
   spouse and child dependents of certain deceased members (sec. 701)      
        761                                                                     
   Provision of prosthetic devices to covered beneficiaries (sec. 702)     
        761                                                                     
   Study concerning the provision of comparative information (sec. 703)    
        762                                                                     
   Subtitle B--TRICARE Program                                             
        762                                                                     
   Addition of definition of TRICARE program to title 10 (sec. 711)        
        762                                                                     
   Plan for expansion of managed care option of TRICARE program (sec. 712) 
        762                                                                     
   Subtitle C--Uniformed Services Treatment Facilities                     
        762                                                                     
      Implementation of designated provider agreements for Uniformed       
   Services Treatment Facilities (sec. 721)                                
        762                                                                     
   Continued acquisition of reduced-cost drugs (sec. 722)                  
        763                                                                     
      Subtitle D--Other Changes to Existing Laws Regarding Health Care     
   Management                                                              
        763                                                                     
      Improvements in health care coverage and access for members assigned 
   to certain duty locations far from sources of care (sec. 731)           
        763                                                                     
      Dental insurance plan coverage for retirees of the Public Health     
   Service and NOAA (sec. 734)                                             
        764                                                                     
      Consistency between CHAMPUS and Medicare in payment rates for        
   services (sec. 735)                                                     
        764                                                                     
      Use of personal services contracts for provision of health care      
   services and legal protection for providers (sec. 736)                  
        765                                                                     
      Standard form and requirements regarding claims for payment for      
   services (sec. 738)                                                     
        765                                                                     
   Chiropractic health care demonstration program  (sec. 739)              
        766                                                                     
   Subtitle E--Other Matters                                               
        766                                                                     
      Continued admission of civilians as students in physician assistant  
   training program of Army Medical Department (sec. 741)                  
        766                                                                     
      Payment for emergency health care overseas for military and civilian 
   personnel of the On-Site Inspection Agency (sec. 742)                   
        766                                                                     
      Authority for agreement for use of medical resource facility,        
   Alamogordo, New Mexico (sec. 743)                                       
        766                                                                     
      Disclosures of cautionary information on prescription medications    
   (sec. 744)                                                              
        767                                                                     
   Competitive procurement of certain ophthalmic  services (sec. 745)      
        767                                                                     
      Comptroller General study of adequacy and effect of maximum allowable
   charges for physicians under CHAMPUS (sec. 746)                         
        767                                                                     
      Comptroller General study of Department of Defense pharmacy programs 
   (sec. 747)                                                              
        767                                                                     
      Comptroller General study of Navy graduate medical education program 
   (sec. 748)                                                              
        767                                                                     
      Study of expansion of pharmaceuticals by mail program to include     
   additional Medicare-eligible covered beneficiaries (sec. 749)           
        768                                                                     
      Comptroller General study of requirement for military medical        
   facilities in the National Capital Region (sec. 750)                    
        768                                                                     
      Report on policies and programs to promote healthy lifestyles for    
   members of the Armed Forces and their dependents (sec. 751)             
        768                                                                     
   Sense of Congress regarding quality health care  for retirees (sec. 752)
        768                                                                     
   Subtitle F--Persian Gulf Illness                                        
        768                                                                     
   Plan for health care services for Persian Gulf  veterans (sec. 762)     
        768                                                                     
      Comptroller General study of revised disability criteria for physical
   evaluation boards (sec. 763)                                            
        769                                                                     
      Medical care for certain reserves who served in Southwest Asia during
   the Persian Gulf War (sec. 764)                                         
        769                                                                     
      Improved medical tracking system for members deployed overseas in    
   contingency or combat operations (sec. 765)                             
        769                                                                     
      Notice of use of investigational new drugs or drugs unapproved for   
   their applied use (sec. 766)                                            
        769                                                                     
      Sense of Congress regarding the deployment of specialized units for  
   detecting and monitoring chemical, biological, and similar hazards in a 
   theater of operations (sec. 768)                                        
        770                                                                     
   Sense of Congress concerning Gulf War illness  (sec. 771)               
        770                                                                     
          Legislative Provisions Not Adopted                            
        770                                                                     
   Medical personnel conscience clause                                     
        770                                                                     
       Title VIII--Acquisition Policy, Acquisition Management, and Related 
   Matters                                                                 
        771                                                                     
          Items of Special Interest                                     
        771                                                                     
   Cost accounting standards board                                         
        771                                                                     
          Legislative Provisions Adopted                                
        771                                                                     
      Subtitle A--Amendments to General Contracting Authorities,           
   Procedures, and Limitations                                             
        771                                                                     
      Expansion of authority to enter into contracts crossing fiscal years 
   to all severable service contracts not exceeding a year (sec. 801)      
        771                                                                     
      Vesting of title in the United States under contracts paid under     
   progress payment arrangements or similar arrangements (sec. 802)        
        772                                                                     
   Restriction on undefinitized contract actions  (sec. 803)               
        772                                                                     
      Limitation and report on payment of restructuring costs under defense
   contracts (sec. 804)                                                    
        772                                                                     
   Multiyear procurement contracts (sec. 806)                              
        772                                                                     
      Audit of procurement of military clothing and clothing-related items 
   by military installations in the United States (sec. 807)               
        773                                                                     
      Limitation on allowability of compensation for certain contractor    
   personnel (sec. 808)                                                    
        773                                                                     
   Elimination of certification requirement for  grants (sec. 809)         
        773                                                                     
   Repeal of limitation on adjustment of shipbuilding  contracts (sec. 810)
        774                                                                     
      Item-by-item and country-by-country waivers of domestic source       
   limitations (sec. 811)                                                  
        774                                                                     
   Subtitle B--Acquisition Assistance Programs                             
        774                                                                     
   One-year extension of pilot mentor-prote AE1ge AE1 program (sec. 821)   
        774                                                                     
      Test program for negotiation of comprehensive subcontracting plans   
   (sec. 822)                                                              
        774                                                                     
   Subtitle C--Administrative Provisions                                   
        775                                                                     
      Retention of expired funds during the pendency of contract litigation
   (sec. 831)                                                              
        775                                                                     
   Protection of certain information from disclosure  (sec. 832)           
        775                                                                     
   Unit cost reports (sec. 833)                                            
        775                                                                     
      Plan for providing contracting information to general public and     
   small business (sec. 834)                                               
        775                                                                     
      Two-year extension of crediting of certain purchases toward meeting  
   subcontracting goals (sec. 835)                                         
        776                                                                     
   Subtitle D--Other Matters                                               
        776                                                                     
   Repeal of certain acquisition requirements and reports (sec. 841)       
        776                                                                     
      Use of major range and test facility installations by commercial     
   entities (sec. 842)                                                     
        776                                                                     
      Requirement to develop and maintain list of firms not eligible for   
   defense contracts (sec. 843)                                            
        776                                                                     
      Sense of Congress regarding allowability of costs of employee stock  
   ownership plans (sec. 844)                                              
        777                                                                     
      Expansion of personnel eligible to participate in demonstration      
   project relating to acquisition workforce (sec. 845)                    
        777                                                                     
      Time for submission of annual report relating to Buy American Act    
   (sec. 846)                                                              
        777                                                                     
      Repeal of requirement for contractor guarantees on major weapon      
   systems (sec. 847)                                                      
        778                                                                     
   Requirements relating to micro-purchases (sec. 848)                     
        778                                                                     
   Promotion rate for officers in an acquisition  corps (sec. 849)         
        778                                                                     
   Use of electronic commerce in federal procurement  (sec. 850)           
        779                                                                     
      Conformance of policy on performance based management of civilian    
   acquisition programs with policy established for defense acquisition    
   programs (sec. 851)                                                     
        779                                                                     
      Modification of process requirements for the solutions-based         
   contracting pilot program (sec. 852)                                    
        779                                                                     
      Guidance and standards for defense acquisition workforce training    
   requirements (sec. 853)                                                 
        779                                                                     
      Study and report to Congress assessing dependence on foreign sources 
   for resistors and capacitors (sec. 854)                                 
        780                                                                     
      Department of Defense and Federal Prison Industries joint study (sec.
   855)                                                                    
        780                                                                     
          Legislative Provisions Not Adopted                            
        780                                                                     
   Domestic source limitation amendments                                   
        780                                                                     
      Repeal of expiration of domestic source limitation for certain naval 
   vessel propellers                                                       
        780                                                                     
   Availability of simplified procedures to  commercial item procurements  
        781                                                                     
   Price preference for small and disadvantaged  businesses                
        781                                                                     
    Title IX--Department of Defense Organization and Management            
        781                                                                     
          Legislative Provisions Adopted                                
        781                                                                     
      Subtitle A--Department of Defense Positions and Organizations and    
   Other General Matters                                                   
        781                                                                     
   Senior Representatives of the National Guard Bureau (sec. 901)          
        781                                                                     
   Use of CINC Initiative Fund for force protection  (sec. 902)            
        783                                                                     
      Revision to required frequency for provision of policy guidance for  
   contingency plans (sec. 903)                                            
        783                                                                     
      Annual justification for Department of Defense advisory committees   
   (sec. 904)                                                              
        783                                                                     
   Defense Airborne Reconnaissance Office (sec. 905)                       
        783                                                                     
   Termination of Armed Services Patent Advisory  Board (sec. 906)         
        785                                                                     
      Coordination of Department of Defense criminal investigations and    
   audits (sec. 907)                                                       
        785                                                                     
   Subtitle B--Department of Defense Personnel Management                  
        786                                                                     
      Reduction in personnel assigned to management headquarters and       
   headquarters support activities (sec. 911)                              
        786                                                                     
   Additional reduction in defense acquisition  workforce (sec. 912)       
        786                                                                     
   Subtitle C--Department of Defense Schools and Centers                   
        787                                                                     
   Professional military education schools (sec. 921)                      
        787                                                                     
   Center for Hemispheric Defense Studies (sec. 922)                       
        787                                                                     
      Correction to reference to George C. Marshall European Center for    
   Security Studies (sec. 923)                                             
        787                                                                     
   Subtitle D--Department of Defense Intelligence-Related Matters          
        787                                                                     
      Transfer of certain military department programs from TIARA budget   
   aggregation (sec. 931)                                                  
        787                                                                     
      Report on coordination of access of commanders and deployed units to 
   intelligence collected and analyzed by the intelligence community (sec. 
   932)                                                                    
        788                                                                     
      Protection of imagery, imagery intelligence, and geospatial          
   information and data (sec. 933)                                         
        788                                                                     
   POW/MIA intelligence analysis (sec. 934)                                
        788                                                                     
          Legislative Provisions Not Adopted                            
        788                                                                     
      Limitation on operation and support funds for the office of the      
   Secretary of Defense                                                    
        788                                                                     
   Center for the Study of Chinese Military Affairs                        
        789                                                                     
   White House Communications Agency                                       
        789                                                                     
   Personnel reductions in the United States Transportation Command        
        789                                                                     
   Commission on Defense Organization and Streamlining                     
        790                                                                     
      Principal duty of Assistant Secretary of Defense for Special         
   perations and Low Intensity Conflict                                    
        790                                                                     
    Title X--General Provisions                                            
        790                                                                     
          Items of Special Interest                                     
        790                                                                     
   Global Positioning System alternate master control station              
        790                                                                     
          Legislative Provisions Adopted                                
        791                                                                     
   Subtitle A--Financial Matters                                           
        791                                                                     
   Transfer authority (sec. 1001)                                          
        791                                                                     
   Incorporation of classified annex (sec. 1002)                           
        791                                                                     
      Authority for obligation of unauthorized fiscal year 1997 defense    
   appropriations (sec. 1003)                                              
        791                                                                     
      Authorization of prior emergency supplemental appropriations for     
   fiscal year 1997 (sec. 1004)                                            
        792                                                                     
   Increase in fiscal year 1996 transfer authority (sec. 1005)             
        792                                                                     
   Revision of authority for Fisher House trust funds (sec. 1006)          
        792                                                                     
      Flexibility in financing closure of certain outstanding contracts for
   which a small final payment is due (sec. 1007)                          
        792                                                                     
   Biennial financial management improvement plan (sec. 1008)              
        792                                                                     
      Estimates and requests for procurement and military construction for 
   the reserve components (sec. 1009)                                      
        792                                                                     
      Sense of Congress regarding funding for reserve component            
   modernization not requested in the President's budget (sec. 1010)       
        793                                                                     
   Management of working-capital funds (sec. 1011                          
        793                                                                     
      Authority of Secretary of Defense to settle claims relating to pay,  
   allowances, and other benefits (sec. 1012)                              
        794                                                                     
      Payment of claims by members for loss of personnel property due to   
   flooding in Red River Basin (sec. 1013)                                 
        794                                                                     
   Advances for payment of public services (sec. 1014)                     
        794                                                                     
   United States Man and the Biosphere Program limitation (sec. 1015)      
        794                                                                     
   Subtitle B--Naval Vessels and Shipyards                                 
        795                                                                     
      Procedures for sale of vessels stricken from the Naval Vessel        
   Register (sec. 1021)                                                    
        795                                                                     
      Authority to enter into a long-term charter for a vessel in support  
   of the Surveillance Towed-Array Sensor (SURTASS) program (sec. 1022)    
        795                                                                     
   Transfer of two specified obsolete tugboats of the  Army (sec. 1023)    
        795                                                                     
      Congressional review period with respect to transfer of the ex-U.S.S 
   Midway (CV 41) and ex.-U.S.S. Hornet (CV 12) (sec. 1024)                
        795                                                                     
   Transfers of naval vessels to certain foreign countries (sec. 1025)     
        795                                                                     
      Reports relating to export of vessels that may contain               
   polychlorinated biphenyls (sec. 1026)                                   
        796                                                                     
      Conversion of defense capability preservation authority to Navy      
   shipbuilding capability preservation authority (sec. 1027)              
        797                                                                     
   Subtitle C--Counter-Drug Activities                                     
        797                                                                     
      Use of National Guard for State drug interdiction and counterdrug    
   activities (sec. 1031)                                                  
        799                                                                     
      Authority to provide additional support for counter-drug activities  
   of the government of Mexico (sec. 1032)                                 
        799                                                                     
      Authority to provide additional support for counter-drug activities  
   of Peru and Colombia (sec. 1033)                                        
        799                                                                     
      Annual report on development and deployment of narcotics detection   
   technology (sec. 1034)                                                  
        800                                                                     
   Subtitle D--Miscellaneous Report Requirements and Repeals               
        800                                                                     
   Repeal of miscellaneous reporting requirements  (sec. 1041)             
        800                                                                     
   Study of transfer of Modular Airborne Fire  Fighting System (sec. 1042) 
        800                                                                     
   Overseas infrastructure requirements (sec. 1043)                        
        800                                                                     
      Additional matters for annual report on activities of the General    
   Accounting Office (sec. 1044)                                           
        801                                                                     
   Eye safety at small arms firing ranges (sec. 1045)                      
        801                                                                     
      Reports on Department of Defense procedures for investigating        
   military aviation accidents and for notifying and assisting families of 
   victims (sec. 1046)                                                     
        801                                                                     
   Subtitle E--Matters Relating to Terrorism                               
        802                                                                     
      Oversight of counterterrorism and antiterrorism programs and         
   activities of the United States (sec. 1051)                             
        802                                                                     
      Report on policies and practices relating to the protection of       
   members of the armed forces abroad from terrorist attack (sec. 1052)    
        802                                                                     
   Subtitle F--Matters Relating to Defense Property                        
        803                                                                     
      Lease of nonexcess personal property of the military departments     
   (sec. 1061)                                                             
        803                                                                     
   Lease of nonexcess property of defense agencies  (sec. 1062)            
        803                                                                     
      Donation of excess chapel property to churches damaged or destroyed  
   by arson or other acts of terrorism (sec. 1063)                         
        803                                                                     
      Authority of the Secretary of Defense concerning disposal of assets  
   under cooperative agreements on air defense in Central Europe (sec.     
   1064)                                                                   
        803                                                                     
      Sale of excess, obsolete, or unserviceable ammunition and ammunition 
   components (sec. 1065)                                                  
        804                                                                     
   Transfer of B 17 aircraft to museum (sec. 1066)                         
        805                                                                     
   Report on disposal of excess and surplus materials  (sec. 1067)         
        805                                                                     
   Subtitle G--Other Matters                                               
        805                                                                     
      Authority for special agents of the Defense Criminal Investigative   
   Service to execute warrants and make arrests (sec. 1071)                
        805                                                                     
      Study of investigative practices of military criminal investigative  
   organizations relating to sex crimes (sec. 1072)                        
        806                                                                     
   Technical and clerical amendments (sec. 1073)                           
        806                                                                     
   Sustainment and operation of the Global  Positioning System (sec. 1074) 
        806                                                                     
      Protection of safety-related information voluntarily provided by air 
   carriers (sec. 1075)                                                    
        806                                                                     
      National Guard ChalleNGe Program to create opportunities for civilian
   youth (sec. 1076)                                                       
        806                                                                     
      Disqualification from certain burial-related benefits for persons    
   convicted of capital crimes (sec. 1077)                                 
        807                                                                     
      Restrictions on the use of human subjects for testing of chemical or 
   biological agents (sec. 1078)                                           
        807                                                                     
   Treatment of military flight operations (sec.  1079)                    
        808                                                                     
      Naturalization of certain foreign nationals who serve honorably in   
   the Armed Forces during a period of conflict (sec. 1080)                
        808                                                                     
      Applicability of certain pay authorities to members of specified     
   independent study organizations (sec. 1081)                             
        808                                                                     
   Display of POW/MIA flag (sec. 1082)                                     
        809                                                                     
      Program to commemorate 50th anniversary of the Korean conflict (sec. 
   1083)                                                                   
        809                                                                     
      Commendation of members of the Armed Forces and Government civilian  
   personnel who served during the Cold War; certificate of recognition    
   (sec. 1084)                                                             
        809                                                                     
   Sense of Congress on granting of statutory Federal  charters (sec. 1085)
        809                                                                     
   Sense of Congress regarding military voting rights  (sec. 1086)         
        810                                                                     
      Designation of Bob Hope as an honorary veteran of the Armed Forces of
   the United States (sec. 1087)                                           
        810                                                                     
   Five-year extension of aviation insurance program  (sec. 1088)          
        811                                                                     
          Legislative provisions not adopted                            
        811                                                                     
   Naming of a DDG 51 class destroyer the U.S.S.  Thomas F. Connolly       
        811                                                                     
      Assignment of Department of Defense personnel to assist immigration  
   and naturalization service and custom service                           
        811                                                                     
      Repeal of annual report requirement relating to training of special  
   operations forces with friendly foreign forces                          
        811                                                                     
   Armament retooling and manufacturing support  initiative                
        811                                                                     
      Long-term charter contracts for acquisition of auxiliary vessels for 
   the Department of Defense                                               
        812                                                                     
      Availability of certain fiscal year 1991 funds for payment of        
   contract claim                                                          
        812                                                                     
   Psychotherapist-patient privilege in the Military  Rules of Evidence    
        812                                                                     
      Acceptance and use of landing fees for use of overseas military      
   airfields by civil aircraft                                             
        812                                                                     
      Protection of employees from retaliation for certain disclosures of  
   classified information                                                  
        812                                                                     
      Criminal prohibition on the distribution of certain information      
   relating to explosives, destructive devices, and weapons of mass        
   destruction                                                             
        813                                                                     
      Restrictions on quantities of alcoholic beverages available for      
   personnel overseas through Department of Defense sources                
        813                                                                     
    Title XI--Department of Defense Civilian Personnel                     
        814                                                                     
          Legislative Provisions Adopted                                
        814                                                                     
      Use of prohibited constraints to manage Department of Defense        
   personnel (sec. 1101)                                                   
        814                                                                     
      Veterans' preference status for certain veterans who served on active
   duty during the Persian Gulf War (sec. 1102)                            
        814                                                                     
      Repeal of deadline for placement consideration of involuntarily      
   separated military reserve technicians (sec. 1103)                      
        814                                                                     
      Rate of pay of Department of Defense overseas teachers upon transfer 
   to General Schedule position (sec. 1104)                                
        814                                                                     
   Garnishment and involuntary allotment (sec. 1105)                       
        815                                                                     
      Extension and revision of voluntary separation incentive pay         
   authority (sec. 1106)                                                   
        815                                                                     
      Use of approved fire-safe accommodations by Government employees on  
   official business (sec. 1107)                                           
        815                                                                     
      Navy higher education pilot program regarding administration of      
   business relationships between Government and private sector (sec. 1108)
        815                                                                     
      Authority for Marine Corps University to employ civilian faculty     
   members (sec. 1109)                                                     
        816                                                                     
    Title XII--Matters Relating to Other Nations                           
        816                                                                     
          Legislative Provisions Adopted                                
        816                                                                     
   Subtitle A--United States Armed Forces in Bosnia and Herzegovina        
        816                                                                     
      Limitation on the use of funds for the deployment of U.S. forces in  
   Bosnia beyond June 30, 1998 (secs. 1201 1206)                           
        816                                                                     
   Subtitle B--Export Controls on High Performance Computers               
        817                                                                     
   Export controls on high performance computers  (secs. 1211 1215)        
        817                                                                     
   Subtitle C--Other Matters                                               
        819                                                                     
      Temporary use of general purpose vehicles and nonlethal military     
   equipment under acquisition and cross servicing agreements (sec. 1222)  
        819                                                                     
      Sense of Congress and reports regarding financial costs of           
   enlargement of the North Atlantic Treaty Organization (sec. 1223)       
        819                                                                     
      Sense of Congress regarding expansion of the North Atlantic Treaty   
   Organization (sec. 1224)                                                
        819                                                                     
      Sense of the Congress relating to level of United States military    
   personnel in the East Asia and Pacific region (sec. 1225)               
        820                                                                     
      Report on future military capabilities and strategy of the People's  
   Republic of China (sec. 1226)                                           
        820                                                                     
      Sense of Congress on need for Russian openness on the Yamantau       
   Mountain Project (sec. 1227)                                            
        820                                                                     
      Assessment of the Cuban threat to United States national security    
   (sec. 1228)                                                             
        821                                                                     
   Report on Helsinki Joint Statement (sec. 1229)                          
        821                                                                     
   Commendation of Mexico on free and fair elections  (sec. 1230)          
        821                                                                     
   Sense of Congress regarding Cambodia (sec. 1231)                        
        821                                                                     
   Congratulating Governor Christopher Patten of Hong  Kong (sec. 1232)    
        822                                                                     
    Title XIII--Arms Control and Related Matters                           
        822                                                                     
          Legislative Provisions Adopted                                
        822                                                                     
      Presidential report concerning detargeting of Russian strategic      
   missiles (sec. 1301)                                                    
        822                                                                     
      Limitation on retirement or dismantlement of strategic nuclear       
   delivery systems (sec. 1302)                                            
        823                                                                     
      Assistance for facilities subject to inspection under the Chemical   
   Weapons Convention (sec. 1303).                                         
        823                                                                     
      Transfers of authorizations for high-priority counterproliferation   
   programs (sec. 1304)                                                    
        823                                                                     
      Advice to the President and Congress regarding the safety, security, 
   and reliability of United States nuclear weapons stockpile (sec. 1305)  
        824                                                                     
      Reconstitution of Commission to Assess the Ballistic Missile Threat  
   to the United States (sec. 1306)                                        
        824                                                                     
      Sense of Congress regarding the relationship between environmental   
   laws and United States obligations under the Chemical Weapons Convention
   (sec. 1307)                                                             
        824                                                                     
      Extension of counterproliferation authorities for support of United  
   Nations Special Commission on Iraq (sec. 1308)                          
        825                                                                     
      Annual report on moratorium on use by Armed Forces of antipersonnel  
   landmines (sec. 1309)                                                   
        825                                                                     
       Title XIV--Cooperative Threat Reduction With States of Former Soviet
   Union                                                                   
        826                                                                     
          Legislative Provisions Adopted                                
        826                                                                     
   Cooperative threat reduction (CTR) program (secs. 1401 1410)            
        826                                                                     
    Title XV--Federal Charter for the Air Force Sergeants                  
        828                                                                     
          Legislative Provisions Adopted                                
        828                                                                     
      Federal Charter for the Air Force Sergeants Association (secs. 1501  
   1516)                                                                   
        828                                                                     
   DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS                        
        828                                                                     
   Overview                                                                
        828                                                                     
    Title XXI--Army                                                        
        850                                                                     
   Overview                                                                
        850                                                                     
          Items of Special Interest                                     
        850                                                                     
   Planning and design, Army                                               
        850                                                                     
   Improvements of Military Family Housing, Army                           
        851                                                                     
          Legislative Provisions Adopted                                
        851                                                                     
      Correction in authorized uses of funds, Fort Irwin, California (sec. 
   2105)                                                                   
        851                                                                     
    Title XXII--Navy                                                       
        851                                                                     
   Overview                                                                
        851                                                                     
          Items of Special Interest                                     
        852                                                                     
   Improvements of military family housing, Navy                           
        852                                                                     
          Legislative Provisions Adopted                                
        852                                                                     
      Authorization of military construction project at Naval Station,     
   Pascagoula, Mississippi, for which funds have been appropriated (sec.   
   2205)                                                                   
        852                                                                     
      Increase in authorization for military construction projects at Naval
   Station Roosevelt Roads, Puerto Rico (sec. 2206)                        
        852                                                                     
    Title XXIII--Air Force                                                 
        852                                                                     
   Overview                                                                
        852                                                                     
          Items of Special Interest                                     
        853                                                                     
   Improvements of military family housing, Air Force                      
        853                                                                     
          Legislative Provisions Adopted                                
        853                                                                     
      Authorization of military construction project at McConnell Air Force
   Base, Kansas, for which funds have been appropriated (sec. 2305)        
        853                                                                     
    Title XXIV--Defense Agencies                                           
        853                                                                     
   Overview                                                                
        853                                                                     
          Legislative Provisions Adopted                                
        854                                                                     
      Clarification of authority relating to fiscal year 1997 project at   
   Naval Station, Pearl Harbor, Hawaii (sec. 2406)                         
        854                                                                     
      Correction in authorized uses of funds, McClellan Air Force Base,    
   California (sec. 2407)                                                  
        854                                                                     
      Modification of authority to carry out fiscal year 1995 projects     
   (sec. 2408)                                                             
        854                                                                     
       Title XXV--North Atlantic Treaty Organization Security Investment   
   Program                                                                 
        854                                                                     
   Overview                                                                
        854                                                                     
    Title XXVI--Guard and Reserve Forces Facilities                        
        855                                                                     
   Overview                                                                
        855                                                                     
          Items of Special Interest                                     
        855                                                                     
   Reserve construction project, Oakdale, Pennsylvania                     
        855                                                                     
          Legislative Provisions Adopted                                
        855                                                                     
      Authorization of military construction projects for which funds have 
   been appropriated (sec. 2602)                                           
        855                                                                     
   Army Reserve construction project, Camp Williams, Utah (sec. 2603)      
        856                                                                     
    Title XXVII--Expiration and Extension of Authorizations                
        856                                                                     
          Legislative Provisions Adopted                                
        856                                                                     
      Extension of authorizations of certain fiscal year 1995 projects     
   (sec. 2702)                                                             
        856                                                                     
      Extension of authorizations of certain fiscal year 1994 projects     
   (sec. 2703)                                                             
        856                                                                     
      Extension of authorizations of certain fiscal year 1993 projects     
   (sec. 2704)                                                             
        856                                                                     
      Extension of availability of funds for construction of relocatable   
   over-the-horizon radar, Naval Station Roosevelt Roads, Puerto Rico (sec.
   2706)                                                                   
        857                                                                     
    Title XXVIII--General Provisions                                       
        857                                                                     
          Legislative Provisions Adopted                                
        857                                                                     
      Subtitle A--Military Construction Program and Military Family Housing
   Changes                                                                 
        857                                                                     
      Use of mobility enhancement funds for unspecified minor construction 
   (sec. 2801)                                                             
        857                                                                     
      Limitation on the use of operation and maintenance funds for facility
   repair projects (sec. 2802)                                             
        857                                                                     
      Leasing of military family housing, United States Southern Command,  
   Miami, Florida (sec. 2803)                                              
        857                                                                     
      Use of financial incentives provided as part of energy savings and   
   water conservation activities (sec. 2804)                               
        858                                                                     
      Congressional notification requirements regarding use of Department  
   of Defense housing funds for investments in nongovernmental entities    
   (sec. 2805)                                                             
        858                                                                     
   Subtitle B--Real Property and Facilities Administration                 
        858                                                                     
   Increase in ceiling for minor land acquisition projects (sec. 2811)     
        858                                                                     
   Permanent authority regarding conveyance of utility systems (sec. 2812) 
        858                                                                     
      Administrative expenses for certain real property transactions (sec. 
   2813)                                                                   
        859                                                                     
      Screening of real property to be conveyed by the Department of       
   Defense (sec. 2814)                                                     
        859                                                                     
      Disposition of proceeds from sale of Air Force Plant 78, Brigham     
   City, Utah (sec. 2815)                                                  
        860                                                                     
      Fire protection and hazardous materials protection at Fort Meade,    
   Maryland (sec. 2816)                                                    
        860                                                                     
   Subtitle C--Defense Base Closure and Realignment                        
        860                                                                     
      Consideration of military installations as sites for new Federal     
   facilities (sec. 2821)                                                  
        860                                                                     
      Adjustment and diversification assistance to enhance performance of  
   military family support services by private sector sources (sec. 2822)  
        861                                                                     
      Security, fire protection, and other services at property formerly   
   associated with Red River Army Depot, Texas (sec. 2823)                 
        861                                                                     
   Report on closure and realignment of military installations (sec. 2824) 
        861                                                                     
      Sense of Senate regarding utilization of savings derived from base   
   closure process (sec. 2825)                                             
        862                                                                     
      Prohibition against conveyance of property at Long Beach Naval       
   Station to China Ocean Shipping Company (sec. 2826)                     
        862                                                                     
   Subtitle D--Land Conveyances                                            
        862                                                                     
   Part I--Army Conveyances                                                
        862                                                                     
   Land conveyance, Army Reserve Center, Greensboro, Alabama (sec. 2831)   
        862                                                                     
      Land Conveyance, James T. Coker Army Reserve Center, Durant, Oklahoma
   (sec. 2832)                                                             
        863                                                                     
      Land conveyance, Gibson Army Reserve Center, Chicago, Illinois (sec. 
   2833)                                                                   
        863                                                                     
   Land conveyance, Fort A.P Hill, Virginia (sec. 2834)                    
        863                                                                     
   Land conveyances, Fort Dix, New Jersey (sec. 2835)                      
        863                                                                     
   Land conveyances, Fort Bragg, North Carolina (sec.  2836)               
        864                                                                     
      Land conveyance, Hawthorne Army Ammunition Depot, Mineral County,    
   Nevada (sec. 2837)                                                      
        864                                                                     
      Expansion of land conveyance authority, Indiana Army Ammunition      
   Plant, Charlestown, Indiana (sec. 2838)                                 
        864                                                                     
   Modification of land conveyance, Lompoc,  California (sec. 2839)        
        865                                                                     
      Modification of land conveyance, Rocky Mountain Arsenal, Colorado    
   (sec. 2840)                                                             
        865                                                                     
      Correction of land conveyance authority, Army Reserve Center,        
   Anderson, South Carolina (sec. 2841)                                    
        865                                                                     
   Part II--Navy Conveyances                                               
        865                                                                     
      Land conveyance, Topsham Annex, Naval Air Station, Brunswick, Maine  
   (sec. 2851)                                                             
        865                                                                     
      Land conveyance, Naval Weapons Industrial Reserve Plant No 464,      
   Oyster Bay, New York (sec. 2852)                                        
        866                                                                     
      Correction of lease authority, Naval Air Station, Meridian,          
   Mississippi (sec. 2853)                                                 
        866                                                                     
   Part III--Air Force Conveyances                                         
        866                                                                     
   Land transfer, Eglin Air Force Base, Florida (sec. 2861)                
        866                                                                     
   Land conveyance, March Air Force Base, California (sec. 2862)           
        866                                                                     
   Land conveyance, Hancock Field, Syracuse, New York (sec. 2864)          
        867                                                                     
      Land conveyance, Havre Air Force Station, Montana, and Havre Training
   Site, Montana (sec. 2865)                                               
        867                                                                     
      Land conveyance, Charleston Family Housing Complex, Bangor, Maine    
   (sec. 2866)                                                             
        867                                                                     
      Study of land exchange options, Shaw Air Force Base, South Carolina  
   (sec. 2867)                                                             
        867                                                                     
   Subtitle E--Other Matters                                               
        868                                                                     
   Repeal of requirement to operate Naval Academy Dairy Farm (sec. 2871)   
        868                                                                     
   Long-term lease of property, Naples, Italy (sec. 2872)                  
        868                                                                     
      Designation of military family housing at Lackland Air Force Base,   
   Texas, in honor of Frank Tejeda, a former Member of the House of        
   Representatives (sec. 2873)                                             
        868                                                                     
      Fiber-optics based telecommunications linkage of military            
   installations (sec. 2874)                                               
        868                                                                     
          Legislative Provisions Not Adopted                            
        869                                                                     
      Modification of authority for disposal of certain real property, Fort
   Belvoir, Virginia                                                       
        869                                                                     
    Title XXIX--Sikes Act Improvement                                      
        869                                                                     
   Sikes Act Improvement (secs. 2901 2914)                                 
        869                                                                     
      DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
   OTHER AUTHORIZATIONS                                                    
        870                                                                     
   Title XXXI-- Department of Energy National Security Programs            
        870                                                                     
          Legislative Provisions Adopted                                
        891                                                                     
   Subtitle A--National Security Programs Authorizations                   
        891                                                                     
   Weapons activities (sec.  3101)                                         
        891                                                                     
   Environmental restoration and waste management (sec. 3102)              
        891                                                                     
   Other defense activities (sec. 3103)                                    
        893                                                                     
   Subtitle B--Recurring General Provisions                                
        895                                                                     
   Limits on general plant projects (sec. 3122)                            
        895                                                                     
   Fund transfer authority (sec. 3124)                                     
        896                                                                     
   Authority for conceptual and construction design (sec. 3125)            
        896                                                                     
   Availability of funds (sec. 3128)                                       
        896                                                                     
   Transfers of defense environmental management funds (sec. 3129)         
        897                                                                     
   Subtitle C--Program Authorizations, Restrictions, and Limitations       
        897                                                                     
      Memorandum of understanding for use of national laboratories for     
   Ballistic Missile Defenses programs (sec. 3131)                         
        897                                                                     
   Defense environmental management privatization projects (sec. 3132)     
        897                                                                     
   International cooperative stockpile stewardship programs (sec. 3133)    
        898                                                                     
   Modernization of enduring nuclear weapons complex (sec. 3134)           
        898                                                                     
   Tritium production (sec. 3135)                                          
        900                                                                     
      Processing, treatment, and disposition of spent nuclear fuel rods and
   other legacy nuclear materials at the Savannah River Site (sec. 3136)   
        900                                                                     
      Limitations on use of funds for laboratory directed research and     
   development purposes (sec. 3137)                                        
        901                                                                     
      Pilot program relating to use of proceeds of disposal or utilization 
   of certain Department of Energy assets (sec. 3138)                      
        901                                                                     
      Modification and extension of authority relating to appointment of   
   certain scientific, engineering, and technical personnel (sec. 3139)    
        902                                                                     
      Limitation on use of funds for subcritical nuclear weapons tests     
   (sec. 3140)                                                             
        902                                                                     
      Limitation on use of certain funds until future use plans are        
   submitted (sec. 3141)                                                   
        902                                                                     
   Subtitle D--Other Matters                                               
        903                                                                     
      Plan for stewardship, management, and certification of warheads in   
   the nuclear weapons stockpile (sec. 3151)                               
        903                                                                     
   Repeal of obsolete reporting requirements (sec. 3152)                   
        903                                                                     
      Study and funding relating to implementation of workforce            
   restructuring plans (sec. 3153)                                         
        903                                                                     
   Plan for external oversight of national laboratories (sec. 3154)        
        904                                                                     
   University-based research collaboration program (sec. 3155)             
        904                                                                     
   Stockpile stewardship program (sec. 3156)                               
        904                                                                     
      Reports on advanced supercomputer sales to certain foreign nations   
   (sec. 3157)                                                             
        905                                                                     
      Transfers of real property at certain Department of Energy facilities
   (sec. 3159)                                                             
        905                                                                     
      Requirement to delegate certain authorities to site manager of       
   Hanford Reservation (sec 3150)                                          
        906                                                                     
   Submittal of biennial waste management reports  (sec 3160)              
        906                                                                     
   Board on security functions of Department of  Energy (sec. 3161)        
        906                                                                     
      Submittal of annual report on status of security functions at nuclear
   weapons facilities (sec. 3162)                                          
        906                                                                     
      Modification of authority on commission on maintaining United States 
   nuclear weapons expertise (sec. 3163)                                   
        907                                                                     
   Land transfer, Bandelier National Monument (sec. 3164)                  
        907                                                                     
      Final settlement of Department of Energy community assistance        
   obligations with respect to Los Alamos National Laboratory, New Mexico  
   (sec. 3165)                                                             
        907                                                                     
      Sense of Congress regarding the Y 12 Plant in Oak Ridge, Tennessee   
   (sec. 3166)                                                             
        908                                                                     
      Support for public education in the vicinity of Los Alamos National  
   Laboratory, New Mexico (sec. 3167)                                      
        908                                                                     
   Improvements to Greenville Road, Livermore,  California (sec. 3168)     
        908                                                                     
   Report on alternative system for availability of  funds (sec. 3169)     
        909                                                                     
      Report on remediation under the Formerly Utilized Sites Remedial     
   Action Program (sec. 3170)                                              
        909                                                                     
          Legislative Provisions Not Adopted                            
        909                                                                     
      Report on proposed contract for Hanford tank waste vitrification     
   project                                                                 
        909                                                                     
   Defense environmental management privatization                          
        910                                                                     
   Tritium production in commercial facilities                             
        910                                                                     
   Administration of certain Department of Energy  activities              
        911                                                                     
      Participation of the national security activities in Hispanic        
   Outreach Initiative of the Department of Energy                         
        912                                                                     
    Title XXXII--Defense Nuclear Facilities Safetyboard                    
        912                                                                     
          Legislative Provisions Adopted                                
        912                                                                     
   Report on external regulation of defense nuclear  facilities (sec. 3202)
        912                                                                     
    Title XXXIII--National Defense Stockpile                               
        913                                                                     
          Legislative Provisions Adopted                                
        913                                                                     
   Definitions (sec. 3301)                                                 
        913                                                                     
   Authorized uses of stockpile funds (sec. 3302)                          
        913                                                                     
      Authorized uses of beryllium copper master alloy in National Defense 
   Stockpile (sec. 3303)                                                   
        913                                                                     
      Disposal of titanium sponge in the National Defense Stockpile (sec.  
   3304)                                                                   
        913                                                                     
   Disposal of cobalt in National Defense Stockpile (sec. 3305)            
        913                                                                     
      Required procedures for disposal of strategic and critical materials 
   (sec. 3306)                                                             
        914                                                                     
      Return of surplus platinum from the Department of the Treasury (sec. 
   3307)                                                                   
        914                                                                     
          Legislative Provisions Not Adopted                            
        914                                                                     
   Restrictions on disposal of certain manganese ferro                     
        914                                                                     
    Title XXXIV--Naval Petroleum Reserves                                  
        914                                                                     
          Legislative Provisions Adopted                                
        914                                                                     
      Price requirement on sale of certain petroleum during fiscal year    
   1998 (sec. 3402)                                                        
        914                                                                     
      Repeal of requirement to assign Navy officers to Office of Naval     
   Petroleum and Oil Shale Reserves (sec. 3403)                            
        915                                                                     
      Transfer of jurisdiction, Naval Oil Shale Reserves numbered 1 and 3  
   (sec. 3404)                                                             
        915                                                                     
    Title XXXV--Panama Canal Commission                                    
        915                                                                     
   Panama Canal Commission (secs. 3501 3550)                               
        915                                                                     
    Title XXXVI--Maritime Administration                                   
        916                                                                     
          Legislative Provisions Adopted                                
        916                                                                     
   Authorization of appropriations for fiscal year  1998 (sec. 3601)       
        916                                                                     
      Repeal of obsolete annual report requirement concerning relative cost
   of shipbuilding in the various coastal districts of the United States   
   (sec. 3602)                                                             
        916                                                                     
   Provisions relating to maritime security fleet  program (sec. 3603)     
        916                                                                     
   Authority to utilize replacement vessels and  capacity (sec. 3604)      
        917                                                                     
   Authority to convey National Defense Reserve Fleet  vessel (sec. 3605)  
        917                                                                     
      Determination of gross tonnage for purposes of tank vessel double    
   hull requirements (sec. 3606)                                           
        917                                                                     
 44 180                                                                  
105 th Congress                                                         
Report                                                                  
                                                                             
HOUSE OF REPRESENTATIVES                                                
1st Session                                                             
105 340                                                                 
       NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998                 
 October  23, 1997.--Ordered to be printed                               
 Mr.  Spence , from the committee of conference, submitted the following 
 CONFERENCE REPORT                                                       
 [To accompany H.R. 1119]                                                
       The committee of conference on the disagreeing votes of the two     
   Houses on the amendments of the Senate to the bill (H.R. 1119) to       
   authorize appropriations for fiscal year 1998 for military activities of
   the Department of Defense, for military construction, and for defense   
   activities of the Department of Energy, to prescribe personnel strengths
   for such fiscal year for the Armed Forces, and for other purposes,      
   having met, after 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 to the text of the bill and agree to the same with an amendment  
   as follows:                                                             
       In lieu of the matter proposed to be inserted by the Senate         
   amendment, insert the following:                                        
          SECTION 1. SHORT TITLE.                                                 
     This Act may be cited as the ``National Defense Authorization Act for
  Fiscal Year 1998''.                                                     
          SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.          
     (a) Divisions.--This Act is organized into three divisions as        
  follows:                                                                
     (1) Division A--Department of Defense Authorizations.                 
     (2) Division B--Military Construction Authorizations.                 
       (3) Division C--Department of Energy National Security              
   Authorizations and Other Authorizations.                                
     (b) Table of Contents.--The table of contents for this Act is as     
  follows:                                                                
      Sec. 1. Short title.                                                    
      Sec. 2. Organization of Act into divisions; table of contents.          
      Sec. 3. Congressional defense committees defined.                       
                      DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS            
                                    TITLE I--PROCUREMENT                          
                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              
      Sec. 101. Army.                                                         
      Sec. 102. Navy and Marine Corps.                                        
      Sec. 103. Air Force.                                                    
      Sec. 104. Defense-wide activities.                                      
      Sec. 105. Reserve components.                                           
      Sec. 106. Defense Inspector General.                                    
      Sec. 107. Chemical Demilitarization Program.                            
      Sec. 108. Defense health programs.                                      
      Sec. 109. Defense Export Loan Guarantee Program.                        
                                  SUBTITLE B--ARMY PROGRAMS                       
      Sec. 111. Army helicopter modernization plan.                           
      Sec. 112. Multiyear procurement authority for specified Army programs.  
      Sec. 113. M113 vehicle modifications.                                   
                                  SUBTITLE C--NAVY PROGRAMS                       
      Sec. 121. New Attack Submarine program.                                 
      Sec. 122. CVN 77 nuclear aircraft carrier program.                      
      Sec. 123. Exclusion from cost limitation for Seawolf submarine program. 
                               SUBTITLE D--AIR FORCE PROGRAMS                     
      Sec. 131. Authorization for B 2 bomber program.                         
      Sec. 132. ALR radar warning receivers.                                  
            Sec. 133. Analysis of requirements for replacement of engines on  
      military aircraft derived from Boeing 707 aircraft.                     
                                  SUBTITLE E--OTHER MATTERS                       
            Sec. 141. Pilot program on sales of manufactured articles and     
      services of certain Army industrial facilities without regard to        
      availability from domestic sources.                                     
      Sec. 142. NATO Joint Surveillance/Target Attack Radar System.           
                    TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION         
                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              
      Sec. 201. Authorization of appropriations.                              
      Sec. 202. Amount for basic and applied research.                        
      Sec. 203. Dual-use technology program.                                  
            Sec. 204. Reduction in amount for Federally Funded Research and   
      Development Centers.                                                    
               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    
      Sec. 211. Manufacturing technology program.                             
      Sec. 212. Report on operational field assessments program.              
      Sec. 213. Joint Strike Fighter program.                                 
      Sec. 214. Kinetic energy tactical anti-satellite technology program.    
      Sec. 215. Micro-satellite technology development program.               
      Sec. 216. High altitude endurance unmanned vehicle program.             
      Sec. 217. F 22 aircraft program.                                        
                       SUBTITLE C--BALLISTIC MISSILE DEFENSE PROGRAMS             
      Sec. 231. National Missile Defense Program.                             
            Sec. 232. Budgetary treatment of amounts for procurement for      
      ballistic missile defense programs.                                     
      Sec. 233. Cooperative Ballistic Missile Defense program.                
            Sec. 234. Annual report on threat posed to the United States by   
      weapons of mass destruction, ballistic missiles, and cruise missiles.   
      Sec. 235. Director of Ballistic Missile Defense Organization.           
            Sec. 236. Repeal of required deployment dates for core theater    
      missile defense programs                                                
                                  SUBTITLE D--OTHER MATTERS                       
            Sec. 241. Restructuring of National Oceanographic Partnership     
      Program organizations.                                                  
            Sec. 242. Maintenance and repair of real property at Air Force    
      installations.                                                          
            Sec. 243. Expansion of eligibility for the Defense Experimental   
      Program to Stimulate Competitive Research.                              
            Sec. 244. Bioassay testing of veterans exposed to ionizing        
      radiation during military service.                                      
      Sec. 245. Sense of Congress regarding Comanche program.                 
                            TITLE III--OPERATION AND MAINTENANCE                  
                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              
      Sec. 301. Operation and maintenance funding.                            
      Sec. 302. Working capital funds.                                        
      Sec. 303. Armed Forces Retirement Home.                                 
      Sec. 304. Fisher House Trust Funds.                                     
      Sec. 305. Transfer from National Defense Stockpile Transaction Fund.    
      Sec. 306. Refurbishment of M1 A1 tanks.                                 
            Sec. 307. Operation of prepositioned fleet, National Training     
      Center, Fort Irwin, California.                                         
      Sec. 308. Refurbishment and installation of air search radar.           
      Sec. 309. Contracted training flight services.                          
      Sec. 310. Procurement technical assistance programs.                    
      Sec. 311. Operation of Fort Chaffee, Arkansas.                          
                            SUBTITLE B--MILITARY READINESS ISSUES                 
            Sec. 321. Monthly reports on allocation of funds within operation 
      and maintenance budget subactivities.                                   
      Sec. 322. Expansion of scope of quarterly readiness reports.            
            Sec. 323. Semiannual reports on transfers from high-priority      
      readiness appropriations.                                               
      Sec. 324. Annual report on aircraft inventory.                          
            Sec. 325. Administrative actions adversely affecting military     
      training or other readiness activities.                                 
      Sec. 326. Common measurement of operations tempo and personnel tempo.   
            Sec. 327. Inclusion of Air Force depot maintenance as operation   
      and maintenance budget line items.                                      
      Sec. 328. Prohibition of implementation of tiered readiness system.     
      Sec. 329. Report on military readiness requirements of the Armed Forces.
      Sec. 330. Assessment of cyclical readiness posture of the Armed Forces. 
            Sec. 331. Report on military exercises conducted under certain    
      training exercises programs.                                            
      Sec. 332. Report on overseas deployments.                               
                            SUBTITLE C--ENVIRONMENTAL PROVISIONS                  
            Sec. 341. Revision of membership terms for Strategic Environmental
      Research and Development Program Scientific Advisory Board.             
            Sec. 342. Amendments to authority to enter into agreements with   
      other agencies in support of environmental technology certification.    
            Sec. 343. Modifications of authority to store and dispose of      
      nondefense toxic and hazardous materials.                               
            Sec. 344. Annual report on payments and activities in response to 
      fines and penalties assessed under environmental laws.                  
            Sec. 345. Annual report on environmental activities of the        
      Department of Defense overseas.                                         
            Sec. 346. Review of existing environmental consequences of the    
      presence of the Armed Forces in Bermuda.                                
            Sec. 347. Sense of Congress on deployment of United States Armed  
      Forces abroad for environmental preservation activities.                
            Sec. 348. Recovery and sharing of costs of environmental          
      restoration at Department of Defense sites.                             
            Sec. 349. Partnerships for investment in innovative environmental 
      technologies.                                                           
      Sec. 350. Procurement of recycled copier paper.                         
            Sec. 351. Pilot program for the sale of air pollution emission    
      reduction incentives.                                                   
                             SUBTITLE D--DEPOT-LEVEL ACTIVITIES                   
      Sec. 355. Definition of depot-level maintenance and repair.             
      Sec. 356. Core logistics capabilities of Department of Defense.         
            Sec. 357. Increase in percentage of depot-level maintenance and   
      repair that may be contracted for performance by non-government         
      personnel.                                                              
      Sec. 358. Annual report on depot-level maintenance and repair.          
            Sec. 359. Requirement for use of competitive procedures in        
      contracting for performance of depot-level maintenance and repair       
      workloads formerly performed at closed or realigned military            
      installations.                                                          
            Sec. 360. Clarification of prohibition on management of depot     
      employees by constraints on personnel levels.                           
      Sec. 361. Centers of Industrial and Technical Excellence.               
            Sec. 362. Extension of authority for aviation depots and naval    
      shipyards to engage in defense-related production and services.         
            Sec. 363. Repeal of a conditional repeal of certain depot-level   
      maintenance and repair laws and a related reporting requirement.        
            Sec. 364. Personnel reductions, Army depots participating in Army 
      Workload and Performance System.                                        
            Sec. 365. Report on allocation of core logistics activities among 
      Department of Defense facilities and private sector facilities.         
            Sec. 366. Review of use of temporary duty assignments for ship    
      repair and maintenance.                                                 
            Sec. 367. Sense of Congress regarding realignment of performance  
      of ground communication-electronic workload.                            
             SUBTITLE E--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES  
            Sec. 371. Reorganization of laws regarding commissaries and       
      exchanges and other morale, welfare, and recreation activities.         
      Sec. 372. Merchandise and pricing requirements for commissary stores.   
            Sec. 373. Limitation on noncompetitive procurement of brand-name  
      commercial items for resale in commissary stores.                       
            Sec. 374. Treatment of revenues derived from commissary store     
      activities.                                                             
            Sec. 375. Maintenance, repair, and renovation of Armed Forces     
      Recreation Center, Europe.                                              
            Sec. 376. Plan for use of public and private partnerships to      
      benefit morale, welfare, and recreation activities.                     
                                  SUBTITLE F--OTHER MATTERS                       
            Sec. 381. Assistance to local educational agencies that benefit   
      dependents of members of the Armed Forces and Department of Defense     
      civilian employees.                                                     
            Sec. 382. Center for Excellence in Disaster Management and        
      Humanitarian Assistance.                                                
            Sec. 383. Applicability of Federal printing requirements to       
      Defense Automated Printing Service.                                     
            Sec. 384. Study and notification requirements for conversion of   
      commercial and industrial type functions to contractor performance.     
            Sec. 385. Collection and retention of cost information data on    
      converted services and functions.                                       
            Sec. 386. Financial assistance to support additional duties       
      assigned to Army National Guard.                                        
      Sec. 387. Competitive procurement of printing and duplication services. 
            Sec. 388. Continuation and expansion of demonstration program to  
      identify overpayments made to vendors.                                  
            Sec. 389. Development of standard forms regarding performance work
      statement and request for proposal for conversion of certain operational
      functions of military installations.                                    
      Sec. 390. Base operations support for military installations on Guam.   
      Sec. 391. Warranty claims recovery pilot program.                       
            Sec. 392. Program to investigate fraud, waste, and abuse within   
      Department of Defense.                                                  
      Sec. 393. Multitechnology automated reader card demonstration program.  
      Sec. 394. Reduction in overhead costs of Inventory Control Points.      
      Sec. 395. Inventory management.                                         
                         TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS              
                                  SUBTITLE A--ACTIVE FORCES                       
      Sec. 401. End strengths for active forces.                              
            Sec. 402. Permanent end strength levels to support two major      
      regional contingencies.                                                 
                                 SUBTITLE B--RESERVE FORCES                       
      Sec. 411. End strengths for Selected Reserve.                           
            Sec. 412. End strengths for Reserves on active duty in support of 
      the Reserves.                                                           
      Sec. 413. End strengths for military technicians (dual status).         
                         SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS              
      Sec. 421. Authorization of appropriations for military personnel.       
                             TITLE V--MILITARY PERSONNEL POLICY                   
                            SUBTITLE A--OFFICER PERSONNEL POLICY                  
            Sec. 501. Limitation on number of general and flag officers who   
      may serve in positions outside their own service.                       
            Sec. 502. Exclusion of certain retired officers from limitation on
      period of recall to active duty.                                        
            Sec. 503. Clarification of officers eligible for consideration by 
      promotion boards.                                                       
            Sec. 504. Authority to defer mandatory retirement for age of      
      officers serving as chaplains.                                          
            Sec. 505. Increase in number of officers allowed to be frocked to 
      grades of colonel and Navy captain.                                     
            Sec. 506. Increased years of commissioned service for mandatory   
      retirement of regular generals and admirals in grades above major       
      general and rear admiral.                                               
            Sec. 507. Uniform policy for requirement of exemplary conduct by  
      commanding officers and others in authority.                            
            Sec. 508. Report on the command selection process for District    
      Engineers of the Army Corps of Engineers.                               
                            SUBTITLE B--RESERVE COMPONENT MATTERS                 
      Sec. 511. Individual Ready Reserve activation authority.                
      Sec. 512. Termination of Mobilization Income Insurance Program.         
            Sec. 513. Correction of inequities in medical and dental care and 
      death and disability benefits for reserve members who incur or aggravate
      an illness in the line of duty.                                         
            Sec. 514. Authority to permit non-unit assigned officers to be    
      considered by vacancy promotion board to general officer grades.        
            Sec. 515. Prohibition on use of Air Force Reserve AGR personnel   
      for Air Force base security functions.                                  
            Sec. 516. Involuntary separation of reserve officers in an        
      inactive status.                                                        
            Sec. 517. Federal status of service by National Guard members as  
      honor guards at funerals of veterans.                                   
                              SUBTITLE C--MILITARY TECHNICIANS                    
            Sec. 521. Authority to retain on the reserve active-status list   
      until age 60 military technicians in the grade of brigadier general.    
      Sec. 522. Military technicians (dual status).                           
      Sec. 523. Non-dual status military technicians.                         
            Sec. 524. Report on feasibility and desirability of conversion of 
      AGR personnel to military technicians (dual status).                    
             SUBTITLE D--MEASURES TO IMPROVE RECRUIT QUALITY AND REDUCE RECRUIT   
                                    ATTRITION                                     
      Sec. 531. Reform of military recruiting systems.                        
            Sec. 532. Improvements in medical prescreening of applicants for  
      military service.                                                       
      Sec. 533. Improvements in physical fitness of recruits.                 
                         SUBTITLE E--MILITARY EDUCATION AND TRAINING              
                             PART I--OFFICER EDUCATION PROGRAMS                   
            Sec. 541. Requirement for candidates for admission to United      
      States Naval Academy to take oath of allegiance.                        
      Sec. 542. Service academy foreign exchange program.                     
            Sec. 543. Reimbursement of expenses incurred for instruction at   
      service academies of persons from foreign countries.                    
      Sec. 544. Continuation of support to senior military colleges.          
            Sec. 545. Report on making United States nationals eligible for   
      participation in Senior Reserve Officers' Training Corps.               
            Sec. 546. Coordination of establishment and maintenance of Junior 
      Reserve Officers' Training Corps units to maximize enrollment and       
      enhance efficiency.                                                     
                              PART II--OTHER EDUCATION MATTERS                    
      Sec. 551. United States Naval Postgraduate School.                      
      Sec. 552. Community College of the Air Force.                           
            Sec. 553. Preservation of entitlement to educational assistance of
      members of the Selected Reserve serving on active duty in support of a  
      contingency operation.                                                  
                         PART III--TRAINING OF ARMY DRILL SERGEANTS               
      Sec. 556. Reform of Army drill sergeant selection and training process. 
            Sec. 557. Training in human relations matters for Army drill      
      sergeant trainees.                                                      
            SUBTITLE F--COMMISSION ON MILITARY TRAINING AND GENDER-RELATED ISSUES 
      Sec. 561. Establishment and composition of Commission.                  
      Sec. 562. Duties.                                                       
      Sec. 563. Administrative matters.                                       
      Sec. 564. Termination of Commission.                                    
      Sec. 565. Funding.                                                      
      Sec. 566. Subsequent consideration by Congress.                         
                         SUBTITLE G--MILITARY DECORATIONS AND AWARDS              
            Sec. 571. Purple Heart to be awarded only to members of the Armed 
      Forces.                                                                 
            Sec. 572. Eligibility for Armed Forces Expeditionary Medal for    
      participation in Operation Joint Endeavor or Operation Joint Guard.     
            Sec. 573. Waiver of time limitations for award of certain         
      decorations to specified persons.                                       
            Sec. 574. Clarification of eligibility of members of Ready Reserve
      for award of service medal for heroism.                                 
            Sec. 575. One-year extension of period for receipt of             
      recommendations for decorations and awards for certain military         
      intelligence personnel.                                                 
            Sec. 576. Eligibility of certain World War II military            
      organizations for award of unit decorations.                            
      Sec. 577. Retroactivity of Medal of Honor special pension.              
                            SUBTITLE H--MILITARY JUSTICE MATTERS                  
            Sec. 581. Establishment of sentence of confinement for life       
      without eligibility for parole.                                         
            Sec. 582. Limitation on appeal of denial of parole for offenders  
      serving life sentence.                                                  
                                  SUBTITLE I--OTHER MATTERS                       
      Sec. 591. Sexual harassment investigations and reports.                 
            Sec. 592. Sense of the Senate regarding study of matters relating 
      to gender equity in the Armed Forces.                                   
            Sec. 593. Authority for personnel to participate in management of 
      certain non-Federal entities.                                           
            Sec. 594. Treatment of participation of members in Department of  
      Defense civil military programs.                                        
            Sec. 595. Comptroller General study of Department of Defense civil
      military programs.                                                      
      Sec. 596. Establishment of public affairs specialty in the Army.        
      Sec. 597. Grade of defense attache AE1 in France.                       
      Sec. 598. Report on crew requirements of WC 130J aircraft.              
            Sec. 599. Improvement of missing persons authorities applicable to
      Department of Defense.                                                  
                     TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS          
                               SUBTITLE A--PAY AND ALLOWANCES                     
      Sec. 601. Increase in basic pay for fiscal year 1998.                   
      Sec. 602. Reform of basic allowance for subsistence.                    
            Sec. 603. Consolidation of basic allowance for quarters, variable 
      housing allowance, and overseas housing allowances.                     
            Sec. 604. Revision of authority to adjust compensation            
      necessitated by reform of subsistence and housing allowances.           
            Sec. 605. Protection of total compensation of members while       
      performing certain duty.                                                
                     SUBTITLE B--BONUSES AND SPECIAL AND INCENTIVE PAYS           
            Sec. 611. One-year extension of certain bonuses and special pay   
      authorities for reserve forces.                                         
            Sec. 612. One-year extension of certain bonuses and special pay   
      authorities for nurse officer candidates, registered nurses, and nurse  
      anesthetists.                                                           
            Sec. 613. One-year extension of authorities relating to payment of
      other bonuses and special pays.                                         
            Sec. 614. Increase in minimum monthly rate of hazardous duty      
      incentive pay for certain members.                                      
      Sec. 615. Increase in aviation career incentive pay.                    
      Sec. 616. Modification of aviation officer retention bonus.             
      Sec. 617. Availability of multiyear retention bonus for dental officers.
            Sec. 618. Increase in variable and additional special pays for    
      certain dental officers.                                                
            Sec. 619. Availability of special pay for duty at designated      
      hardship duty locations.                                                
      Sec. 620. Definition of sea duty for purposes of career sea pay.        
      Sec. 621. Modification of Selected Reserve reenlistment bonus.          
            Sec. 622. Modification of Selected Reserve enlistment bonus for   
      former enlisted members.                                                
            Sec. 623. Expansion of reserve affiliation bonus to include Coast 
      Guard Reserve.                                                          
            Sec. 624. Increase in special pay and bonuses for                 
      nuclear-qualified officers.                                             
            Sec. 625. Provision of bonuses in lieu of special pay for enlisted
      members extending tours of duty at designated locations overseas.       
      Sec. 626. Increase in amount of family separation allowance.            
      Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.  
                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            
            Sec. 631. Travel and transportation allowances for dependents     
      before approval of member's court-martial sentence.                     
      Sec. 632. Dislocation allowance.                                        
               SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED MATTERS    
            Sec. 641. One-year opportunity to discontinue participation in    
      Survivor Benefit Plan.                                                  
            Sec. 642. Time in which change in survivor benefit coverage from  
      former spouse to spouse may be made.                                    
      Sec. 643. Review of Federal former spouse protection laws.              
      Sec. 644. Annuities for certain military surviving spouses.             
            Sec. 645. Administration of benefits for so-called minimum income 
      widows.                                                                 
                                  SUBTITLE E--OTHER MATTERS                       
            Sec. 651. Loan repayment program for commissioned officers in     
      certain health professions.                                             
            Sec. 652. Conformance of NOAA commissioned officers separation pay
      to separation pay for members of other uniformed services.              
            Sec. 653. Eligibility of Public Health Service officers and NOAA  
      commissioned corps officers for reimbursement of adoption expenses.     
            Sec. 654. Payment of back quarters and subsistence allowances to  
      World War II veterans who served as guerrilla fighters in the           
      Philippines.                                                            
            Sec. 655. Subsistence of members of the Armed Forces above the    
      poverty level.                                                          
                              TITLE VII--HEALTH CARE PROVISIONS                   
                              SUBTITLE A--HEALTH CARE SERVICES                    
            Sec. 701. Expansion of retiree dental insurance plan to include   
      surviving spouse and child dependents of certain deceased members.      
      Sec. 702. Provision of prosthetic devices to covered beneficiaries.     
      Sec. 703. Study concerning the provision of comparative information.    
                                 SUBTITLE B--TRICARE PROGRAM                      
      Sec. 711. Addition of definition of TRICARE program to title 10.        
      Sec. 712. Plan for expansion of managed care option of TRICARE program. 
                     SUBTITLE C--UNIFORMED SERVICES TREATMENT FACILITIES          
            Sec. 721. Implementation of designated provider agreements for    
      Uniformed Services Treatment Facilities.                                
      Sec. 722. Continued acquisition of reduced-cost drugs.                  
      Sec. 723. Limitation on total payments.                                 
              SUBTITLE D--OTHER CHANGES TO EXISTING LAWS REGARDING HEALTH CARE    
                                   MANAGEMENT                                     
            Sec. 731. Improvements in health care coverage and access for     
      members assigned to certain duty locations far from sources of care.    
            Sec. 732. Waiver or reduction of copayments under overseas dental 
      program.                                                                
            Sec. 733. Premium collection requirements for medical and dental  
      insurance programs; extension of deadline for implementation of dental  
      insurance program for military retirees.                                
            Sec. 734. Dental insurance plan coverage for retirees of the      
      Public Health Service and NOAA.                                         
            Sec. 735. Consistency between CHAMPUS and Medicare in payment     
      rates for services.                                                     
            Sec. 736. Use of personal services contracts for provision of     
      health care services and legal protection for providers.                
            Sec. 737. Portability of State licenses for Department of Defense 
      health care professionals.                                              
            Sec. 738. Standard form and requirements regarding claims for     
      payment for services.                                                   
      Sec. 739. Chiropractic health care demonstration program.               
                                  SUBTITLE E--OTHER MATTERS                       
            Sec. 741. Continued admission of civilians as students in         
      physician assistant training program of Army Medical Department.        
            Sec. 742. Payment for emergency health care overseas for military 
      and civilian personnel of the On-Site Inspection Agency.                
            Sec. 743. Authority for agreement for use of medical resource     
      facility, Alamogordo, New Mexico.                                       
            Sec. 744. Disclosures of cautionary information on prescription   
      medications.                                                            
      Sec. 745. Competitive procurement of certain ophthalmic services.       
            Sec. 746. Comptroller General study of adequacy and effect of     
      maximum allowable charges for physicians under CHAMPUS.                 
            Sec. 747. Comptroller General study of Department of Defense      
      pharmacy programs.                                                      
            Sec. 748. Comptroller General study of Navy graduate medical      
      education program.                                                      
            Sec. 749. Study of expansion of pharmaceuticals by mail program to
      include additional Medicare-eligible covered beneficiaries.             
            Sec. 750. Comptroller General study of requirement for military   
      medical facilities in National Capital Region.                          
            Sec. 751. Report on policies and programs to promote healthy      
      lifestyles for members of the Armed Forces and their dependents.        
      Sec. 752. Sense of Congress regarding quality health care for retirees. 
                              SUBTITLE F--PERSIAN GULF ILLNESS                    
      Sec. 761. Definitions.                                                  
      Sec. 762. Plan for health care services for Persian Gulf veterans.      
            Sec. 763. Comptroller General study of revised disability criteria
      for physical evaluation boards.                                         
            Sec. 764. Medical care for certain reserves who served in         
      Southwest Asia during the Persian Gulf War.                             
            Sec. 765. Improved medical tracking system for members deployed   
      overseas in contingency or combat operations.                           
            Sec. 766. Notice of use of investigational new drugs or drugs     
      unapproved for their applied use.                                       
            Sec. 767. Report on plans to track location of members in a       
      theater of operations.                                                  
            Sec. 768. Sense of Congress regarding the deployment of           
      specialized units for detecting and monitoring chemical, biological, and
      similar hazards in a theater of operations.                             
            Sec. 769. Report on effectiveness of research efforts regarding   
      Gulf War illnesses.                                                     
      Sec. 770. Persian Gulf illness clinical trials program.                 
      Sec. 771. Sense of Congress concerning Gulf War illness.                
            TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED   
                                     MATTERS                                      
           SUBTITLE A--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 
                                 AND LIMITATIONS                                  
            Sec. 801. Expansion of authority to enter into contracts crossing 
      fiscal years to all severable service contracts not exceeding a year.   
            Sec. 802. Vesting of title in the United States under contracts   
      paid under progress payment arrangements or similar arrangements.       
      Sec. 803. Restriction on undefinitized contract actions.                
            Sec. 804. Limitation and report on payment of restructuring costs 
      under defense contracts.                                                
            Sec. 805. Increased price limitation on purchases of right-hand   
      drive vehicles.                                                         
      Sec. 806. Multiyear procurement contracts.                              
            Sec. 807. Audit of procurement of military clothing and           
      clothing-related items by military installations in the United States.  
            Sec. 808. Limitation on allowability of compensation for certain  
      contractor personnel.                                                   
      Sec. 809. Elimination of certification requirement for grants.          
      Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts. 
            Sec. 811. Item-by-item and country-by-country waivers of domestic 
      source limitations.                                                     
                         SUBTITLE B--ACQUISITION ASSISTANCE PROGRAMS              
      Sec. 821. One-year extension of pilot mentor-protege program.           
            Sec. 822. Test program for negotiation of comprehensive           
      subcontracting plans.                                                   
                            SUBTITLE C--ADMINISTRATIVE PROVISIONS                 
            Sec. 831. Retention of expired funds during the pendency of       
      contract litigation.                                                    
      Sec. 832. Protection of certain information from disclosure.            
      Sec. 833. Unit cost reports.                                            
            Sec. 834. Plan for providing contracting information to general   
      public and small businesses.                                            
            Sec. 835. Two-year extension of crediting of certain purchases    
      toward meeting subcontracting goals.                                    
                                  SUBTITLE D--OTHER MATTERS                       
      Sec. 841. Repeal of certain acquisition requirements and reports        
            Sec. 842. Use of major range and test facility installations by   
      commercial entities.                                                    
            Sec. 843. Requirement to develop and maintain list of firms not   
      eligible for defense contracts.                                         
            Sec. 844. Sense of Congress regarding allowability of costs of    
      employee stock ownership plans.                                         
            Sec. 845. Expansion of personnel eligible to participate in       
      demonstration project relating to acquisition workforce.                
            Sec. 846. Time for submission of annual report relating to Buy    
      American Act.                                                           
            Sec. 847. Repeal of requirement for contractor guarantees on major
      weapon systems.                                                         
      Sec. 848. Requirements relating to micro-purchases.                     
      Sec. 849. Promotion rate for officers in an acquisition corps.          
      Sec. 850. Use of electronic commerce in Federal procurement.            
            Sec. 851. Conformance of policy on performance based management of
      civilian acquisition programs with policy established for defense       
      acquisition programs.                                                   
            Sec. 852. Modification of process requirements for the            
      solutions-based contracting pilot program.                              
            Sec. 853. Guidance and standards for defense acquisition workforce
      training requirements.                                                  
            Sec. 854. Study and report to Congress assessing dependence on    
      foreign sources for resistors and capacitors.                           
            Sec. 855. Department of Defense and Federal Prison Industries     
      joint study.                                                            
                 TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT      
           SUBTITLE A--DEPARTMENT OF DEFENSE POSITIONS AND ORGANIZATIONS AND OTHER
                                 GENERAL MATTERS                                  
            Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff 
      for National Guard matters and for Reserve matters.                     
      Sec. 902. Use of CINC Initiative Fund for force protection.             
            Sec. 903. Revision to required frequency for provision of policy  
      guidance for contingency plans.                                         
            Sec. 904. Annual justification for Department of Defense advisory 
      committees.                                                             
      Sec. 905. Airborne reconnaissance management.                           
      Sec. 906. Termination of the Armed Services Patent Advisory Board.      
            Sec. 907. Coordination of Department of Defense criminal          
      investigations and audits.                                              
                   SUBTITLE B--DEPARTMENT OF DEFENSE PERSONNEL MANAGEMENT         
            Sec. 911. Reduction in personnel assigned to management           
      headquarters and headquarters support activities.                       
      Sec. 912. Defense acquisition workforce.                                
                    SUBTITLE C--DEPARTMENT OF DEFENSE SCHOOLS AND CENTERS         
      Sec. 921. Professional military education schools.                      
      Sec. 922. Center for Hemispheric Defense Studies.                       
            Sec. 923. Correction to reference to George C. Marshall European  
      Center for Security Studies.                                            
               SUBTITLE D--DEPARTMENT OF DEFENSE INTELLIGENCE-RELATED MATTERS     
            Sec. 931. Transfer of certain military department programs from   
      TIARA budget aggregation.                                               
            Sec. 932. Report on coordination of access of commanders and      
      deployed units to intelligence collected and analyzed by the            
      intelligence community.                                                 
            Sec. 933. Protection of imagery, imagery intelligence, and        
      geospatial information and data.                                        
      Sec. 934. POW/MIA intelligence analysis.                                
                                 TITLE X--GENERAL PROVISIONS                      
                                SUBTITLE A--FINANCIAL MATTERS                     
      Sec. 1001. Transfer authority.                                          
      Sec. 1002. Incorporation of classified annex.                           
            Sec. 1003. Authority for obligation of unauthorized fiscal year   
      1997 defense appropriations.                                            
            Sec. 1004. Authorization of prior emergency supplemental          
      appropriations for fiscal year 1997.                                    
      Sec. 1005. Increase in fiscal year 1996 transfer authority.             
      Sec. 1006. Revision of authority for Fisher House trust funds.          
            Sec. 1007. Flexibility in financing closure of certain outstanding
      contracts for which a small final payment is due.                       
      Sec. 1008. Biennial financial management improvement plan.              
            Sec. 1009. Estimates and requests for procurement and military    
      construction for the reserve components.                                
            Sec. 1010. Sense of Congress regarding funding for reserve        
      component modernization not requested in President's budget.            
      Sec. 1011. Management of working-capital funds.                         
            Sec. 1012. Authority of Secretary of Defense to settle claims     
      relating to pay, allowances, and other benefits.                        
            Sec. 1013. Payment of claims by members for loss of personal      
      property due to flooding in Red River Basin.                            
      Sec. 1014. Advances for payment of public services.                     
      Sec. 1015. United States Man and the Biosphere Program limitation.      
                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                
            Sec. 1021. Procedures for sale of vessels stricken from the Naval 
      Vessel Register.                                                        
            Sec. 1022. Authority to enter into a long-term charter for a      
      vessel in support of the Surveillance Towed-Array Sensor (SURTASS)      
      program.                                                                
      Sec. 1023. Transfer of two specified obsolete tugboats of the Army.     
            Sec. 1024. Congressional review period with respect to transfer of
      ex-U.S.S. Hornet (CV 12) and ex-U.S.S. Midway (CV 41).                  
      Sec. 1025. Transfers of naval vessels to certain foreign countries.     
            Sec. 1026. Reports relating to export of vessels that may contain 
      polychlorinated biphenyls.                                              
            Sec. 1027. Conversion of defense capability preservation authority
      to Navy shipbuilding capability preservation authority.                 
                             SUBTITLE C--COUNTER-DRUG ACTIVITIES                  
            Sec. 1031. Use of National Guard for State drug interdiction and  
      counter-drug activities.                                                
            Sec. 1032. Authority to provide additional support for            
      counter-drug activities of Mexico.                                      
            Sec. 1033. Authority to provide additional support for            
      counter-drug activities of Peru and Colombia.                           
            Sec. 1034. Annual report on development and deployment of         
      narcotics detection technologies.                                       
                  SUBTITLE D--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS       
      Sec. 1041. Repeal of miscellaneous reporting requirements.              
      Sec. 1042. Study of transfer of modular airborne fire fighting system.  
      Sec. 1043. Overseas infrastructure requirements.                        
            Sec. 1044. Additional matters for annual report on activities of  
      the General Accounting Office.                                          
      Sec. 1045. Eye safety at small arms firing ranges.                      
            Sec. 1046. Reports on Department of Defense procedures for        
      investigating military aviation accidents and for notifying and         
      assisting families of victims.                                          
                          SUBTITLE E--MATTERS RELATING TO TERRORISM               
            Sec. 1051. Oversight of counterterrorism and antiterrorism        
      activities; report.                                                     
            Sec. 1052. Provision of adequate troop protection equipment for   
      Armed Forces personnel engaged in peace operations; report on           
      antiterrorism activities and protection of personnel.                   
                      SUBTITLE F--MATTERS RELATING TO DEFENSE PROPERTY            
      Sec. 1061. Lease of nonexcess personal property of military departments.
      Sec. 1062. Lease of nonexcess property of Defense Agencies.             
            Sec. 1063. Donation of excess chapel property to churches damaged 
      or destroyed by arson or other acts of terrorism.                       
            Sec. 1064. Authority of the Secretary of Defense concerning       
      disposal of assets under cooperative agreements on air defense in       
      Central Europe.                                                         
            Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition  
      and ammunition components.                                              
      Sec. 1066. Transfer of B 17 aircraft to museum.                         
      Sec. 1067. Report on disposal of excess and surplus materials.          
                                  SUBTITLE G--OTHER MATTERS                       
            Sec. 1071. Authority for special agents of the Defense Criminal   
      Investigative Service to execute warrants and make arrests.             
            Sec. 1072. Study of investigative practices of military criminal  
      investigative organizations relating to sex crimes.                     
      Sec. 1073. Technical and clerical amendments.                           
      Sec. 1074. Sustainment and operation of the Global Positioning System.  
            Sec. 1075. Protection of safety-related information voluntarily   
      provided by air carriers.                                               
            Sec. 1076. National Guard Challenge Program to create             
      opportunities for civilian youth.                                       
            Sec. 1077. Disqualification from certain burial-related benefits  
      for persons convicted of capital crimes.                                
            Sec. 1078. Restrictions on the use of human subjects for testing  
      of chemical or biological agents.                                       
      Sec. 1079. Treatment of military flight operations.                     
            Sec. 1080. Naturalization of certain foreign nationals who serve  
      honorably in the Armed Forces during a period of conflict.              
            Sec. 1081. Applicability of certain pay authorities to members of 
      specified independent study organizations.                              
      Sec. 1082. Display of POW/MIA flag.                                     
            Sec. 1083. Program to commemorate 50th anniversary of the Korean  
      conflict.                                                               
            Sec. 1084. Commendation of members of the Armed Forces and        
      Government civilian personnel who served during the Cold War;           
      certificate of recognition.                                             
      Sec. 1085. Sense of Congress on granting of statutory Federal charters. 
      Sec. 1086. Sense of Congress regarding military voting rights.          
            Sec. 1087. Designation of Bob Hope as an honorary veteran of the  
      Armed Forces of the United States.                                      
      Sec. 1088. Five-year extension of aviation insurance program.           
                     TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL           
            Sec. 1101. Use of prohibited constraints to manage Department of  
      Defense personnel.                                                      
            Sec. 1102. Veterans' preference status for certain veterans who   
      served on active duty during the Persian Gulf War.                      
            Sec. 1103. Repeal of deadline for placement consideration of      
      involuntarily separated military reserve technicians.                   
            Sec. 1104. Rate of pay of Department of Defense overseas teachers 
      upon transfer to General Schedule position.                             
      Sec. 1105. Garnishment and involuntary allotment.                       
            Sec. 1106. Extension and revision of voluntary separation         
      incentive pay authority.                                                
            Sec. 1107. Use of approved fire-safe accommodations by Government 
      employees on official business.                                         
            Sec. 1108. Navy higher education pilot program regarding          
      administration of business relationships between Government and private 
      sector.                                                                 
            Sec. 1109. Authority for Marine Corps University to employ        
      civilian faculty members.                                               
                        TITLE XII--MATTERS RELATING TO OTHER NATIONS              
              SUBTITLE A--UNITED STATES ARMED FORCES IN BOSNIA AND HERZEGOVINA    
      Sec. 1201. Findings.                                                    
      Sec. 1202. Sense of Congress.                                           
            Sec. 1203. Withdrawal of United States ground forces from Republic
      of Bosnia and Herzegovina.                                              
            Sec. 1204. Secretary of Defense reports on tasks carried out by   
      United States forces.                                                   
            Sec. 1205. Presidential report on situation in Republic of Bosnia 
      and Herzegovina.                                                        
      Sec. 1206. Definitions.                                                 
                  SUBTITLE B--EXPORT CONTROLS ON HIGH PERFORMANCE COMPUTERS       
      Sec. 1211. Export approvals for high performance computers.             
      Sec. 1212. Report on exports of high performance computers.             
            Sec. 1213. Post-shipment verification of export of high           
      performance computers.                                                  
            Sec. 1214. GAO study on certain computers; end user information   
      assistance.                                                             
      Sec. 1215. Congressional committees.                                    
                                  SUBTITLE C--OTHER MATTERS                       
      Sec. 1221. Defense burdensharing.                                       
            Sec. 1222. Temporary use of general purpose vehicles and nonlethal
      military equipment under acquisition and cross servicing agreements.    
            Sec. 1223. Sense of Congress and reports regarding financial costs
      of enlargement of the North Atlantic Treaty Organization.               
            Sec. 1224. Sense of Congress regarding enlargement of the North   
      Atlantic Treaty Organization.                                           
            Sec. 1225. Sense of the Congress relating to level of United      
      States military personnel in the East Asia and Pacific region.          
            Sec. 1226. Report on future military capabilities and strategy of 
      the People's Republic of China.                                         
            Sec. 1227. Sense of Congress on need for Russian openness on the  
      Yamantau Mountain project.                                              
            Sec. 1228. Assessment of the Cuban threat to United States        
      national security.                                                      
      Sec. 1229. Report on Helsinki Joint statement.                          
      Sec. 1230. Commendation of Mexico on free and fair elections.           
      Sec. 1231. Sense of Congress regarding Cambodia.                        
      Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.     
                        TITLE XIII--ARMS CONTROL AND RELATED MATTERS              
            Sec. 1301. Presidential report concerning detargeting of Russian  
      strategic missiles.                                                     
            Sec. 1302. Limitation on retirement or dismantlement of strategic 
      nuclear delivery systems.                                               
            Sec. 1303. Assistance for facilities subject to inspection under  
      the Chemical Weapons Convention.                                        
            Sec. 1304. Transfers of authorizations for high-priority          
      counterproliferation programs.                                          
            Sec. 1305. Advice to the President and Congress regarding the     
      safety, security, and reliability of United States nuclear weapons      
      stockpile.                                                              
            Sec. 1306. Reconstitution of commission to assess the ballistic   
      missile threat to the United States.                                    
            Sec. 1307. Sense of Congress regarding the relationship between   
      United States obligations under the Chemical Weapons Convention and     
      environmental laws.                                                     
            Sec. 1308. Extension of counterproliferation authorities for      
      support of United Nations Special Commission on Iraq.                   
            Sec. 1309. Annual report on moratorium on use by Armed Forces of  
      antipersonnel landmines.                                                
            TITLE XIV--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET  
                                      UNION                                       
            Sec. 1401. Specification of Cooperative Threat Reduction programs 
      and funds.                                                              
      Sec. 1402. Funding allocations.                                         
      Sec. 1403. Prohibition on use of funds for specified purposes.          
            Sec. 1404. Limitation on use of funds for projects related to     
      START II Treaty until submission of certification.                      
            Sec. 1405. Limitation on use of funds for chemical weapons        
      destruction facility.                                                   
            Sec. 1406. Limitation on use of funds for destruction of chemical 
      weapons.                                                                
            Sec. 1407. Limitation on use of funds for storage facility for    
      Russian fissile material.                                               
      Sec. 1408. Limitation on use of funds for weapons storage security.     
            Sec. 1409. Report on issues regarding payment of taxes, duties,   
      and other assessments on assistance provided to Russia under Cooperative
      Threat Reduction programs.                                              
      Sec. 1410. Availability of funds.                                       
              TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION   
      Sec. 1501. Recognition and grant of Federal charter.                    
      Sec. 1502. Powers.                                                      
      Sec. 1503. Purposes.                                                    
      Sec. 1504. Service of process.                                          
      Sec. 1505. Membership.                                                  
      Sec. 1506. Board of directors.                                          
      Sec. 1507. Officers.                                                    
      Sec. 1508. Restrictions.                                                
      Sec. 1509. Liability.                                                   
      Sec. 1510. Maintenance and inspection of books and records.             
      Sec. 1511. Audit of financial transactions.                             
      Sec. 1512. Annual report.                                               
      Sec. 1513. Reservation of right to alter, amend, or repeal charter.     
      Sec. 1514. Tax-exempt status required as condition of charter.          
      Sec. 1515. Termination.                                                 
      Sec. 1516. Definition of State.                                         
                      DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS            
      Sec. 2001. Short title.                                                 
                                       TITLE XXI--ARMY                            
      Sec. 2101. Authorized Army construction and land acquisition projects.  
      Sec. 2102. Family housing.                                              
      Sec. 2103. Improvements to military family housing units.               
      Sec. 2104. Authorization of appropriations, Army.                       
            Sec. 2105. Correction in authorized uses of funds, Fort Irwin,    
      California.                                                             
                                      TITLE XXII--NAVY                            
      Sec. 2201. Authorized Navy construction and land acquisition projects.  
      Sec. 2202. Family housing.                                              
      Sec. 2203. Improvements to military family housing units.               
      Sec. 2204. Authorization of appropriations, Navy.                       
            Sec. 2205. Authorization of military construction project at Naval
      Station, Pascagoula, Mississippi, for which funds have been             
      appropriated.                                                           
            Sec. 2206. Increase in authorization for military construction    
      projects at Naval Station Roosevelt Roads, Puerto Rico.                 
                                   TITLE XXIII--AIR FORCE                         
            Sec. 2301. Authorized Air Force construction and land acquisition 
      projects.                                                               
      Sec. 2302. Family housing.                                              
      Sec. 2303. Improvements to military family housing units.               
      Sec. 2304. Authorization of appropriations, Air Force.                  
            Sec. 2305. Authorization of military construction project at      
      McConnell Air Force Base, Kansas, for which funds have been             
      appropriated.                                                           
                                TITLE XXIV--DEFENSE AGENCIES                      
            Sec. 2401. Authorized Defense Agencies construction and land      
      acquisition projects.                                                   
      Sec. 2402. Military housing planning and design.                        
      Sec. 2403. Improvements to military family housing units.               
      Sec. 2404. Energy conservation projects.                                
      Sec. 2405. Authorization of appropriations, Defense Agencies.           
            Sec. 2406. Clarification of authority relating to fiscal year 1997
      project at Naval Station, Pearl Harbor, Hawaii.                         
            Sec. 2407. Correction in authorized uses of funds, McClellan Air  
      Force Base, California.                                                 
            Sec. 2408. Modification of authority to carry out certain fiscal  
      year 1995 projects.                                                     
             TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT    
                                     PROGRAM                                      
      Sec. 2501. Authorized NATO construction and land acquisition projects.  
      Sec. 2502. Authorization of appropriations, NATO.                       
                       TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES            
            Sec. 2601. Authorized Guard and Reserve construction and land     
      acquisition projects.                                                   
            Sec. 2602. Authorization of military construction projects for    
      which funds have been appropriated.                                     
      Sec. 2603. Army Reserve construction project, Camp Williams, Utah.      
                   TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS        
            Sec. 2701. Expiration of authorizations and amounts required to be
      specified by law.                                                       
            Sec. 2702. Extension of authorizations of certain fiscal year 1995
      projects.                                                               
            Sec. 2703. Extension of authorizations of certain fiscal year 1994
      projects.                                                               
            Sec. 2704. Extension of authorizations of certain fiscal year 1993
      projects.                                                               
            Sec. 2705. Extension of authorizations of certain fiscal year 1992
      projects.                                                               
            Sec. 2706. Extension of availability of funds for construction of 
      relocatable over-the-horizon radar, Naval Station Roosevelt Roads,      
      Puerto Rico.                                                            
      Sec. 2707. Effective date.                                              
                              TITLE XXVIII--GENERAL PROVISIONS                    
           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  
                                     CHANGES                                      
            Sec. 2801. Use of mobility enhancement funds for unspecified minor
      construction.                                                           
            Sec. 2802. Limitation on use of operation and maintenance funds   
      for facility repair projects.                                           
            Sec. 2803. Leasing of military family housing, United States      
      Southern Command, Miami, Florida.                                       
            Sec. 2804. Use of financial incentives provided as part of energy 
      savings and water conservation activities.                              
            Sec. 2805. Congressional notification requirements regarding use  
      of Department of Defense housing funds for investments in               
      nongovernmental entities.                                               
                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        
      Sec. 2811. Increase in ceiling for minor land acquisition projects.     
      Sec. 2812. Permanent authority regarding conveyance of utility systems. 
            Sec. 2813. Administrative expenses for certain real property      
      transactions.                                                           
            Sec. 2814. Screening of real property to be conveyed by Department
      of Defense.                                                             
            Sec. 2815. Disposition of proceeds from sale of Air Force Plant   
      78, Brigham City, Utah.                                                 
            Sec. 2816. Fire protection and hazardous materials protection at  
      Fort Meade, Maryland.                                                   
                      SUBTITLE C--DEFENSE BASE CLOSURE AND REALIGNMENT            
            Sec. 2821. Consideration of military installations as sites for   
      new Federal facilities.                                                 
            Sec. 2822. Adjustment and diversification assistance to enhance   
      performance of military family support services by private sector       
      sources.                                                                
            Sec. 2823. Security, fire protection, and other services at       
      property formerly associated with Red River Army Depot, Texas.          
      Sec. 2824. Report on closure and realignment of military installations. 
            Sec. 2825. Sense of Senate regarding utilization of savings       
      derived from base closure process.                                      
            Sec. 2826. Prohibition against certain conveyances of property at 
      Naval Station, Long Beach, California.                                  
                                SUBTITLE D--LAND CONVEYANCES                      
                                  PART I--ARMY CONVEYANCES                        
      Sec. 2831. Land conveyance, Army Reserve Center, Greensboro, Alabama.   
            Sec. 2832. Land conveyance, James T. Coker Army Reserve Center,   
      Durant, Oklahoma.                                                       
            Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago,  
      Illinois.                                                               
      Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.                  
      Sec. 2835. Land conveyances, Fort Dix, New Jersey.                      
      Sec. 2836. Land conveyances, Fort Bragg, North Carolina.                
            Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot,      
      Mineral County, Nevada.                                                 
            Sec. 2838. Expansion of land conveyance authority, Indiana Army   
      Ammunition Plant, Charlestown, Indiana.                                 
      Sec. 2839. Modification of land conveyance, Lompoc, California.         
            Sec. 2840. Modification of land conveyance, Rocky Mountain        
      Arsenal, Colorado.                                                      
            Sec. 2841. Correction of land conveyance authority, Army Reserve  
      Center, Anderson, South Carolina.                                       
                                 PART II--NAVY CONVEYANCES                        
            Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station,     
      Brunswick, Maine.                                                       
            Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant
      No. 464, Oyster Bay, New York.                                          
            Sec. 2853. Correction of lease authority, Naval Air Station,      
      Meridian, Mississippi.                                                  
                              PART III--AIR FORCE CONVEYANCES                     
      Sec. 2861. Land transfer, Eglin Air Force Base, Florida.                
      Sec. 2862. Land conveyance, March Air Force Base, California.           
      Sec. 2863. Land conveyance, Ellsworth Air Force Base, South Dakota.     
      Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.          
            Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and 
      Havre Training Site, Montana.                                           
            Sec. 2866. Land conveyance, Charleston Family Housing Complex,    
      Bangor, Maine.                                                          
            Sec. 2867. Study of land exchange options, Shaw Air Force Base,   
      South Carolina.                                                         
                                  SUBTITLE E--OTHER MATTERS                       
      Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.   
      Sec. 2872. Long-term lease of property, Naples, Italy.                  
            Sec. 2873. Designation of military family housing at Lackland Air 
      Force Base, Texas, in honor of Frank Tejeda, a former Member of the     
      House of Representatives.                                               
            Sec. 2874. Fiber-optics based telecommunications linkage of       
      military installations.                                                 
                              TITLE XXIX--SIKES ACT IMPROVEMENT                   
      Sec. 2901. Short title.                                                 
      Sec. 2902. Definition of Sikes Act for purposes of amendments.          
      Sec. 2903. Codification of short title of Act.                          
      Sec. 2904. Preparation of integrated natural resources management plans.
            Sec. 2905. Review for preparation of integrated natural resources 
      management plans.                                                       
            Sec. 2906. Transfer of wildlife conservation fees from closed     
      military installations.                                                 
      Sec. 2907. Annual reviews and reports.                                  
      Sec. 2908. Cooperative agreements.                                      
      Sec. 2909. Federal enforcement.                                         
      Sec. 2910. Natural resources management services.                       
      Sec. 2911. Definitions.                                                 
      Sec. 2912. Repeal of superseded provision.                              
      Sec. 2913. Technical amendments.                                        
      Sec. 2914. Authorizations of appropriations.                            
           DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND  
                              OTHER AUTHORIZATIONS                                
                 TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS      
                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         
      Sec. 3101. Weapons activities.                                          
      Sec. 3102. Environmental restoration and waste management.              
      Sec. 3103. Other defense activities.                                    
      Sec. 3104. Defense nuclear waste disposal.                              
                          SUBTITLE B--RECURRING GENERAL PROVISIONS                
      Sec. 3121. Reprogramming.                                               
      Sec. 3122. Limits on general plant projects.                            
      Sec. 3123. Limits on construction projects.                             
      Sec. 3124. Fund transfer authority.                                     
      Sec. 3125. Authority for conceptual and construction design.            
            Sec. 3126. Authority for emergency planning, design, and          
      construction activities.                                                
            Sec. 3127. Funds available for all national security programs of  
      the Department of Energy.                                               
      Sec. 3128. Availability of funds.                                       
      Sec. 3129. Transfers of defense environmental management funds.         
              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   
            Sec. 3131. Memorandum of understanding for use of national        
      laboratories for ballistic missile defense programs.                    
      Sec. 3132. Defense environmental management privatization projects.     
      Sec. 3133. International cooperative stockpile stewardship.             
      Sec. 3134. Modernization of enduring nuclear weapons complex.           
      Sec. 3135. Tritium production.                                          
            Sec. 3136. Processing, treatment, and disposition of spent nuclear
      fuel rods and other legacy nuclear materials at the Savannah River Site.
            Sec. 3137. Limitations on use of funds for laboratory directed    
      research and development purposes.                                      
            Sec. 3138. Pilot program relating to use of proceeds of disposal  
      or utilization of certain Department of Energy assets.                  
            Sec. 3139. Modification and extension of authority relating to    
      appointment of certain scientific, engineering, and technical personnel.
            Sec. 3140. Limitation on use of funds for subcritical nuclear     
      weapons tests.                                                          
            Sec. 3141. Limitation on use of certain funds until future use    
      plans are submitted.                                                    
                                  SUBTITLE D--OTHER MATTERS                       
            Sec. 3151. Plan for stewardship, management, and certification of 
      warheads in the nuclear weapons stockpile.                              
      Sec. 3152. Repeal of obsolete reporting requirements.                   
            Sec. 3153. Study and funding relating to implementation of        
      workforce restructuring plans.                                          
            Sec. 3154. Report and plan for external oversight of national     
      laboratories.                                                           
      Sec. 3155. University-based research collaboration program.             
      Sec. 3156. Stockpile stewardship program.                               
            Sec. 3157. Reports on advanced supercomputer sales to certain     
      foreign nations.                                                        
            Sec. 3158. Transfers of real property at certain Department of    
      Energy facilities.                                                      
            Sec. 3159. Requirement to delegate certain authorities to site    
      manager of Hanford Reservation.                                         
      Sec. 3160. Submittal of biennial waste management reports.              
      Sec. 3161. Department of Energy Security Management Board.              
            Sec. 3162. Submittal of annual report on status of security       
      functions at nuclear weapons facilities.                                
            Sec. 3163. Modification of authority on Commission on Maintaining 
      United States Nuclear Weapons Expertise.                                
      Sec. 3164. Land transfer, Bandelier National Monument.                  
            Sec. 3165. Final settlement of Department of Energy community     
      assistance obligations with respect to Los Alamos National Laboratory,  
      New Mexico.                                                             
            Sec. 3166. Sense of Congress regarding the Y 12 Plant in Oak      
      Ridge, Tennessee.                                                       
            Sec. 3167. Support for public education in the vicinity of Los    
      Alamos National Laboratory, New Mexico.                                 
      Sec. 3168. Improvements to Greenville Road, Livermore, California.      
      Sec. 3169. Report on alternative system for availability of funds.      
            Sec. 3170. Report on remediation under the Formerly Utilized Sites
      Remedial Action Program.                                                
                    TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD          
      Sec. 3201. Authorization.                                               
      Sec. 3202. Report on external regulation of defense nuclear facilities. 
                          TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                
      Sec. 3301. Definitions.                                                 
      Sec. 3302. Authorized uses of stockpile funds.                          
            Sec. 3303. Disposal of beryllium copper master alloy in National  
      Defense Stockpile.                                                      
      Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.   
      Sec. 3305. Disposal of cobalt in National Defense Stockpile.            
            Sec. 3306. Required procedures for disposal of strategic and      
      critical materials.                                                     
            Sec. 3307. Return of surplus platinum from the Department of the  
      Treasury.                                                               
                            TITLE XXXIV--NAVAL PETROLEUM RESERVES                 
      Sec. 3401. Authorization of appropriations.                             
            Sec. 3402. Price requirement on sale of certain petroleum during  
      fiscal year 1998.                                                       
            Sec. 3403. Repeal of requirement to assign Navy officers to Office
      of Naval Petroleum and Oil Shale Reserves.                              
            Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves     
      Numbered 1 and 3.                                                       
                             TITLE XXXV--PANAMA CANAL COMMISSION                  
                SUBTITLE A--AUTHORIZATION OF EXPENDITURES FROM REVOLVING FUND     
      Sec. 3501. Short title.                                                 
      Sec. 3502. Authorization of expenditures.                               
      Sec. 3503. Purchase of vehicles.                                        
      Sec. 3504. Expenditures only in accordance with treaties.               
                     SUBTITLE B--FACILITATION OF PANAMA CANAL TRANSITION          
      Sec. 3511. Short title; references.                                     
      Sec. 3512. Definitions relating to canal transition.                    
          PART I--TRANSITION MATTERS RELATING TO COMMISSION OFFICERS AND EMPLOYEES
            Sec. 3521. Authority for the Administrator of the Commission to   
      accept appointment as the Administrator of the Panama Canal Authority.  
      Sec. 3522. Post-Canal transfer personnel authorities.                   
            Sec. 3523. Enhanced authority of Commission to establish          
      compensation of Commission officers and employees.                      
            Sec. 3524. Travel, transportation, and subsistence expenses for   
      Commission personnel no longer subject to Federal travel regulation.    
      Sec. 3525. Enhanced recruitment and retention authorities.              
      Sec. 3526. Transition separation incentive payments.                    
      Sec. 3527. Labor-management relations.                                  
            Sec. 3528. Availability of Panama Canal Revolving Fund for        
      severance pay for certain employees separated by Panama Canal Authority 
      after Canal Transfer Date.                                              
          PART II--TRANSITION MATTERS RELATING TO OPERATION AND ADMINISTRATION OF 
                                      CANAL                                       
            Sec. 3541. Establishment of procurement system and Board of       
      Contract Appeals.                                                       
      Sec. 3542. Transactions with the Panama Canal Authority.                
      Sec. 3543. Time limitations on filing of claims for damages.            
      Sec. 3544. Tolls for small vessels.                                     
      Sec. 3545. Date of actuarial evaluation of FECA liability.              
      Sec. 3546. Appointment of notaries public.                              
      Sec. 3547. Commercial services.                                         
            Sec. 3548. Transfer from President to Commission of certain       
      regulatory functions relating to employment classification appeals.     
      Sec. 3549. Enhanced printing authority.                                 
      Sec. 3550. Technical and conforming amendments.                         
                            TITLE XXXVI--MARITIME ADMINISTRATION                  
      Sec. 3601. Authorization of appropriations for fiscal year 1998.        
            Sec. 3602. Repeal of obsolete annual report requirement concerning
      relative cost of shipbuilding in the various coastal districts of the   
      United States.                                                          
      Sec. 3603. Provisions relating to maritime security fleet program.      
      Sec. 3604. Authority to utilize replacement vessels and capacity.       
      Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.   
            Sec. 3606. Determination of gross tonnage for purposes of tank    
      vessel double hull requirements.                                        
          SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.                       
     For purposes of this Act, the term ``congressional defense           
  committees'' means--                                                    
       (1) the Committee on Armed Services and the Committee on            
   Appropriations of the Senate; and                                       
       (2) the Committee on National Security and the Committee on         
   Appropriations of the House of Representatives.                         
           DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS                        
           TITLE I--PROCUREMENT                                                    
                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              
      Sec. 101. Army.                                                         
      Sec. 102. Navy and Marine Corps.                                        
      Sec. 103. Air Force.                                                    
      Sec. 104. Defense-wide activities.                                      
      Sec. 105. Reserve components.                                           
      Sec. 106. Defense Inspector General.                                    
      Sec. 107. Chemical Demilitarization Program.                            
      Sec. 108. Defense health programs.                                      
      Sec. 109. Defense Export Loan Guarantee Program.                        
                                  SUBTITLE B--ARMY PROGRAMS                       
      Sec. 111. Army helicopter modernization plan.                           
      Sec. 112. Multiyear procurement authority for specified Army programs.  
      Sec. 113. M113 vehicle modifications.                                   
                                  SUBTITLE C--NAVY PROGRAMS                       
      Sec. 121. New Attack Submarine program.                                 
      Sec. 122. CVN 77 nuclear aircraft carrier program.                      
      Sec. 123. Exclusion from cost limitation for Seawolf submarine program. 
                               SUBTITLE D--AIR FORCE PROGRAMS                     
      Sec. 131. Authorization for B 2 bomber program.                         
      Sec. 132. ALR radar warning receivers.                                  
            Sec. 133. Analysis of requirements for replacement of engines on  
      military aircraft derived from Boeing 707 aircraft.                     
                                  SUBTITLE E--OTHER MATTERS                       
            Sec. 141. Pilot program on sales of manufactured articles and     
      services of certain Army industrial facilities without regard to        
      availability from domestic sources.                                     
      Sec. 142. NATO Joint Surveillance/Target Attack Radar System.           
           Subtitle A--Authorization of Appropriations                             
          SEC. 101. ARMY.                                                         
     Funds are hereby authorized to be appropriated for fiscal year 1998  
  for procurement for the Army as follows:                                
     (1) For aircraft, $1,316,233,000.                                     
     (2) For missiles, $742,639,000.                                       
     (3) For weapons and tracked combat vehicles, $1,297,641,000.          
     (4) For ammunition, $1,011,193,000.                                   
     (5) For other procurement, $2,566,208,000.                            
          SEC. 102. NAVY AND MARINE CORPS.                                        
     (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
  year 1998 for procurement for the Navy as follows:                      
     (1) For aircraft, $6,437,330,000.                                     
     (2) For weapons, including missiles and torpedoes, $1,089,443,000.    
     (3) For shipbuilding and conversion, $8,195,269,000.                  
     (5) For other procurement, $2,970,867,000.                            
     (b) Marine Corps.--Funds are hereby authorized to be appropriated for
  fiscal year 1998 for procurement for the Marine Corps in the amount of  
  $460,081,000.                                                           
     (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized to
  be appropriated for procurement of ammunition for the Navy and the      
  Marine Corps in the amount of $364,744,000.                             
          SEC. 103. AIR FORCE.                                                    
     Funds are hereby authorized to be appropriated for fiscal year 1998  
  for procurement for the Air Force as follows:                           
     (1) For aircraft, $6,425,749,000.                                     
     (2) For missiles, $2,376,301,000.                                     
     (3) For ammunition, $398,534,000.                                     
     (4) For other procurement, $6,543,580,000.                            
          SEC. 104. DEFENSE-WIDE ACTIVITIES.                                      
     Funds are hereby authorized to be appropriated for fiscal year 1998  
  for Defense-wide procurement in the amount of $2,057,150,000.           
          SEC. 105. RESERVE COMPONENTS.                                           
     Funds are hereby authorized to be appropriated for fiscal year 1998  
  for procurement of aircraft, vehicles, communications equipment, and    
  other equipment for the reserve components of the Armed Forces as       
  follows:                                                                
     (1) For the Army National Guard, $70,000,000.                         
     (2) For the Air National Guard, $303,000,000.                         
     (3) For the Army Reserve, $75,000,000.                                
     (4) For the Naval Reserve, $80,000,000.                               
     (5) For the Air Force Reserve, $50,000,000.                           
     (6) For the Marine Corps Reserve, $65,000,000.                        
          SEC. 106. DEFENSE INSPECTOR GENERAL.                                    
     Funds are hereby authorized to be appropriated for fiscal year 1998  
  for procurement for the Inspector General of the Department of Defense  
  in the amount of $1,800,000.                                            
          SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.                            
     There is hereby authorized to be appropriated for fiscal year 1998   
  the amount of $600,700,000 for--                                        
       (1) the destruction of lethal chemical agents and munitions in      
   accordance with section 1412 of the Department of Defense Authorization 
   Act, 1986 (50 U.S.C. 1521); and                                         
       (2) the destruction of chemical warfare materiel of the United      
   States that is not covered by section 1412 of such Act.                 
          SEC. 108. DEFENSE HEALTH PROGRAMS.                                      
     Funds are hereby authorized to be appropriated for fiscal year 1998  
  for the Department of Defense for procurement for carrying out health   
  care programs, projects, and activities of the Department of Defense in 
  the total amount of $274,068,000.                                       
          SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.                        
     Funds are hereby authorized to be appropriated for fiscal year 1998  
  for the Department of Defense for carrying out the Defense Export Loan  
  Guarantee Program under section 2540 of title 10, United States Code, in
  the total amount of $1,231,000.                                         
           Subtitle B--Army Programs                                               
          SEC. 111. ARMY HELICOPTER MODERNIZATION PLAN.                           
     (a) Limitation.--Not more than 80 percent of the total of the amounts
  authorized to be appropriated pursuant to section 101(1), 105(1), and   
  105(3) for modifications or upgrades of helicopters may be obligated    
  before the date that is 30 days after the date on which the Secretary of
  the Army submits to the congressional defense committees a comprehensive
  plan for the modernization of the Army's helicopter fleet.              
     (b) Content of Plan.--The plan required by subsection (a) shall      
  include the following:                                                  
       (1) A detailed assessment of the Army's present and future          
   helicopter requirements and present and future helicopter inventory,    
   including number of aircraft, age of aircraft, availability of spare    
   parts, flight hour costs, roles and functions assigned to the fleet as a
   whole and to its individual types of aircraft, and the mix of active    
   component aircraft and reserve component aircraft in the fleet.         
       (2) Estimates and analysis of requirements and funding proposed for 
   procurement of new aircraft.                                            
       (3) An analysis of the requirements for and funding proposed for    
   extended service plans or service life extension plans for fleet        
   aircraft.                                                               
       (4) A plan for retiring aircraft no longer required or capable of   
   performing assigned functions, including a discussion of opportunities  
   to eliminate older aircraft models and to focus future funding on       
   current or future generation aircraft.                                  
     (5) The implications of the plan for the defense industrial base.     
     (c) Relationship to Future-Years Defense Program.--The Secretary of  
  the Army shall design the plan under subsection (a) so that the plan    
  could be implemented within the funding levels expected to be available 
  for Army aircraft programs in the next future-years defense program to  
  be submitted to Congress pursuant to section 221(a) of title 10, United 
  States Code. The Secretary shall include in the plan a certification    
  that the program of the Army prepared for inclusion in the future-years 
  defense program submitted to Congress in 1998 pursuant to section 221(a)
  of title 10, United States Code, included full funding for              
  implementation of the plan.                                             
          SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR SPECIFIED ARMY PROGRAMS.  
     (a) AH 64 D Longbow Apache Fire Control Radar.--Beginning with the   
  fiscal year 1998 program year, the Secretary of the Army may, in        
  accordance with section 2306b of title 10, United States Code, enter    
  into a multiyear procurement contract for procurement of the AH 64D     
  Longbow Apache fire control radar.                                      
     (b) Medium Tactical Vehicles.--Beginning with the fiscal year 1998   
  program year, the Secretary of the Army may, in accordance with section 
  2306b of title 10, United States Code, enter into a multiyear           
  procurement contract for procurement of vehicles of the Family of Medium
  Tactical Vehicles. The contract may be for a term of four years and may 
  include an option to extend the contract for one additional year.       
          SEC. 113. M113 VEHICLE MODIFICATIONS.                                   
     Of the amount made available for the Army pursuant to section 101(3),
  $35,244,000 shall be available only for the procurement and installation
  of A3 upgrade kits for the M113 vehicle.                                
           Subtitle C--Navy Programs                                               
          SEC. 121. NEW ATTACK SUBMARINE PROGRAM.                                 
     (a) Amounts Authorized From SCN Account.--Of the amounts authorized  
  to be appropriated by section 102(a)(3) for fiscal year 1998,           
  $2,599,800,000 is available for the New Attack Submarine Program.       
     (b) Contract Authority.--(1) The Secretary of the Navy may enter into
  a contract for the procurement of four submarines under the New Attack  
  Submarine program.                                                      
    (2) Any contract entered into under paragraph (1)--                   
       (A) shall, notwithstanding section 2304(k) of title 10, United      
   States Code, be awarded to one of the two eligible shipbuilders as the  
   prime contractor on the condition that the prime contractor enter into  
   one or more subcontracts (under such prime contract) with the other of  
   the two eligible shipbuilders as contemplated in the New Attack         
   Submarine Team Agreement; and                                           
     (B) shall provide for--                                               
     (i) construction of the first submarine in fiscal year 1998; and      
       (ii) advance construction and advance procurement of materiel for   
   the second, third, and fourth submarines in fiscal year 1998.           
     (3) The following shipbuilders are eligible for a contract under this
  subsection:                                                             
     (A) The Electric Boat Corporation.                                    
     (B) The Newport News Shipbuilding and Drydock Company.                
     (4) In paragraph (2)(A), the term ``New Attack Submarine Team        
  Agreement'' means the agreement known as the Team Agreement between     
  Electric Boat Corporation and Newport News Shipbuilding and Drydock     
  Company, dated February 25, 1997, that was submitted to Congress by the 
  Secretary of the Navy on March 31, 1997.                                
     (c) Limitation of Liability.--If a contract entered into under this  
  section is terminated, the United States shall not be liable for        
  termination costs in excess of the total amount appropriated for the New
  Attack Submarine program.                                               
     (d) Repeals of Superseded Provisions of Previous Defense             
  Authorization Laws.--(1) Section 131 of the National Defense            
  Authorization Act for Fiscal Year 1996 (Public Law 104 106; 110 Stat.   
  206) is amended--                                                       
     (A) in subsection (a)(1)(B)--                                         
       (i) in clause (i), by striking out ``, which shall be built by      
   Electric Boat Division''; and                                           
       (ii) in clause (ii), by striking out ``, which shall be built by    
   Newport News Shipbuilding''; and                                        
     (B) in subsection (b), by striking out paragraph (1).                 
     (2) Section 121 of the National Defense Authorization Act for Fiscal 
  Year 1997 (Public Law 104 201; 110 Stat. 2441) is amended--             
     (A) in subsection (a)--                                               
       (i) in paragraph (1)(B), by striking out ``to be built by Electric  
   Boat Division''; and                                                    
       (ii) in paragraph (1)(C), by striking out ``to be built by Newport  
   News Shipbuilding'';                                                    
     (B) in subsection (d), by striking out paragraph (2);                 
     (C) in subsection (e), by striking out paragraph (1); and             
       (D) in subsection (g), by striking out ``the committees specified in
   subsection (e)(1)'' in paragraphs (3) and (4) and inserting in lieu     
   thereof ``the Committee on Armed Services of the Senate and the         
   Committee on National Security of the House of Representatives''.       
     (e) Inapplicability of Superseded Aspects of Attack Submarine        
  Development Plan.--The Secretary of Defense and the Secretary of the    
  Navy are not required to carry out the portions of the program plan     
  submitted under subsection (c) of section 131 of the National Defense   
  Authorization Act for Fiscal Year 1996 that are included in the plan    
  pursuant to subparagraphs (A), (B), and (E) of paragraph (2) of such    
  subsection.                                                             
          SEC. 122. CVN 77 NUCLEAR AIRCRAFT CARRIER PROGRAM.                      
     (a) Authorization of Ship.--The Secretary of the Navy is authorized  
  to procure the aircraft carrier to be designated CVN 77, subject to the 
  availability of appropriations for that purpose.                        
     (b) Amount Authorized From SCN Account.--Of the amount authorized to 
  be appropriated by section 102(a)(3) for fiscal year 1998, $50,000,000  
  is available for the advance procurement and advance construction of    
  components (including nuclear components) for the CVN 77 aircraft       
  carrier program. The Secretary of the Navy may enter into a contract or 
  contracts with the shipbuilder and other entities for the advance       
  procurement and advance construction of those components.               
     (c) Other Funds.--Of the funds authorized to be appropriated under   
  this Act for programs, projects, and activities of the military         
  departments and Defense Agencies, other than the CVN 77 aircraft carrier
  program, up to $295,000,000 may be made available, as the Secretary of  
  Defense may direct, for the CVN 77 aircraft carrier program. Authority  
  to make transfers under this subsection is in addition to the transfer  
  authority provided in section 1001.                                     
     (d) Management of Funds.--The Secretary of the Navy shall obligate   
  and expend the funds available for advance procurement and advance      
  construction of components for the CVN 77 aircraft carrier program for  
  fiscal year 1998 in a manner that is designed to result in such cost    
  savings as may be required in order to meet the cost limitation         
  specified in subsection (f).                                            
     (e) Adjustments to Future-Years Defense Program.--The Secretary of   
  Defense shall make such plans for the CVN 77 aircraft carrier program as
  are necessary to attain for the program the cost savings that are       
  contemplated for the procurement of the CVN 77 aircraft carrier in the  
  March 1997 procurement plan.                                            
     (f) Limitation on Total Cost of Procurement.--(1) The Secretary of   
  the Navy shall structure the program for the procurement of the CVN 77  
  aircraft carrier, and shall manage that program, so that the total cost 
  of the procurement of the CVN 77 aircraft carrier does not exceed       
  $4,600,000,000 (such amount being the estimated cost for the procurement
  of the CVN 77 aircraft carrier in the March 1997 procurement plan).     
     (2) The Secretary of the Navy may adjust the amount set forth in     
  paragraph (1) for the CVN 77 aircraft carrier program by the following: 
       (A) The amounts of outfitting costs and post-delivery costs incurred
   for the program.                                                        
       (B) The amounts of increases or decreases in costs attributable to  
   economic inflation after September 30, 1997.                            
       (C) The amounts of increases or decreases in costs attributable to  
   compliance with changes in Federal, State, or local laws enacted after  
   September 30, 1997.                                                     
       (D) The amounts of increases or decreases in costs of the program   
   that are attributable to new technology built into the CVN 77 aircraft  
   carrier, as compared to the technology built into the baseline design of
   the CVN 76 aircraft carrier.                                            
       (E) The amounts of increases or decreases in costs resulting from   
   changes the Secretary proposes in the funding plan (as contemplated in  
   the March 1997 procurement plan) on which the projected savings are     
   based.                                                                  
     (3) The Secretary of the Navy shall annually submit to Congress, at  
  the same time as the budget is submitted under section 1105(a) of title 
  31, United States Code, written notice of any change in the amount set  
  forth in paragraph (1) during the preceding fiscal year that the        
  Secretary has determined to be associated with a cost referred to in    
  paragraph (2).                                                          
     (g) March 1997 Procurement Plan Defined.--In this section, the term  
  ``March 1997 procurement plan'' means the procurement plan for the CVN  
  77 aircraft carrier that was submitted to the Navy and Congress by the  
  shipbuilder in March 1997.                                              
          SEC. 123. EXCLUSION FROM COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM. 
     (a) Authority To Exclude Amounts Appropriated for Canceled           
  Vessels.--(1) The Secretary of the Navy may exclude from the application
  of the cost limitation for the Seawolf submarine program such amounts,  
  not in excess of $272,400,000, as were appropriated for fiscal years    
  1990, 1991, and 1992 for procurement of Seawolf-class submarines that   
  have been canceled.                                                     
     (2) For the purposes of this subsection, the term ``cost limitation  
  for the Seawolf submarine program'' means the limitation in section     
  133(a) of the National Defense Authorization Act for Fiscal Year 1996   
  (Public Law 104 106; 110 Stat. 211).                                    
     (b) Determination and Report by Inspector General.--(1) Not later    
  than March 30, 1998, the Inspector General of the Department of Defense 
  shall submit to the Committee on Armed Services of the Senate and the   
  Committee on National Security of the House of Representatives a report 
  containing the Inspector General's determination as to whether any      
  further exclusion from, adjustment to exclusion from, or increase in the
  dollar amount of the cost limitation referred to in subsection (a) will 
  be required.                                                            
    (2) The Inspector General shall include in the report the following:  
       (A) A thorough and comprehensive accounting for the amount of       
   $745,400,000 identified by the Secretary of the Navy as having been     
   obligated or expended for the detailed design for Seawolf-class         
   submarines that have been canceled and for the procurement of nuclear   
   components and construction spare parts for those canceled submarines,  
   including a statement of the current disposition of items specifically  
   purchased using those funds.                                            
       (B) Cost growth, if any, in the cost of construction of the SSN 21, 
   SSN 22, and SSN 23 Seawolf-class submarines that has not been reported  
   to Congress before the date of the report of the Inspector General.     
       (C) The current cost estimate of the Secretary of the Navy for      
   completion of the SSN 21, SSN 22, and SSN 23 Seawolf-class submarines.  
     (3) The Inspector General shall include in the report such supporting
  information and analyses as the Inspector General considers appropriate 
  for aiding in understanding the determination and findings of the       
  Inspector General.                                                      
           Subtitle D--Air Force Programs                                          
          SEC. 131. AUTHORIZATION FOR B 2 BOMBER PROGRAM.                         
     (a) Funding Availability.--Of the funds made available for           
  procurement of aircraft for the Air Force for fiscal year 1998, the     
  amount of $331,000,000 is available for long-lead activities related to 
  the procurement of additional B 2 bomber aircraft. However, if the      
  President determines that no additional B 2 bombers should be procured  
  during fiscal year 1998 and certifies that decision to Congress, the    
  funding authorized in the preceding sentence shall be made available to 
  modify and repair the existing fleet of B 2 bomber aircraft.            
     (b) Secretary of Defense To Preserve Options of President.--The      
  Secretary of Defense shall ensure that all appropriate actions are taken
  to preserve the options of the President until the panel to review      
  long-range airpower established by section 8131 of the Department of    
  Defense Appropriations Act, 1998 (Public Law 105 56; 111 Stat. 1249),   
  submits its report.                                                     
          SEC. 132. ALR RADAR WARNING RECEIVERS.                                  
     (a) Cost and Operation Effectiveness Analysis.--The Secretary of the 
  Air Force shall conduct a cost and operation effectiveness analysis of  
  upgrading the ALR69 radar warning receiver as compared with the further 
  acquisition of the ALR56M radar warning receiver.                       
     (b) Submission to Congress.--The Secretary shall submit the cost and 
  operation effectiveness analysis to the congressional defense committees
  not later than April 2, 1998.                                           
                    SEC. 133. ANALYSIS OF REQUIREMENTS FOR REPLACEMENT OF ENGINES 
          ON MILITARY AIRCRAFT DERIVED FROM BOEING 707 AIRCRAFT.                  
     (a) Analysis Required.--The Secretary of Defense shall submit to the 
  Committee on Armed Services of the Senate and the Committee on National 
  Security of the House of Representatives an analysis, to be carried out 
  by the Under Secretary of Defense for Acquisition and Technology, of the
  requirements of the Department of Defense for replacing engines on the  
  aircraft of the Department of Defense that are derived from the Boeing  
  707 aircraft and the costs of meeting those requirements.               
    (b)  Content.--The analysis shall include the following:              
       (1) The number of aircraft described in subsection (a) that are in  
   the inventory of the Department of Defense as of October 1, 1997, and   
   the number of such aircraft that are projected to be in the inventory of
   the Department as of October 1, 2002, as of October 1, 2007, and as of  
   October 1, 2012.                                                        
       (2) For each type of such aircraft, the estimated cost of operating 
   the aircraft for each fiscal year beginning with fiscal year 1998 and   
   ending with fiscal year 2014, taking into account historical patterns of
   usage and projected support costs.                                      
       (3) For each type of such aircraft, the estimated costs and the     
   benefits of replacing the engines on the aircraft, analyzed on the basis
   of the experience under the limited program for replacing the engines on
   RC 135 aircraft that was undertaken during fiscal years 1995, 1996, and 
   1997.                                                                   
       (4) Various plans for replacement of engines that the Under         
   Secretary considers best on the basis of costs and benefits.            
     (c) Submission Deadline.--The analysis under subsection (a) shall be 
  submitted not later than March 1, 1998.                                 
           Subtitle E--Other Matters                                               
                    SEC. 141. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND 
          SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT REGARD TO        
          AVAILABILITY FROM DOMESTIC SOURCES.                                     
     (a) Pilot Program Required.--During fiscal years 1998 and 1999, the  
  Secretary of the Army shall carry out a pilot program to test the       
  efficacy and appropriateness of selling manufactured articles and       
  services of Army industrial facilities under section 4543 of title 10,  
  United States Code, without regard to the availability of the articles  
  and services from United States commercial sources. In carrying out the 
  pilot program, the Secretary may use articles manufactured at, and      
  services provided by, not more than three Army industrial facilities.   
     (b) Temporary Waiver of Requirement for Determination of             
  Unavailability From Domestic Source.--Under the pilot program, the      
  Secretary of the Army is not required under section 4543(a)(5) of title 
  10, United States Code, to determine whether an article or service is   
  available from a commercial source located in the United States in the  
  case of any of the following sales for which a solicitation of offers is
  issued during fiscal year 1998 or 1999:                                 
       (1) A sale of articles to be incorporated into a weapon system being
   procured by the Department of Defense.                                  
       (2) A sale of services to be used in the manufacture of a weapon    
   system being procured by the Department of Defense.                     
     (c) Review by Inspector General.--The Inspector General of the       
  Department of Defense shall review the experience under the pilot       
  program under this section and, not later than July 1, 1999, submit to  
  Congress a report on the results of the review. The report shall contain
  the following:                                                          
       (1) The Inspector General's views regarding the extent to which the 
   waiver under subsection (b) enhances the opportunity for United States  
   manufacturers, assemblers, developers, and other concerns to enter into 
   or participate in contracts and teaming arrangements with Army          
   industrial facilities under weapon system programs of the Department of 
   Defense.                                                                
       (2) The Inspector General's views regarding the extent to which the 
   waiver under subsection (b) enhances the opportunity for Army industrial
   facilities referred to in section 4543(a) of title 10, United States    
   Code, to enter into or participate in contracts and teaming arrangements
   with United States manufacturers, assemblers, developers, and other     
   concerns under weapon system programs of the Department of Defense.     
       (3) The Inspector General's views regarding the effect of the waiver
   under subsection (b) on the ability of small businesses to compete for  
   the sale of manufactured articles or services in the United States in   
   competitions to enter into or participate in contracts and teaming      
   arrangements under weapon system programs of the Department of Defense. 
       (4) Specific examples under the pilot program that support the      
   Inspector General's views.                                              
       (5) Any other information that the Inspector General considers      
   pertinent regarding the effects of the waiver of section 4543(a)(5) of  
   title 10, United States Code, under the pilot program on opportunities  
   for United States manufacturers, assemblers, developers, or other       
   concerns, and for Army industrial facilities, to enter into or          
   participate in contracts and teaming arrangements under weapon system   
   programs of the Department of Defense.                                  
       (6) Any recommendations that the Inspector General considers        
   appropriate regarding continuation or modification of the policy set    
   forth in section 4543(a)(5) of title 10, United States Code.            
          SEC. 142. NATO JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM.           
     (a) Funding.--Amounts authorized to be appropriated under this title 
  and title II are available for a NATO alliance ground surveillance      
  capability that is based on the Joint Surveillance/Target Attack Radar  
  System of the United States, as follows:                                
       (1) Of the amount authorized to be appropriated under section       
   101(5), $26,153,000.                                                    
       (2) Of the amount authorized to be appropriated under section       
   103(1), $10,000,000.                                                    
       (3) Of the amount authorized to be appropriated under section       
   201(1), $13,500,000.                                                    
       (4) Of the amount authorized to be appropriated under section       
   201(3), $26,061,000.                                                    
     (b) Authority.--(1) Subject to paragraph (2), the Secretary of       
  Defense may utilize authority under section 2350b of title 10, United   
  States Code, for contracting for the purposes of Phase I of a NATO      
  Alliance Ground Surveillance capability that is based on the Joint      
  Surveillance/Target Attack Radar System of the United States,           
  notwithstanding the condition in such section that the authority be     
  utilized for carrying out contracts or obligations incurred under       
  section 27(d) of the Arms Export Control Act (22 U.S.C. 2767(d)).       
     (2) The authority under paragraph (1) applies during the period that 
  the conclusion of a cooperative project agreement for a NATO Alliance   
  Ground Surveillance capability under section 27(d) of the Arms Export   
  Control Act is pending, as determined by the Secretary of Defense.      
     (c) Modification of Air Force Aircraft.--Amounts available pursuant  
  to paragraphs (2) and (4) of subsection (a) may be used to provide for  
  modifying two Air Force Joint Surveillance/Target Attack Radar System   
  production aircraft to have a NATO Alliance Ground Surveillance         
  capability that is based on the Joint Surveillance/Target Attack Radar  
  System of the United States.                                            
           TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION                   
                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              
      Sec. 201. Authorization of appropriations.                              
      Sec. 202. Amount for basic and applied research.                        
      Sec. 203. Dual-use technology program.                                  
            Sec. 204. Reduction in amount for Federally Funded Research and   
      Development Centers.                                                    
               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    
      Sec. 211. Manufacturing technology program.                             
      Sec. 212. Report on operational field assessments program.              
      Sec. 213. Joint Strike Fighter program.                                 
      Sec. 214. Kinetic energy tactical anti-satellite technology program.    
      Sec. 215. Micro-satellite technology development program.               
      Sec. 216. High altitude endurance unmanned vehicle program.             
      Sec. 217. F 22 aircraft program.                                        
                       SUBTITLE C--BALLISTIC MISSILE DEFENSE PROGRAMS             
      Sec. 231. National Missile Defense Program.                             
            Sec. 232. Budgetary treatment of amounts for procurement for      
      ballistic missile defense programs.                                     
      Sec. 233. Cooperative Ballistic Missile Defense program.                
            Sec. 234. Annual report on threat posed to the United States by   
      weapons of mass destruction, ballistic missiles, and cruise missiles.   
      Sec. 235. Director of Ballistic Missile Defense Organization.           
            Sec. 236. Repeal of required deployment dates for core theater    
      missile defense programs                                                
                                  SUBTITLE D--OTHER MATTERS                       
            Sec. 241. Restructuring of National Oceanographic Partnership     
      Program organizations.                                                  
            Sec. 242. Maintenance and repair of real property at Air Force    
      installations.                                                          
            Sec. 243. Expansion of eligibility for the Defense Experimental   
      Program to Stimulate Competitive Research.                              
            Sec. 244. Bioassay testing of veterans exposed to ionizing        
      radiation during military service.                                      
      Sec. 245. Sense of Congress regarding Comanche program.                 
           Subtitle A--Authorization of Appropriations                             
          SEC. 201. AUTHORIZATION OF APPROPRIATIONS.                              
     Funds are hereby authorized to be appropriated for fiscal year 1998  
  for the use of the Department of Defense for research, development,     
  test, and evaluation as follows:                                        
     (1) For the Army, $4,633,495,000.                                     
     (2) For the Navy, $7,774,877,000.                                     
     (3) For the Air Force, $14,338,934,000.                               
     (4) For Defense-wide activities, $9,831,646,000, of which--           
       (A) $258,183,000 is authorized for the activities of the Director,  
   Test and Evaluation; and                                                
       (B) $27,384,000 is authorized for the Director of Operational Test  
   and Evaluation.                                                         
          SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.                        
     (a) Fiscal Year 1998.--Of the amounts authorized to be appropriated  
  by section 201, $3,935,390,000 shall be available for basic research and
  applied research projects.                                              
     (b) Basic Research and Applied Research Defined.--For purposes of    
  this section, the term ``basic research and applied research'' means    
  work funded in program elements for defense research and development    
  under Department of Defense category 6.1 or 6.2.                        
          SEC. 203. DUAL-USE SCIENCE AND TECHNOLOGY PROGRAM.                      
     (a) Funding 1998.--Of the amounts authorized to be appropriated by   
  section 201, $75,000,000 is authorized for dual-use projects.           
     (b) Goals.--(1) Subject to paragraph (3), it shall be the objective  
  of the Secretary of each military department to obligate for dual-use   
  projects in each fiscal year referred to in paragraph (2), out of the   
  total amount authorized to be appropriated for such fiscal year for the 
  applied research programs of the military department, the percent of    
  such amount that is specified for that fiscal year in paragraph (2).    
     (2) The objectives for fiscal years under paragraph (1) are as       
  follows:                                                                
     (A) For fiscal year 1998, 5 percent.                                  
     (B) For fiscal year 1999, 7 percent.                                  
     (C) For fiscal year 2000, 10 percent.                                 
     (D) For fiscal year 2001, 15 percent.                                 
     (3) The Secretary of Defense may establish for a military department 
  for a fiscal year an objective different from the objective set forth in
  paragraph (2) if the Secretary--                                        
       (A) determines that compelling national security considerations     
   require the establishment of the different objective; and               
       (2) notifies Congress of the determination and the reasons for the  
   determination.                                                          
     (c) Designation of Official for Dual-Use Programs.--(1) The Secretary
  of Defense shall designate a senior official in the Office of the       
  Secretary of Defense to carry out responsibilities for dual-use projects
  under this subsection. The designated official shall report directly to 
  the Under Secretary of Defense for Acquisition and Technology.          
     (2) The primary responsibilities of the designated official shall    
  include developing policy and overseeing the establishment of, and      
  adherence to, procedures for ensuring that dual-use projects are        
  initiated and administered effectively and that applicable commercial   
  technologies are integrated into current and future military systems.   
     (3) In carrying out the responsibilities, the designated official    
  shall ensure that--                                                     
       (A) dual-use projects are consistent with the joint warfighting     
   science and technology plan referred to in section 270 of the National  
   Defense Authorization Act for Fiscal Year 1997 (Public Law 104 201; 10  
   U.S.C. 2501 note); and                                                  
       (B) the dual-use projects of the military departments and defense   
   agencies of the Department of Defense are coordinated and avoid         
   unnecessary duplication.                                                
     (d) Financial Commitment of Non-Federal Government Participants.--The
  total amount of funds provided by a military department for a dual-use  
  project entered into by the Secretary of that department shall not      
  exceed 50 percent of the total cost of the project. In the case of a    
  dual-use project initiated after the date of the enactment of this Act, 
  the Secretary may consider in-kind contributions by non-Federal         
  participants only to the extent such contributions constitute 50 percent
  or less of the share of the project costs by such participants.         
     (e) Use of Competitive Procedures.--Funds obligated for a dual-use   
  project may be counted toward meeting an objective under subsection (a) 
  only if the funds are obligated for a contract, grant, cooperative      
  agreement, or other transaction that was entered into through the use of
  competitive procedures.                                                 
     (f) Report.--(1) Not later than March 1 of each of 1998, 1999, and   
  2000, the Secretary of Defense shall submit a report to the             
  congressional defense committees on the progress made by the Department 
  of Defense in meeting the objectives set forth in subsection (b) during 
  the preceding fiscal year.                                              
     (2) The report for a fiscal year shall contain, at a minimum, the    
  following:                                                              
       (A) The aggregate value of all contracts, grants, cooperative       
   agreements, or other transactions entered into during the fiscal year   
   for which funding is counted toward meeting an objective under this     
   section, expressed in relationship to the total amount appropriated for 
   the applied research programs in the Department of Defense for that     
   fiscal year.                                                            
       (B) For each military department, the value of all contracts,       
   grants, cooperative agreements, or other transactions entered into      
   during the fiscal year for which funding is counted toward meeting an   
   objective under this section, expressed in relationship to the total    
   amount appropriated for the applied research program of the military    
   department for that fiscal year.                                        
       (C) A summary of the cost-sharing arrangements in dual-use projects 
   that were initiated during the fiscal year and are counted toward       
   reaching an objective under this section.                               
       (D) A description of the regulations, directives, or other          
   procedures that have been issued by the Secretary of Defense or the     
   Secretary of a military department to increase the percentage of the    
   total value of the dual-use projects undertaken to meet or exceed an    
   objective under this section.                                           
       (E) Any recommended legislation to facilitate achievement of        
   objectives under this section.                                          
     (g) Commercial Operations and Support Savings Initiative.--(1) The   
  Secretary of Defense shall establish a Commercial Operations and Support
  Savings Initiative (in this subsection referred to as the               
  ``Initiative'') to develop commercial products and processes that the   
  military departments can incorporate into operational military systems  
  to reduce costs of operations and support.                              
     (2) Of the amounts authorized to be appropriated by section 201,     
  $50,000,000 is authorized for the Initiative.                           
     (3) Projects and participants in the Initiative shall be selected    
  through the use of competitive procedures.                              
     (4) The budget submitted to Congress by the President for fiscal year
  1999 and each fiscal year thereafter pursuant to section 1105(a) of     
  title 31, United States Code, shall set forth separately the funding    
  request for the Initiative.                                             
     (h) Repeal of Superseded Authority.--Section 203 of the National     
  Defense Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 
  Stat. 2451) is repealed.                                                
    (i)  Definitions.--In this section:                                   
       (1) The term ``applied research program'' means a program of a      
   military department which is funded under the 6.2 Research, Development,
   Test and Evaluation account of that department.                         
       (2) The term ``dual-use project'' means a project under a program of
   a military department or a defense agency under which research or       
   development of a dual-use technology is carried out and the costs of    
   which are shared by the Department of Defense and non-Government        
   entities.                                                               
                    SEC. 204. REDUCTION IN AMOUNT FOR FEDERALLY FUNDED RESEARCH   
          AND DEVELOPMENT CENTERS.                                                
     The total of the amounts authorized to be appropriated in section 201
  that are available for Federally Funded Research and Development Centers
  (other than amounts for capital equipment investment) is hereby reduced 
  by $42,000,000.                                                         
           Subtitle B--Program Requirements, Restrictions, and Limitations         
          SEC. 211. MANUFACTURING TECHNOLOGY PROGRAM.                             
     (a) Participation of Manufacturers.--Section 2525(c)(2) of title 10, 
  United States Code, is amended to read as follows:                      
     ``(2) In order to promote increased dissemination and use of         
  manufacturing technology throughout the national defense technology and 
  industrial base, the Secretary shall seek, to the maximum extent        
  practicable, the participation of manufacturers of manufacturing        
  equipment in the projects under the program.''.                         
     (b) Five-Year Plan.--Section 2525 of such title is amended by adding 
  at the end the following new subsection:                                
     ``(e) Five-Year Plan.--(1) The Secretary of Defense shall prepare a  
  five-year plan for the program which establishes--                      
       ``(A) the overall manufacturing technology goals, milestones,       
   priorities, and investment strategy for the program; and                
       ``(B) for each of the five fiscal years covered by the plan, the    
   objectives of, and funding for the program by, each military department 
   and each Defense Agency participating in the program.                   
     ``(2) The plan shall include an assessment of the effectiveness of   
  the program.                                                            
     ``(3) The plan shall be updated annually and shall be included in the
  budget justification documents submitted in support of the budget of the
  Department of Defense for a fiscal year (as included in the budget of   
  the President submitted to Congress under section 1105 of title 31).''. 
     (c) Deadline for First Plan.--The Secretary of Defense shall prepare 
  the first five-year plan required under section 2525(e) of such title,  
  as added by subsection (b), within 60 days after the date of the        
  enactment of this Act.                                                  
          SEC. 212. REPORT ON OPERATIONAL FIELD ASSESSMENTS PROGRAM.              
     (a) Finding.--Congress recognizes the potential value that the       
  Department of Defense Operational Field Assessments program, which is   
  managed by the Director of Operational Test and Evaluation, provides to 
  the commanders of the Unified Combatant Commands with respect to        
  assessment of the effectiveness of near-term operational concepts and   
  critical operational issues in quick-response operational tests and     
  evaluations.                                                            
     (b) Report.--Not later than March 30, 1998, the Secretary of Defense 
  shall submit to the congressional defense committees a report on the    
  Operational Field Assessments program.                                  
    (c)  Content of Report.--The report shall contain the following:      
       (1) A review of the Operational Field Assessments program which     
   describes the goals and objectives of the program, assessments by the   
   program conducted as of the date of the submission of the report, and   
   the results of those assessments.                                       
       (2) A description of the current management and support structure of
   the program within the Department of Defense, including a description of
   how program responsibilities are assigned within the Office of the      
   Secretary of Defense and a description of the roles of the Joint Staff, 
   the commanders of the Unified Combatant Commands, and the military      
   departments.                                                            
       (3) An analysis of and recommendations regarding the management     
   structure required within the Office of the Secretary of Defense to     
   ensure that the program is responsive to the mission needs of the       
   commanders of the Unified Combatant Commands.                           
     (4) The funding plan for the program.                                 
       (5) A description of future plans for the program and funding       
   requirements for those plans.                                           
       (6) Recommendations regarding additional statutory authority that   
   may be required for the program.                                        
          SEC. 213. JOINT STRIKE FIGHTER PROGRAM.                                 
     (a) Report.--Not later than February 15, 1998, the Secretary of      
  Defense shall submit to the congressional defense committees a report on
  the options for the sequence in which the variants of the joint strike  
  fighter are to be produced and fielded.                                 
    (b)  Content of Report.--The report shall contain the following:      
       (1) A review of the plan for production under the Joint Strike      
   Fighter program that was used by the Department of Defense for          
   developing the funding estimates for the fiscal year 1999 budget request
   for the Department of Defense.                                          
       (2) An estimate of the costs, and an analysis of the costs and      
   benefits, of producing the joint strike fighter variants in a sequence  
   that provides for fielding of the naval variant of the aircraft first.  
       (3) A comparison of the costs and benefits of the various options   
   for the sequence for fielding the variants of the joint strike fighter  
   that the Secretary of Defense considers likely to be the options from   
   among which a sequence for fielding is selected, including a discussion 
   of the effects that selection of each such option would have on the     
   costs and rates of production of the units of F/A 18E/F and F 22        
   aircraft that are in production when the Joint Strike Fighter Program   
   proceeds into production.                                               
       (4) A certification that the Joint Strike Fighter Program contains  
   sufficient funding to carry out an alternate engine development program 
   that includes flight qualification of an alternate engine in a joint    
   strike fighter airframe.                                                
     (c) Limitation on Use of Funds Pending Submission of Report.--Not    
  more than 90 percent of the total amount authorized to be appropriated  
  under this Act for the Joint Strike Fighter Program may be obligated    
  until the date that is 30 days after the date on which the congressional
  defense committees receive the report required under this section.      
     (d) Fiscal Year 1998 Budget Defined.--In this section, the term      
  ``fiscal year 1999 budget request for the Department of Defense'' means 
  the budget estimates for the Department of Defense for fiscal year 1999 
  that were submitted to Congress by the Secretary of Defense in          
  connection with the submission of the budget for fiscal year 1998 to    
  Congress under section 1105 of title 31, United States Code.            
          SEC. 214. KINETIC ENERGY TACTICAL ANTI-SATELLITE TECHNOLOGY PROGRAM.    
     Of the funds authorized to be appropriated under section 201(4),     
  $37,500,000 shall be available for the kinetic energy tactical          
  anti-satellite technology program.                                      
          SEC. 215. MICRO-SATELLITE TECHNOLOGY DEVELOPMENT PROGRAM.               
     (a) Establishment of Micro-Satellite Technology Development          
  Program.--The Secretary of Defense shall restructure the Clementine 2   
  micro-satellite development program into a micro-satellite technology   
  development program that supports a range of space mission areas.       
     (b) Report.--Not later than February 15, 1998, the Secretary of      
  Defense shall submit to the congressional defense committees a report   
  describing the structure and objectives of the micro-satellite          
  technology development program established under subsection (a) and how 
  the program can benefit existing or future space systems or             
  architectures.                                                          
          SEC. 216. HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE PROGRAM.             
     (a) Limitation on Total Cost of Advanced Concept Technology          
  Demonstration.--The total amount obligated or expended for advanced     
  concept technology demonstration under the High Altitude Endurance      
  Unmanned Vehicle Program for fiscal year 1998 through fiscal year 2003  
  may not exceed $476,826,000.                                            
     (b) Limitation on Procurement.--The Secretary of Defense may not     
  procure any high altitude endurance unmanned vehicles, other than the   
  currently planned vehicles, until the completion of the testing         
  identified in phase II of the test and demonstration plan for the       
  advanced concept technology demonstration for the vehicles.             
     (c) Limitation on Proceeding.--The High Altitude Endurance Unmanned  
  Vehicle Program may not proceed beyond advanced concept technology      
  demonstration until the Secretary of Defense--                          
       (1) provides to Congress a firm unit cost (referred to in this      
   section as the ``fly away cost'') for each of the currently planned     
   vehicles; and                                                           
       (2) certifies to Congress the military suitability and the worth of 
   each such vehicle.                                                      
     (d) GAO Review.--(1) The Comptroller General shall review the High   
  Altitude Endurance Unmanned Vehicle Program for purposes of determining 
  whether the average fly away cost for each vehicle is within the cost   
  goal under the program of $10,000,000.                                  
     (2) The Secretary of Defense and the prime contractors under the High
  Altitude Endurance Unmanned Vehicle Program shall provide the           
  Comptroller General with such information on the program as the         
  Comptroller considers necessary to make the determination under         
  paragraph (1).                                                          
     (e) Currently Planned Vehicles.--In this section, the term           
  ``currently planned vehicles'' means the four Dark Star air vehicles and
  the five Global Hawk air vehicles that have been approved for           
  procurement by the Secretary of Defense as of the date of the enactment 
  of this Act.                                                            
          SEC. 217. F 22 AIRCRAFT PROGRAM.                                        
     (a) Limitation on Total Cost of Engineering and Manufacturing        
  Development.--The total amount obligated or expended for engineering and
  manufacturing development under the F 22 aircraft program may not exceed
  $18,688,000,000.                                                        
     (b) Limitation on Total Cost of Production.--The total amount        
  obligated or expended for the F 22 production program may not exceed    
  $43,400,000,000.                                                        
     (c) Adjustment of Limitation Amounts.--The Secretary of the Air Force
  shall adjust the amounts of the limitations set forth in subsections (a)
  and (b) by the following amounts:                                       
       (1) The amounts of increases or decreases in costs attributable to  
   economic inflation after September 30, 1997.                            
       (2) The amounts of increases or decreases in costs attributable to  
   compliance with changes in Federal, State, or local laws enacted after  
   September 30, 1997.                                                     
     (d) Annual GAO Review.--(1) Not later than March 15 of each year, the
  Comptroller General shall review the F 22 aircraft program and submit to
  Congress a report on the results of the review. The Comptroller General 
  shall also submit to Congress for each report a certification regarding 
  whether the Comptroller General has had access to sufficient information
  to make informed judgments on the matters covered by the report.        
     (2) The report submitted on the program each year shall include the  
  following:                                                              
       (A) The extent to which engineering and manufacturing development   
   under the program is meeting the goals established for engineering and  
   manufacturing development under the program, including the performance, 
   cost, and schedule goals.                                               
       (B) The status of modifications expected to have a significant      
   effect on cost or performance of F 22 aircraft.                         
       (C) The plan for engineering and manufacturing development (leading 
   to production) under the program for the fiscal year that begins in the 
   following year.                                                         
       (D) A conclusion regarding whether the plan referred to in          
   subparagraph (C) is consistent with the limitation in subsection (a).   
       (E) A conclusion regarding whether engineering and manufacturing    
   development (leading to production) under the program is likely to be   
   completed at a total cost not in excess of the amount specified in      
   subsection (a).                                                         
     (3) The Comptroller General shall submit the first report under this 
  subsection not later than March 15, 1998. No report is required under   
  this subsection after engineering and manufacturing development under   
  the program has been completed.                                         
     (e) Requirement To Support Annual GAO Review.--The Secretary of      
  Defense and the prime contractors under the F 22 aircraft program shall 
  provide the Comptroller General with such information on the program as 
  the Comptroller General considers necessary to carry out the            
  responsibilities under subsection (d).                                  
     (f) Limitation on Obligation of Funds.--Of the total amount          
  authorized to be appropriated for the F 22 aircraft program for a fiscal
  year, not more than 90 percent of the amount may be obligated until the 
  Comptroller General submits to Congress--                               
       (1) the report required to be submitted in that fiscal year under   
   subsection (d); and                                                     
       (2) a certification regarding whether the Comptroller General has   
   had access to sufficient information to make informed judgments on the  
   matters covered by the report.                                          
           Subtitle C--Ballistic Missile Defense Programs                          
          SEC. 231. NATIONAL MISSILE DEFENSE PROGRAM.                             
     (a) Program Structure.--To preserve the option of achieving an       
  initial operational capability in fiscal year 2003, the Secretary of    
  Defense shall ensure that the National Missile Defense Program is       
  structured and programmed for funding so as to support a test, in fiscal
  year 1999, of an integrated national missile defense system that is     
  representative of the national missile defense system architecture that 
  could achieve initial operational capability in fiscal year 2003.       
     (b) Elements of NMD System.--The national missile defense system     
  architecture specified in subsection (a) shall consist of the following 
  elements:                                                               
       (1) An interceptor system that optimizes defensive coverage of the  
   continental United States, Alaska, and Hawaii against limited ballistic 
   missile attack (whether accidental, unauthorized, or deliberate).       
     (2) Ground-based radars.                                              
     (3) Space-based sensors.                                              
     (4) Battle management, command, control, and communications (BM/C 3). 
     (c) Plan for NMD System Development and Deployment.--Not later than  
  February 15, 1998, the Secretary of Defense shall submit to the         
  congressional defense committees a plan for the development and         
  deployment of a national missile defense system that could achieve      
  initial operational capability in fiscal year 2003. The plan shall      
  include the following matters:                                          
       (1) A detailed description of the system architecture selected for  
   development.                                                            
       (2) A discussion of the justification for the selection of that     
   particular architecture.                                                
       (3) The Secretary's estimate of the amounts of the appropriations   
   that would be necessary for research, development, test, evaluation, and
   for procurement for each of fiscal years 1999 through 2003 in order to  
   achieve an initial operational capability of the system architecture in 
   fiscal year 2003.                                                       
       (4) For each activity necessary for the development and deployment  
   of the national missile defense system architecture selected by the     
   Secretary that would at some point conflict with the terms of the ABM   
   Treaty, if any--                                                        
     (A) a description of the activity;                                    
       (B) a description of the point at which the activity would conflict 
   with the terms of the ABM Treaty;                                       
       (C) the legal analysis justifying the Secretary's determination     
   regarding the point at which the activity would conflict with the terms 
   of the ABM Treaty; and                                                  
       (D) an estimate of the time at which such point would be reached in 
   order to achieve a test of an integrated missile defense system in      
   fiscal year 1999 and initial operational capability of such a system in 
   fiscal year 2003.                                                       
     (d) Funding for Fiscal Year 1998.--Of the funds authorized to be     
  appropriated under section 201(4), $978,091,000 shall be available for  
  the National Missile Defense Program.                                   
     (e) ABM Treaty Defined.--In this section, the term ``ABM Treaty''    
  means the Treaty Between the United States of America and the Union of  
  Soviet Socialist Republics on the Limitation of Anti-Ballistic Missile  
  Systems, signed at Moscow on May 26, 1972, and includes the Protocol to 
  that treaty, signed at Moscow on July 3, 1974.                          
                    SEC. 232. BUDGETARY TREATMENT OF AMOUNTS FOR PROCUREMENT FOR  
          BALLISTIC MISSILE DEFENSE PROGRAMS.                                     
     (a) Requirement for Inclusion in Budget of BMDO.--(1) Chapter 9 of   
  title 10, United States Code, is amended by inserting after section 222 
  the following new section:                                              
                    ``224. Ballistic missile defense programs: display of amounts 
          for procurement                                                         
     ``(a) Requirement.--Any amount in the budget submitted to Congress   
  under section 1105 of title 31 for any fiscal year for procurement for a
  Department of Defense missile defense program described in subsection   
  (b) shall be set forth under the account of the Department of Defense   
  for Defense-wide procurement and, within that account, under the        
  subaccount (or other budget activity level) for the Ballistic Missile   
  Defense Organization.                                                   
     ``(b) Covered Programs.--Subsection (a) applies to the following     
  missile defense programs of the Department of Defense:                  
     ``(1) The National Missile Defense program.                           
       ``(2) Any system that is part of the core theater missile defense   
   program.                                                                
       ``(3) Any other ballistic missile defense program that enters       
   production after the date of the enactment of this section and for which
   research, development, test, and evaluation was carried out by the      
   Ballistic Missile Defense Organization.                                 
     ``(c) Core Theater Ballistic Missile Defense Program.--For purposes  
  of this section, the core theater missile defense program consists of   
  the systems specified in section 234 of the Ballistic Missile Defense   
  Act of 1995 (10 U.S.C. 2431 note).''.                                   
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 222 the following new   
  item:                                                                   
            ``224. Ballistic missile defense programs: display of amounts for 
      procurement.''.                                                         
     (b) Fiscal Year 1998 Funds.--(1) The Secretary of Defense shall      
  transfer to appropriations available to the Ballistic Missile Defense   
  Organization for procurement for fiscal year 1998 any amounts that are  
  appropriated for procurement for that fiscal year for any of the Armed  
  Forces by reason of the transference of certain programs to accounts of 
  the Army, Navy, Air Force, and Marine Corps pursuant to Program Budget  
  Decision 224C3, signed by the Under Secretary of Defense (Comptroller)  
  on December 23, 1996.                                                   
     (2) Any transfer pursuant to paragraph (1) shall not be counted for  
  purposes of section 1001.                                               
          SEC. 233. COOPERATIVE BALLISTIC MISSILE DEFENSE PROGRAM.                
     (a) Requirement for New Program Element.--The Secretary of Defense   
  shall establish a program element for the Ballistic Missile Defense     
  Organization, to be referred to as the ``Cooperative Ballistic Missile  
  Defense Program'', to support technical and analytical cooperative      
  efforts between the United States and other nations that contribute to  
  United States ballistic missile defense capabilities. Except as provided
  in subsection (b), all international cooperative ballistic missile      
  defense programs of the Department of Defense shall be budgeted and     
  administered through that program element.                              
     (b) Authority for Exceptions.--The Secretary of Defense may exclude  
  from the program element established pursuant to subsection (a) any     
  international cooperative ballistic missile defense program of the      
  Department of Defense that after the date of the enactment of this Act  
  is designated by the Secretary of Defense (pursuant to applicable       
  Department of Defense acquisition regulations and policy) to be managed 
  as a separate acquisition program.                                      
     (c) Relationship to Other Program Elements.--The program element     
  established pursuant to subsection (a) is in addition to the program    
  elements for activities of the Ballistic Missile Defense Organization   
  required under section 251 of the National Defense Authorization Act for
  Fiscal Year 1996 (Public Law 104 106; 110 Stat. 233; 10 U.S.C. 221      
  note).                                                                  
                    SEC. 234. ANNUAL REPORT ON THREAT POSED TO THE UNITED STATES  
          BY WEAPONS OF MASS DESTRUCTION, BALLISTIC MISSILES, AND CRUISE MISSILES.
     (a) Annual Report.--The Secretary of Defense shall submit to Congress
  by January 30 of each year a report on the threats posed to the United  
  States and allies of the United States--                                
       (1) by weapons of mass destruction, ballistic missiles, and cruise  
   missiles; and                                                           
       (2) by the proliferation of weapons of mass destruction, ballistic  
   missiles, and cruise missiles.                                          
     (b) Consultation.--Each report submitted under subsection (a) shall  
  be prepared in consultation with the Director of Central Intelligence.  
     (c) Matters To Be Included.--Each report submitted under subsection  
  (a) shall include the following:                                        
       (1) Identification of each foreign country and non-State            
   organization that possesses weapons of mass destruction, ballistic      
   missiles, or cruise missiles, and a description                         
                    of such weapons and missiles with respect to each such foreign
          country and non-State organization.                                     
       (2) A description of the means by which any foreign country and     
   non-State organization that has achieved capability with respect to     
   weapons of mass destruction, ballistic missiles, or cruise missiles has 
   achieved that capability, including a description of the international  
   network of foreign countries and private entities that provide          
   assistance to foreign countries and non-State organizations in achieving
   that capability.                                                        
       (3) An examination of the doctrines that guide the use of weapons of
   mass destruction in each foreign country that possesses such weapons.   
       (4) An examination of the existence and implementation of the       
   control mechanisms that exist with respect to nuclear weapons in each   
   foreign country that possesses such weapons.                            
       (5) Identification of each foreign country and non-State            
   organization that seeks to acquire or develop (indigenously or with     
   foreign assistance) weapons of mass destruction, ballistic missiles, or 
   cruise missiles, and a description of such weapons and missiles with    
   respect to each such foreign country and non-State organization.        
       (6) An assessment of various possible timelines for the achievement 
   by foreign countries and non-State organizations of capability with     
   respect to weapons of mass destruction, ballistic missiles, and cruise  
   missiles, taking into account the probability of whether the Russian    
   Federation and the People's Republic of China will comply with the      
   Missile Technology Control Regime, the potential availability of        
   assistance from foreign technical specialists, and the potential for    
   independent sales by foreign private entities without authorization from
   their national Governments.                                             
       (7) For each foreign country or non-State organization that has not 
   achieved the capability to target the United States or its territories  
   with weapons of mass destruction, ballistic missiles, or cruise missiles
   as of the date of the enactment of this Act, an estimate of how far in  
   advance the United States is likely to be warned before such foreign    
   country or non-State organization achieves that capability.             
       (8) For each foreign country or non-State organization that has not 
   achieved the capability to target members of the United States Armed    
   Forces deployed abroad with weapons of mass destruction, ballistic      
   missiles, or cruise missiles as of the date of the enactment of this    
   Act, an estimate of how far in advance the United States is likely to be
   warned before such foreign country or non-State organization achieves   
   that capability.                                                        
     (d) Classification.--Each report under subsection (a) shall be       
  submitted in classified and unclassified form.                          
          SEC. 235. DIRECTOR OF BALLISTIC MISSILE DEFENSE ORGANIZATION.           
     (a) In General.--Subchapter II of chapter 8 of title 10, United      
  States Code, is amended by adding at the end the following new section: 
          ``203. Director of Ballistic Missile Defense Organization               
     ``If an officer of the armed forces on active duty is appointed to   
  the position of Director of the Ballistic Missile Defense Organization, 
  the position shall be treated as having been designated by the President
  as a position of importance and responsibility for purposes of section  
  601 of this title and shall carry the grade of lieutenant general or    
  general or, in the case of an officer of the Navy, vice admiral or      
  admiral.''.                                                             
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such subchapter is amended by adding at the end the following new item: 
      ``203. Director of Ballistic Missile Defense Organization.''.           
                    SEC. 236. REPEAL OF REQUIRED DEPLOYMENT DATES FOR CORE THEATER
          MISSILE DEFENSE PROGRAMS.                                               
     Section 234(a) of the Ballistic Missile Defense Act of 1995 (subtitle
  C of title II of Public Law 104 106; 110 Stat. 229; 10 U.S.C. 2431 note)
  is amended--                                                            
       (1) in the matter preceding paragraph (1), by striking out ``, to be
   carried out so as to achieve the specified capabilities'';              
       (2) in paragraph (1), by striking out ``, with a first unit equipped
   (FUE) during fiscal year 1998'';                                        
       (3) in paragraph (2), by striking out ``Navy Lower Tier (Area)      
   system'' and all that follows through ``fiscal year 1999'' and inserting
   in lieu thereof ``Navy Area Defense system'';                           
       (4) in paragraph (3), by striking out ``, with a'' and all that     
   follows through ``fiscal year 2000''; and                               
       (5) in paragraph (4), by striking out ``Navy Upper Tier'' and all   
   that follows through ``fiscal year 2001'' and inserting in lieu thereof 
   ``Navy Theater Wide system''.                                           
           Subtitle D--Other Matters                                               
                    SEC. 241. RESTRUCTURING OF NATIONAL OCEANOGRAPHIC PARTNERSHIP 
          PROGRAM ORGANIZATIONS.                                                  
     (a) National Ocean Research Leadership Council.--Section 7902 of     
  title 10, United States Code, is amended--                              
     (1) in subsection (b)--                                               
     (A) by striking out paragraphs (11), (14), (15), (16) and (17); and   
       (B) by redesignating paragraphs (12) and (13) as paragraphs (11) and
   (12), respectively;                                                     
     (2) by striking out subsection (d); and                               
       (3) by redesignating subsections (e), (f), (g), (h), and (i) as     
   subsections (d), (e), (f), (g), and (h), respectively.                  
     (b) Ocean Research Advisory Panel.--(1) The text of section 7903 of  
  such title is amended to read as follows:                               
     ``(a) Establishment.--The Council shall establish an Ocean Research  
  Advisory Panel consisting of not less than 10 and not more than 18      
  members appointed by the chairman, including the following:             
     ``(1) One member who will represent the National Academy of Sciences. 
       ``(2) One member who will represent the National Academy of         
   Engineering                                                             
     ``(3) One member who will represent the Institute of Medicine.        
       ``(4) Members selected from among individuals who will represent the
   views of ocean industries, State governments, academia, and such other  
   views as the chairman considers appropriate.                            
       ``(5) Members selected from among individuals eminent in the fields 
   of marine science or marine policy, or related fields.                  
     ``(b) Responsibilities.--The Council shall assign the following      
  responsibilities to the Advisory Panel:                                 
       ``(1) To advise the Council on policies and procedures to implement 
   the National Oceanographic Partnership Program.                         
       ``(2) To advise the Council on selection of partnership projects and
   allocation of funds for partnership projects for implementation under   
   the program.                                                            
       ``(3) To advise the Council on matters relating to national         
   oceanographic data requirements.                                        
       ``(4) Any additional responsibilities that the Council considers    
   appropriate.                                                            
     ``(c) Funding.--The Secretary of the Navy annually shall make funds  
  available to support the activities of the Advisory Panel.''.           
     (2) Section 282(c) of the National Defense Authorization Act for     
  Fiscal Year 1997 (Public Law 104 201; 110 Stat. 2473) is amended by     
  striking out ``January 1, 1997'' and inserting in lieu thereof ``January
  1, 1998''.                                                              
     (c) Conforming Amendments.--Section 282 of the National Defense      
  Authorization Act for Fiscal Year 1997 is amended--                     
     (1) by striking out subsection (b); and                               
       (2) by redesignating subsections (c), (d), (e), and (f) as          
   subsections (b), (c), (d), and (e), respectively.                       
     (d) Effective Date.--The amendments made by subsections (a) and (b)  
  shall be effective as of September 23, 1996, as if included in section  
  282 of Public Law 104 201.                                              
                    SEC. 242. MAINTENANCE AND REPAIR OF REAL PROPERTY AT AIR FORCE
          INSTALLATIONS.                                                          
     (a) In General.--Chapter 949 of title 10, United States Code, is     
  amended by adding at the end the following new section:                 
          ``9782. Maintenance and repair of real property                         
     ``(a) Allocation of Funds.--The Secretary of the Air Force shall     
  allocate funds authorized to be appropriated by a provision described in
  subsection (c) and a provision described in subsection (d) for          
  maintenance and repair of real property at military installations of the
  Department of the Air Force without regard to whether the installation  
  is supported with funds authorized by a provision described in          
  subsection (c) or (d).                                                  
     ``(b) Mixing of Funds Prohibited on Individual Projects.--The        
  Secretary of the Air Force may not combine funds authorized to be       
  appropriated by a provision described in subsection (c) and funds       
  authorized to be appropriated by a provision described in subsection (d)
  for an individual project for maintenance and repair of real property at
  a military installation of the Department of the Air Force.             
     ``(c) Research, Development, Test, and Evaluation Funds.--The        
  provision described in this subsection is a provision of a national     
  defense authorization Act that authorizes funds to be appropriated for a
  fiscal year to the Air Force for research, development, test, and       
  evaluation.                                                             
     ``(d) Operation and Maintenance Funds.--The provision described in   
  this subsection is a provision of a national defense authorization Act  
  that authorizes funds to be appropriated for a fiscal year to the Air   
  Force for operation and maintenance.''.                                 
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
      ``9782. Maintenance and repair of real property.''.                     
                    SEC. 243. EXPANSION OF ELIGIBILITY FOR THE DEFENSE            
          EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE RESEARCH.                 
     Section 257 of the National Defense Authorization Act for Fiscal Year
  1995 (Public Law 103 337; U.S.C. 2358 note) is amended by adding at the 
  end the following new subsection:                                       
     ``(f) State Defined.--In this section, the term `State' means a State
  of the United States, the District of Columbia, the Commonwealth of     
  Puerto Rico, Guam, the Virgin Islands, American Samoa, and the          
  Commonwealth of the Northern Mariana Islands.''.                        
                    SEC. 244. BIOASSAY TESTING OF VETERANS EXPOSED TO IONIZING    
          RADIATION DURING MILITARY SERVICE.                                      
     (a) Nuclear Test Personnel Program.--Of the amount provided in       
  section 201(4), $300,000 shall be available for testing described in    
  subsection (b) in support of the Nuclear Test Personnel Program         
  conducted by the Defense Special Weapons Agency.                        
     (b) Covered Testing.--Subsection (a) applies to the third phase of   
  bioassay testing of individuals who are radiation-exposed veterans (as  
  defined in section 1112(c)(3)(A) of title 38, United States Code) who   
  participated in radiation-risk activities (as defined in section        
  1112(c)(3)(B) of such title).                                           
          SEC. 245. SENSE OF CONGRESS REGARDING COMANCHE PROGRAM.                 
    It is the sense of Congress that the Department of Defense should--   
       (1) evaluate technology transfer and acquisition initiatives within 
   the Army Comanche program that have the potential to increase the       
   efficiency or reduce the risk of the Comanche program; and              
       (2) include adequate funding for those initiatives that the         
   Department deems to be meritorious in the future-years defense program  
   (as submitted to Congress under section 221 of title 10, United States  
   Code).                                                                  
           TITLE III--OPERATION AND MAINTENANCE                                    
                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              
      Sec. 301. Operation and maintenance funding.                            
      Sec. 302. Working capital funds.                                        
      Sec. 303. Armed Forces Retirement Home.                                 
      Sec. 304. Fisher House Trust Funds.                                     
      Sec. 305. Transfer from National Defense Stockpile Transaction Fund.    
      Sec. 306. Refurbishment of M1 A1 tanks.                                 
            Sec. 307. Operation of prepositioned fleet, National Training     
      Center, Fort Irwin, California.                                         
      Sec. 308. Refurbishment and installation of air search radar.           
      Sec. 309. Contracted training flight services.                          
      Sec. 310. Procurement technical assistance programs.                    
      Sec. 311. Operation of Fort Chaffee, Arkansas.                          
                            SUBTITLE B--MILITARY READINESS ISSUES                 
            Sec. 321. Monthly reports on allocation of funds within operation 
      and maintenance budget subactivities.                                   
      Sec. 322. Expansion of scope of quarterly readiness reports.            
            Sec. 323. Semiannual reports on transfers from high-priority      
      readiness appropriations.                                               
      Sec. 324. Annual report on aircraft inventory.                          
            Sec. 325. Administrative actions adversely affecting military     
      training or other readiness activities.                                 
      Sec. 326. Common measurement of operations tempo and personnel tempo.   
            Sec. 327. Inclusion of Air Force depot maintenance as operation   
      and maintenance budget line items.                                      
      Sec. 328. Prohibition of implementation of tiered readiness system.     
      Sec. 329. Report on military readiness requirements of the Armed Forces.
      Sec. 330. Assessment of cyclical readiness posture of the Armed Forces. 
            Sec. 331. Report on military exercises conducted under certain    
      training exercises programs                                             
      Sec. 332. Report on overseas deployments.                               
                            SUBTITLE C--ENVIRONMENTAL PROVISIONS                  
            Sec. 341. Revision of membership terms for Strategic Environmental
      Research and Development Program Scientific Advisory Board.             
            Sec. 342. Amendments to authority to enter into agreements with   
      other agencies in support of environmental technology certification.    
            Sec. 343. Modifications of authority to store and dispose of      
      nondefense toxic and hazardous materials.                               
            Sec. 344. Annual report on payments and activities in response to 
      fines and penalties assessed under environmental laws.                  
            Sec. 345. Annual report on environmental activities of the        
      Department of Defense overseas.                                         
            Sec. 346. Review of existing environmental consequences of the    
      presence of the Armed Forces in Bermuda.                                
            Sec. 347. Sense of Congress on deployment of United States Armed  
      Forces abroad for environmental preservation activities.                
            Sec. 348. Recovery and sharing of costs of environmental          
      restoration at Department of Defense sites.                             
            Sec. 349. Partnerships for investment in innovative environmental 
      technologies.                                                           
      Sec. 350. Procurement of recycled copier paper.                         
            Sec. 351. Pilot program for the sale of air pollution emission    
      reduction incentives.                                                   
                             SUBTITLE D--DEPOT-LEVEL ACTIVITIES                   
      Sec. 355. Definition of depot-level maintenance and repair.             
      Sec. 356. Core logistics capabilities of Department of Defense.         
            Sec. 357. Increase in percentage of depot-level maintenance and   
      repair that may be contracted for performance by non-government         
      personnel.                                                              
      Sec. 358. Annual report on depot-level maintenance and repair.          
            Sec. 359. Requirement for use of competitive procedures in        
      contracting for performance of depot-level maintenance and repair       
      workloads formerly performed at closed or realigned military            
      installations.                                                          
            Sec. 360. Clarification of prohibition on management of depot     
      employees by constraints on personnel levels.                           
      Sec. 361. Centers of Industrial and Technical Excellence.               
            Sec. 362. Extension of authority for aviation depots and naval    
      shipyards to engage in defense-related production and services.         
            Sec. 363. Repeal of a conditional repeal of certain depot-level   
      maintenance and repair laws and a related reporting requirement.        
            Sec. 364. Personnel reductions, Army depots participating in Army 
      Workload and Performance System.                                        
            Sec. 365. Report on allocation of core logistics activities among 
      Department of Defense facilities and private sector facilities.         
            Sec. 366. Review of use of temporary duty assignments for ship    
      repair and maintenance.                                                 
            Sec. 367. Sense of Congress regarding realignment of performance  
      of ground communication-electronic workload.                            
             SUBTITLE E--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES  
            Sec. 371. Reorganization of laws regarding commissaries and       
      exchanges and other morale, welfare, and recreation activities.         
      Sec. 372. Merchandise and pricing requirements for commissary stores.   
            Sec. 373. Limitation on noncompetitive procurement of brand-name  
      commercial items for resale in commissary stores.                       
            Sec. 374. Treatment of revenues derived from commissary store     
      activities.                                                             
            Sec. 375. Maintenance, repair, and renovation of Armed Forces     
      Recreation Center, Europe.                                              
            Sec. 376. Plan for use of public and private partnerships to      
      benefit morale, welfare, and recreation activities.                     
                                  SUBTITLE F--OTHER MATTERS                       
            Sec. 381. Assistance to local educational agencies that benefit   
      dependents of members of the Armed Forces and Department of Defense     
      civilian employees.                                                     
            Sec. 382. Center for Excellence in Disaster Management and        
      Humanitarian Assistance.                                                
            Sec. 383. Applicability of Federal printing requirements to       
      Defense Automated Printing Service.                                     
            Sec. 384. Study and notification requirements for conversion of   
      commercial and industrial type functions to contractor performance.     
            Sec. 385. Collection and retention of cost information data on    
      converted services and functions.                                       
            Sec. 386. Financial assistance to support additional duties       
      assigned to Army National Guard.                                        
      Sec. 387. Competitive procurement of printing and duplication services. 
            Sec. 388. Continuation and expansion of demonstration program to  
      identify overpayments made to vendors.                                  
            Sec. 389. Development of standard forms regarding performance work
      statement and request for proposal for conversion of certain operational
      functions of military installations.                                    
      Sec. 390. Base operations support for military installations on Guam.   
      Sec. 391. Warranty claims recovery pilot program.                       
            Sec. 392. Program to investigate fraud, waste, and abuse within   
      Department of Defense.                                                  
      Sec. 393. Multitechnology automated reader card demonstration program.  
      Sec. 394. Reduction in overhead costs of Inventory Control Points.      
      Sec. 395. Inventory management.                                         
           Subtitle A--Authorization of Appropriations                             
          SEC. 301. OPERATION AND MAINTENANCE FUNDING.                            
     Funds are hereby authorized to be appropriated for fiscal year 1998  
  for the use of the Armed Forces and other activities and agencies of the
  Department of Defense for expenses, not otherwise provided for, for     
  operation and maintenance, in amounts as follows:                       
     (1) For the Army, $17,174,589,000.                                    
     (2) For the Navy, $21,947,656,000.                                    
     (3) For the Marine Corps, $2,424,645,000.                             
     (4) For the Air Force, $19,172,985,000.                               
     (5) For Defense-wide activities, $10,242,607,000.                     
     (6) For the Army Reserve, $1,207,981,000.                             
     (7) For the Naval Reserve, $846,711,000.                              
     (8) For the Marine Corps Reserve, $116,366,000.                       
     (9) For the Air Force Reserve, $1,631,200,000.                        
     (10) For the Army National Guard, $2,311,432,000.                     
     (11) For the Air National Guard, $2,999,782,000.                      
     (12) For the Defense Inspector General, $136,580,000.                 
       (13) For the United States Court of Appeals for the Armed Forces,   
   $6,952,000.                                                             
     (14) For Environmental Restoration, Army, $375,337,000.               
     (15) For Environmental Restoration, Navy, $275,500,000.               
     (16) For Environmental Restoration, Air Force, $376,900,000.          
     (17) For Environmental Restoration, Defense-wide, $26,900,000.        
       (18) For Environmental Restoration, Formerly Used Defense Sites,    
   $202,300,000.                                                           
       (19) For Overseas Humanitarian, Disaster, and Civic Aid programs,   
   $47,130,000.                                                            
       (20) For Drug Interdiction and Counter-drug Activities,             
   Defense-wide, $666,882,000.                                             
       (21) For the Kaho'olawe Island Conveyance, Remediation, and         
   Environmental Restoration Trust Fund, $10,000,000.                      
     (22) For Medical Programs, Defense, $9,957,782,000.                   
     (23) For Cooperative Threat Reduction programs, $382,200,000.         
       (24) For Overseas Contingency Operations Transfer Fund,             
   $1,253,900,000.                                                         
          SEC. 302. WORKING CAPITAL FUNDS.                                        
     Funds are hereby authorized to be appropriated for fiscal year 1998  
  for the use of the Armed Forces and other activities and agencies of the
  Department of Defense for providing capital for working capital and     
  revolving funds in amounts as follows:                                  
     (1) For the Defense Working Capital Funds, $971,952,000.              
     (2) For the National Defense Sealift Fund, $1,059,948,000.            
          SEC. 303. ARMED FORCES RETIREMENT HOME.                                 
     There is hereby authorized to be appropriated for fiscal year 1998   
  from the Armed Forces Retirement Home Trust Fund the sum of $79,977,000 
  for the operation of the Armed Forces Retirement Home, including the    
  United States Soldiers' and Airmen's Home and the Naval Home.           
          SEC. 304. FISHER HOUSE TRUST FUNDS.                                     
     Funds are hereby authorized to be appropriated for fiscal year 1998, 
  out of funds in Fisher House Trust Funds not otherwise appropriated, for
  the operation of Fisher houses described in section 2221(d) of title 10,
  United States Code, as follows:                                         
       (1) From the Fisher House Trust Fund, Department of the Army,       
   $250,000 for Fisher houses that are located in proximity to medical     
   treatment facilities of the Army.                                       
       (2) From the Fisher House Trust Fund, Department of the Navy,       
   $150,000 for Fisher houses that are located in proximity to medical     
   treatment facilities of the Navy.                                       
          SEC. 305. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.    
     (a) Transfer Authority.--To the extent provided in appropriations    
  Acts, not more than $150,000,000 is authorized to be transferred from   
  the National Defense Stockpile Transaction Fund to operation and        
  maintenance accounts for fiscal year 1998 in amounts as follows:        
     (1) For the Army, $50,000,000.                                        
     (2) For the Navy, $50,000,000.                                        
     (3) For the Air Force, $50,000,000.                                   
    (b)  Treatment of Transfers.--Amounts transferred under this section--
       (1) shall be merged with, and be available for the same purposes and
   the same period as, the amounts in the accounts to which transferred;   
   and                                                                     
       (2) may not be expended for an item that has been denied            
   authorization of appropriations by Congress.                            
     (c) Relationship to Other Transfer Authority.--The transfer authority
  provided in this section is in addition to the transfer authority       
  provided in section 1001.                                               
          SEC. 306. REFURBISHMENT OF M1 A1 TANKS.                                 
     Of the amount authorized to be appropriated pursuant to section      
  301(1) for operation and maintenance for the Army, $35,000,000 shall be 
  available only for refurbishment of M1 A1 tanks under the AIM XXI       
  program if the Secretary of Defense determines that the cost            
  effectiveness of the pilot AIM XXI program is validated through user    
  trials conducted at the National Training Center, Fort Irwin,           
  California.                                                             
                    SEC. 307. OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING 
          CENTER, FORT IRWIN, CALIFORNIA.                                         
     Of the amount authorized to be appropriated pursuant to section      
  301(1) for operation and maintenance for the Army, $60,200,000 shall be 
  available only to pay costs associated with the operation of the        
  prepositioned fleet of equipment during training rotations at the       
  National Training Center, Fort Irwin, California.                       
          SEC. 308. REFURBISHMENT AND INSTALLATION OF AIR SEARCH RADAR.           
     Of the amount authorized to be appropriated pursuant to section      
  301(2) for operation and maintenance for the Navy, $6,000,000 may be    
  available for the refurbishment and installation of the AN/SPS 48E air  
  search radar for the Ship Self Defense System at the Integrated Ship    
  Defense Systems Engineering Center, Naval Surface Warfare Center,       
  Wallops Islands, Virginia.                                              
          SEC. 309. CONTRACTED TRAINING FLIGHT SERVICES.                          
     Of the amount authorized to be appropriated pursuant to section      
  301(4) for operation and maintenance for the Air Force, $12,000,000 may 
  be used for contracted training flight services.                        
          SEC. 310. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.                    
     (a) Funding.--Of the amount authorized to be appropriated under      
  section 301(5), $12,000,000 shall be available for carrying out the     
  provisions of chapter 142 of title 10, United States Code.              
     (b) Specific Programs.--Of the amounts made available pursuant to    
  subsection (a), $600,000 shall be available for fiscal year 1998 for the
  purpose of carrying out programs sponsored by eligible entities referred
  to in subparagraph (D) of section 2411(1) of title 10, United States    
  Code, that provide procurement technical assistance in distressed areas 
  referred to                                                             
                    in subparagraph (B) of section 2411(2) of such title. If there
          is an insufficient number of satisfactory proposals for cooperative     
          agreements in such distressed areas to allow effective use of the funds 
          made available in accordance with this subsection in such areas, the    
          funds shall be allocated among the Defense Contract Administration      
          Services regions in accordance with section 2415 of such title.         
          SEC. 311. OPERATION OF FORT CHAFFEE, ARKANSAS.                          
     Of the amount authorized to be appropriated pursuant to section      
  301(10) for operation and maintenance for the Army National Guard,      
  $6,854,000 may be available for the operation of Fort Chaffee, Arkansas.
           Subtitle B--Military Readiness Issues                                   
                    SEC. 321. MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN       
          OPERATION AND MAINTENANCE BUDGET SUBACTIVITIES.                         
     (a) In General.--(1) Chapter 9 of title 10, United States Code, is   
  amended by adding at the end the following new section:                 
                    ``228. Monthly reports on allocation of funds within operation
          and maintenance budget subactivities                                    
     ``(a) Monthly Report.--The Secretary of Defense shall submit to      
  Congress a monthly report on the allocation of appropriations to O&M    
  budget activities and to the subactivities of those budget activities.  
  Each such report shall be submitted not later than 60 days after the end
  of the month to which the report pertains.                              
     ``(b) Matters To Be Included.--Each such report shall set forth the  
  following for each subactivity of the O&M budget activities:            
       ``(1) The amount of budget authority appropriated for that          
   subactivity in the most recent regular Department of Defense            
   Appropriations Act.                                                     
       ``(2) The amount of budget authority actually made available for    
   that subactivity, taking into consideration supplemental appropriations,
   rescissions, and other adjustments required by law or made pursuant to  
   law.                                                                    
     ``(3) The amount programmed to be expended from such subactivity.     
     ``(c) Identification of Certain Fluctuations.--(1) If, in the report 
  under this section for a month of a fiscal year after the first month of
  that fiscal year, an amount shown under subsection (b) for a subactivity
  is different by more than $15,000,000 from the corresponding amount for 
  that subactivity in the report for the first month of that fiscal year, 
  the Secretary shall include in the report notice of that difference.    
     ``(2) If, in the report under this section for a month of a fiscal   
  year after a month for which the report under this section includes a   
  notice under paragraph (1), an amount shown under subsection (b) for a  
  subactivity is different by more than $15,000,000 from the corresponding
  amount for that subactivity in the most recent report that includes a   
  notice under paragraph (1) or this paragraph, the Secretary shall       
  include in the report notice of that difference.                        
     ``(d) Report on Fluctuations.--If a report under this section        
  includes a notice under subsection (c), the Secretary shall include in  
  the report with each such notice the following:                         
       ``(1) The reasons for the reallocations of funds resulting in the   
   inclusion of that notice in the report.                                 
     ``(2) Each budget subactivity involved in those reallocations.        
       ``(3) The effect of those reallocations on the operation and        
   maintenance activities funded through the subactivity with respect to   
   which the notice is included in the report.                             
     ``(e) O&M Budget Activity Defined.--For purposes of this section, the
  term `O&M budget activity' means a budget activity within an operation  
  and maintenance appropriation of the Department of Defense for a fiscal 
  year.''.                                                                
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
            ``228. Monthly reports on allocation of funds within operation and
      maintenance budget subactivities.''.                                    
     (b) Effective Date.--The first report under section 228 of title 10, 
  United States Code, as added by subsection (a), shall be for the month  
  of December 1997.                                                       
          SEC. 322. EXPANSION OF SCOPE OF QUARTERLY READINESS REPORTS.            
     (a) Expanded Reports Required.--(1) Section 482 of title 10, United  
  States Code, is amended to read as follows:                             
          ``482. Quarterly reports: personnel and unit readiness                  
     ``(a) Quarterly Reports Required.--Not later than 30 days after the  
  end of each calendar-year quarter, the Secretary of Defense shall submit
  to Congress a report regarding military readiness. The report for a     
  quarter shall contain the information required by subsections (b), (d), 
  and (e).                                                                
     ``(b) Readiness Problems and Remedial Actions.--Each report shall    
  specifically describe--                                                 
       ``(1) each readiness problem and deficiency identified using the    
   assessments considered under subsection (c);                            
     ``(2) planned remedial actions; and                                   
       ``(3) the key indicators and other relevant information related to  
   each identified problem and deficiency.                                 
     ``(c) Consideration of Readiness Assessments.--The information       
  required under subsection (b) to be included in the report for a quarter
  shall be based on readiness assessments that are provided during that   
  quarter--                                                               
       ``(1) to any council, committee, or other body of the Department of 
   Defense--                                                               
     ``(A) that has responsibility for readiness oversight; and            
       ``(B) whose membership includes at least one civilian officer in the
   Office of the Secretary of Defense at the level of Assistant Secretary  
   of Defense or higher;                                                   
       ``(2) by senior civilian and military officers of the military      
   departments and the commanders of the unified and specified commands;   
   and                                                                     
       ``(3) as part of any regularly established process of periodic      
   readiness reviews for the Department of Defense as a whole.             
     ``(d) Comprehensive Readiness Indicators for Active Components.--Each
  report shall also include information regarding each of the active      
  components of the armed forces (and an evaluation of such information)  
  with respect to each of the following readiness indicators:             
     ``(1)  Personnel strength.--                                          
       ``(A) Personnel status, including the extent to which members of the
   armed forces are serving in positions outside of their military         
   occupational specialty, serving in grades other than the grades for     
   which they are qualified, or both.                                      
       ``(B) Historical data and projected trends in personnel strength and
   status.                                                                 
     ``(2)  Personnel turbulence.--                                        
     ``(A) Recruit quality.                                                
     ``(B) Borrowed manpower.                                              
     ``(C) Personnel stability.                                            
     ``(3)  Other personnel matters.--                                     
     ``(A) Personnel morale.                                               
     ``(B) Recruiting status.                                              
     ``(4)  Training.--                                                    
     ``(A) Training unit readiness and proficiency.                        
     ``(B) Operations tempo.                                               
     ``(C) Training funding.                                               
     ``(D) Training commitments and deployments.                           
     ``(5)  Logistics--equipment fill.--                                   
     ``(A) Deployed equipment.                                             
     ``(B) Equipment availability.                                         
     ``(C) Equipment that is not mission capable.                          
     ``(D) Age of equipment.                                               
     ``(E) Condition of nonpacing items.                                   
     ``(6)  Logistics--equipment maintenance.--                            
     ``(A) Maintenance backlog.                                            
     ``(7)  Logistics--supply.--                                           
     ``(A) Availability of ordnance and spares.                            
     ``(B) Status of prepositioned equipment.                              
     ``(e) Unit Readiness Indicators.--Each report shall also include     
  information regarding the readiness of each active component unit of the
  armed forces at the battalion, squadron, or an equivalent level (or a   
  higher level) that received a readiness rating of C 3 (or below) for any
  month of the calendar-year quarter covered by the report. With respect  
  to each such unit, the report shall separately provide the following    
  information:                                                            
     ``(1) The unit designation and level of organization.                 
       ``(2) The overall readiness rating for the unit for the quarter and 
   each month of the quarter.                                              
       ``(3) The resource area or areas (personnel, equipment and supplies 
   on hand, equipment condition, or training) that adversely affected the  
   unit's readiness rating for the quarter.                                
       ``(4) The reasons why the unit received a readiness rating of C 3   
   (or below).                                                             
     ``(f) Classification of Reports.--A report under this section shall  
  be submitted in unclassified form. To the extent the Secretary of       
  Defense determines necessary, the report may also be submitted in       
  classified form.''.                                                     
     (2) The item relating to section 482 in the table of sections at the 
  beginning of chapter 23 of such title is amended to read as follows:    
      ``482. Quarterly reports: personnel and unit readiness.''.              
     (b) Implementation Plan To Examine Readiness Indicators.--Not later  
  than January 15, 1998, the Secretary of Defense shall submit to the     
  congressional defense committees a plan--                               
       (1) specifying the manner in which the Secretary will implement the 
   additional reporting requirement of subsection (d) of section 482 of    
   title 10, United States Code, as added by this section; and             
       (2) specifying the criteria proposed to be used to evaluate the     
   readiness indicators identified in such subsection (d).                 
     (c) Limitation Pending Receipt of Implementation Plan.--Of the amount
  available for fiscal year 1998 for operation and support activities of  
  the Office of the Secretary of Defense, 10 percent may not be obligated 
  until after the date on which the implementation plan required by       
  subsection (b) is submitted.                                            
     (d) Transition to Complete Report.--Until the report under section   
  482 of title 10, United States Code, as amended by subsection (a), for  
  the third quarter of 1998 is submitted, the Secretary of Defense may    
  omit the information required by subsection (d) of such section if the  
  Secretary determines that it is impracticable to comply with such       
  subsection with regard to the preceding reports.                        
                    SEC. 323. SEMIANNUAL REPORTS ON TRANSFERS FROM HIGH-PRIORITY  
          READINESS APPROPRIATIONS.                                               
     (a) Reports Required.--Chapter 23 of title 10, United States Code, is
  amended by adding at the end the following new section:                 
          ``483. Reports on transfers from high-priority readiness appropriations 
     ``(a) Annual Reports.--Not later than the date on which the President
  submits the budget for a fiscal year to Congress pursuant to section    
  1105 of title 31, the Secretary of Defense shall submit to the Committee
  on Armed Services and the Committee on Appropriations of the Senate and 
  the Committee on National Security and the Committee on Appropriations  
  of the House of Representatives a report on transfers during the        
  preceding fiscal year from funds available for each covered budget      
  activity.                                                               
     ``(b) Midyear Reports.--Not later than June 1 of each fiscal year,   
  the Secretary of Defense shall submit to the congressional committees   
  specified in subsection (a) a report on                                 
                    transfers, during the first six months of that fiscal year,   
          from funds available for each covered budget activity.                  
     ``(c) Matters To Be Included.--In each report under subsection (a) or
  (b), the Secretary of Defense shall include for each covered budget     
  activity the following:                                                 
     ``(1) A statement, for the period covered by the report, of--         
       ``(A) the total amount of transfers into funds available for that   
   activity;                                                               
       ``(B) the total amount of transfers from funds available for that   
   activity; and                                                           
       ``(C) the net amount of transfers into, or out of, funds available  
   for that activity.                                                      
       ``(2) A detailed explanation of the transfers into, and out of,     
   funds available for that activity during the period covered by the      
   report.                                                                 
     ``(d) Covered Budget Activity Defined.--In this section, the term    
  `covered budget activity' means each of the following:                  
       ``(1) The budget activity groups (known as `subactivities') within  
   the Operating Forces budget activity of the annual Operation and        
   Maintenance, Army, appropriation that are designated as follows:        
     ``(A) All subactivities under the category of Land Forces.            
     ``(B) Land Forces Depot Maintenance.                                  
     ``(C) Base Support.                                                   
     ``(D) Maintenance of Real Property.                                   
       ``(2) The Air Operations budget activity groups (known as           
   `subactivities') within the Operating Forces budget activity of the     
   annual Operation and Maintenance, Navy, appropriation that are          
   designated as follows:                                                  
     ``(A) Mission and Other Flight Operations.                            
     ``(B) Fleet Air Training.                                             
     ``(C) Aircraft Depot Maintenance.                                     
     ``(D) Base Support.                                                   
     ``(E) Maintenance of Real Property.                                   
       ``(3) The Ship Operations budget activity groups (known as          
   `subactivities') within the Operating Forces budget activity of the     
   annual Operation and Maintenance, Navy, appropriation that are          
   designated as follows:                                                  
     ``(A) Mission and Other Ship Operations.                              
     ``(B) Ship Operational Support and Training.                          
     ``(C) Ship Depot Maintenance.                                         
     ``(D) Base Support.                                                   
     ``(E) Maintenance of Real Property.                                   
       ``(4) The Expeditionary Forces budget activity groups (known as     
   `subactivities') within the Operating Forces budget activity of the     
   annual Operation and Maintenance, Marine Corps, appropriation that are  
   designated as follows:                                                  
     ``(A) Operational Forces.                                             
     ``(B) Depot Maintenance.                                              
     ``(C) Base Support.                                                   
     ``(D) Maintenance of Real Property.                                   
       ``(5) The Air Operations and Combat Related Operations budget       
   activity groups (known as `subactivities') within the Operating Forces  
   budget activity of the annual Operation and Maintenance, Air Force,     
   appropriation that are designated as follows:                           
     ``(A) Primary Combat Forces.                                          
     ``(B) Primary Combat Weapons.                                         
     ``(C) Air Operations Training.                                        
     ``(D) Depot Maintenance.                                              
     ``(E) Base Support.                                                   
     ``(F) Maintenance of Real Property.                                   
       ``(6) The Mobility Operations budget activity group (known as a     
   `subactivity') within the Mobilization budget activity of the annual    
   Operation and Maintenance, Air Force, appropriation that is designated  
   as Airlift Operations.                                                  
     ``(e) Termination.--The requirements specified in subsections (a) and
  (b) shall terminate upon the submission of the annual report under      
  subsection (a) covering fiscal year 2000.''.                            
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
            ``483. Reports on transfers from high-priority readiness          
      appropriations.''.                                                      
          SEC. 324. ANNUAL REPORT ON AIRCRAFT INVENTORY.                          
     (a) Annual Report Required.--(1) Chapter 23 of title 10, United      
  States Code, is amended by inserting after section 483, as added by     
  section 323, the following new section:                                 
          ``484. Annual report on aircraft inventory                              
     ``(a) Annual Report.--The Under Secretary of Defense (Comptroller)   
  shall submit to Congress each year a report on the aircraft in the      
  inventory of the Department of Defense. The Under Secretary shall submit
  the report when the President submits the budget to Congress under      
  section 1105(a) of title 31.                                            
     ``(b) Content.--The report shall set forth, in accordance with       
  subsection (c), the following information:                              
     ``(1) The total number of aircraft in the inventory.                  
       ``(2) The total number of the aircraft in the inventory that are    
   active, stated in the following categories (with appropriate            
   subcategories for mission aircraft, training aircraft, dedicated test   
   aircraft, and other aircraft):                                          
     ``(A) Primary aircraft.                                               
     ``(B) Backup aircraft.                                                
     ``(C) Attrition and reconstitution reserve aircraft.                  
       ``(3) The total number of the aircraft in the inventory that are    
   inactive, stated in the following categories:                           
     ``(A) Bailment aircraft.                                              
     ``(B) Drone aircraft.                                                 
     ``(C) Aircraft for sale or other transfer to foreign governments.     
     ``(D) Leased or loaned aircraft.                                      
     ``(E) Aircraft for maintenance training.                              
     ``(F) Aircraft for reclamation.                                       
     ``(G) Aircraft in storage.                                            
       ``(4) The aircraft inventory requirements approved by the Joint     
   Chiefs of Staff.                                                        
     ``(c) Display of Information.--The report shall specify the          
  information required by subsection (b) separately for the active        
  component of each armed force and for each reserve component of each    
  armed force and, within the information set forth for each such         
  component, shall specify the information separately for each type,      
  model, and series of aircraft provided for in the future-years defense  
  program submitted to Congress.''.                                       
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 483, as added by section
  323, the following new item:                                            
      ``484. Report on aircraft inventory.''.                                 
     (b) Special Submission Date for First Report.--The Under Secretary of
  Defense (Comptroller) shall submit the first report required under      
  section 484 of title 10, United States Code (as added by subsection     
  (a)), not later than January 30, 1998.                                  
     (c) Modification of Budget Data Exhibits.--The Under Secretary of    
  Defense (Comptroller) shall ensure that aircraft budget data exhibits of
  the Department of Defense that are submitted to Congress display total  
  numbers of active aircraft where numbers of primary aircraft or primary 
  authorized aircraft are displayed in those exhibits.                    
                    SEC. 325. ADMINISTRATIVE ACTIONS ADVERSELY AFFECTING MILITARY 
          TRAINING OR OTHER READINESS ACTIVITIES.                                 
     (a) Congressional Notification.--Chapter 101 of title 10, United     
  States Code, is amended by adding at the end the following new section: 
                    ``2014. Administrative actions adversely affecting military   
          training or other readiness activities                                  
     ``(a) Congressional Notification.--Whenever an official of an        
  Executive agency takes or proposes to take an administrative action     
  that, as determined by the Secretary of Defense                         
                    in consultation with the Chairman of the Joint Chiefs of      
          Staff, affects training or any other readiness activity in a manner that
          has or would have a significant adverse effect on the military readiness
          of any of the armed forces or a critical component thereof, the         
          Secretary shall submit a written notification of the action and each    
          significant adverse effect to the head of the Executive agency taking or
          proposing to take the administrative action. At the same time, the      
          Secretary shall transmit a copy of the notification to the President,   
          the Committee on Armed Services of the Senate, and the Committee on     
          National Security of the House of Representatives.                      
     ``(b) Notification To Be Prompt.--(1) Subject to paragraph (2), the  
  Secretary shall submit a written notification of an administrative      
  action or proposed administrative action required by subsection (a) as  
  soon as possible after the Secretary becomes aware of the action or     
  proposed action.                                                        
     ``(2) The Secretary shall prescribe policies and procedures to ensure
  that the Secretary receives information on an administrative action or  
  proposed administrative action described in subsection (a) promptly     
  after Department of Defense personnel receive notice of such an action  
  or proposed action.                                                     
     ``(c) Consultation Between Secretary and Head of Executive           
  Agency.--Upon notification with respect to an administrative action or  
  proposed administrative action under subsection (a), the head of the    
  Executive agency concerned shall--                                      
     ``(1) respond promptly to the Secretary; and                          
       ``(2) consistent with the urgency of the training or readiness      
   activity involved and the provisions of law under which the             
   administrative action or proposed administrative action is being taken, 
   seek to reach an agreement with the Secretary on immediate actions to   
   attain the objective of the administrative action or proposed           
   administrative action in a manner which eliminates or mitigates the     
   adverse effects of the administrative action or proposed administrative 
   action upon the training or readiness activity.                         
     ``(d) Moratorium.--(1) Subject to paragraph (2), upon notification   
  with respect to an administrative action or proposed administrative     
  action under subsection (a), the administrative action or proposed      
  administrative action shall cease to be effective with respect to the   
  Department of Defense until the earlier of--                            
       ``(A) the end of the five-day period beginning on the date of the   
   notification; or                                                        
       ``(B) the date of an agreement between the head of the Executive    
   agency concerned and the Secretary as a result of the consultations     
   under subsection (c).                                                   
     ``(2) Paragraph (1) shall not apply with respect to an administrative
  action or proposed administrative action if the head of the Executive   
  agency concerned determines that the delay in enforcement of the        
  administrative action or proposed administrative action will pose an    
  actual threat of an imminent and substantial endangerment to public     
  health or the environment.                                              
     ``(e) Effect of Lack of Agreement.--(1) If the head of an Executive  
  agency and the Secretary do not enter into an agreement under subsection
  (c)(2), the Secretary shall submit a written notification to the        
  President who shall take final action on the matter.                    
     ``(2) Not later than 30 days after the date on which the President   
  takes final action on a matter under paragraph (1), the President shall 
  submit to the committees referred to in subsection (a) a notification of
  the action.                                                             
     ``(f) Limitation on Delegation of Authority.--The head of an         
  Executive agency may not delegate any responsibility under this section.
     ``(g) Definition.--In this section, the term `Executive agency' has  
  the meaning given such term in section 105 of title 5, except that the  
  term does not include the General Accounting Office.''.                 
     (b) Clerical Amendment.--The table of sections of the beginning of   
  such chapter is amended by adding at the end the following new item:    
            ``2014. Administrative actions adversely affecting military       
      training or other readiness activities.''.                              
          SEC. 326. COMMON MEASUREMENT OF OPERATIONS TEMPO AND PERSONNEL TEMPO.   
     (a) Means for Measurement.--The Chairman of the Joint Chiefs of Staff
  shall, to the maximum extent practicable, develop (1) a common means of 
  measuring the operations tempo (OPTEMPO) of each of the Armed Forces,   
  and (2) a common means of measuring the personnel tempo (PERSTEMPO) of  
  each of the Armed Forces. The Chairman shall consult with the other     
  members of the Joint Chiefs of Staff in developing those common means of
  measurement.                                                            
     (b) Perstempo Measurement.--The measurement of personnel tempo       
  developed by the Chairman shall include a means of identifying the rate 
  of deployment for individual members of the Armed Forces in addition to 
  the rate of deployment for units.                                       
                    SEC. 327. INCLUSION OF AIR FORCE DEPOT MAINTENANCE AS         
          OPERATION AND MAINTENANCE BUDGET LINE ITEMS.                            
     For fiscal year 1999 and each fiscal year thereafter, Air Force      
  depot-level maintenance of materiel shall be displayed as one or more   
  separate line items under each subactivity within the authorization     
  request for operation and maintenance, Air Force, in the proposed budget
  for that fiscal year submitted to Congress pursuant to section 1105 of  
  title 31, United States Code.                                           
          SEC. 328. PROHIBITION OF IMPLEMENTATION OF TIERED READINESS SYSTEM.     
     (a) Prohibition.--The Secretary of a military department may not     
  implement, or be required to implement, a new readiness system for units
  of the Armed Forces (as outlined in sections 329 and 330), under which a
  military unit would be categorized into one of several categories (known
  as ``tiers'') according to the likelihood that the unit will be required
  to respond to a military conflict and the time in which the unit will be
  required to respond, if that system would have the effect of changing   
  the methods used as of October 1, 1996, by the Armed Forces under the   
  jurisdiction of that Secretary for determining the priorities for       
  allocating to such military units funding, personnel, equipment,        
  equipment maintenance, and training resources, and the associated levels
  of readiness of those units that result from those priorities.          
     (b) Report to Congress Requesting Waiver.--If the Secretary of       
  Defense determines, following the review required by sections 329 and   
  330 (or any similar review), that implementation for one or more of the 
  Armed Forces of a tiered readiness system that is prohibited by         
  subsection (a) would be in the national security interests of the United
  States, the Secretary shall submit to Congress a report setting forth   
  that determination, together with the rationale for that determination, 
  and a request for the enactment of legislation to allow implementation  
  of such a system.                                                       
     (c) Rule of Construction.--Nothing in subsection (a) is intended to  
  preclude the Secretary of Defense from taking necessary actions to      
  maintain the combat preparedness of the active and reserve components of
  the Armed Forces.                                                       
          SEC. 329. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED FORCES.
     (a) Requirement for Report.--Not later than January 31, 1998, the    
  Chairman of the Joint Chiefs of Staff shall submit to the congressional 
  defense committees a report on the military readiness requirements of   
  the active and reserve components of the Armed Forces (including combat 
  units, combat support units, and combat service support units). The     
  report shall assess such requirements under a tiered readiness and      
  response system that categorizes a given unit according to the          
  likelihood that it will be required to respond to a military conflict   
  and the time within which it will be required to respond.               
     (b) Preparation by JCS and Commanders of Unified Commands.--The      
  report required by subsection (a) shall be prepared jointly by the      
  Chairman of the Joint Chiefs of Staff, the Chief of Staff of the Army,  
  the Chief of Naval Operations, the Chief of Staff of the Air Force, the 
  Commandant of the Marine Corps, the commander of the Special Operations 
  Command, and the commanders of the other unified commands.              
     (c) Assessment Scenario.--The report shall assess readiness          
  requirements in a scenario that is based on the following assumptions:  
     (1) That the Armed Forces of the United States must be capable of--   
       (A) fighting and winning, in concert with allies, two major theater 
   wars nearly simultaneously; and                                         
     (B) deterring or defeating a strategic attack on the United States.   
       (2) That the forces available for deployment are the forces included
   in the force structure recommended in the Quadrennial Defense Review,   
   including all other planned force enhancements.                         
     (d) Assessment Elements.--(1) The report shall identify, by unit     
  type, all major units of the active and reserve components of the Armed 
  Forces and assess the readiness requirements of the units. Each         
  identified unit shall be categorized within one of the following        
  classifications:                                                        
       (A) Forward-deployed and crisis response forces, or ``Tier I''      
   forces, that possess limited internal sustainment capability and do not 
   require immediate access to regional air bases or ports or overflight   
   rights, including the following:                                        
       (i) Force units that are deployed in rotation at sea or on land     
   outside the United States.                                              
       (ii) Combat-ready crises response forces that are capable of        
   mobilizing and deploying within 10 days after receipt of orders.        
       (iii) Forces that are supported by prepositioning equipment afloat  
   or are capable of being inserted into a theater upon the capture of a   
   port or airfield by forcible entry forces.                              
       (B) Combat-ready follow-on forces, or ``Tier II'' forces, that can  
   be mobilized and deployed to a theater within approximately 60 days     
   after receipt of orders.                                                
       (C) Combat-ready conflict resolution forces, or ``Tier III'' forces,
   that can be mobilized and deployed to a theater within approximately 180
   days after receipt of orders.                                           
       (D) All other active and reserve component force units which are not
   categorized within a classification described in subparagraph (A), (B), 
   or (C).                                                                 
     (2) For the purposes of paragraph (1), the following units are major 
  units:                                                                  
       (A) In the case of the Army or Marine Corps, a brigade and a        
   battalion.                                                              
       (B) In the case of the Navy, a squadron of aircraft, a ship, and a  
   squadron of ships.                                                      
     (C) In the case of the Air Force, a squadron of aircraft.             
     (e) Projection of Savings for Use for Modernization.--The report     
  shall include a projection for fiscal years 1998 through 2003 of the    
  amounts of the savings in operation and maintenance funding that--      
       (1) could be derived by each of the Armed Forces by placing as many 
   units as is practicable into the lower readiness categories among the   
   tiers; and                                                              
     (2) could be made available for force modernization.                  
     (f) Form of Report.--The report under this section shall be submitted
  in unclassified form, but may contain a classified annex.               
     (g) Planned Force Enhancement Defined.--In this section, the term    
  ``planned force enhancement'', with respect to the force structure      
  recommended in the Quadrennial Defense Review, means any future         
  improvement in the capability of the force (including current strategic 
  and future improvement in strategic lift capability) that is assumed in 
  the development of the recommendation for the force structure set forth 
  in the Quadrennial Defense Review.                                      
          SEC. 330. ASSESSMENT OF CYCLICAL READINESS POSTURE OF THE ARMED FORCES. 
     (a) Requirement.--(1) Not later than 120 days after the date of the  
  enactment of this Act, the Secretary of Defense shall submit to Congress
  a report on the readiness posture of the Armed Forces described in      
  subsection (b).                                                         
     (2) The Secretary shall prepare the report required under paragraph  
  (1) with the assistance of the Joint Chiefs of Staff. In providing such 
  assistance, the Chairman of the Joint Chiefs of Staff shall consult with
  the Chief of the National Guard Bureau.                                 
     (b) Readiness Posture.--(1) The readiness posture to be covered by   
  the report under subsection (a) is a readiness posture for units of the 
  Armed Forces, or for designated units of the Armed Forces, that provides
  for a rotation of such units between a state of high readiness and a    
  state of low readiness.                                                 
     (2) As part of the evaluation of the readiness posture described in  
  paragraph (1), the report shall address in particular a readiness       
  posture that--                                                          
       (A) establishes within the Armed Forces two equivalent forces each  
   structured so as to be capable of fighting and winning a major theater  
   war; and                                                                
       (B) provides for an alternating rotation of such forces between a   
   state of high readiness and a state of low readiness.                   
     (3) The evaluation of the readiness posture described in paragraph   
  (2) shall be based upon assumptions permitting comparison with the      
  existing force structure as follows:                                    
       (A) That there are assembled from among the units of the Armed      
   Forces two equivalent forces each structured so as to be capable of     
   fighting and winning a major theater war.                               
     (B) That each force referred to in subparagraph (A) includes--        
       (i) four active Army divisions, including one mechanized division,  
   one armored division, one light infantry division, and one division     
   combining airborne units and air assault units, and appropriate support 
   and service support units for such divisions;                           
       (ii) six divisions (or division equivalents) of the Army National   
   Guard or the Army Reserve that are essentially equivalent in structure, 
   and appropriate support and service support units for such divisions;   
     (iii) six aircraft carrier battle groups;                             
     (iv) six active Air Force fighter wings (or fighter wing equivalents);
       (v) four Air Force reserve fighter wings (or fighter wing           
   equivalents); and                                                       
     (vi) one active Marine Corps expeditionary force.                     
       (C) That each force may be supplemented by critical units or units  
   in short supply, including heavy bomber units, strategic lift units, and
   aerial reconnaissance units, that are not subject to the readiness      
   rotation otherwise assumed for purposes of the evaluation or are subject
   to the rotation on a modified basis.                                    
       (D) That units of the Armed Forces not assigned to a force are      
   available for operations other than those essential to fight and win a  
   major theater war, including peace operations.                          
       (E) That the state of readiness of each force alternates between a  
   state of high readiness and a state of low readiness on a frequency     
   determined by the Secretary (but not more often than once every six     
   months) and with only one force at a given state of readiness at any one
   time.                                                                   
       (F) That, during the period of state of high readiness of a force,  
   any operations or activities (including leave and education and training
   of personnel) that detract from the near-term wartime readiness of the  
   force are temporary and their effects on such state of readiness        
   minimized.                                                              
       (G) That units are assigned overseas during the period of state of  
   high readiness of the force to which the units are assigned primarily on
   a temporary duty basis.                                                 
       (H) That, during the period of high readiness of a force, the       
   operational war plans for the force incorporate the divisions (or       
   division equivalents) of the Army Reserve or Army National Guard        
   assigned to the force in a manner such that one such division (or       
   division equivalent) is, on a rotating basis for such divisions (or     
   division equivalents)                                                   
                    during the period, maintained in a high state of readiness and
          dedicated as the first reserve combat division to be transferred        
          overseas in the event of a major theater war.                           
     (c) Report Elements.--The report under this section shall include the
  following elements for the readiness posture described in subsection    
  (b)(2):                                                                 
       (1) An estimate of the range of cost savings achievable over the    
   long term as a result of implementing the readiness posture, including--
       (A) the savings achievable from reduced training levels and         
   readiness levels during periods in which a force referred to in         
   subsection (b)(3)(A) is in a state of low readiness; and                
       (B) the savings achievable from reductions in costs of              
   infrastructure overseas as a result of reduced permanent change of      
   station rotations.                                                      
       (2) An assessment of the potential risks associated with a lower    
   readiness status for units assigned to a force in a state of low        
   readiness under the readiness posture, including the risks associated   
   with the delayed availability of such units overseas in the event of two
   nearly simultaneous major theater wars.                                 
       (3) An assessment of the potential risks associated with requiring  
   the forces under the readiness posture to fight a major war in any      
   theater worldwide.                                                      
       (4) An assessment of the modifications of the current force         
   structure of the Armed Forces that are necessary to achieve the range of
   cost savings estimated under paragraph (1), including the extent of the 
   diminishment, if any, of the military capabilities of the Armed Forces  
   as a result of the modifications.                                       
       (5) An assessment whether or not the risks of diminished military   
   capability associated with implementation of the readiness posture      
   exceed the risks of diminished military capability associated with the  
   modifications of the current force structure necessary to achieve cost  
   savings equivalent to the best case for cost savings resulting from the 
   implementation of the readiness posture.                                
     (d) Form of Report.--The report under this section shall be submitted
  in unclassified form, but may contain a classified annex.               
    (e)  Definitions.--In this section:                                   
       (1) The term ``state of high readiness'', in the case of a military 
   force, means the capability to mobilize first-to-arrive units of the    
   force within 18 hours and last-to-arrive units within 120 days of a     
   particular event.                                                       
       (2) The term ``state of low readiness'', in the case of a military  
   force, means the capability to mobilize first-to-arrive units within 90 
   days and last-to-arrive units within 180 days of a particular event.    
                    SEC. 331. REPORT ON MILITARY EXERCISES CONDUCTED UNDER CERTAIN
          TRAINING EXERCISES PROGRAMS                                             
     (a) Report.--Not later than February 16, 1998, the Secretary of      
  Defense shall submit to the Committee on Armed Services of the Senate   
  and the Committee on National Security of the House of Representatives a
  report on the military exercises conducted by the Department of Defense 
  during fiscal years 1995, 1996, and 1997 and the military exercises     
  planned to be conducted during fiscal years 1998, 1999, and 2000, under 
  the following training exercises programs:                              
     (1) The program known as the ``CJCS Exercise Program''.               
     (2) The program known as the ``Partnership for Peace program``.       
     (3) The Cooperative Threat Reduction programs.                        
     (b) Information on Exercises Conducted or To Be Conducted.--The      
  report under subsection (a) shall include the following information for 
  each exercise included in the report, which shall be set forth by fiscal
  year and shown within the fiscal year by the sponsoring command:        
     (1) Name of the exercise.                                             
     (2) Type, description, duration, and objectives of the exercise.      
       (3) Participating units, including the number of personnel          
   participating in each unit.                                             
       (4) For each participating unit, the percentage of the tasks on that
   unit's specification of tasks (known as a mission essential task list)  
   or a comparable specification (in the case of any of the Armed Forces   
   not maintaining a mission essential task list designation) that were    
   performed or are scheduled to be performed as part of the exercise.     
       (5) The cost of the exercise paid or to be paid out of funds        
   available to the Chairman of the Joint Chiefs of Staff and the cost to  
   each of the Armed Forces participating in the exercise, with a          
   description of the categories of activities for which those costs are   
   incurred in each such case.                                             
       (6) In the case of each planned exercise, the priority of the       
   exercise in relation to all other exercises planned by the sponsoring   
   command to be conducted during that fiscal year.                        
       (7) In the case of an exercise conducted or to be conducted in a    
   foreign country or with military personnel of a foreign country, the    
   military forces of the foreign country that participated or will        
   participate in the exercise.                                            
    (c)  Assessment.--The report under subsection (a) shall include--     
       (1) an assessment of the ability of each of the Armed Forces to meet
   requirements of the training exercises programs specified in subsection 
   (a);                                                                    
       (2) an assessment of the training value of each exercise covered in 
   the report to each unit of the Armed Forces participating in the        
   exercise, including for each such unit an assessment of the value of the
   percentage under subsection (b)(4) as an indicator of the training value
   of the exercise for that unit;                                          
       (3) options to minimize the negative effects on operational and     
   personnel tempo resulting from the training exercises programs; and     
       (4) in the case of exercises to be conducted in a foreign country or
   with military personnel of a foreign country--                          
       (A) an assessment of the training value of each exercise covered in 
   the report to the foreign countries involved and the extent to which the
   exercise enhances the readiness capabilities of all military forces     
   involved in the exercise (both United States and foreign); and          
       (B) an assessment of the benefits to be derived through enhanced    
   military-to-military relationships between the United States and foreign
   countries.                                                              
     (d) Funding Limitation Pending Receipt of Report.--Of the funds      
  available for fiscal year 1998 for the conduct of the CJCS Exercise     
  Program, not more than 90 percent may be expended before the date on    
  which the report required under subsection (a) is submitted.            
          SEC. 332. REPORT ON OVERSEAS DEPLOYMENTS.                               
     (a) Report.--Not later than 90 days after the date of the enactment  
  of this Act, the Secretary of Defense shall submit to Congress a report 
  on the deployments overseas of members of the Armed Forces (other than  
  the Coast Guard). The report shall describe the deployments as of June  
  30, 1996, and as of June 30, 1997.                                      
     (b) Elements.--The report shall include the following, shown as of   
  each date specified in subsection (a) and shown for the Armed Forces in 
  the aggregate and separately for each of the Armed Forces:              
       (1) The number of military personnel deployed overseas pursuant to a
   permanent duty assignment, shown in the aggregate and by country or     
   ocean to which deployed.                                                
       (2) The number of military personnel deployed overseas pursuant to a
   temporary duty assignment, including--                                  
       (A) the number engaged in training with units of a single military  
   department;                                                             
     (B) the number engaged in United States military joint exercises; and 
     (C) the number engaged in training with allied units.                 
       (3) The number of military personnel deployed overseas who were     
   engaged in contingency operations (including peacekeeping or            
   humanitarian assistance missions) or other activities (other than those 
   personnel covered by paragraphs (1) and (2)).                           
           Subtitle C--Environmental Provisions                                    
                    SEC. 341. REVISION OF MEMBERSHIP TERMS FOR STRATEGIC          
          ENVIRONMENTAL RESEARCH AND DEVELOPMENT PROGRAM SCIENTIFIC ADVISORY      
          BOARD.                                                                  
     Section 2904(b)(4) of title 10, United States Code, is amended by    
  striking out ``three'' and inserting in lieu thereof ``not less than two
  and not more than four''.                                               
                    SEC. 342. AMENDMENTS TO AUTHORITY TO ENTER INTO AGREEMENTS    
          WITH OTHER AGENCIES IN SUPPORT OF ENVIRONMENTAL TECHNOLOGY              
          CERTIFICATION.                                                          
     (a) Authority To Enter Into Agreements With Indian Tribes.--Section  
  327 of the National Defense Authorization Act for Fiscal Year 1997      
  (Public Law 104 201; 110 Stat. 2483; 10 U.S.C. 2702 note) is amended--  
       (1) in subsection (a), by inserting ``, or with an Indian tribe,''  
   after ``with an agency of a State or local government'';                
     (2) by redesignating subsection (e) as subsection (f); and            
     (3) by inserting after subsection (d) the following new subsection:   
     ``(e) Definition.--In this section, the term `Indian tribe' has the  
  meaning given that term by section 101(36) of the Comprehensive         
  Environmental Response, Compensation, and Liability Act of 1980 (42     
  U.S.C. 9601(36)).''.                                                    
     (b) Elimination of Certain Limitation on Authority.--Subsection      
  (b)(1) of such section is amended by striking out ``in carrying out its 
  environmental restoration activities''.                                 
     (c) Additional Report Information.--Subsection (d) of such section is
  amended by adding at the end the following:                             
       ``(5) A statement of the funding that will be required to meet      
   commitments made to State and local governments and Indian tribes under 
   such agreements entered into during the fiscal year preceding the fiscal
   year in which the report is submitted.                                  
       ``(6) A description of any cost-sharing arrangement under any such  
   agreements.''.                                                          
     (d) Guidelines for Reimbursement and Cost-Sharing.--Not later than 90
  days after the date of enactment of this Act, the Secretary of Defense  
  shall submit to Congress a report setting forth the guidelines          
  established by the Secretary for reimbursement of State and local       
  governments, and for cost-sharing between the Department of Defense,    
  such governments, and vendors, under cooperative agreements entered into
  under such section 327.                                                 
     (e) Effective Date.--The amendments made by this section shall take  
  effect 30 days after the date on which the report required by subsection
  (d) is submitted to Congress.                                           
                    SEC. 343. MODIFICATIONS OF AUTHORITY TO STORE AND DISPOSE OF  
          NONDEFENSE TOXIC AND HAZARDOUS MATERIALS.                               
     (a) Storage of Materials Owned by Members and Dependents.--Subsection
  (a)(1) of section 2692 of title 10, United States Code, is amended by   
  striking out ``by the Department of Defense.'' and inserting in lieu    
  thereof the following: ``either by the Department of Defense or by a    
  member of the armed forces (or a dependent of the member) assigned to or
  provided military housing on the installation.''.                       
     (b) Additional Authority.--Subsection (b) of such section is         
  amended--                                                               
       (1) by redesignating paragraphs (1) through (9) as paragraphs (2)   
   through (10), respectively; and                                         
       (2) by inserting before paragraph (2) (as so redesignated) the      
   following new paragraph (1):                                            
       ``(1) the storage, treatment, or disposal of materials that will be 
   or have been used in connection with an activity of the Department of   
   Defense or in connection with a service to be performed on an           
   installation of the Department for the benefit of the Department;''.    
     (c) Storage and Disposal of Explosives To Assist Law Enforcement     
  Agencies.--Subsection (b) of such section is amended in paragraph (3)   
  (as redesignated by subsection (b))--                                   
       (1) by striking out ``Federal law enforcement'' and inserting in    
   lieu thereof ``Federal, State, or local law enforcement''; and          
       (2) by striking out ``Federal agency'' and inserting in lieu thereof
   ``Federal, State, or local agency''.                                    
     (d) Storage of Material in Connection With Authorized and Compatible 
  Use of a Defense Facility.--Subsection (b) of such section is amended in
  paragraph (9) (as redesignated by subsection (b))--                     
       (1) by striking out ``by a private person in connection with the    
   authorized and compatible use by that person of an industrial-type'' and
   inserting in lieu thereof ``in connection with the authorized and       
   compatible use of a''; and                                              
       (2) by striking out ``; and'' at the end and inserting in lieu      
   thereof the following: ``, including the use of such a facility for     
   testing materiel or training personnel;''.                              
     (e) Treatment and Disposal of Material in Connection With Authorized 
  and Compatible Use of a Defense Facility.--Subsection (b) of such       
  section is amended in paragraph (10) (as redesignated by subsection     
  (b))--                                                                  
       (1) by striking out ``by a private person in connection with the    
   authorized and compatible commercial use by that person of an           
   industrial-type'' and inserting in lieu thereof ``in connection with the
   authorized and compatible use of a'';                                   
       (2) by striking out ``with that person'' and inserting in lieu      
   thereof ``or agreement with the prospective user'';                     
       (3) by striking out ``for that person's'' in subparagraph (B) and   
   inserting in lieu thereof ``for the prospective user's''; and           
       (4) by striking out the period at the end and inserting in lieu     
   thereof ``; and''.                                                      
     (f) Storage of Material in Connection With Space Launch              
  Facilities.--Subsection (b) of such section is further amended by adding
  at the end the following new paragraph:                                 
       ``(11) the storage of any material that is not owned by the         
   Department of Defense if the Secretary of the military department       
   concerned determines that the material is required or generated in      
   connection with the use of a space launch facility located on an        
   installation of the Department of Defense or on other land controlled by
   the United States.''.                                                   
     (g) Technical Amendments.--(1) Subsection (a)(1) of such section is  
  further amended by striking out ``storage'' and inserting in lieu       
  thereof ``storage, treatment,''.                                        
    (2) The heading for such section is amended to read as follows:       
                    ``2692. Storage, treatment, and disposal of nondefense toxic  
          and hazardous materials''.                                              
     (3) The item relating to such section in the table of sections at the
  beginning of chapter 159 of such title is amended to read as follows:   
            ``2692. Storage, treatment, and disposal of nondefense toxic and  
      hazardous materials.''.                                                 
     (h) Savings Clause.--Nothing in the amendments made by this section  
  is intended to modify environmental laws or laws relating to the siting 
  of facilities.                                                          
                    SEC. 344. ANNUAL REPORT ON PAYMENTS AND ACTIVITIES IN RESPONSE
          TO FINES AND PENALTIES ASSESSED UNDER ENVIRONMENTAL LAWS.               
     (a) Annual Reports.--Section 2706(b)(2) of title 10, United States   
  Code, is amended by adding at the end the following:                    
       ``(H) A statement of the fines and penalties imposed or assessed    
   against the Department of Defense under Federal, State, or local        
   environmental law during the fiscal year preceding the fiscal year in   
   which the report is submitted, setting forth each Federal environmental 
   statute under which a fine or penalty was imposed or assessed during the
   fiscal year, and, with respect to each such statute--                   
       ``(i) the aggregate amount of fines and penalties imposed or        
   assessed during the fiscal year;                                        
       ``(ii) the aggregate amount of fines and penalties paid during the  
   fiscal year;                                                            
       ``(iii) the total amount required for environmental projects to be  
   carried out by the Department of Defense in lieu of the payment of fines
   or penalties; and                                                       
       ``(iv) the number of fines and penalties imposed or assessed during 
   the fiscal year that were--                                             
     ``(I) $100,000 or less; and                                           
     ``(II) more than $100,000.''.                                         
     (b) Report in Fiscal Year 1998.--The statement submitted by the      
  Secretary of Defense under subparagraph (H) of section 2706(b)(2) of    
  title 10, United States Code, as added by subsection (a), in 1998 shall,
  to the maximum extent practicable, include the information required by  
  that subparagraph for each of fiscal years 1994 through 1997.           
                    SEC. 345. ANNUAL REPORT ON ENVIRONMENTAL ACTIVITIES OF THE    
          DEPARTMENT OF DEFENSE OVERSEAS.                                         
    Section 2706 of title 10, United States Code, is amended--            
     (1) by redesignating subsection (d) as subsection (e); and            
       (2) by inserting after subsection (c) the following new subsection  
   (d):                                                                    
     ``(d) Report on Environmental Activities Overseas.--(1) The Secretary
  of Defense shall submit to Congress each year, not later than 30 days   
  after the date on which the President submits to Congress the budget for
  a fiscal year, a report on the environmental activities of the          
  Department of Defense overseas.                                         
     ``(2) Each such report shall include a statement of the funding      
  levels during such fiscal year for each of the following categories:    
       ``(A) Compliance by the Department of Defense with requirements     
   under a treaty, law, contract, or other agreement for environmental     
   restoration or compliance activities.                                   
       ``(B) Performance by the Department of Defense of other             
   environmental restoration and compliance activities overseas.           
       ``(C) Performance by the Department of Defense of any other overseas
   activities related to the environment, including conferences, meetings, 
   and studies for pilot programs, and travel related to such              
   activities.''.                                                          
                    SEC. 346. REVIEW OF EXISTING ENVIRONMENTAL CONSEQUENCES OF THE
          PRESENCE OF THE ARMED FORCES IN BERMUDA.                                
     Not later than 120 days after the date of enactment of this Act, the 
  Secretary of Defense shall submit to the congressional defense          
  committees a report on any remaining environmental effects of the       
  presence of the Armed Forces of the United States in Bermuda.           
                    SEC. 347. SENSE OF CONGRESS ON DEPLOYMENT OF UNITED STATES    
          ARMED FORCES ABROAD FOR ENVIRONMENTAL PRESERVATION ACTIVITIES.          
     (a) Sense of Congress.--It is the sense of Congress that members of  
  the Army, Navy, Air Force, and Marine Corps should not be deployed      
  outside the United States to provide assistance to another nation in    
  connection with environmental preservation activities in that nation,   
  unless the Secretary of                                                 
                     Defense determines that such activities are necessary for    
          national security purposes.                                             
     (b) Scope of Section.--For purposes of this section, environmental   
  preservation activities do not include any of the following:            
       (1) Activities undertaken for humanitarian purposes, disaster relief
   activities, peacekeeping activities, or operational training activities.
       (2) Environmental compliance and restoration activities associated  
   with military installations and deployments outside the United States.  
                    SEC. 348. RECOVERY AND SHARING OF COSTS OF ENVIRONMENTAL      
          RESTORATION AT DEPARTMENT OF DEFENSE SITES.                             
     (a) Regulations.--Not later than March 1, 1998, the Secretary of     
  Defense shall prescribe regulations containing the guidelines and       
  requirements described in subsections (b) and (c).                      
     (b) Guidelines.--(1) The regulations prescribed under subsection (a) 
  shall contain uniform guidelines for the military departments and       
  defense agencies concerning the cost-recovery and cost-sharing          
  activities of those departments and agencies.                           
     (2) The Secretary shall take appropriate actions to ensure the       
  implementation of the guidelines.                                       
     (c) Requirements.--The regulations prescribed under subsection (a)   
  shall contain requirements for the Secretaries of the military          
  departments and the heads of defense agencies to--                      
       (1) obtain all data that is relevant for purposes of cost-recovery  
   and cost-sharing activities; and                                        
       (2) identify any negligence or other misconduct that may preclude   
   indemnification or reimbursement by the Department of Defense for the   
   costs of environmental restoration at a Department site or justify the  
   recovery or sharing of costs associated with such restoration.          
     (d) Definition.--In this section, the term ``cost-recovery and       
  cost-sharing activities'' means activities concerning--                 
       (1) the recovery of the costs of environmental restoration at       
   Department of Defense sites from contractors of the Department and other
   private parties that contribute to environmental contamination at such  
   sites; and                                                              
       (2) the sharing of the costs of such restoration with such          
   contractors and parties.                                                
                    SEC. 349. PARTNERSHIPS FOR INVESTMENT IN INNOVATIVE           
          ENVIRONMENTAL TECHNOLOGIES.                                             
     (a) Authority.--Subject to subsection (b), the Secretary of Defense  
  may enter into a partnership with one or more private entities to       
  demonstrate and validate innovative environmental technologies.         
     (b) Limitations.--The Secretary of Defense may enter into a          
  partnership with respect to an environmental technology under subsection
  (a) only if--                                                           
       (1) any private entities participating in the partnership are       
   selected through the use of competitive procedures;                     
       (2) the partnership provides for parties other than the Department  
   of Defense to provide at least 50 percent of the funding required (not  
   including in-kind contributions or preexisting investments); and        
     (3) the Secretary determines that--                                   
       (A) the technology has clear potential to be of significant value to
   the Department of Defense in its environmental remediation activities at
   a substantial number of Department of Defense sites; and                
       (B) the technology would not be developed without the commitment of 
   Department of Defense funds.                                            
     (c) Evaluation Guidelines.--Before entering into a partnership with  
  respect to an environmental technology under subsection (a), the        
  Secretary of Defense shall give consideration to the following:         
       (1) The potential for the technology to be used by the Department of
   Defense for environmental remediation.                                  
     (2) The technical feasibility and maturity of the technology.         
       (3) The adequacy of financial and management plans to demonstrate   
   and validate the technology.                                            
       (4) The costs and benefits to the Department of Defense of          
   developing and using the technology.                                    
     (5) The potential for commercialization of the technology.            
       (6) The proposed arrangements for sharing the costs of the          
   partnership through the use of resources outside the Department of      
   Defense.                                                                
     (d) Funding.--Under a partnership entered into under subsection (a), 
  the Secretary of Defense may provide funds to the partner or partners   
  from appropriations available to the Department of Defense for          
  environmental activities, for a period of up to five years.             
     (e) Report.--In the annual report required under section 2706(a) of  
  title 10, United States Code, the Secretary of Defense shall include the
  following information with respect to partnerships entered into under   
  this section:                                                           
     (1) The number of such partnerships.                                  
       (2) A description of the nature of the technology involved in each  
   such partnership.                                                       
     (3) A list of all partners in such partnerships.                      
     (f) Coordination.--The Secretary of Defense shall ensure that the    
  Department of Defense coordinates with the Administrator of the         
  Environmental Protection Agency in any verification sponsored by the    
  Department of technologies demonstrated and validated by a partnership  
  entered into under this section.                                        
     (g) Procedures.--The Secretary of Defense shall develop appropriate  
  procedures to ensure that all Department of Defense funds committed to a
  partnership entered into under this section are expended for the purpose
  authorized in the partnership agreement. The Secretary may not enter    
  into a partnership under this section until 30 days after the date on   
  which a copy of such procedures is provided to the Committee on Armed   
  Services of the Senate and the Committee on National Security of the    
  House of Representatives.                                               
     (h) Termination of Authority.--The authority to enter into agreements
  under subsection (a) shall terminate three years after the date of the  
  enactment of this Act.                                                  
          SEC. 350. PROCUREMENT OF RECYCLED COPIER PAPER.                         
     (a) Procurement Requirements.--Chapter 140 of title 10, United States
  Code, is amended by adding at the end the following new section:        
                    ``2378. Procurement of copier paper containing specified      
          percentages of post-consumer recycled content                           
     ``(a) Procurement Requirement.--(1) Except as provided in subsections
  (b) and (c), a department or agency of the Department of Defense may not
  procure copying machine paper after the applicable date specified in    
  paragraph (2) unless the percentage of post-consumer recycled content of
  the paper meets the percentage then in effect under such paragraph.     
     ``(2) The percentage of post-consumer recycled content of paper      
  required under paragraph (1) is as follows:                             
     ``(A) 20 percent as of January 1, 1998.                               
     ``(B) 30 percent as of January 1, 1999.                               
     ``(C) 50 percent as of January 1, 2004.                               
     ``(b) Exceptions.--A department or agency of the Department of       
  Defense is not required to procure copying machine paper containing a   
  percentage of post-consumer recycled content that meets the applicable  
  requirement in subsection (a) if the Secretary concerned determines that
  one or more of the following circumstances apply with respect to that   
  procurement:                                                            
       ``(1) The cost of procuring copying machine paper satisfying the    
   applicable requirement significantly exceeds the cost of procuring      
   copying machine paper containing a percentage of post-consumer recycled 
   content that does not meet such requirement. The Secretary concerned    
   shall establish the cost differential to be applied under this          
   paragraph.                                                              
       ``(2) Copying machine paper containing a percentage of post-consumer
   recycled content meeting such requirement is not reasonably available   
   within a reasonable period of time.                                     
       ``(3) Copying machine paper containing a percentage of post-consumer
   recycled content meeting such requirement does not meet performance     
   standards of the department or agency for copying machine paper.        
     ``(c) Effect of Inability To Meet Goal in 2004.--(1) In the case of  
  the requirement that will take effect on January 1, 2004, pursuant to   
  subsection (a)(2)(C), the requirement shall not take effect with respect
  to a military department or Defense Agency if the Secretary of Defense  
  determines that the department or agency will be unable to meet such    
  requirement by that date.                                               
     ``(2) The Secretary shall submit to Congress written notice of any   
  determination made under paragraph (1) and the reasons for the          
  determination. The Secretary shall submit such notice, if at all, not   
  later than January 1, 2003.                                             
     ``(d) Secretary Concerned Defined.--In this section, the term        
  `Secretary concerned' means the Secretary of each military department   
  and the Secretary of Defense with respect to the Defense Agencies.''.   
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
            ``2378. Procurement of copier paper containing specified          
      percentages of post-consumer recycled content.''.                       
                    SEC. 351. PILOT PROGRAM FOR THE SALE OF AIR POLLUTION EMISSION
          REDUCTION INCENTIVES.                                                   
     (a) Authority.--(1) The Secretary of Defense may, in consultation    
  with the Administrator of General Services, carry out a pilot program to
  assess the feasibility and advisability of the sale of economic         
  incentives for the reduction of emission of air pollutants attributable 
  to a facility of a military department.                                 
     (2) The Secretary may carry out the pilot program during the period  
  beginning on the date of the enactment of this Act and ending two years 
  after such date.                                                        
     (b) Incentives Available for Sale.--(1) Under the pilot program, the 
  Secretary may sell economic incentives for the reduction of emission of 
  air pollutants attributable to a facility of a military department only 
  if such incentives are not otherwise required for the activities or     
  operations of the military department.                                  
     (2) The Secretary may not, under the pilot program, sell economic    
  incentives attributable to the closure or realignment of a military     
  installation under a base closure law.                                  
     (3) If the Secretary determines that additional sales of economic    
  incentives are likely to result in amounts available for allocation     
  under subsection (c)(2) in a fiscal year in excess of the limitation set
  forth in subparagraph (B) of that subsection, the Secretary shall not   
  carry out such additional sales in that fiscal year.                    
     (c) Use of Proceeds.--(1) The proceeds of sale of economic incentives
  attributable to a facility of a military department shall be credited to
  the funds available to the facility for the costs of identifying,       
  quantifying, or valuing economic incentives for the reduction of        
  emission of air pollutants. The amount credited shall be equal to the   
  cost incurred in identifying, quantifying, or valuing the economic      
  incentives sold.                                                        
     (2)(A)(i) If after crediting under paragraph (1) a balance remains,  
  the amount of such balance shall be available to the Department of      
  Defense for allocation by the Secretary to the military departments for 
  programs, projects, and activities necessary for compliance with Federal
  environmental laws, including the purchase of economic incentives for   
  the reduction of emission of air pollutants.                            
     (ii) To the extent practicable, amounts allocated to the military    
  departments under this subparagraph shall be made available to the      
  facilities that generated the economic incentives providing the basis   
  for the amounts.                                                        
     (B) The total amount allocated under this paragraph in a fiscal year 
  from sales of economic incentives may not equal or exceed $500,000.     
     (3) If after crediting under paragraph (1) a balance remains in      
  excess of an amount equal to the limitation set forth in paragraph      
  (2)(B), the amount of the excess shall be covered over into the Treasury
  as miscellaneous receipts.                                              
     (4) Funds credited under paragraph (1) or allocated under paragraph  
  (2) shall be merged with the funds to which credited or allocated, as   
  the case may be, and shall be available for the same purposes and for   
  the same period as the funds with which merged.                         
    (d)  Definitions.--In this section:                                   
     (1) The term ``base closure law'' means the following:                
     (A) Section 2687 of title 10, United States Code.                     
       (B) Title II of the Defense Authorization Amendments and Base       
   Closure and Realignment Act (Public Law 100 526; 10 U.S.C. 2687 note).  
       (C) The Defense Base Closure and Realignment Act of 1990 (part A of 
   title XXIX of Public Law 101 510; 10 U.S.C. 2687 note).                 
       (2) The term ``economic incentives for the reduction of emission of 
   air pollutants'' means any transferable economic incentives (including  
   marketable permits and emission rights) necessary or appropriate to meet
   air quality requirements under the Clean Air Act (42 U.S.C. 7401 et     
   seq.).                                                                  
           Subtitle D--Depot-Level Activities                                      
          SEC. 355.  DEFINITION OF DEPOT-LEVEL MAINTENANCE AND REPAIR.            
     (a) Depot-Level Maintenance and Repair Defined.--Chapter 146 of title
  10, United States Code, is amended by inserting before section 2461 the 
  following new section:                                                  
          ``2460. Definition of depot-level maintenance and repair                
     ``(a) In General.--In this chapter, the term `depot-level maintenance
  and repair' means (except as provided in subsection (b)) material       
  maintenance or repair requiring the overhaul, upgrading, or rebuilding  
  of parts, assemblies, or subassemblies, and the testing and reclamation 
  of equipment as necessary, regardless of the source of funds for the    
  maintenance or repair. The term includes (1) all aspects of software    
  maintenance classified by the Department of Defense as of July 1, 1995, 
  as depot-level maintenance and repair, and (2) interim contractor       
  support or contractor logistics support (or any similar contractor      
  support), to the extent that such support is for the performance of     
  services described in the preceding sentence.                           
     ``(b) Exceptions.--(1) The term does not include the procurement of  
  major modifications or upgrades of weapon systems that are designed to  
  improve program performance or the nuclear refueling of an aircraft     
  carrier. A major upgrade program covered by this exception could        
  continue to be performed by private or public sector activities.        
     ``(2) The term also does not include the procurement of parts for    
  safety modifications. However, the term does include the installation of
  parts for that purpose.''.                                              
     (b) Conforming Amendment.--Section 2469 of title 10, United States   
  Code, is amended in subsections (a) and (b), by striking out ``or       
  repair'' and inserting in lieu thereof ``and repair''.                  
     (c) Clerical Amendments.--(1) The table of sections at the beginning 
  of chapter 146 of title 10, United States Code, is amended by inserting 
  before the item relating to section 2461 the following new item:        
      ``2460. Definition of depot-level maintenance and repair.''.            
     (2) The tables of chapters at the beginning of subtitle A, and at the
  beginning of part IV of subtitle A, of such title are amended by        
  striking out the item relating to chapter 146 and inserting in lieu     
  thereof the following new item:                                         
                 ``146. Contracting for Performance of Civilian Commercial or   
        Industrial Type Functions                                               
        2460''.                                                                
          SEC. 356.  CORE LOGISTICS CAPABILITIES OF DEPARTMENT OF DEFENSE.        
     (a) In General.--Section 2464 of title 10, United States Code, is    
  amended to read as follows:                                             
          ``2464. Core logistics capabilities                                     
     ``(a) Necessity for Core Logistics Capabilities.--(1) It is essential
  for the national defense that the Department of Defense maintain a core 
  logistics capability that is Government-owned and Government-operated   
  (including Government personnel and Government-owned and                
  Government-operated equipment and facilities) to ensure a ready and     
  controlled source of technical competence and resources necessary to    
  ensure effective and timely response to a mobilization, national defense
  contingency situations, and other emergency requirements.               
     ``(2) The Secretary of Defense shall identify the core logistics     
  capabilities described in paragraph (1) and the workload required to    
  maintain those capabilities.                                            
     ``(3) The core logistics capabilities identified under paragraphs (1)
  and (2) shall include those capabilities that are necessary to maintain 
  and repair the weapon systems and other military equipment (including   
  mission-essential weapon systems or materiel not later than four years  
  after achieving initial operational capability, but excluding systems   
  and equipment under special access programs, nuclear aircraft carriers, 
  and commercial items described in paragraph (5)) that are identified by 
  the Secretary, in consultation with the Chairman of the Joint Chiefs of 
  Staff, as necessary to enable the armed forces                          
                    to fulfill the strategic and contingency plans prepared by the
          Chairman of the Joint Chiefs of Staff under section 153(a) of this      
          title.                                                                  
     ``(4) The Secretary of Defense shall require the performance of core 
  logistics workloads necessary to maintain the core logistics            
  capabilities identified under paragraphs (1), (2), and (3) at           
  Government-owned, Government-operated facilities of the Department of   
  Defense (including Government-owned, Government-operated facilities of a
  military department) and shall assign such facilities sufficient        
  workload to ensure cost efficiency and technical competence in peacetime
  while preserving the surge capacity and reconstitution capabilities     
  necessary to support fully the strategic and contingency plans referred 
  to in paragraph (3).                                                    
     ``(5) The commercial items covered by paragraph (3) are commercial   
  items that have been sold or leased in substantial quantities to the    
  general public and are purchased without modification in the same form  
  that they are sold in the commercial marketplace, or with minor         
  modifications to meet Federal Government requirements.                  
     ``(b) Limitation on Contracting.--(1) Except as provided in paragraph
  (2), performance of workload needed to maintain a logistics capability  
  identified by the Secretary under subsection (a)(2) may not be          
  contracted for performance by non-Government personnel under the        
  procedures and requirements of Office of Management and Budget Circular 
  A 76 or any successor administrative regulation or policy (hereinafter  
  in this section referred to as OMB Circular A 76).                      
     ``(2) The Secretary of Defense may waive paragraph (1) in the case of
  any such logistics capability and provide that performance of the       
  workload needed to maintain that capability shall be considered for     
  conversion to contractor performance in accordance with OMB Circular A  
  76. Any such waiver shall be made under regulations prescribed by the   
  Secretary and shall be based on a determination by the Secretary that   
  Government performance of the workload is no longer required for        
  national defense reasons. Such regulations shall include criteria for   
  determining whether Government performance of any such workload is no   
  longer required for national defense reasons.                           
     ``(3)(A) A waiver under paragraph (2) may not take effect until the  
  expiration of the first period of 30 days of continuous session of      
  Congress that begins on or after the date on which the Secretary submits
  a report on the waiver to the Committee on Armed Services and the       
  Committee on Appropriations of the Senate and the Committee on National 
  Security and the Committee on Appropriations of the House of            
  Representatives.                                                        
    ``(B) For the purposes of subparagraph (A)--                          
       ``(i) continuity of session is broken only by an adjournment of     
   Congress sine die; and                                                  
       ``(ii) the days on which either House is not in session because of  
   an adjournment of more than three days to a day certain are excluded in 
   the computation of any period of time in which Congress is in continuous
   session.''.                                                             
     (b) Clerical Amendment.--The item relating to such section at the    
  beginning of chapter 146 of such title is amended to read as follows:   
      ``2464. Core logistics capabilities.''.                                 
                    SEC. 357. INCREASE IN PERCENTAGE OF DEPOT-LEVEL MAINTENANCE   
          AND REPAIR THAT MAY BE CONTRACTED FOR PERFORMANCE BY NON-GOVERNMENT     
          PERSONNEL.                                                              
     Section 2466(a) of title 10, United States Code, is amended by       
  striking out ``40 percent'' and inserting in lieu thereof ``50          
  percent''.                                                              
          SEC. 358.  ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.         
     Subsection (e) of section 2466 of title 10, United States Code, is   
  amended to read as follows:                                             
     ``(e) Report.--(1) Not later than February 1 of each year, the       
  Secretary of Defense shall submit to Congress a report identifying, for 
  each military department and Defense Agency, the percentage of the funds
  referred to in subsection (a) that were expended during the preceding   
  fiscal year for performance of depot-level maintenance and repair       
  workloads by                                                            
                    the public and private sectors as required by section 2466 of 
          this title.                                                             
     ``(2) Not later than 90 days after the date on which the Secretary   
  submits the annual report under paragraph (1), the Comptroller General  
  shall submit to Congress the Comptroller General's views on whether the 
  Department of Defense has complied with the requirements of subsection  
  (a) for the fiscal year covered by the report.''.                       
                    SEC. 359. REQUIREMENT FOR USE OF COMPETITIVE PROCEDURES IN    
          CONTRACTING FOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE AND REPAIR       
          WORKLOADS FORMERLY PERFORMED AT CLOSED OR REALIGNED MILITARY            
          INSTALLATIONS.                                                          
     (a) Application to certain Workloads.--(1) Chapter 146 of title 10,  
  United States Code, is amended by inserting after section 2469 the      
  following new section:                                                  
                    ``2469a. Use of competitive procedures in contracting for     
          performance of depot-level maintenance and repair workloads formerly    
          performed at certain military installations                             
    ``(a)  Definitions.--In this section:                                 
       ``(1) The term `closed or realigned military installation' means a  
   military installation where a depot-level maintenance and repair        
   facility was approved in 1995 for closure or realignment under the      
   Defense Base Closure and Realignment Act of 1990 (part A of title XXIX  
   of Public Law 101 510; 10 U.S.C. 2687 note).                            
       ``(2) The term `military installation' includes a former military   
   installation that was a military installation when it was approved in   
   1995 for closure or realignment under the Defense Base Closure and      
   Realignment Act of 1990 and that has been closed or realigned under the 
   Act.                                                                    
       ``(3) The terms `realignment' and `realigned' mean a decision under 
   the Defense Base Closure and Realignment Act of 1990 that results in    
   both a reduction and relocation of functions and civilian personnel     
   positions.                                                              
     ``(b) Covered Depot-Level Maintenance and Repair Workloads.--Except  
  as provided in subsection (c), this section applies with respect to any 
  depot-level maintenance and repair workload that--                      
       ``(1) was performed as of January 1, 1997, at a military            
   installation that was approved in 1995 for closure or realignment under 
   the Defense Base Closure and Realignment Act of 1990 and that has been  
   closed or realigned under the Act; and                                  
       ``(2) is proposed to be converted from performance by Department of 
   Defense personnel to performance by a private sector source.            
    ``(c)  Exceptions.--This section shall not apply with respect to--    
       ``(1) a depot-level maintenance and repair workload that is to be   
   consolidated to another military installation (other than a closed or   
   realigned military installation) as a result of a base closure or       
   realignment action or a decision made by the Secretary concerned or the 
   Defense Depot Maintenance Council;                                      
       ``(2) a workload necessary to maintain a core logistics capability  
   identified under section 2464 of this title; or                         
       ``(3) any contract originally entered into before the date of the   
   enactment of the National Defense Authorization Act for Fiscal Year     
   1998.                                                                   
     ``(d) Conditions and Solicitation.--A solicitation of offers for the 
  performance of any depot-level maintenance and repair workload described
  in subsection (b) may be issued, and a contract may be awarded pursuant 
  to such a solicitation, only if the following conditions are met with   
  respect to the contract and the solicitation specifically states the    
  conditions:                                                             
       ``(1) The source selection process used in the case of the          
   solicitation and contract permits the consideration of offers submitted 
   by private sector sources and offers submitted by public sector sources.
       ``(2) The source selection process used in the case of the          
   solicitation and contract requires that, in the comparison of offers,   
   there be taken into account--                                           
       ``(A) the fair market value (or if fair market value cannot be      
   determined, the estimated book value) of any land, plant, or equipment  
   from a military installation that is proposed by a private offeror to be
   used to meet a specific workload (whether these assets are provided to  
   the offeror by a local redevelopment authority or by any other source   
   approved by an official of the Department of Defense); and              
       ``(B) the total estimated direct and indirect costs that will be    
   incurred by the Department of Defense and the total estimated direct and
   indirect savings (including overhead) that will be derived by the       
   Department of Defense.                                                  
       ``(3) The cost standards used to determine the depreciation of      
   facilities and equipment shall, to the maximum extent practicable,      
   provide identical treatment to all public and private sector offerors.  
       ``(4) Any offeror, whether public or private, may offer to perform  
   the workload at any location or locations selected by the offeror and to
   team with any other public or private entity to perform that workload at
   one or more locations, including a Center of Industrial and Technical   
   Excellence designated under section 2474 of this title.                 
       ``(5) No offeror may be given any preferential consideration for, or
   in any way be limited to, performing the workload in-place or at any    
   other single location.                                                  
     ``(e) Contracts for Multiple Workloads.--(1) A solicitation may be   
  issued for a single contract for the performance of multiple depot-level
  maintenance and repair workloads described in subsection (b) only if--  
       ``(A) the Secretary of Defense determines in writing that the       
   individual workloads cannot as logically and economically be performed  
   without combination by sources that are potentially qualified to submit 
   an offer and to be awarded a contract to perform those individual       
   workloads;                                                              
       ``(B) the Secretary submits to Congress a report setting forth the  
   determination together with the reasons for the determination; and      
       ``(C) the solicitation of offers for the contract is issued more    
   than 60 days after the date on which the Secretary submits the report.  
     ``(2) The Comptroller General shall review each report submitted     
  under paragraph (1)(B) and, not later than 30 days after the report is  
  submitted to Congress, shall submit to Congress the Comptroller         
  General's views regarding the determination of the Secretary that is set
  forth in the report, together with any other findings that the          
  Comptroller General considers appropriate.                              
     ``(f) Competitive Procedures Required.--Section 2304(c)(7) of this   
  title shall not be used as the basis for an exception to the requirement
  to use competitive procedures for any contract for a depot-level        
  maintenance and repair workload described in subsection (b).            
     ``(g) Reviews of Competitive Procedures.--If a solicitation of offers
  for a contract for, or award of, any depot-level maintenance and repair 
  workload described in subsection (b) is issued, the Comptroller General 
  shall--                                                                 
       ``(1) within 45 days after the issuance of the solicitation, review 
   the solicitation and report to Congress on whether the solicitation--   
       ``(A) provides substantially equal opportunity for public and       
   private offerors to compete for the contract without regard to the      
   location at which the workload is to be performed; and                  
       ``(B) is in compliance with the requirements of this section and all
   applicable provisions of law and regulations; and                       
       ``(2) within 45 days after any contract or award resulting from the 
   solicitation is entered into or made, review                            
                    the contract or award, including the contracting or award     
          process, and report to Congress on whether--                            
     ``(A) the procedures used to conduct the competition--                
       ``(i) provided substantially equal opportunity for public and       
   private offerors to compete for the contract without regard to the      
   location at which the workload is to be performed; and                  
       ``(ii) were in compliance with the requirements of this section and 
   all applicable provisions of law and regulations;                       
       ``(B) appropriate consideration was given to factors other than cost
   in the selection of the source for performance of the workload; and     
       ``(C) the contract or award resulted in the lowest total cost to the
   Department of Defense for performance of the workload.                  
     ``(h) Resolution of Workload Award Objections.--Any public or private
  entity may, pursuant to procedures established by the Secretary, object 
  to a solicitation of offers under this section for the performance of   
  any depot-level maintenance and repair workload, or the award or        
  proposed award of any workload pursuant to such a solicitation. The     
  Secretary may designate a qualified individual or entity to review the  
  objection; however, the Secretary shall not designate the Source        
  Selection Authority or any individual from the same military department 
  as the Source Selection Authority to review the objection. The Secretary
  shall take appropriate action to address any defect in the solicitation 
  or award in the event that the objection is sustained.''.               
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 2469 the following new  
  item:                                                                   
            ``2469a. Use of competitive procedures in contracting for         
      performance of depot-level maintenance and repair workloads formerly    
      performed at certain military installations.''.                         
     (b) Limitation Relating to Timing of Solicitation.--The first        
  solicitation of offers from private sector sources for the performance  
  of a depot-level maintenance and repair workload described in subsection
  (b) of section 2469a of title 10, United States Code, as added by       
  subsection (a), may be issued pursuant to such section only after the   
  date that is 30 days after the latest of the following:                 
       (1) The date on which the Secretary of Defense publishes and submits
   to Congress a plan or Department of Defense directive that sets forth   
   the specific procedures for the conduct of competitions among private   
   and public sector entities for such depot-level maintenance and repair  
   workloads.                                                              
       (2) The date on which the Secretary of Defense submits to Congress  
   the report on allocation of workloads required under subsection (c).    
       (3) The date on which the Comptroller General is required to submit 
   the report to Congress under subsection (d).                            
     (c) Report of Allocation of Workload.--Before any solicitation of    
  offers for the performance by a private sector source of a depot-level  
  maintenance and repair workload at a closed or realigned installation   
  described in subsection (b) of section 2469a of title 10, United States 
  Code, as added by subsection (a), is to be issued, the Secretary of     
  Defense shall submit to Congress a report describing the allocation     
  proposed by the Secretary of all workloads that were performed at that  
  closed or realigned military installation (as defined in subsection (a) 
  of such section) as of July 1, 1995, including--                        
       (1) the workloads that are considered to be core logistics functions
   under section 2464 of such title;                                       
       (2) the workloads that are proposed to be transferred to a military 
   installation other than a closed or realigned military installation;    
       (3) the workloads that are proposed to be included in the           
   public-private competitions carried out under section 2469a of such     
   title, and, if any of such workloads are to be combined for purposes of 
   such a competition, the reasons for combining the workloads, together   
   with a description of how the workloads are to be combined;             
       (4) any workload that has been determined within the Department of  
   Defense as no longer being necessary;                                   
       (5) the proposed schedule for implementing the allocations covered  
   by the report; and                                                      
       (6) the anticipated capacity utilization of the military            
   installations and former military installations to which workloads are  
   to be transferred, based on the maximum potential capacity certified to 
   the 1995 Defense Base Closure and Realignment Commission, after the     
   transfers are completed (not taking into account any workloads that may 
   be transferred as a result of a public-private competition carried out  
   under section 2469a of such title, as described in paragraph (3)).      
     (d) Review Regarding Award for C 5 Aircraft Workload.--(1) The       
  Comptroller General shall conduct a review of the award for the         
  performance of the C 5 aircraft workload that was made to Warner Robins 
  Air Logistics Center. As part of the review, the Comptroller General    
  shall--                                                                 
     (A) determine whether the procedures used to conduct the competition--
       (i) provided substantially equal opportunity for public and private 
   offerors to compete for the award without regard to the location at     
   which the workload is to be performed; and                              
       (ii) are in compliance with the requirements of all applicable      
   provisions of law and the Federal Acquisition Regulation; and           
       (B) determine whether that award results in the lowest total cost to
   the Department of Defense for performance of the workload.              
     (2) Not later than 60 days after the date of the enactment of this   
  Act, the Comptroller General shall submit to Congress a report          
  containing the results of the review.                                   
                    SEC. 360. CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT 
          EMPLOYEES BY CONSTRAINTS ON PERSONNEL LEVELS.                           
     Section 2472(a) of title 10, United States Code, is amended by       
  striking out the first sentence and inserting in lieu thereof the       
  following: ``The civilian employees of the Department of Defense,       
  including the civilian employees of the military departments and the    
  Defense Agencies, who perform, or are involved in the performance of,   
  depot-level maintenance and repair workloads may not be managed on the  
  basis of any constraint or limitation in terms of man years, end        
  strength, full-time equivalent positions, or maximum number of          
  employees.''.                                                           
          SEC. 361.  CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.              
     (a) Designation and Purpose.--(1) Chapter 146 of title 10, United    
  States Code, is amended by adding at the end the following new section: 
                    ``2474. Centers of Industrial and Technical Excellence:       
          designation; public-private partnerships                                
     ``(a) Designation.--(1) The Secretary of Defense shall designate each
  depot-level activity of the military departments and the Defense        
  Agencies (other than facilities approved for closure or major           
  realignment under the Defense Base Closure and Realignment Act of 1990  
  (part A of title XXIX of Public Law 101 510; 10 U.S.C. 2687 note)) as a 
  Center of Industrial and Technical Excellence in the recognized core    
  competencies of the activity.                                           
     ``(2) The Secretary shall establish a policy to encourage the        
  Secretary of each military department and the head of each Defense      
  Agency to reengineer industrial processes and adopt best-business       
  practices at their depot-level activities in connection with their core 
  competency requirements, so as to serve as recognized leaders in their  
  core competencies throughout the Department of Defense and in the       
  national technology and industrial base (as defined in section 2500(1)  
  of this title).                                                         
     ``(3) The Secretary of a military department may conduct a pilot     
  program, consistent with applicable requirements of law, to test any    
  practices referred to in paragraph (2) that the Secretary determines    
  could improve the efficiency and effectiveness of depot-level           
  operations, improve the support provided by depot-level activities for  
  the armed forces user of the services of such activities, and enhance   
  readiness by reducing the time that it takes to repair equipment.       
     ``(b) Public-Private Partnerships.--The Secretary of Defense shall   
  enable Centers of Industrial and Technical Excellence to enter into     
  public-private cooperative arrangements for the performance of          
  depot-level maintenance and repair at such Centers and shall encourage  
  the use of such arrangements to maximize the utilization of the capacity
  at such Centers. A public-private cooperative arrangement under this    
  subsection shall be known as a `public-private partnership'.            
     ``(c) Crediting of Amounts for Performance.--Amounts received by a   
  Center for work performed under a public-private partnership shall be   
  credited to the appropriation or fund, including a working-capital fund,
  that incurs the cost of performing the work.                            
     ``(d) Additional Work.--The policy required under subsection (a)     
  shall include measures to enable a private sector entity that enters    
  into a partnership arrangement under subsection (b) or leases excess    
  equipment and facilities at a Center of Industrial and Technical        
  Excellence pursuant to section 2471 of this title to perform additional 
  work at the Center, subject to the limitations outlined in subsection   
  (b) of such section, outside of the types of work normally assigned to  
  the Center.''.                                                          
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
            ``2474. Centers of Industrial and Technical Excellence:           
      designation; public-private partnerships.''.                            
     (b) Lease of Excess Depot-Level Equipment and Facilities.--(1)       
  Section 2471(c) of such title is amended to read as follows:            
     ``(c) Conformance With Authority Under Section 2667.--The provisions 
  of subsection (d) of section 2667 of this title shall apply to this     
  section in the same manner as such provisions are applicable under that 
  section.''.                                                             
     (2) Section 2667(d)(2) of such title is amended by inserting ``or    
  working capital fund'' before ``from which''.                           
     (c) Reporting Requirement.--Not later than March 1, 1999, the        
  Secretary of Defense shall submit to Congress a report on the policies  
  established by the Secretary pursuant to section 2474 of title 10,      
  United States Code, to implement the requirements of such section. The  
  report shall include--                                                  
       (1) the details of any public-private partnerships entered into as  
   of that date under subsection (b) of such section;                      
       (2) the details of any leases entered into as of that date under    
   section 2471 of such title with authorized entities for dual-use        
   (military and nonmilitary) purposes; and                                
       (3) the effect that the partnerships and leases had on capacity     
   utilization, depot rate structures, and readiness.                      
                    SEC. 362. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL
          SHIPYARDS TO ENGAGE IN DEFENSE-RELATED PRODUCTION AND SERVICES.         
     Section 1425(e) of the National Defense Authorization Act for Fiscal 
  Year 1991 (Public Law 101 510; 104 Stat. 1684) is amended by striking   
  out ``September 30, 1997'' and inserting in lieu thereof ``September 30,
  1999''.                                                                 
                    SEC. 363. REPEAL OF A CONDITIONAL REPEAL OF CERTAIN           
          DEPOT-LEVEL MAINTENANCE AND REPAIR LAWS AND A RELATED REPORTING         
          REQUIREMENT.                                                            
     Section 311 of the National Defense Authorization Act for Fiscal Year
  1996 (Public Law 104 106; 110 Stat. 247; 10 U.S.C. 2464 note) is amended
  by striking out subsections (f) and (g).                                
                    SEC. 364. PERSONNEL REDUCTIONS, ARMY DEPOTS PARTICIPATING IN  
          ARMY WORKLOAD AND PERFORMANCE SYSTEM.                                   
     (a) Limitation.--Except as necessary to implement BRAC 1995 decisions
  at Red River Army Depot, Texas, and Letterkenny Army Depot,             
  Pennsylvania, the Secretary of the Army may not initiate a reduction in 
  force of civilian employees at the five Army depots participating in the
  demonstration and testing of the Army Workload and Performance System   
  until after the date on which the Secretary submits to Congress a report
  certifying that the Army Workload and Performance System is fully       
  operational.                                                            
     (b) BRAC 1995 Decisions Defined.--The term ``BRAC 1995 decisions''   
  means the decisions to close or realign certain military installations  
  resulting from the recommendations approved in 1995 under the Defense   
  Base Closure and Realignment Act of 1990 (part A of title XXIX of Public
  Law 101 510; 10 U.S.C. 2687 note).                                      
                    SEC. 365. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES   
          AMONG DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR FACILITIES.   
     (a) Report.--Not later than May 31, 1998, the Secretary of Defense   
  shall submit to Congress a report on the allocation among facilities of 
  the Department of Defense and facilities in the private sector of the   
  logistics activities that are necessary to maintain and repair the      
  weapon systems and other military equipment identified by the Secretary,
  in consultation with the Chairman of the Joint Chiefs of Staff, as being
  necessary to enable the Armed Forces to conduct a strategic or major    
  theater war.                                                            
     (b) Elements.--The report under subsection (a) shall set forth the   
  following:                                                              
       (1) The systems or equipment identified under subsection (a) that   
   must be maintained and repaired in Government-owned, Government-operated
   facilities, using personnel and equipment of the Department, as a result
   of the Secretary's determination that--                                 
       (A) the work involves unique or valuable workforce skills that      
   should be maintained in the public sector in the national interest;     
       (B) the base of private sector sources having the capability to     
   perform the workloads includes industry sectors that are vulnerable to  
   work stoppages;                                                         
       (C) the private sector sources having the capability to perform the 
   workloads have insufficient workforce levels or skills to perform the   
   depot-level maintenance and repair workloads--                          
       (i) in the quantity necessary, or as rapidly as the Secretary       
   considers necessary, to enable the armed forces to fulfill the national 
   military strategy; or                                                   
       (ii) without a significant disruption or delay in the maintenance   
   and repair of equipment;                                                
       (D) the need for performance of workloads is too infrequent,        
   cyclical, or variable to sustain a reliable base of private sector      
   sources having the workforce levels or skills to perform the workloads; 
       (E) the market conditions or workloads are insufficient to ensure   
   that the price of private sector performance of the workloads can be    
   controlled through competition or other means;                          
       (F) private sector sources are not adequately responsive to the     
   requirements of the Department for rapid, cost-effective, and flexible  
   response to surge requirements or other contingency situations,         
   including changes in the mix or priority of previously scheduled        
   workloads and reassignment of employees to different workloads without  
   the requirement for additional contractual negotiations;                
       (G) private sector sources are less willing to assume responsibility
   for performing the workload as a result of the possibility of direct    
   military or terrorist attack; or                                        
       (H) private sector sources cannot maintain continuity of workforce  
   expertise as a result of high rates of employee turnover.               
       (2) The systems or equipment identified under subsection (a) that   
   must be maintained and repaired in Government-owned facilities, whether 
   Government operated or contractor-operated, as a result of the          
   Secretary's determination that--                                        
       (A) the work involves facilities, technologies, or equipment that   
   are unique and sufficiently valuable that the facilities, technologies, 
   or equipment must be maintained in the public sector in the national    
   interest;                                                               
       (B) the private sector sources having the capability to perform the 
   workloads have insufficient facilities, technology, or equipment to     
   perform the depot-level maintenance and repair workloads--              
       (i) in the quantity necessary, or as rapidly as the Secretary       
   considers necessary, to enable the armed forces to fulfill the national 
   military strategy; or                                                   
       (ii) without a significant disruption or delay in the maintenance   
   and repair of equipment; or                                             
       (C) the need for performance of workloads is too infrequent,        
   cyclical, or variable to sustain a reliable base of private sector      
   sources having the facilities, technology, or equipment to perform the  
   workloads.                                                              
       (3) The systems or equipment identified under subsection (a) that   
   may be maintained and repaired in private sector facilities.            
       (4) The approximate percentage of the total maintenance and repair  
   workload of the Department of Defense necessary for the systems and     
   equipment identified under subsection (a) that would be performed at    
   Department of Defense facilities, and at private sector facilities, as a
   result of the determinations made for purposes of paragraphs (1), (2),  
   and (3).                                                                
                    SEC. 366. REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR SHIP
          REPAIR AND MAINTENANCE.                                                 
    (a)  Findings.--Congress makes the following findings:                
       (1) In order to reduce the time that the crew of a naval vessel is  
   away from the homeport of the vessel, the Navy seeks to perform ship    
   repair and maintenance of the vessel at the homeport of the vessel      
   whenever it takes six months or less to accomplish the work involved.   
       (2) At the same time, the Navy seeks to distribute ship repair and  
   maintenance work among the Navy shipyards (known as to ``level load'')  
   in order to more fully utilize personnel resources.                     
       (3) During periods when a Navy shipyard is not utilized to its      
   capacity, the Navy sometimes sends workers at the shipyard, on a        
   temporary duty basis, to perform ship repairs and maintenance at a      
   homeport not having a Navy shipyard.                                    
       (4) This practice is a more efficient use of civilian employees who 
   might otherwise not be fully employed on work assigned to Navy          
   shipyards.                                                              
     (b) Comptroller General Review and Report.--(1) The Comptroller      
  General shall review the Navy's practice of using temporary duty        
  assignments of personnel to perform ship maintenance and repair work at 
  homeports not having Navy shipyards. The review shall include the       
  following:                                                              
       (A) An assessment of the rationale, conditions, and factors         
   supporting the Navy's practice.                                         
     (B) A determination of whether the practice is cost-effective.        
       (C) The factors affecting future requirements for, and the adherence
   to, the practice, together with an assessment of the factors.           
     (2) Not later than May 1, 1998, the Comptroller General shall submit 
  a report on the review to the Committee on Armed Services of the Senate 
  and the Committee on National Security of the House of Representatives. 
                    SEC. 367. SENSE OF CONGRESS REGARDING REALIGNMENT OF          
          PERFORMANCE OF GROUND COMMUNICATION-ELECTRONIC WORKLOAD.                
     It is the sense of Congress that the transfer of the ground          
  communication-electronic workload to Tobyhanna Army Depot, Pennsylvania,
  in the realignment of the performance of such function should be carried
  out in adherence to the schedule prescribed for that transfer by the    
  Defense Depot Maintenance Council on March 13, 1997, as follows:        
     (1) Transfer of 20 percent of the workload in fiscal year 1998.       
     (2) Transfer of 40 percent of the workload in fiscal year 1999.       
     (3) Transfer of 40 percent of the workload in fiscal year 2000.       
           Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities     
                    SEC. 371. REORGANIZATION OF LAWS REGARDING COMMISSARIES AND   
          EXCHANGES AND OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES.         
     (a) Description of Chapter.--(1) The heading of chapter 147 of title 
  10, United States Code, is amended to read as follows:                  
            ``CHAPTER 147--COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,  
                          AND RECREATION ACTIVITIES''.                            
     (2) The tables of chapters at the beginning of subtitle A, and at the
  beginning of part IV of subtitle A, of such title are amended by        
  striking out the item relating to chapter 147 and inserting in lieu     
  thereof the following new item:                                         
                 ``147. Commissaries and Exchanges and Other Morale, Welfare,   
        and Recreation Activities                                               
        2481''.                                                                
     (b) Transfer and Redesignation of Unrelated Provisions.--(1) Section 
  2481 of title 10, United States Code, is transferred to chapter 159 of  
  such title, inserted after section 2685, and redesignated as section    
  2686.                                                                   
     (2) Sections 2483 and 2490 of such title are transferred to the end  
  of subchapter III of chapter 169 of such title and redesignated as      
  sections 2867 and 2868, respectively.                                   
    (3) Section 2491 of such title is redesignated as section 2500.       
     (c) Clerical Amendments.--(1) The table of sections at the beginning 
  of chapter 147 of title 10, United States Code, is amended by striking  
  out the items relating to sections 2481, 2483, and 2490.                
     (2) The table of sections at the beginning of chapter 159 of such    
  title is amended by inserting after the item relating to section 2685   
  the following new item:                                                 
            ``2686. Utilities and services: sale; expansion and extension of  
      systems and facilities.''.                                              
     (3) The table of sections at the beginning of subchapter III of      
  chapter 169 of such title is amended by adding at the end the following 
  new items:                                                              
            ``2867. Sale of electricity from alternate energy and cogeneration
      production facilities.                                                  
      ``2868. Utility services: furnishing for certain buildings.''.          
     (4) The table of sections at the beginning of subchapter I of chapter
  148 of such title is amended by striking out the item relating to       
  section 2491 and inserting in lieu thereof the following new item:      
      ``2500. Definitions.''.                                                 
     (5) The tables of chapters at the beginning of subtitle A, and at the
  beginning of part IV of subtitle A, of such title are amended by        
  striking out the item relating to chapter 148 and inserting in lieu     
  thereof the following new item:                                         
                 ``148. National Defense Technology and Industrial Base, Defense
        Reinvestment, and Defense Conversion                                    
        2500''.                                                                
     (d) Conforming Amendments.--(1) Section 2534(d) of title 10, United  
  States Code, is amended by striking out ``section 2491(1)'' both places 
  it appears and inserting in lieu thereof ``section 2500(1)''.           
     (2) Section 2865(b)(2) of such title is amended by striking out      
  ``section 2483(b)(2)'' and inserting in lieu thereof ``section          
  2867(b)(2)''.                                                           
          SEC. 372. MERCHANDISE AND PRICING REQUIREMENTS FOR COMMISSARY STORES.   
     (a) Authorized Commissary Merchandise Categories.--Subsection (b) of 
  section 2486 of title 10, United States Code, is amended--              
       (1) by striking out the matter preceding paragraph (1) and inserting
   in lieu thereof the following: ``(b) Authorized Commissary Merchandise  
   Categories.--Merchandise sold in, at, or by commissary stores may       
   include items only in the following categories:''; and                  
       (2) by striking out paragraph (11) and inserting in lieu thereof the
   following new paragraph:                                                
       ``(11) Such other merchandise categories as the Secretary of Defense
   may prescribe, except that the Secretary shall submit to Congress, not  
   later than March 1 of each year, a report describing--                  
       ``(A) any addition of, or change in, a merchandise category proposed
   to be made under this paragraph during the one-year period beginning on 
   that date; and                                                          
       ``(B) those additions and changes in merchandise categories actually
   made during the preceding one-year period.''.                           
     (b) Codification of Uniform Sales Price Surcharge or                 
  Adjustment.--Subsection (c) of such section is amended--                
       (1) by inserting `` Uniform Sales Price Surcharge or Adjustment.--''
   after ``(c)'';                                                          
       (2) by striking out ``in commissary stores.'' and inserting in lieu 
   thereof ``in, at, or by commissary stores.''; and                       
       (3) by adding at the end the following new sentence: ``Effective on 
   the date of the enactment of the National Defense Authorization Act for 
   Fiscal Year 1998, the uniform percentage shall be equal to five percent 
   and may not be changed except by a law enacted after such date.''.      
     (c) Establishment of Sales Price; Congressional                      
  Notification.--Subsection (d) of such section is amended to read as     
  follows:                                                                
     ``(d) Sales Price Establishment.--(1) The Secretary of Defense shall 
  establish the sales price of each item of merchandise sold in, at, or by
  commissary stores at the level that will recoup the actual product cost 
  of the item (consistent with this section and sections 2484 and 2685 of 
  this title).                                                            
     ``(2) Any change in the pricing policies for merchandise sold in, at,
  or by commissary stores shall not take effect until the Secretary of    
  Defense submits written notice of the proposed change to Congress and a 
  period of 90 days of continuous session of Congress expires following   
  the date on which notice was received. For purposes of this paragraph,  
  the continuity of a session of Congress is broken only by an adjournment
  of the Congress sine die, and the days on which either House is not in  
  session because of an adjournment or recess of more than three days to a
  day certain are excluded in a computation of such 90-day period.''.     
     (d) Special Rules for Certain Merchandise.--Such section is further  
  amended by adding at the end the following new subsection:              
     ``(f) Special Rules for Certain Merchandise.--(1) Notwithstanding the
  general requirement that merchandise sold in, at, or by commissary      
  stores be commissary store inventory, the Secretary of Defense may      
  authorize the sale of items in the merchandise categories specified in  
  paragraph (2) as noncommissary store inventory. Subsections (c) and (d) 
  shall not apply to the pricing of such merchandise items.               
     ``(2) The merchandise categories referred to in paragraph (1) are as 
  follows:                                                                
     ``(A) Magazines and other periodicals.                                
     ``(B) Tobacco products.''.                                            
     (e) Clerical and Conforming Amendments.--Such section is further     
  amended--                                                               
       (1) in subsection (a), by inserting `` In General.--'' after        
   ``(a)''; and                                                            
     (2) in subsection (e)--                                               
       (A) by inserting `` Special Rule for Brand-Name Commercial          
   Items.--'' after ``(e)''; and                                           
       (B) by striking out ``in commissary stores'' both places it appears 
   and inserting in lieu thereof ``in, at, or by commissary stores''.      
     (f) Report on Merchandise Categories.--Not later than 30 days after  
  the date of the enactment of this Act, the Secretary of Defense shall   
  submit to Congress a report specifying the merchandise categories       
  authorized for sale sold in, at, or by commissary stores pursuant to    
  regulations prescribed under subsection (b)(11) of section 2486 of title
  10, United States Code, as in effect before such date.                  
                    SEC. 373. LIMITATION ON NONCOMPETITIVE PROCUREMENT OF         
          BRAND-NAME COMMERCIAL ITEMS FOR RESALE IN COMMISSARY STORES.            
     Section 2486(e) of title 10, United States Code, as amended by       
  section 372(e)(2), is further amended by adding at the end the following
  new sentence: ``In determining whether a brand name commercial item is  
  regularly sold outside of commissary stores, the Secretary shall        
  consider only sales of the item on a regional or national basis by      
  commercial grocery or other retail operations consisting of multiple    
  stores.''.                                                              
                    SEC. 374. TREATMENT OF REVENUES DERIVED FROM COMMISSARY STORE 
          ACTIVITIES.                                                             
     (a) Treatment of Revenues.--Section 2685 of title 10, United States  
  Code, is amended by adding at the end the following new subsection:     
     ``(e) Other Sources of Funds for Construction and                    
  Improvements.--Revenues received by the Secretary of Defense from the   
  following sources or activities of commissary store facilities shall be 
  available for the purposes set forth in subsections (b), (c), and (d):  
     ``(1) Sale of recyclable materials.                                   
     ``(2) Sale of excess and surplus property.                            
     ``(3) License fees.                                                   
     ``(4) Royalties.                                                      
       ``(5) Fees paid by sources of products in order to obtain favorable 
   display of the products for resale, known as business related management
   fees.''.                                                                
    (b)  Clerical Amendments.--Such section is further amended--          
       (1) in subsection (a), by inserting `` Adjustment or Surcharge      
   Authorized.--'' after ``(a)'';                                          
       (2) in subsection (b), by inserting `` Use for Construction and     
   Improvement of Facilities.--'' after ``(b)'';                           
       (3) in subsection (c), by inserting `` Advance Obligation.--'' after
   ``(c)''; and                                                            
       (4) in subsection (d), by inserting `` Cooperation With             
   Nonappropriated Fund Instrumentalities.--'' after ``(d)''.              
                    SEC. 375. MAINTENANCE, REPAIR, AND RENOVATION OF ARMED FORCES 
          RECREATION CENTER, EUROPE.                                              
     Section 2247(b) of title 10, United States Code, is amended by       
  striking out ``real property maintenance, and'' and inserting in lieu   
  thereof ``the maintenance, repair, or renovation of real property, and  
  the''.                                                                  
                    SEC. 376. PLAN FOR USE OF PUBLIC AND PRIVATE PARTNERSHIPS TO  
          BENEFIT MORALE, WELFARE, AND RECREATION ACTIVITIES.                     
     (a) Plan Required.--The Secretary of Defense shall prepare a plan    
  containing a proposal regarding the advisability and feasibility of     
  permitting nonappropriated fund instrumentalities of the Department of  
  Defense to enter into leases, licensing agreements, concession          
  agreements, and other contracts with private persons and State or local 
  governments to facilitate the provision of facilities, goods, or        
  services to authorized patrons of nonappropriated fund instrumentalities
  and to generate revenues for the Department of Defense to be used solely
  for the benefit of nonappropriated fund instrumentalities.              
     (b) Recommendations for Scope of Plan.--In developing the proposal   
  under subsection (a), the Secretary shall include recommendations       
  regarding the following:                                                
       (1) The proposed criteria to be used to select goods or services    
   suitable for provision to patrons of nonappropriated fund               
   instrumentalities through a lease or other contractual arrangement.     
       (2) The proposed mechanism to be used to assess the likely impact of
   such a lease or other contractual arrangement on private businesses in  
   the locality that provide the same goods or services proposed to be     
   provided under such a lease or other contractual arrangement.           
       (3) The feasibility and desirability of authorizing persons who are 
   not authorized patrons of nonappropriated fund instrumentalities to     
   receive goods and services provided through such a lease or other       
   contractual arrangement.                                                
       (4) The proposed mechanism to be used to ensure that such a lease or
   contract will not be inconsistent with and will not adversely affect the
   mission of the Department of Defense or the nonappropriated fund        
   instrumentality involved.                                               
     (c) Submission of Plan.--Not later than March 1, 1998, the Secretary 
  shall submit to Congress the plan required under subsection (a).        
           Subtitle F--Other Matters                                               
                    SEC. 381. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT       
          BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF     
          DEFENSE CIVILIAN EMPLOYEES.                                             
     (a) Continuation of Department of Defense Program for Fiscal Year    
  1998.--Of the amount authorized to be appropriated pursuant to section  
  301(5) for operation and maintenance for Defense-wide activities--      
       (1) $30,000,000 shall be available for providing educational        
   agencies assistance (as defined in subsection (d)(1)) to local          
   educational agencies; and                                               
       (2) $5,000,000 shall be available for making educational agencies   
   payments (as defined in subsection (d)(2)) to local educational         
   agencies.                                                               
     (b) Notification.--Not later than June 30, 1998, the Secretary of    
  Defense shall--                                                         
       (1) notify each local educational agency that is eligible for       
   educational agencies assistance for fiscal year 1998 of that agency's   
   eligibility for such assistance and the amount of such assistance for   
   which that agency is eligible; and                                      
       (2) notify each local educational agency that is eligible for an    
   educational agencies payment for fiscal year 1998 of that agency's      
   eligibility for such payment and the amount of the payment for which    
   that agency is eligible.                                                
     (c) Disbursement of Funds.--The Secretary of Defense shall disburse  
  funds made available under paragraphs (1)                               
                    and (2) of subsection (a) not later than 30 days after the    
          date on which notification to the eligible local educational agencies is
          provided pursuant to subsection (b).                                    
    (d)  Definitions.--In this section:                                   
       (1) The term ``educational agencies assistance'' means assistance   
   authorized under section 386(b) of the National Defense Authorization   
   Act for Fiscal Year 1993 (Public Law 102 484; 20 U.S.C. 7703 note).     
       (2) The term ``educational agencies payments'' means payments       
   authorized under section 386(d) of the National Defense Authorization   
   Act for Fiscal Year 1993 (Public Law 102 484; 20 U.S.C. 7703 note).     
       (3) The term ``local educational agency'' has the meaning given that
   term in section 8013(9) of the Elementary and Secondary Education Act of
   1965 (20 U.S.C. 7713(9)).                                               
     (e) Technical Correction Relating to Original Assistance             
  Authority.--Section 386(c)(1) of the National Defense Authorization Act 
  for Fiscal Year 1993 (Public Law 102 484; 20 U.S.C. 7703 note) is       
  amended--                                                               
       (1) by striking out ``section 8003(a)'' and inserting in lieu       
   thereof ``section 8003(a)(1)''; and                                     
       (2) by striking out ``(20 U.S.C. 7703(a))'' and inserting in lieu   
   thereof ``(20 U.S.C. 7703(a)(1))''.                                     
                    SEC. 382. CENTER FOR EXCELLENCE IN DISASTER MANAGEMENT AND    
          HUMANITARIAN ASSISTANCE.                                                
     (a) Establishment and Operation of Center.--(1) Chapter 7 of title   
  10, United States Code, is amended by adding at the end the following   
  new section:                                                            
                    ``182. Center for Excellence in Disaster Management and       
          Humanitarian Assistance                                                 
     ``(a) Establishment.--The Secretary of Defense may operate a Center  
  for Excellence in Disaster Management and Humanitarian Assistance (in   
  this section referred to as the `Center').                              
     ``(b) Missions.--(1) The Center shall be used to provide and         
  facilitate education, training, and research in civil-military          
  operations, particularly operations that require international disaster 
  management and humanitarian assistance and operations that require      
  coordination between the Department of Defense and other agencies.      
     ``(2) The Center shall be used to make available high-quality        
  disaster management and humanitarian assistance in response to          
  disasters.                                                              
     ``(3) The Center shall be used to provide and facilitate education,  
  training, interagency coordination, and research on the following       
  additional matters:                                                     
       ``(A) Management of the consequences of nuclear, biological, and    
   chemical events.                                                        
     ``(B) Management of the consequences of terrorism.                    
       ``(C) Appropriate roles for the reserve components in the management
   of such consequences and in disaster management and humanitarian        
   assistance in response to natural disasters.                            
       ``(D) Meeting requirements for information in connection with       
   regional and global disasters, including the use of advanced            
   communications technology as a virtual library.                         
       ``(E) Tropical medicine, particularly in relation to the medical    
   readiness requirements of the Department of Defense.                    
     ``(4) The Center shall develop a repository of disaster risk         
  indicators for the Asia-Pacific region.                                 
     ``(5) The Center shall perform such other missions as the Secretary  
  of Defense may specify.                                                 
     ``(c) Joint Operation With Educational Institution Authorized.--The  
  Secretary of Defense may enter into an agreement with appropriate       
  officials of an institution of higher education to provide for joint    
  operation of the Center. Any such agreement shall provide for the       
  institution to furnish necessary administrative services for the Center,
  including administration and allocation of funds.                       
     ``(d) Acceptance of Donations.--(1) Except as provided in paragraph  
  (2), the Secretary of Defense may accept, on behalf of the Center,      
  donations to be used to defray the                                      
                    costs of the Center or to enhance the operation of the Center.
          Such donations may be accepted from any agency of the Federal           
          Government, any State or local government, any foreign government, any  
          foundation or other charitable organization (including any that is      
          organized or operates under the laws of a foreign country), or any other
          private source in the United States or a foreign country.               
     ``(2) The Secretary may not accept a donation under paragraph (1) if 
  the acceptance of the donation would compromise or appear to            
  compromise--                                                            
       ``(A) the ability of the Department of Defense, any employee of the 
   Department, or members of the armed forces, to carry out any            
   responsibility or duty of the Department in a fair and objective manner;
   or                                                                      
       ``(B) the integrity of any program of the Department of Defense or  
   of any person involved in such a program.                               
     ``(3) The Secretary shall prescribe written guidance setting forth   
  the criteria to be used in determining whether or not the acceptance of 
  a foreign donation would have a result described in paragraph (2).      
     ``(4) Funds accepted by the Secretary under paragraph (1) as a       
  donation on behalf of the Center shall be credited to appropriations    
  available to the Department of Defense for the Center. Funds so credited
  shall be merged with the appropriations to which credited and shall be  
  available for the Center for the same purposes and the same period as   
  the appropriations with which merged.''.                                
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
            ``182. Center for Excellence in Disaster Management and           
      Humanitarian Assistance.''.                                             
     (b) Funding for Fiscal Year 1998.--Of the funds authorized to be     
  appropriated pursuant to section 301(5) for operation and maintenance   
  for Defense-wide activities, $5,000,000 shall be available for the      
  operation of the Center for Excellence in Disaster Management and       
  Humanitarian Assistance established under section 182 of title 10,      
  United States Code, as added by subsection (a).                         
                    SEC. 383. APPLICABILITY OF FEDERAL PRINTING REQUIREMENTS TO   
          DEFENSE AUTOMATED PRINTING SERVICE.                                     
     (a) In General.--Subchapter I of chapter 8 of title 10, United States
  Code, is amended by adding at the end the following new section:        
                    ``195. Defense Automated Printing Service: applicability of   
          Federal printing requirements                                           
     ``The Defense Automated Printing Service shall comply fully with the 
  requirements of section 501 of title 44 relating to the production and  
  procurement of printing, binding, and blank-book work.''.               
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such subchapter is amended by adding at the end the following new item: 
            ``195. Defense Automated Printing Service: applicability of       
      Federal printing requirements.''.                                       
                    SEC. 384. STUDY AND NOTIFICATION REQUIREMENTS FOR CONVERSION  
          OF COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR PERFORMANCE.  
     (a) Additional Notification Requirement.--Subsection (a)(1) of       
  section 2461 of title 10, United States Code, is amended by inserting   
  before the semicolon the following: ``and the anticipated length and    
  cost of the study''.                                                    
     (b) Notification of Conversion Decision.--Subsection (b) of such     
  section amended by adding at the end the following new sentence: ``The  
  notification shall include the timetable for completing conversion of   
  the function to contractor performance.''.                              
     (c) Waiver for Small Functions.--Subsection (d) of such section is   
  amended by striking out ``45 or fewer'' and inserting in lieu thereof   
  ``20 or fewer''.                                                        
                    SEC. 385. COLLECTION AND RETENTION OF COST INFORMATION DATA ON
          CONVERTED SERVICES AND FUNCTIONS.                                       
     (a) Collection and Retention Required.--Section 2463 of title 10,    
  United States Code, is amended to read as follows:                      
                    ``2463. Collection and retention of cost information data on  
          converted services and functions                                        
     ``(a) Requirements In Connection With Conversion to Contractor       
  Performance.--With respect to each contract converting the performance  
  of a service or function of the Department of Defense to contractor     
  performance (and any extension of such a contract), the Secretary of    
  Defense shall collect, during the term of the contract or extension, but
  not to exceed five years, cost information data regarding performance of
  the service or function by private contractor employees.                
     ``(b) Requirements In Connection With Return to Employee             
  Performance.--Whenever the performance of a commercial or industrial    
  type activity of the Department of Defense that is being performed by 50
  or more employees of a private contractor is changed to performance by  
  civilian employees of the Department of Defense, the Secretary of       
  Defense shall collect, for a five-year period, cost information data    
  comparing--                                                             
       ``(1) the estimated costs of continued performance of such activity 
   by private contractor employees; and                                    
       ``(2) the costs of performance of such activity by civilian         
   employees of the Department of Defense.                                 
     ``(c) Retention of Information.--With regard to the conversion to or 
  from contractor performance of a particular service or function of the  
  Department of Defense, the Secretary of Defense shall provide for the   
  retention of information collected under this section for at least a    
  10-year period beginning at the end of the final year in which the      
  information is collected.''.                                            
     (b) Clerical Amendment.--The item relating to such section in the    
  table of sections at the beginning of chapter 146 of title 10, United   
  States Code, is amended to read as follows:                             
            ``2463. Collection and retention of cost information data on      
      converted services and functions.''.                                    
                    SEC. 386. FINANCIAL ASSISTANCE TO SUPPORT ADDITIONAL DUTIES   
          ASSIGNED TO ARMY NATIONAL GUARD.                                        
     (a) Authority.--Chapter 1 of title 32, United States Code, is amended
  by adding at the end the following new section:                         
                    ``113. Federal financial assistance for support of additional 
          duties assigned to the Army National Guard                              
     ``(a) Authority.--The Secretary of the Army may provide financial    
  assistance to a State to support activities carried out by the Army     
  National Guard of the State in the performance of duties that the       
  Secretary has assigned, with the consent of the Chief of the National   
  Guard Bureau, to the Army National Guard of the State. The Secretary    
  shall determine the amount of the assistance that is appropriate for the
  purpose.                                                                
     ``(b) Covered Activities.--Activities supported under this section   
  may include only those activities that are carried out by the Army      
  National Guard in the performance of responsibilities of the Secretary  
  of the Army under paragraphs (6), (10), and (11) of section 3013(b) of  
  title 10.                                                               
     ``(c) Disbursement Through National Guard Bureau.--The Secretary of  
  the Army shall disburse any contribution under this section through the 
  Chief of the National Guard Bureau.                                     
     ``(d) Availability of Funds.--Funds appropriated for the Army for a  
  fiscal year are available for providing financial assistance under this 
  section in support of activities carried out by the Army National Guard 
  during that fiscal year.''.                                             
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
            ``113. Federal financial assistance for support of additional     
      duties assigned to the Army National Guard.''.                          
          SEC. 387. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION SERVICES. 
     (a) Extension of Requirement to Use Private-Sector                   
  Sources.--Subsection (a) of section 351 of the National Defense         
  Authorization Act for Fiscal Year 1996 (Public Law 104 106; 110 Stat.   
  266) is amended--                                                       
       (1) by striking out ``and 1997'' and inserting in lieu thereof      
   ``through 1998''; and                                                   
       (2) by striking out ``Defense Printing Service'' and inserting in   
   lieu thereof ``Defense Automated Printing Service''.                    
     (b) Surcharge for Services.--Such section is further amended by      
  adding at the end the following new subsection:                         
     ``(d) Conditions on Imposition of Surcharge.--(1) Any surcharge      
  imposed by the Defense Automated Printing Service on printing and       
  duplication services for the Department of Defense shall be based on    
  direct services provided by the Defense Automated Printing Service and  
  reflect the costs incurred by the Defense Automated Printing Service, as
  described in its annual budget.                                         
     ``(2) The Defense Automated Printing Service may not impose a        
  surcharge on any printing and duplication service for the Department of 
  Defense that is procured from a source outside of the Department.''.    
     (c) Authority To Procure Services From Government Printing           
  Office.--Consistent with section 501 of title 44, United States Code,   
  the Secretary of a military department or head of a Defense Agency may  
  contract directly with the Government Printing Office for printing and  
  duplication services otherwise available through the Defense Automated  
  Printing Service.                                                       
                    SEC. 388. CONTINUATION AND EXPANSION OF DEMONSTRATION PROGRAM 
          TO IDENTIFY OVERPAYMENTS MADE TO VENDORS.                               
     (a) Scope of Program.--Section 354 of the National Defense           
  Authorization Act for Fiscal Year 1996 (Public Law 104 106; 110 Stat.   
  268; 10 U.S.C. 2461 note) is amended--                                  
     (1) in subsection (a), by striking out the second sentence; and       
       (2) in subsection (b)(1), by striking out ``of the Defense Logistics
   Agency that relate to (at least) fiscal years 1993, 1994, and 1995'' and
   inserting in lieu thereof ``relating to fiscal years after fiscal year  
   1993 of the working-capital funds and industrial, commercial, and       
   support type activities managed through the Defense Business Operations 
   Fund, except the Defense Logistics Agency to the extent such records    
   have already been audited''.                                            
     (b) Collection Method; Contractor Payments.--Such section is further 
  amended by striking out subsections (d) and (e) and inserting in lieu   
  thereof the following new subsections:                                  
     ``(d) Collection Method.--(1) In the case of an overpayment to a     
  vendor identified under the demonstration program, the Secretary shall  
  consider the use of the procedures specified in section 32.611 of the   
  Federal Acquisition Regulation, regarding a setoff against existing     
  invoices for payment to the vendor, as the first method by which the    
  Department seeks to recover the amount of the overpayment (and any      
  applicable interest and penalties) from the vendor.                     
     ``(2) The Secretary of Defense shall be solely responsible for       
  notifying a vendor of an overpayment made to the vendor and identified  
  under the demonstration program and for recovering the amount of the    
  overpayment (and any applicable interest and penalties) from the vendor.
     ``(e) Fees for Contractor.--The Secretary shall pay to the contractor
  under the contract entered into under the demonstration program an      
  amount not to exceed 25 percent of the total amount recovered by the    
  Department (through the collection of overpayments and the use of       
  setoffs) solely on the basis of information obtained as a result of the 
  audits performed by the contractor under the program. When an           
  overpayment is recovered through the use of a setoff, amounts for the   
  required payment to the contractor shall be derived from funds available
  to the working-capital fund or industrial, commercial, or support type  
  activity for which the overpayment is recovered.''.                     
     (c) GAO Review.--Not later than December 31, 1998, the Comptroller   
  General shall submit to Congress a report containing the results of a   
  review by the Comptroller General of the demonstration program conducted
  under section 354 of the National Defense Authorization Act for Fiscal  
  Year 1996 (Public Law 104 106; 10 U.S.C. 2461 note). In the review, the 
  Comptroller General shall--                                             
       (1) assess the success of the methods used in the demonstration     
   program to identify overpayments made to vendors;                       
       (2) consider the types of overpayments identified and the           
   feasibility of avoiding such overpayments through contract adjustments; 
       (3) determine the total amount of overpayments recovered under the  
   demonstration program; and                                              
       (4) develop recommendations for improving the process by which      
   overpayments are recovered by the Department of Defense.                
                    SEC. 389. DEVELOPMENT OF STANDARD FORMS REGARDING PERFORMANCE 
          WORK STATEMENT AND REQUEST FOR PROPOSAL FOR CONVERSION OF CERTAIN       
          OPERATIONAL FUNCTIONS OF MILITARY INSTALLATIONS.                        
     (a) Standardization of Requirements.--The Secretary of Defense is    
  authorized and encouraged to develop standard forms (to be known as a   
  ``standard performance work statement'' and a ``standard request for    
  proposal'') for use in the consideration for conversion to contractor   
  performance of commercial services and functions at military            
  installations. A separate standard form shall be developed for each     
  service and function.                                                   
     (b) Relationship to OMB Requirements.--A standard performance work   
  statement or a standard request for proposal developed under subsection 
  (a) must fulfill the basic requirements of the performance work         
  statement or request for proposal otherwise required under the          
  procedures and requirements of Office of Management and Budget Circular 
  A 76 (or any successor administrative regulation or policy) in effect at
  the time the standard form will be used.                                
     (c) Priority Development of Certain Forms.--In developing standard   
  performance work statements and standard requests for proposal, the     
  Secretary shall give first priority to those commercial services and    
  functions that the Secretary determines have been successfully converted
  to contractor performance on a repeated basis.                          
     (d) Incentive for Use.--Beginning not later than October 1, 1998, if 
  a standard performance work statement or a standard request for proposal
  is developed under subsection (a) for a particular service and function,
  the standard form may be used in lieu of the performance work statement 
  or request for proposal otherwise required under the procedures and     
  requirements of Office of Management and Budget Circular A 76 in        
  connection with the consideration for conversion to contractor          
  performance of that service or function at a military installation.     
     (e) Exclusion of Multi-Function Conversion.--If a commercial service 
  or function for which a standard form is developed under subsection (a) 
  is combined with another service or function (for which such a form has 
  not yet been developed) for purposes of considering the services and    
  functions at the military installation for conversion to contractor     
  performance, a standard performance work statement or a standard request
  for proposal developed under subsection (a) may not be used in the      
  conversion process in lieu of the procedures and requirements of Office 
  of Management and Budget Circular A 76.                                 
     (f) Effect on Other Laws.--Nothing in this section shall be construed
  to supersede any other requirements or limitations, specifically        
  contained in chapter 146 of title 10, United States Code, on the        
  conversion to contractor performance of activities performed by civilian
  employees of the Department of Defense.                                 
     (g) GAO Report.--Not later than June 1, 1999, the Secretary of       
  Defense shall submit to Congress a report reviewing the implementation  
  of this section.                                                        
     (h) Military Installation Defined.--For purposes of this section, the
  term ``military installation'' means a base, camp, post, station, yard, 
  center, homeport facility for any ship, or other activity under the     
  jurisdiction of the Department of Defense, including any leased         
  facility.                                                               
          SEC. 390. BASE OPERATIONS SUPPORT FOR MILITARY INSTALLATIONS ON GUAM.   
     (a) Contractor Use of Nonimmigrant Aliens.--Each contract for base   
  operations support to be performed on Guam shall contain a condition    
  that work under the contract may not be performed by any alien who is   
  issued a visa or otherwise provided nonimmigrant status under section   
  101(a)(15)(H)(ii) of the Immigration and Nationality Act (8 U.S.C.      
  1101(a)(15)(H)(ii)).                                                    
     (b) Application of Section.--This section shall apply to contracts   
  entered into, amended, or otherwise modified on or after the date of the
  enactment of this Act.                                                  
          SEC. 391. WARRANTY CLAIMS RECOVERY PILOT PROGRAM.                       
     (a) Pilot Program Required.--The Secretary of Defense may carry out a
  pilot program to use commercial sources of services to improve the      
  collection of Department of Defense claims under aircraft engine        
  warranties.                                                             
     (b) Contracts.--Exercising the authority provided in section 3718 of 
  title 31, United States Code, the Secretary of Defense may enter into   
  contracts under the pilot program to provide for the following services:
     (1) Collection services.                                              
       (2) Determination of amounts owed the Department of Defense for     
   repair of aircraft engines for conditions covered by warranties.        
       (3) Identification and location of the sources of information that  
   are relevant to collection of Department of Defense claims under        
   aircraft engine warranties, including electronic data bases and document
   filing systems maintained by the Department of Defense or by the        
   manufacturers and suppliers of the aircraft engines.                    
       (4) Services to define the elements necessary for an effective      
   training program to enhance and improve the performance of Department of
   Defense personnel in collecting and organizing documents and other      
   information that are necessary for efficient filing, processing, and    
   collection of Department of Defense claims under aircraft engine        
   warranties.                                                             
     (c) Contractor Fee.--Under the authority provided in section 3718(d) 
  of title 31, United States Code, a contract entered into under the pilot
  program shall provide for the contractor to be paid, out of the amount  
  recovered by the contractor under the program, such percentages of the  
  amount recovered as the Secretary of Defense determines appropriate.    
     (d) Retention of Recovered Funds.--Subject to any obligation to pay a
  fee under subsection (c), any amount collected for the Department of    
  Defense under the pilot program for a repair of an aircraft engine for a
  condition covered by a warranty shall be credited to an appropriation   
  available for repair of aircraft engines for the fiscal year in which   
  collected and shall be available for the same purposes and same period  
  as the appropriation to which credited.                                 
     (e) Regulations.--The Secretary of Defense shall prescribe           
  regulations to carry out this section.                                  
     (f) Termination of Authority.--The pilot program shall terminate on  
  September 30, 1999, and contracts entered into under this section shall 
  terminate not later than that date.                                     
     (g) Reporting Requirements.--(1) Not later than January 1, 2000, the 
  Secretary of Defense shall submit to Congress a report on the pilot     
  program. The report shall include the following:                        
     (A) The number of contracts entered into under the program.           
       (B) The extent to which the services provided under the contracts   
   resulted in financial benefits for the Federal Government.              
       (C) Any additional comments and recommendations that the Secretary  
   considers appropriate regarding use of commercial sources of services   
   for collection of Department of Defense claims under aircraft engine    
   warranties.                                                             
     (2) Not later than March 1, 2000, the Comptroller General shall      
  submit to Congress a report containing the results of a review by the   
  Comptroller General of the pilot program. In the review, the Comptroller
  General shall--                                                         
       (A) assess the success of the methods used in the demonstration     
   program to identify and recover Department of Defense claims under      
   aircraft engine warranties;                                             
       (B) determine the total amount recovered by the Department of       
   Defense under the pilot program;                                        
       (C) evaluate the report prepared by the Secretary under paragraph   
   (1); and                                                                
       (D) develop recommendations for improving the process by which      
   warranty claims are recovered by the Department of Defense.             
                    SEC. 392. PROGRAM TO INVESTIGATE FRAUD, WASTE, AND ABUSE      
          WITHIN DEPARTMENT OF DEFENSE.                                           
     The Secretary of Defense shall maintain a specific coordinated       
  program for the investigation of evidence of fraud, waste, and abuse    
  within the Department of Defense, particularly fraud, waste, and abuse  
  regarding finance and accounting matters.                               
          SEC. 393. MULTITECHNOLOGY AUTOMATED READER CARD DEMONSTRATION PROGRAM.  
     (a) Program Required.--The Secretary of the Navy shall carry out a   
  program to demonstrate expanded use of multitechnology automated reader 
  cards throughout the Navy and the Marine Corps. The demonstration       
  program shall include demonstration of the use of the so-called         
  ``smartship'' technology of the ship-to-shore work load/off load program
  of the Navy.                                                            
     (b) Period of Program.--The Secretary shall carry out the            
  demonstration program for two years beginning not later than January 1, 
  1998.                                                                   
     (c) Report.--Not later than 90 days after termination of the         
  demonstration program, the Secretary shall submit to Congress a report  
  on the results of the program.                                          
     (d) Funding.--Of the amount authorized to be appropriated pursuant to
  section 301(2) for operation and maintenance for the Navy, $36,000,000  
  shall be available for the demonstration program under this section, of 
  which $6,300,000 shall be available for demonstration of the use of the 
  so-called ``smartship'' technology of the ship-to-shore work load/off   
  load program of the Navy.                                               
          SEC. 394. REDUCTION IN OVERHEAD COSTS OF INVENTORY CONTROL POINTS.      
     (a) Report and Plan Required.--Not later than March 1, 1998, the     
  Secretary of Defense shall submit to Congress a report containing a plan
  to reduce overhead costs of the supply management activities of the     
  Defense Logistics Agency and the military departments (known as         
  Inventory Control Points) so that the overhead costs for each fiscal    
  year after fiscal year 2000 do not exceed eight percent of net sales at 
  standard price by Inventory Control Points during that year.            
     (b) Additional Report Requirement.--In addition to the plan, the     
  report shall include the following:                                     
       (1) An identification of inherently governmental, core and noncore  
   functions in Inventory Control Points and Distribution Depots.          
       (2) A description of efforts, other than prime vendor and virtual   
   prime vendor, underway or proposed to improve the efficiency,           
   incentives, and accountability in Department of Defense supply,         
   inventory and warehousing services and rates.                           
       (3) An identification and description of the benchmarks established 
   in the warehousing, distribution, and supply functions of the Department
   and the relationship of the benchmarks to performance measurement       
   methods used in the private sector.                                     
       (4) A description of the outcome-oriented performance measures that 
   are currently being used to evaluate Inventory Control Points and       
   Distribution Depots.                                                    
       (5) A specification of any legislative, regulatory, or operational  
   impediments to achieving the requirement in subsection (a) and          
   implementing best business practices in the warehousing, distribution,  
   and supply functions of the Department.                                 
    (c)  Definitions.--For purposes of this section:                      
       (1) The term ``overhead costs'' means the total expenses of the     
   Inventory Control Points, excluding--                                   
     (A) annual materiel costs; and                                        
       (B) military and civilian personnel related costs, defined as       
   personnel compensation and benefits under the March 1996 Department of  
   Defense Financial Management Regulations, Volume 2A, Chapter 1, Budget  
   Account Title File (Object Classification Name/Code), object            
   classifications 200, 211, 220, 221, 222, and 301.                       
       (2) The term ``net sales at standard price'' has the meaning given  
   that term in the March 1996 Department of Defense Financial Management  
   Regulations, Volume 2B, Chapter 9, and displayed in ``Exhibit Fund--14  
   Revenue and Expenses'' for the supply management business areas.        
          SEC. 395. INVENTORY MANAGEMENT.                                         
     (a) Development and Submission of Schedule.--Not later than 180 days 
  after the date of the enactment of this Act, the Director of the Defense
  Logistics Agency shall develop and submit to Congress a schedule for    
  implementing within the agency, for the supplies and equipment described
  in subsection (b), inventory practices identified by the Director as    
  being the best commercial inventory practices for the acquisition and   
  distribution of such supplies and equipment consistent with military    
  requirements. The schedule shall provide for the implementation of such 
  practices to be completed not later than three years after date of the  
  enactment of this Act.                                                  
     (b) Covered Supplies and Equipment.--Subsection (a) shall apply to   
  the following types of supplies and equipment for the Department of     
  Defense:                                                                
     (1) Medical and pharmaceutical.                                       
     (2) Subsistence.                                                      
     (3) Clothing and textiles.                                            
     (4) Commercially available electronics.                               
     (5) Construction.                                                     
     (6) Industrial.                                                       
     (7) Automotive.                                                       
     (8) Fuel.                                                             
     (9) Facilities maintenance.                                           
     (c) Definition.--For purposes of this section, the term ``best       
  commercial inventory practice'' includes a so-called prime vendor       
  arrangement and any other practice that the Director determines will    
  enable the Defense Logistics Agency to reduce inventory levels and      
  holding costs while improving the responsiveness of the supply system to
  user needs.                                                             
     (d) Report on Expansion of Covered Supplies and Equipment.--Not later
  than March 1, 1998, the Comptroller General shall submit to Congress a  
  report evaluating the feasibility of expanding the list of covered      
  supplies and equipment under subsection (b) to include repairable items.
           TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS                             
                                  SUBTITLE A--ACTIVE FORCES                       
      Sec. 401. End strengths for active forces.                              
            Sec. 402. Permanent end strength levels to support two major      
      regional contingencies.                                                 
                                 SUBTITLE B--RESERVE FORCES                       
      Sec. 411. End strengths for Selected Reserve.                           
            Sec. 412. End strengths for Reserves on active duty in support of 
      the Reserves.                                                           
      Sec. 413. End strengths for military technicians (dual status).         
                         SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS              
      Sec. 421. Authorization of appropriations for military personnel.       
           Subtitle A--Active Forces                                               
          SEC. 401. END STRENGTHS FOR ACTIVE FORCES.                              
     The Armed Forces are authorized strengths for active duty personnel  
  as of September 30, 1998, as follows:                                   
     (1) The Army, 495,000.                                                
     (2) The Navy, 390,802.                                                
     (3) The Marine Corps, 174,000.                                        
     (4) The Air Force, 371,577.                                           
                    SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT TWO MAJOR  
          REGIONAL CONTINGENCIES.                                                 
     (a) Change in Permanent End Strengths.--Subsection (b) of section 691
  of title 10, United States Code, is amended--                           
       (1) in paragraph (2), by striking out ``395,000'' and inserting in  
   lieu thereof ``390,802''; and                                           
       (2) in paragraph (4), by striking out ``381,000'' and inserting in  
   lieu thereof ``371,577''.                                               
     (b) Increased Flexibility for the Army.--Subsection (e) of such      
  section is amended by inserting ``or, in the case of the Army, by not   
  more than 1.5 percent'' before the period at the end.                   
           Subtitle B--Reserve Forces                                              
          SEC. 411. END STRENGTHS FOR SELECTED RESERVE.                           
     (a) In General.--The Armed Forces are authorized strengths for       
  Selected Reserve personnel of the reserve components as of September 30,
  1998, as follows:                                                       
     (1) The Army National Guard of the United States, 361,516.            
     (2) The Army Reserve, 208,000.                                        
     (3) The Naval Reserve, 94,294.                                        
     (4) The Marine Corps Reserve, 42,000.                                 
     (5) The Air National Guard of the United States, 108,002.             
     (6) The Air Force Reserve, 73,447.                                    
     (7) The Coast Guard Reserve, 8,000.                                   
     (b) Adjustments.--The end strengths prescribed by subsection (a) for 
  the Selected Reserve of any reserve component shall be proportionately  
  reduced by--                                                            
       (1) the total authorized strength of units organized to serve as    
   units of the Selected Reserve of such component which are on active duty
   (other than for training) at the end of the fiscal year, and            
       (2) the total number of individual members not in units organized to
   serve as units of the Selected Reserve of such component who are on     
   active duty (other than for training or for unsatisfactory participation
   in training) without their consent at the end of the fiscal year.       
    Whenever such units or such individual members are released from      
  active duty during any fiscal year, the end strength prescribed for such
  fiscal year for the Selected Reserve of such reserve component shall be 
  proportionately increased by the total authorized strengths of such     
  units and by the total number of such individual members.               
                    SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT
          OF THE RESERVES.                                                        
     Within the end strengths prescribed in section 411(a), the reserve   
  components of the Armed Forces are authorized, as of September 30, 1998,
  the following number of Reserves to be                                  
                    serving on full-time active duty or full-time duty, in the    
          case of members of the National Guard, for the purpose of organizing,   
          administering, recruiting, instructing, or training the reserve         
          components:                                                             
     (1) The Army National Guard of the United States, 22,310.             
     (2) The Army Reserve, 11,500.                                         
     (3) The Naval Reserve, 16,136.                                        
     (4) The Marine Corps Reserve, 2,559.                                  
     (5) The Air National Guard of the United States, 10,671.              
     (6) The Air Force Reserve, 867.                                       
          SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).         
     (a) Authorization for Fiscal Year 1998.--The minimum number of       
  military technicians (dual status) as of the last day of fiscal year    
  1998 for the reserve components of the Army and the Air Force           
  (notwithstanding section 129 of title 10, United States Code) shall be  
  the following:                                                          
     (1) For the Army Reserve, 5,503.                                      
     (2) For the Army National Guard of the United States, 23,125.         
     (3) For the Air Force Reserve, 9,802.                                 
     (4) For the Air National Guard of the United States, 22,853.          
     (b) Requests for Future Fiscal Years.--Section 115(g) of title 10,   
  United States Code, is amended by adding at the end the following new   
  sentence: ``In each budget submitted by the President to Congress under 
  section 1105 of title 31, the end strength requested for military       
  technicians (dual status) for each reserve component of the Army and Air
  Force shall be specifically set forth.''.                               
           Subtitle C--Authorization of Appropriations                             
          SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.       
     There is hereby authorized to be appropriated to the Department of   
  Defense for military personnel for fiscal year 1998 a total of          
  $69,470,505,000. The authorization in the preceding sentence supersedes 
  any other authorization of appropriations (definite or indefinite) for  
  such purpose for fiscal year 1998.                                      
           TITLE V--MILITARY PERSONNEL POLICY                                      
                            SUBTITLE A--OFFICER PERSONNEL POLICY                  
            Sec. 501. Limitation on number of general and flag officers who   
      may serve in positions outside their own service.                       
            Sec. 502. Exclusion of certain retired officers from limitation on
      period of recall to active duty.                                        
            Sec. 503. Clarification of officers eligible for consideration by 
      promotion boards.                                                       
            Sec. 504. Authority to defer mandatory retirement for age of      
      officers serving as chaplains.                                          
            Sec. 505. Increase in number of officers allowed to be frocked to 
      grades of colonel and Navy captain.                                     
            Sec. 506. Increased years of commissioned service for mandatory   
      retirement of regular generals and admirals in grades above major       
      general and rear admiral.                                               
            Sec. 507. Uniform policy for requirement of exemplary conduct by  
      commanding officers and others in authority.                            
            Sec. 508. Report on the command selection process for District    
      Engineers of the Army Corps of Engineers.                               
                            SUBTITLE B--RESERVE COMPONENT MATTERS                 
      Sec. 511. Individual Ready Reserve activation authority.                
      Sec. 512. Termination of Mobilization Income Insurance Program.         
            Sec. 513. Correction of inequities in medical and dental care and 
      death and disability benefits for reserve members who incur or aggravate
      an illness in the line of duty.                                         
            Sec. 514. Authority to permit non-unit assigned officers to be    
      considered by vacancy promotion board to general officer grades.        
            Sec. 515. Prohibition on use of Air Force Reserve AGR personnel   
      for Air Force base security functions.                                  
            Sec. 516. Involuntary separation of reserve officers in an        
      inactive status.                                                        
            Sec. 517. Federal status of service by National Guard members as  
      honor guards at funerals of veterans.                                   
                              SUBTITLE C--MILITARY TECHNICIANS                    
            Sec. 521. Authority to retain on the reserve active-status list   
      until age 60 military technicians in the grade of brigadier general.    
      Sec. 522. Military technicians (dual status).                           
      Sec. 523. Non-dual status military technicians.                         
            Sec. 524. Report on feasibility and desirability of conversion of 
      AGR personnel to military technicians (dual status).                    
             SUBTITLE D--MEASURES TO IMPROVE RECRUIT QUALITY AND REDUCE RECRUIT   
                                    ATTRITION                                     
      Sec. 531. Reform of military recruiting systems.                        
            Sec. 532. Improvements in medical prescreening of applicants for  
      military service.                                                       
      Sec. 533. Improvements in physical fitness of recruits.                 
                         SUBTITLE E--MILITARY EDUCATION AND TRAINING              
                             PART I--OFFICER EDUCATION PROGRAMS                   
            Sec. 541. Requirement for candidates for admission to United      
      States Naval Academy to take oath of allegiance.                        
      Sec. 542. Service academy foreign exchange program.                     
            Sec. 543. Reimbursement of expenses incurred for instruction at   
      service academies of persons from foreign countries.                    
      Sec. 544. Continuation of support to senior military colleges.          
            Sec. 545. Report on making United States nationals eligible for   
      participation in Senior Reserve Officers' Training Corps.               
            Sec. 546. Coordination of establishment and maintenance of Junior 
      Reserve Officers' Training Corps units to maximize enrollment and       
      enhance efficiency.                                                     
                              PART II--OTHER EDUCATION MATTERS                    
      Sec. 551. United States Naval Postgraduate School.                      
      Sec. 552. Community College of the Air Force.                           
            Sec. 553. Preservation of entitlement to educational assistance of
      members of the Selected Reserve serving on active duty in support of a  
      contingency operation.                                                  
                         PART III--TRAINING OF ARMY DRILL SERGEANTS               
      Sec. 556. Reform of Army drill sergeant selection and training process. 
            Sec. 557. Training in human relations matters for Army drill      
      sergeant trainees.                                                      
            SUBTITLE F--COMMISSION ON MILITARY TRAINING AND GENDER-RELATED ISSUES 
      Sec. 561. Establishment and composition of Commission.                  
      Sec. 562. Duties.                                                       
      Sec. 563. Administrative matters.                                       
      Sec. 564. Termination of Commission.                                    
      Sec. 565. Funding.                                                      
      Sec. 566. Subsequent consideration by Congress.                         
                         SUBTITLE G--MILITARY DECORATIONS AND AWARDS              
            Sec. 571. Purple Heart to be awarded only to members of the Armed 
      Forces.                                                                 
            Sec. 572. Eligibility for Armed Forces Expeditionary Medal for    
      participation in Operation Joint Endeavor or Operation Joint Guard.     
            Sec. 573. Waiver of time limitations for award of certain         
      decorations to specified persons.                                       
            Sec. 574. Clarification of eligibility of members of Ready Reserve
      for award of service medal for heroism.                                 
            Sec. 575. One-year extension of period for receipt of             
      recommendations for decorations and awards for certain military         
      intelligence personnel.                                                 
            Sec. 576. Eligibility of certain World War II military            
      organizations for award of unit decorations.                            
      Sec. 577. Retroactivity of Medal of Honor special pension.              
                            SUBTITLE H--MILITARY JUSTICE MATTERS                  
            Sec. 581. Establishment of sentence of confinement for life       
      without eligibility for parole.                                         
            Sec. 582. Limitation on appeal of denial of parole for offenders  
      serving life sentence.                                                  
                                  SUBTITLE I--OTHER MATTERS                       
      Sec. 591. Sexual harassment investigations and reports.                 
            Sec. 592. Sense of the Senate regarding study of matters relating 
      to gender equity in the Armed Forces.                                   
            Sec. 593. Authority for personnel to participate in management of 
      certain non-Federal entities.                                           
            Sec. 594. Treatment of participation of members in Department of  
      Defense civil military programs.                                        
            Sec. 595. Comptroller General study of Department of Defense civil
      military programs.                                                      
      Sec. 596. Establishment of public affairs specialty in the Army.        
      Sec. 597. Grade of defense attache AE1 in France.                       
      Sec. 598. Report on crew requirements of WC 130J aircraft.              
            Sec. 599. Improvement of missing persons authorities applicable to
      Department of Defense.                                                  
           Subtitle A--Officer Personnel Policy                                    
                    SEC. 501. LIMITATION ON NUMBER OF GENERAL AND FLAG OFFICERS   
          WHO MAY SERVE IN POSITIONS OUTSIDE THEIR OWN SERVICE.                   
     (a) In General.--Chapter 41 of title 10, United States Code, is      
  amended by adding at the end the following new section:                 
                    ``721. General and flag officers: limitation on appointments, 
          assignments, details, and duties outside an officer's own service       
     ``(a) Limitation.--An officer described in subsection (b) may not be 
  appointed, assigned, or detailed for a period in excess of 180 days to a
  position external to that officer's armed force if, immediately         
  following such appointment, assignment, or detail, the number of        
  officers described in subsection (b) serving in positions external to   
  such officers' armed force would be in excess of 26.5 percent of the    
  total number of the officers described in subsection (b).               
     ``(b) Covered Officers.--The officers covered by subsection (a), and 
  to be counted for the purposes of the limitation in that subsection, are
  the following:                                                          
       ``(1) Any general or flag officer counted for purposes of section   
   526(a) of this title.                                                   
       ``(2) Any general or flag officer serving in a joint duty assignment
   position designated by the Chairman of the Joint Chiefs of Staff under  
   section 526(b) of this title.                                           
       ``(3) Any colonel or Navy captain counted for purposes of section   
   777(d)(1) of this title.                                                
     ``(c) External Positions.--For purposes of this section, the         
  following positions shall be considered to be external to an officer's  
  armed force:                                                            
       ``(1) Any position (including a position in joint education) that is
   a joint duty assignment for purposes of chapter 38 of this title.       
       ``(2) Any position in the Office of the Secretary of Defense, a     
   Defense Agency, or a Department of Defense Field Activity.              
       ``(3) Any position in the Joint Chiefs of Staff, the Joint Staff, or
   the headquarters of a combatant command (as defined in chapter 6 of this
   title).                                                                 
     ``(4) Any position in the National Guard Bureau.                      
       ``(5) Any position outside the Department of Defense, including any 
   position in the headquarters of the North Atlantic Treaty Organization  
   or any other international military command, any combined or            
   multinational command, or military mission.                             
     ``(d) Treatment of Officers Holding Multiple Positions.--(1) If an   
  officer described in subsection (b) simultaneously holds both a position
  external to that officer's armed force and another position not external
  to that officer's armed force, the Secretary of Defense shall determine 
  whether that officer shall be counted for the purposes of this section. 
     ``(2) The Secretary of Defense shall submit to Congress an annual    
  report on the number of officers to whom paragraph (1) was applicable   
  during the year covered by the report. The report shall set forth the   
  determination made by the Secretary under that paragraph in each such   
  case.                                                                   
     ``(e) Assignments, Etc., For Periods in Excess of 180 Days.--For     
  purposes of this section, the appointment, assignment, or detail of an  
  officer to a position shall be considered to be for a period in excess  
  of 180 days unless the appointment, assignment, or detail specifies that
  it is made for a period of 180 days or less.                            
     ``(f) Waiver During Period of War or National Emergency.--The        
  President may suspend the operation of this section during any period of
  war or of national emergency declared by Congress or the President.''.  
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
            ``721. General and flag officers: limitation on appointments,     
      assignments, details, and duties outside an officer's own service.''.   
                    SEC. 502. EXCLUSION OF CERTAIN RETIRED OFFICERS FROM          
          LIMITATION ON PERIOD OF RECALL TO ACTIVE DUTY.                          
    Section 688(e) of title 10, United States Code, is amended--          
     (1) by inserting ``(1)'' before ``A member''; and                     
     (2) by adding at the end the following:                               
    ``(2) Paragraph (1) does not apply to the following officers:         
       ``(A) A chaplain who is assigned to duty as a chaplain for the      
   period of active duty to which ordered.                                 
       ``(B) A health care professional (as characterized by the Secretary 
   concerned) who is assigned to duty as a health care professional for the
   period of active duty to which ordered.                                 
       ``(C) An officer assigned to duty with the American Battle Monuments
   Commission for the period of active duty to which ordered.''.           
                    SEC. 503. CLARIFICATION OF OFFICERS ELIGIBLE FOR CONSIDERATION
          BY PROMOTION BOARDS.                                                    
     (a) Officers on the Active-Duty List.--Section 619(d) of title 10,   
  United States Code, is amended--                                        
       (1) by striking out ``grade--'' in the matter preceding paragraph   
   (1) and inserting in lieu thereof ``grade any of the following          
   officers:'';                                                            
     (2) in paragraph (1)--                                                
       (A) by striking out ``an officer'' and inserting in lieu thereof    
   ``An officer''; and                                                     
       (B) by striking out ``; or'' at the end and inserting in lieu       
   thereof a period;                                                       
       (3) by redesignating paragraph (2) as paragraph (3) and in that     
   paragraph striking out ``an officer'' and inserting in lieu thereof ``An
   officer''; and                                                          
     (4) by inserting after paragraph (1) the following new paragraph (2): 
       ``(2) An officer who is recommended for promotion to that grade in  
   the report of an earlier selection board convened under that section, in
   the case of such a report that has not yet been approved by the         
   President.''.                                                           
     (b) Officers on the Reserve Active-Status List.--Section 14301(c) of 
  such title is amended--                                                 
       (1) by striking out ``grade--'' in the matter preceding paragraph   
   (1) and inserting in lieu thereof ``grade any of the following          
   officers:'';                                                            
       (2) by striking out ``an officer'' in each of paragraphs (1), (2),  
   and (3) and inserting in lieu thereof ``An officer'';                   
       (3) by striking out the semicolon at the end of paragraph (1) and   
   inserting in lieu thereof a period;                                     
       (4) by striking out ``; or'' at the end of paragraph (2) and        
   inserting in lieu thereof a period;                                     
       (5) by redesignating paragraphs (2) and (3), as so amended, as      
   paragraphs (3) and (4), respectively, and in each such paragraph        
   striking out ``the next higher grade'' and inserting in lieu thereof    
   ``that grade''; and                                                     
     (6) by inserting after paragraph (1) the following new paragraph (2): 
       ``(2) An officer who is recommended for promotion to that grade in  
   the report of an earlier selection board convened under a provision     
   referred to in paragraph (1), in the case of such a report that has not 
   yet been approved by the President.''.                                  
     (c) Clarifying Amendments.--Paragraphs (3) and (4) of section        
  14301(c) of such title, as redesignated and amended by subsection (b),  
  are each amended by inserting before the period at the end the          
  following: ``, if that nomination is pending before the Senate''.       
     (d) Effective Date.--The amendments made by this section shall take  
  effect on the date of the enactment of this Act and shall apply with    
  respect to selection boards that are convened under section 611(a),     
  14101(a), or 14502 of title 10, United States Code, on or after that    
  date.                                                                   
                    SEC. 504. AUTHORITY TO DEFER MANDATORY RETIREMENT FOR AGE OF  
          OFFICERS SERVING AS CHAPLAINS.                                          
     (a) Authority for Deferral of Retirement for Chaplains.--Subsection  
  (c) of section 1251 of title 10, United States Code, is amended--       
       (1) by redesignating paragraphs (2) and (3) as paragraphs (3) and   
   (4), respectively; and                                                  
     (2) by inserting after paragraph (1) the following new paragraph (2): 
     ``(2) The Secretary concerned may defer the retirement under         
  subsection (a) of an officer who is appointed or designated as a        
  chaplain if the Secretary determines that such deferral is in the best  
  interest of the military department concerned.''.                       
     (b) Authority for Deferral of Retirement for Chief and Deputy Chief  
  of Chaplains.--Such section is further amended by adding at the end the 
  following new subsection:                                               
     ``(d) The Secretary concerned may defer the retirement under         
  subsection (a) of an officer who is the Chief of Chaplains or Deputy    
  Chief of Chaplains of that officer's armed force. Such a deferment may  
  not extend beyond the first day of the month following the month in     
  which the officer becomes 68 years of age.''.                           
     (c) Qualification for Service as Navy Chief of Chaplains or Deputy   
  Chief of Chaplains.--(1) Section 5142(b) of such title is amended by    
  striking out ``, who are not on the retired list,''.                    
     (2) Section 5142a of such title is amended by striking out ``, who is
  not on the retired list,''.                                             
                    SEC. 505. INCREASE IN NUMBER OF OFFICERS ALLOWED TO BE FROCKED
          TO GRADES OF COLONEL AND NAVY CAPTAIN.                                  
     Section 777(d)(2) of title 10, United States Code, is amended by     
  inserting after ``1 percent'' the following: ``, or, for the grades of  
  colonel and Navy captain, 2 percent,''.                                 
                    SEC. 506. INCREASED YEARS OF COMMISSIONED SERVICE FOR         
          MANDATORY RETIREMENT OF REGULAR GENERALS AND ADMIRALS IN GRADES ABOVE   
          MAJOR GENERAL AND REAR ADMIRAL.                                         
     (a) Years of Service.--Section 636 of title 10, United States Code,  
  is amended--                                                            
       (1) by striking out ``Except as provided'' and inserting in lieu    
   thereof ``(a) Major Generals and Rear Admirals Serving in Grade.--Except
   as provided in subsection (b) or (c) and''; and                         
     (2) by adding at the end the following:                               
     ``(b) Lieutenant Generals and Vice Admirals.--In the administration  
  of subsection (a) in the case of an officer who is serving in the grade 
  of lieutenant general or vice admiral, the number of years of active    
  commissioned service applicable to the officer is 38 years.             
     ``(c) Generals and Admirals.--In the administration of subsection (a)
  in the case of an officer who is serving in the grade of general or     
  admiral, the number of years of active commissioned service applicable  
  to the officer is 40 years.''.                                          
     (b) Section Heading.--The heading of such section is amended to read 
  as follows:                                                             
                    ``636. Retirement for years of service: regular officers in   
          grades above brigadier general and rear admiral (lower half)''.         
     (c) Clerical Amendment.--The item relating to such section in the    
  table of sections at the beginning of subchapter III of chapter 36 of   
  such title is amended to read as follows:                               
            ``636. Retirement for years of service: regular officers in grades
      above brigadier general and rear admiral (lower half).''.               
                    SEC. 507. UNIFORM POLICY FOR REQUIREMENT OF EXEMPLARY CONDUCT 
          BY COMMANDING OFFICERS AND OTHERS IN AUTHORITY.                         
     (a) Army.--(1) Chapter 345 of title 10, United States Code, is       
  amended by adding at the end the following new section:                 
          ``3583. Requirement of exemplary conduct                                
     ``All commanding officers and others in authority in the Army are    
  required--                                                              
       ``(1) to show in themselves a good example of virtue, honor,        
   patriotism, and subordination;                                          
       ``(2) to be vigilant in inspecting the conduct of all persons who   
   are placed under their command;                                         
       ``(3) to guard against and suppress all dissolute and immoral       
   practices, and to correct, according to the laws and regulations of the 
   Army, all persons who are guilty of them; and                           
       ``(4) to take all necessary and proper measures, under the laws,    
   regulations, and customs of the Army, to promote and safeguard the      
   morale, the physical well-being, and the general welfare of the officers
   and enlisted persons under their command or charge.''.                  
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
      ``3583. Requirement of exemplary conduct.''.                            
     (b) Air Force.--(1) Chapter 845 of title 10, United States Code, is  
  amended by adding at the end the following new section:                 
          ``8583. Requirement of exemplary conduct                                
     ``All commanding officers and others in authority in the Air Force   
  are required--                                                          
       ``(1) to show in themselves a good example of virtue, honor,        
   patriotism, and subordination;                                          
       ``(2) to be vigilant in inspecting the conduct of all persons who   
   are placed under their command;                                         
       ``(3) to guard against and suppress all dissolute and immoral       
   practices, and to correct, according to the laws and regulations of the 
   Air Force, all persons who are guilty of them; and                      
       ``(4) to take all necessary and proper measures, under the laws,    
   regulations, and customs of the Air Force, to promote and safeguard the 
   morale, the physical well-being, and the general welfare of the officers
   and enlisted persons under their command or charge.''.                  
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
      ``8583. Requirement of exemplary conduct.''.                            
                    SEC. 508. REPORT ON THE COMMAND SELECTION PROCESS FOR DISTRICT
          ENGINEERS OF THE ARMY CORPS OF ENGINEERS.                               
     Not later than March 31, 1998, the Secretary of the Army shall submit
  to Congress a report on the command selection process for officers      
  serving as District Engineers of the Corps of Engineers. The report     
  shall include the following:                                            
     (1) An identification of each major Corps of Engineers project that-- 
       (A) is being carried out by each District Engineer as of the date of
   the report; or                                                          
       (B) is being planned by each District Engineer to be carried out    
   during the five-year period beginning on the date of the report.        
       (2) The expected start and completion dates, during that period, for
   each major phase of each project identified under paragraph (1).        
       (3) The expected dates for changes in the District Engineer in each 
   Corps of Engineers District during that period.                         
       (4) A plan for optimizing the timing of changes in the District     
   Engineer in each such District so that there is minimal disruption to   
   major phases of major Corps of Engineers projects.                      
       (5) A review of the effect on the Corps of Engineers, and on the    
   mission of each District of the Corps of Engineers, of allowing major   
   command tours of District Engineers to be of two-to-four years in       
   duration, with the selection of the exact timing of the change of       
   command to be at the discretion of the Chief of Engineers, who shall act
   with the goal of optimizing the timing of each change so that it has    
   minimal disruption on the mission of the District Engineer.             
           Subtitle B--Reserve Component Matters                                   
          SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AUTHORITY.                
     (a) IRR Members Subject To Order to Active Duty Other Than During War
  or National Emergency.--Section 10144 of title 10, United States Code,  
  is amended--                                                            
     (1) by inserting ``(a)'' before ``Within the Ready Reserve''; and     
     (2) by adding at the end the following new subsection:                
     ``(b)(1) Within the Individual Ready Reserve of each reserve         
  component there is a category of members, as designated by the Secretary
  concerned, who are subject to being ordered to active duty involuntarily
  in accordance with section 12304 of this title. A member may not be     
  placed in that mobilization category unless--                           
     ``(A) the member volunteers for that category; and                    
       ``(B) the member is selected for that category by the Secretary     
   concerned, based upon the needs of the service and the grade and        
   military skills of that member.                                         
     ``(2) A member of the Individual Ready Reserve may not be carried in 
  such mobilization category of members after the end of the 24-month     
  period beginning on the date of the separation of the member from active
  service.                                                                
     ``(3) The Secretary shall designate the grades and military skills or
  specialities of members to be eligible for placement in such            
  mobilization category.                                                  
     ``(4) A member in such mobilization category shall be eligible for   
  benefits (other than pay and training) as are normally available to     
  members of the Selected Reserve, as determined by the Secretary of      
  Defense.''.                                                             
     (b) Criteria for Ordering to Active Duty.--Subsection (a) of section 
  12304 of title 10, United States Code, is amended by inserting after    
  ``of this title),'' the following: ``or any member in the Individual    
  Ready Reserve mobilization category and designated as essential under   
  regulations prescribed by the Secretary concerned,''.                   
    (c)  Maximum Number.--Subsection (c) of such section is amended--     
       (1) by inserting ``and the Individual Ready Reserve'' after         
   ``Selected Reserve''; and                                               
       (2) by inserting ``, of whom not more than 30,000 may be members of 
   the Individual Ready Reserve'' before the period at the end.            
    (d)  Conforming Amendments.--Such section is further amended--        
       (1) in subsection (f), by inserting ``or Individual Ready Reserve'' 
   after ``Selected Reserve'';                                             
       (2) in subsection (g), by inserting ``, or any member of the        
   Individual Ready Reserve,'' after ``to serve as a unit''; and           
     (3) by adding at the end the following new subsection:                
     ``(i) For purposes of this section, the term `Individual Ready       
  Reserve mobilization category' means, in the case of any reserve        
  component, the category of the Individual Ready Reserve described in    
  section 10144(b) of this title.''.                                      
     (e) Clerical Amendments.--(1) The heading of such section is amended 
  to read as follows:                                                     
                    ``12304. Selected Reserve and certain Individual Ready Reserve
          members; order to active duty other than during war or national         
          emergency''.                                                            
     (2) The item relating to section 12304 in the table of sections at   
  the beginning of chapter 1209 of such title is amended to read as       
  follows:                                                                
            ``12304. Selected Reserve and certain Individual Ready Reserve    
      members; order to active duty other than during war or national         
      emergency.''.                                                           
          SEC. 512. TERMINATION OF MOBILIZATION INCOME INSURANCE PROGRAM.         
     (a) In General.--Chapter 1214 of title 10, United States Code, is    
  amended by adding at the end the following new section:                 
          ``12533. Termination of program                                         
     ``(a) In General.--The Secretary shall terminate the insurance       
  program in accordance with this section.                                
     ``(b) Termination of New Enrollments.--The Secretary may not enroll a
  member of the Ready Reserve for coverage under the insurance program    
  after the date of the enactment of this section.                        
     ``(c) Termination of Coverage.--(1) The enrollment under the         
  insurance program of insured members other than insured members         
  described in paragraph (2) is terminated as of the date of the enactment
  of this section. The enrollment of an insured member described in       
  paragraph (2) is terminated as of the date of the termination of the    
  period of covered service of that member described in that paragraph.   
     ``(2) An insured member described in this paragraph is an insured    
  member who on the date of the enactment of this section is serving on   
  covered service for a period of service, or has been issued an order    
  directing the performance of covered service, that satisfies or would   
  satisfy the entitlement-to-benefits provisions of this chapter.         
     ``(d) Termination of Payment of Benefits.--The Secretary may not make
  any benefit payment under the insurance program after the date of the   
  enactment of this section other than to an insured member who on that   
  date (1) is serving on an order to covered service, (2) has been issued 
  an order directing performance of covered service, or (3) has served on 
  covered service before that date for which benefits under the program   
  have not been paid to the member.                                       
     ``(e) Termination of Insurance Fund.--The Secretary shall close the  
  Fund not later than 60 days after the date on which the last benefit    
  payment from the Fund is made. Any amount remaining in the Fund when    
  closed shall be covered into the Treasury as miscellaneous receipts.''. 
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
      ``12533. Termination of program.''.                                     
                    SEC. 513. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE 
          AND DEATH AND DISABILITY BENEFITS FOR RESERVE MEMBERS WHO INCUR OR      
          AGGRAVATE AN ILLNESS IN THE LINE OF DUTY.                               
     (a) Medical and Dental Care for Members.--Section 1074a of title 10, 
  United States Code, is amended--                                        
       (1) in subsection (a)(3), by inserting ``while remaining overnight  
   immediately before the commencement of inactive-duty training, or''     
   after ``in the line of duty''; and                                      
     (2) by adding at the end the following new subsection:                
     ``(e) A member of a uniformed service described in paragraph (1)(A)  
  or (2)(A) of subsection (a) whose orders are modified or extended, while
  the member is being treated for (or recovering from) the injury,        
  illness, or disease incurred or aggravated in the line of duty, so as to
  result in active duty for a period of more than 30 days shall be        
  entitled, while the member remains on active duty, to medical and dental
  care on the same basis and to the same extent as members covered by     
  section 1074(a) of this title.''.                                       
     (b) Medical and Dental Care for Dependents.--Section 1076(a) of such 
  title is amended by striking out paragraph (2) and inserting in lieu    
  thereof the following new paragraph:                                    
     ``(2) A dependent referred to in paragraph (1) is a dependent of a   
  member of a uniformed service described in one of the following         
  subparagraphs:                                                          
       ``(A) A member who is on active duty for a period of more than 30   
   days or died while on that duty.                                        
       ``(B) A member who died from an injury, illness, or disease incurred
   or aggravated--                                                         
       ``(i) while the member was on active duty under a call or order to  
   active duty of 30 days or less, on active duty for training, or on      
   inactive-duty training; or                                              
       ``(ii) while the member was traveling to or from the place at which 
   the member was to perform, or had performed, such active duty, active   
   duty for training, or inactive-duty training.                           
       ``(C) A member who died from an injury, illness, or disease incurred
   or aggravated in the line of duty while the member remained overnight   
   immediately before the commencement of inactive-duty training, or while 
   the member remained overnight between successive periods of             
   inactive-duty training, at or in the vicinity of the site of the        
   inactive-duty training, if the site was outside reasonable commuting    
   distance from the member's residence.                                   
       ``(D) A member who incurred or aggravated an injury, illness, or    
   disease in the line of duty while serving on active duty for a period of
   30 days or less (or while traveling to or from the place of such duty)  
   and the member's orders are modified or extended, while the member is   
   being treated for (or recovering from) the injury, illness, or disease, 
   so as to result in active duty for a period of more than 30 days.       
   However, this subparagraph entitles the dependent to medical and dental 
   care only while the member remains on active duty.''.                   
     (c) Eligibility for Disability Retirement or Separation.--(1) Section
  1204(2) of such title is amended to read as follows:                    
     ``(2) the disability--                                                
       ``(A) was incurred before September 24, 1996, as the proximate      
   result of--                                                             
     ``(i) performing active duty or inactive-duty training;               
       ``(ii) traveling directly to or from the place at which such duty is
   performed; or                                                           
       ``(iii) an injury, illness, or disease incurred or aggravated while 
   remaining overnight, immediately before the commencement of             
   inactive-duty training, or while remaining overnight between successive 
   periods of inactive-duty training, at or in the vicinity of the site of 
   the inactive-duty training, if the site of the inactive-duty training is
   outside reasonable commuting distance of the member's residence; or     
       ``(B) is a result of an injury, illness, or disease incurred or     
   aggravated in line of duty after September 23, 1996--                   
     ``(i) while performing active duty or inactive-duty training;         
       ``(ii) while traveling directly to or from the place at which such  
   duty is performed; or                                                   
       ``(iii) while remaining overnight, immediately before the           
   commencement of inactive-duty training, or while remaining overnight    
   between successive periods of inactive-duty training, at or in the      
   vicinity of the site of the inactive-duty training, if the site of the  
   inactive-duty training is outside reasonable commuting distance of the  
   member's residence;''.                                                  
    (2) Section 1206 of such title is amended--                           
       (A) by redesignating paragraphs (2), (3), and (4) as paragraphs (3),
   (4), and (5), respectively, and                                         
     (B) by inserting after paragraph (1) the following new paragraph (2): 
       ``(2) the disability is a result of an injury, illness, or disease  
   incurred or aggravated in line of duty while--                          
     ``(A) performing active duty or inactive-duty training;               
       ``(B) traveling directly to or from the place at which such duty is 
   performed; or                                                           
       ``(C) while remaining overnight immediately before the commencement 
   of inactive-duty training, or while remaining overnight between         
   successive periods of inactive-duty training, at or in the vicinity of  
   the site of the inactive-duty training, if the site is outside          
   reasonable commuting distance of the member's residence;''.             
     (d) Conforming Amendments and Related Clerical Amendments.--(1) The  
  heading of section 1204 of title 10, United States Code, is amended to  
  read as follows:                                                        
                    ``1204. Members on active duty for 30 days or less or on      
          inactive-duty training: retirement''.                                   
     (2) The heading of section 1206 of such title is amended to read as  
  follows:                                                                
                    ``1206. Members on active duty for 30 days or less or on      
          inactive-duty training: separation''.                                   
     (3) The table of sections at the beginning of chapter 61 of such     
  title is amended--                                                      
       (A) by striking out the item relating to section 1204 and inserting 
   in lieu thereof the following:                                          
            ``1204. Members on active duty for 30 days or less or on          
      inactive-duty training: retirement.'';                                  
   and                                                                     
       (B) by striking out the item relating to section 1206 and inserting 
   in lieu thereof the following:                                          
            ``1206. Members on active duty for 30 days or less or on          
      inactive-duty training: separation.''.                                  
     (e) Recovery, Care, and Disposition of Remains.--Section             
  1481(a)(2)(D) of such title is amended by inserting ``remaining         
  overnight immediately before the commencement of inactive-duty training,
  or'' after ``(D)''.                                                     
     (f) Entitlement to Basic Pay.--Section 204 of title 37, United States
  Code, is amended by inserting ``while remaining overnight immediately   
  before the commencement of inactive-duty training, or'' in subsections  
  (g)(1)(D) and (h)(1)(D) after ``in line of duty''.                      
     (g) Compensation for Inactive-Duty Training.--Section 206(a)(3)(C) of
  title 37, United States Code, is amended by inserting ``while remaining 
  overnight immediately before the commencement of inactive-duty training,
  or'' after ``in line of duty''.                                         
                    SEC. 514. AUTHORITY TO PERMIT NON-UNIT ASSIGNED OFFICERS TO BE
          CONSIDERED BY VACANCY PROMOTION BOARD TO GENERAL OFFICER GRADES.        
     (a) Convening of Selection Boards.--Section 14101(a)(2) of title 10, 
  United States Code, is amended by striking out ``(except in the case of 
  a board convened to consider officers as provided in section 14301(e) of
  this title)''.                                                          
     (b) Eligibility for Consideration of Certain Army Officers.--Section 
  14301 of such title is amended--                                        
     (1) by striking out subsection (e); and                               
       (2) by redesignating subsections (f) and (g) as subsections (e) and 
   (f), respectively.                                                      
     (c) General Officer Promotions.--Section 14308 of such title is      
  amended--                                                               
       (1) in subsection (e)(2), by inserting ``a grade below colonel in'' 
   after ``(2) an officer in''; and                                        
     (2) in subsection (g)--                                               
       (A) by inserting ``or the Air Force'' in the first sentence after   
   ``of the Army'' the first place it appears;                             
       (B) by striking out ``in that grade'' in the first sentence and all 
   that follows through ``Secretary of the Army'' and inserting in lieu    
   thereof ``in the Army Reserve or the Air Force Reserve, as the case may 
   be, in that grade''; and                                                
     (C) by striking out the second sentence.                              
     (d) Vacancy Promotions.--Section 14315(b)(1) of such title is amended
  by striking out ``duties'' in clause (A) and all that follows through   
  ``as a unit,'' and inserting in lieu thereof ``duties of a general      
  officer of the next higher reserve grade in the Army Reserve,''.        
                    SEC. 515. PROHIBITION ON USE OF AIR FORCE RESERVE AGR         
          PERSONNEL FOR AIR FORCE BASE SECURITY FUNCTIONS.                        
     (a) In General.--Chapter 1215 of title 10, United States Code, is    
  amended by striking out                                                 
                                  ``[NO PRESENT SECTIONS]''                       
  and inserting in lieu thereof the following:                            
      ``Sec.                                                                  
            12551. Prohibition of use of Air Force Reserve AGR personnel for  
      Air Force base security functions.                                      
                    ``12551. Prohibition of use of Air Force Reserve AGR personnel
          for Air Force base security functions                                   
     ``(a) Limitation.--The Secretary of the Air Force may not use members
  of the Air Force Reserve who are AGR personnel for the performance of   
  force protection, base security, or security police functions at an Air 
  Force facility in the United States.                                    
     ``(b) AGR Personnel Defined.--In this section, the term `AGR         
  personnel' means members of the Air Force Reserve who are on active duty
  (other than for training) in connection with organizing, administering, 
  recruiting, instructing, or training the Air Force Reserve.''.          
     (b) Clerical Amendment.--The items relating to chapter 1215 in the   
  tables of chapters at the beginning of subtitle E, and at the beginning 
  of part II of subtitle E, are amended to read as follows:               
         ``1215. Miscellaneous Prohibitions and Penalties                       
        12551''.                                                               
                    SEC. 516. INVOLUNTARY SEPARATION OF RESERVE OFFICERS IN AN    
          INACTIVE STATUS.                                                        
     (a) Authority for Involuntary Separation of Certain Inactive Status  
  Officers.--Section 12683(b) of title 10, United States Code, is         
  amended--                                                               
       (1) in the matter preceding paragraph (1), by striking out          
   ``apply--'' and inserting in lieu thereof ``apply to any of the         
   following:''; and                                                       
     (2) by adding at the end the following new paragraph:                 
       ``(4) a separation of an officer who is in an inactive status in the
   Standby Reserve and who is not qualified for transfer to the Retired    
   Reserve or is qualified for transfer to the Retired Reserve and does not
   apply for such a transfer.''.                                           
    (b)  Stylistic Amendments.--Such section is further amended--         
       (1) in paragraphs (1), (2), and (3), by striking out ``to a'' and   
   inserting in lieu thereof ``A'';                                        
       (2) by striking out the semicolon at the end of paragraph (1) and   
   inserting in lieu thereof a period; and                                 
       (3) by striking out ``; and'' at the end of paragraph (2) and       
   inserting in lieu thereof a period.                                     
                    SEC. 517. FEDERAL STATUS OF SERVICE BY NATIONAL GUARD MEMBERS 
          AS HONOR GUARDS AT FUNERALS OF VETERANS.                                
     (a) In General.--(1) Chapter 1 of title 32, United States Code, is   
  amended by adding after section 113, as added by section 386(a), the    
  following new section:                                                  
          ``114. Honor guard functions at funerals for veterans                   
     ``(a) Subject to such regulations and restrictions as may be         
  prescribed by the Secretary concerned, the performance of honor guard   
  functions by members of the National Guard at funerals for veterans of  
  the armed forces may be treated by the Secretary concerned as a Federal 
  function for which appropriated funds may be used. Any such performance 
  of honor guard functions at such a funeral may not be considered to be a
  period of drill or training otherwise required.                         
     ``(b) This section does not authorize additional appropriations for  
  any fiscal year. Any expense of the National Guard that is incurred by  
  reason of this section shall be paid from appropriations otherwise      
  available for the National Guard.''.                                    
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding after the item relating to section    
  113, as added by section 386(b), the following new item:                
      ``114. Honor guard functions at funerals for veterans.''.               
           Subtitle C--Military Technicians                                        
                    SEC. 521. AUTHORITY TO RETAIN ON THE RESERVE ACTIVE-STATUS    
          LIST UNTIL AGE 60 MILITARY TECHNICIANS IN THE GRADE OF BRIGADIER        
          GENERAL.                                                                
     (a) Retention.--Section 14702(a) of title 10, United States Code, is 
  amended--                                                               
       (1) by striking out ``section 14506 or 14507'' and inserting in lieu
   thereof ``section 14506, 14507, or 14508''; and                         
       (2) by striking out ``or colonel'' and inserting in lieu thereof    
   ``colonel, or brigadier general''.                                      
     (b) Technical Amendment.--Section 14508(c) of such title is amended  
  by striking out ``not later than the date on which the officer becomes  
  60 years of age'' and inserting in lieu thereof ``not later than the    
  last day of the month in which the officer becomes 60 years of age''.   
          SEC. 522. MILITARY TECHNICIANS (DUAL STATUS).                           
     (a) Definition.--Subsection (a) of section 10216 of title 10, United 
  States Code, is amended to read as follows:                             
     ``(a) In General.--(1) For purposes of this section and any other    
  provision of law, a military technician (dual status) is a Federal      
  civilian employee who--                                                 
       ``(A) is employed under section 3101 of title 5 or section 709 of   
   title 32;                                                               
       ``(B) is required as a condition of that employment to maintain     
   membership in the Selected Reserve; and                                 
       ``(C) is assigned to a position as a technician in the              
   administration and training of the Selected Reserve or in the           
   maintenance and repair of supplies or equipment issued to the Selected  
   Reserve or the armed forces.                                            
     ``(2) Military technicians (dual status) shall be authorized and     
  accounted for as a separate category of civilian employees.''.          
     (b) Unit Membership and Dual Status Requirement.--Such section is    
  further amended by striking out subsection (d) and inserting in lieu    
  thereof the following:                                                  
     ``(d) Unit Membership Requirement.--(1) Unless specifically exempted 
  by law, each individual who is hired as a military technician (dual     
  status) after December 1, 1995, shall be required as a condition of that
  employment to maintain membership in--                                  
       ``(A) the unit of the Selected Reserve by which the individual is   
   employed as a military technician; or                                   
       ``(B) a unit of the Selected Reserve that the individual is employed
   as a military technician to support.                                    
     ``(2) Paragraph (1) does not apply to a military technician (dual    
  status) who is employed by the Army Reserve in an area other than Army  
  Reserve troop program units.                                            
     ``(e) Dual Status Requirement.--(1) Funds appropriated for the       
  Department of Defense may not (except as provided in paragraph (2)) be  
  used for compensation as a military technician of any individual hired  
  as a military technician after February 10, 1996, who is no longer a    
  member of the Selected Reserve.                                         
     ``(2) The Secretary concerned may pay compensation described in      
  paragraph (1) to an individual described in that paragraph who is no    
  longer a member of the Selected Reserve for a period not to exceed six  
  months following the individual's loss of membership in the Selected    
  Reserve if the Secretary determines that such loss of membership was not
  due to the failure of that individual to meet military standards.''.    
     (c) National Guard Dual Status Requirement.--Section 709(b) of title 
  32, United States Code, is amended by striking out ``Except as          
  prescribed by the Secretary concerned, a technician'' and inserting in  
  lieu thereof ``A technician''.                                          
     (d) Plan for Clarification of Statutory Authority of Military        
  Technicians.--(1) The Secretary of Defense shall submit to Congress, as 
  part of the budget justification materials submitted in support of the  
  budget for the Department of Defense for fiscal year 1999, a legislative
  proposal to provide statutory authority and clarification under title 5,
  United States Code--                                                    
       (A) for the hiring, management, promotion, separation, and          
   retirement of military technicians who are employed in support of units 
   of the Army Reserve or Air Force Reserve; and                           
       (B) for the transition to the competitive service of an individual  
   who is hired as a military technician in support of a unit of the Army  
   Reserve or Air Force Reserve and who (as determined by the Secretary    
   concerned) fails to maintain membership in the Selected Reserve through 
   no fault of the individual.                                             
     (2) The legislative proposal under paragraph (1) shall be developed  
  in consultation with the Director of the Office of Personnel Management.
     (e) Conforming Repeal.--Section 8016 of Public Law 104 61 (109 Stat. 
  654; 10 U.S.C. 10101 note) is repealed.                                 
     (f) Cross-Reference Corrections.--Section 10216(c)(1) of title 10,   
  United States Code, is amended by striking out ``subsection (a)(1)'' in 
  subparagraphs (A), (B), (C), and (D) and inserting in lieu thereof      
  ``subsection (b)(1)''.                                                  
     (g) Conforming Amendments to Section 10216.--Section 10216 of title  
  10, United States Code, is further amended as follows:                  
       (1) The heading of subsection (b) is amended by inserting ``( Dual  
   Status)'' after `` Military Technicians''.                              
     (2) Subsection (b)(1) is amended--                                    
     (A) by inserting ``(dual status)'' after ``for military technicians'';
       (B) by striking out ``dual status military technicians'' and        
   inserting in lieu thereof ``military technicians (dual status)''; and   
       (C) by inserting ``(dual status)'' after ``military technicians'' in
   subparagraph (C).                                                       
       (3) Subsection (b)(2) is amended by inserting ``(dual status)''     
   after ``military technicians'' both places it appears.                  
       (4) Subsection (b)(3) is amended by inserting ``(dual status)''     
   after ``Military technician''.                                          
     (5) Subsection (c) is amended--                                       
       (A) in the matter preceding paragraph (1)(A), by inserting ``(dual  
   status)'' after ``military technicians'';                               
       (B) in paragraph (1), by striking out ``dual-status technicians'' in
   subparagraphs (A), (B), (C), and (D) and inserting in lieu thereof      
   ``military technicians (dual status)'';                                 
       (C) in paragraph (2)(A), by inserting ``(dual status)'' after       
   ``military technician''; and                                            
       (D) in paragraph (2)(B), by striking out ``delineate--'' and all    
   that follows through ``or other reasons'' in clause (ii) and inserting  
   in lieu thereof ``delineate the specific force structure reductions''.  
     (h) Clerical Amendments.--(1) The heading of section 10216 of such   
  title is amended to read as follows:                                    
          ``10216. Military technicians (dual status)''.                          
     (2) The item relating to such section in the table of sections at the
  beginning of chapter 1007 of such title is amended to read as follows:  
      ``10216. Military technicians (dual status).''.                         
     (i) Other Conforming Amendments.--(1) Section 115(g) of such title is
  amended by inserting ``(dual status)'' in the first sentence after      
  ``military technicians'' and in the second sentence after ``military    
  technician''.                                                           
    (2) Section 115a(h) of such title is amended--                        
       (A) by inserting ``(displayed in the aggregate and separately for   
   military technicians (dual status) and non-dual status military         
   technicians)'' in the matter preceding paragraph (1) after ``of the     
   following''; and                                                        
     (B) by striking out paragraph (3).                                    
          SEC. 523. NON-DUAL STATUS MILITARY TECHNICIANS.                         
     (a) In General.--(1) Chapter 1007 of title 10, United States Code, is
  amended by adding at the end the following new section:                 
          ``10217. Non-dual status military technicians                           
     ``(a) Definition.--For the purposes of this section and any other    
  provision of law, a non-dual status military technician is a civilian   
  employee of the Department of Defense serving in a military technician  
  position who--                                                          
       ``(1) was hired as a military technician before the date of the     
   enactment of the National Defense Authorization Act for Fiscal Year 1998
   under any of the authorities specified in subsection (c); and           
       ``(2) as of the date of the enactment of that Act is not a member of
   the Selected Reserve or after such date ceased to be a member of the    
   Selected Reserve.                                                       
     ``(b) Employment Authorities.--The authorities referred to in        
  subsection (a) are the following:                                       
     ``(1) Section 10216 of this title.                                    
     ``(2) Section 709 of title 32.                                        
     ``(3) The requirements referred to in section 8401 of title 5.        
       ``(4) Section 8016 of the Department of Defense Appropriations Act, 
   1996 (Public Law 104 61; 109 Stat. 654), and any comparable provision of
   law enacted on an annual basis in the Department of Defense             
   Appropriations Acts for fiscal years 1984 through 1995.                 
       ``(5) Any memorandum of agreement between the Department of Defense 
   and the Office of Personnel Management providing for the hiring of      
   military technicians.''.                                                
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
      ``10217. Non-dual status military technicians.''.                       
     (b) Limitation.--The number of civilian employees of a military      
  department who are non-dual status military technicians as of September 
  30, 1998, may not exceed the following:                                 
     (1) For the Army Reserve, 1,500.                                      
     (2) For the Army National Guard of the United States, 2,400.          
     (3) For the Air Force Reserve, 0.                                     
     (4) For the Air National Guard of the United States, 450.             
     (c) Report Required.--Not later than 90 days after the date of the   
  enactment of this Act, the Secretary of Defense shall submit to Congress
  a report containing the number of military technician positions that are
  held by non-dual status military technicians as of September 30, 1997,  
  shown separately for each of the following:                             
     (1) The Army Reserve.                                                 
     (2) The Army National Guard of the United States.                     
     (3) The Air Force Reserve.                                            
     (4) The Air National Guard of the United States.                      
     (d) Plan for Full Utilization of Military Technicians ( Dual Status  
  ).--(1) Not later than 180 days after the date of the enactment of this 
  Act, the Secretary of Defense shall submit to Congress a plan for       
  ensuring that, on and after September 30, 2007, all military technician 
  positions are held only by military technicians (dual status).          
     (2) The plan shall provide for achieving, by September 30, 2002, a 50
  percent reduction, by conversion of positions or otherwise, in the      
  number of non-dual status military technicians that are holding military
  technicians positions, as compared with the number of non-dual status   
  technicians that held military technician positions as of September 30, 
  1997, as specified in the report under subsection (c).                  
     (3) Among the alternative actions to be considered in developing the 
  plan, the Secretary shall consider the feasibility and cost of each of  
  the following:                                                          
     (A) Eliminating or consolidating technician functions and positions.  
       (B) Contracting with private sector sources for the performance of  
   functions performed by military technicians.                            
       (C) Converting non-dual status military technician positions to     
   military technician (dual status) positions or to positions in the      
   competitive service or, in the case of positions of the Army National   
   Guard of the United States or the Air National Guard of the United      
   States, to positions of State employment.                               
       (D) Use of incentives to facilitate attainment of the objectives    
   specified for the plan in paragraphs (1) and (2).                       
     (4) The Secretary shall submit with the plan any recommendations for 
  legislation that the Secretary considers necessary to carry out the     
  plan.                                                                   
     (e) Definitions for Categories of Military Technicians.--In this     
  section:                                                                
       (1) The term ``non-dual status military technician'' has the meaning
   given that term in section 10217 of title 10, United States Code, as    
   added by subsection (a).                                                
       (2) The term ``military technician (dual status)'' has the meaning  
   given the term in section 10216(a) of such title.                       
                    SEC. 524. REPORT ON FEASIBILITY AND DESIRABILITY OF CONVERSION
          OF AGR PERSONNEL TO MILITARY TECHNICIANS (DUAL STATUS).                 
     (a) Report Required.--Not later than January 1, 1998, the Secretary  
  of Defense shall submit to Congress a report on the feasibility and     
  desirability of conversion of AGR personnel to military technicians     
  (dual status). The report shall--                                       
     (1) identify advantages and disadvantages of such a conversion;       
       (2) identify possible savings if such a conversion were to be       
   carried out; and                                                        
       (3) set forth the recommendation of the Secretary as to whether such
   a conversion should be made.                                            
     (b) AGR Personnel Defined.--For purposes of subsection (a), the term 
  ``AGR personnel'' means members of the Army or Air Force reserve        
  components who are on active duty (other than for training) in          
  connection with organizing, administering, recruiting, instructing, or  
  training their respective reserve components.                           
                      Subtitle D--Measures To Improve Recruit Quality and Reduce   
           Recruit Attrition                                                       
          SEC. 531. REFORM OF MILITARY RECRUITING SYSTEMS.                        
     (a) In General.--The Secretary of Defense shall carry out reforms in 
  the recruiting systems of the Army, Navy, Air Force, and Marine Corps in
  order to improve the quality of new recruits and to reduce attrition    
  among recruits.                                                         
     (b) Specific Reforms.--As part of the reforms in military recruiting 
  systems to be undertaken under subsection (a), the Secretary shall take 
  the following steps:                                                    
       (1) Improve the system of pre-enlistment waivers and separation     
   codes used for recruits by (A) revising and updating those waivers and  
   codes to allow more accurate and useful data collection about those     
   separations, and (B) prescribing regulations to ensure that those       
   waivers and codes are interpreted in a uniform manner by the military   
   services.                                                               
       (2) Develop a reliable database for (A) analyzing (at both the      
   Department of Defense and service-level) data on reasons for attrition  
   of new recruits, and (B) undertaking Department of Defense or           
   service-specific measures (or both) to control and manage such          
   attrition.                                                              
       (3) Require that the Secretary of each military department (A) adopt
   or strengthen incentives for recruiters to thoroughly prescreen         
   potential candidates for recruitment, and (B) link incentives for       
   recruiters, in part, to the ability of a recruiter to screen out        
   unqualified candidates before enlistment.                               
       (4) Require that the Secretary of each military department include  
   as a measurement of recruiter performance the percentage of persons     
   enlisted by a recruiter who complete initial combat training or basic   
   training.                                                               
       (5) Assess trends in the number and use of waivers over the 1991    
   1997 period that were issued to permit applicants to enlist with medical
   or other conditions that would otherwise be disqualifying.              
       (6) Require the Secretary of each military department to implement  
   policies and procedures (A) to ensure the prompt separation of recruits 
   who are unable to successfully complete basic training, and (B) to      
   remove those recruits from the training environment while separation    
   proceedings are pending.                                                
     (c) Report.--Not later than March 31, 1998, the Secretary shall      
  submit to Congress a report of the trends assessed under subsection     
  (b)(5). The information on those trends provided in the report shall be 
  shown by armed force and by category of waiver. The report shall include
  recommendations of the Secretary for changing, revising, or limiting the
  use of waivers referred to in that subsection.                          
                    SEC. 532. IMPROVEMENTS IN MEDICAL PRESCREENING OF APPLICANTS  
          FOR MILITARY SERVICE.                                                   
     (a) In General.--The Secretary of Defense shall improve the medical  
  prescreening of applicants for entrance into the Army, Navy, Air Force, 
  or Marine Corps.                                                        
     (b) Specific Steps.--As part of those improvements, the Secretary    
  shall take the following steps:                                         
       (1) Require that each applicant for service in the Army, Navy, Air  
   Force, or Marine Corps (A) provide to the Secretary the name of the     
   applicant's medical insurer and the names of past medical providers, and
   (B) sign a release allowing the Secretary to request and obtain medical 
   records of the applicant.                                               
       (2) Require that the forms and procedures for medical prescreening  
   of applicants that are used by recruiters and by Military Entrance      
   Processing Commands be revised so as to ensure that medical questions   
   are specific, unambiguous, and tied directly to the types of medical    
   separations most common for recruits during basic training and follow-on
   training.                                                               
       (3) Add medical screening tests to the examinations of recruits     
   carried out by Military Entrance Processing Stations, provide more      
   thorough medical examinations to selected groups of applicants, or both,
   to the extent that the Secretary determines that to do so could be cost 
   effective in reducing attrition at basic training.                      
       (4) Provide for an annual quality control assessment of the         
   effectiveness of the Military Entrance Processing Commands in           
   identifying medical conditions in recruits that existed before          
   enlistment in the Armed Forces, each such assessment to be performed by 
   an agency or contractor other than the Military Entrance Processing     
   Commands.                                                               
          SEC. 533. IMPROVEMENTS IN PHYSICAL FITNESS OF RECRUITS.                 
     (a) In General.--The Secretary of Defense shall take steps to improve
  the physical fitness of recruits before they enter basic training.      
     (b) Specific Steps.--As part of those improvements, the Secretary    
  shall take the following steps:                                         
       (1) Direct the Secretary of each military department to implement   
   programs under which new recruits who are in the Delayed Entry Program  
   are encouraged to participate in physical fitness activities before     
   reporting to basic training.                                            
       (2) Develop a range of incentives for new recruits to participate in
   physical fitness programs, as well as for those recruits who improve    
   their level of fitness while in the Delayed Entry Program, which may    
   include access to Department of Defense military fitness facilities, and
   access to military medical facilities in the case of a recruit who is   
   injured while participating in physical activities with recruiters or   
   other military personnel.                                               
       (3) Evaluate whether partnerships between recruiters and reserve    
   components, or other innovative arrangements, could provide a pool of   
   qualified personnel to assist in the conduct of physical training       
   programs for new recruits in the Delayed Entry Program.                 
           Subtitle E--Military Education and Training                             
           PART I--OFFICER EDUCATION PROGRAMS                                     
                    SEC. 541. REQUIREMENT FOR CANDIDATES FOR ADMISSION TO UNITED  
          STATES NAVAL ACADEMY TO TAKE OATH OF ALLEGIANCE.                        
     (a) Requirement.--Section 6958 of title 10, United States Code, is   
  amended by adding at the end the following new subsection:              
     ``(d) To be admitted to the Naval Academy, an appointee must take and
  subscribe to an oath prescribed by the Secretary of the Navy. If a      
  candidate for admission refuses to take and subscribe to the prescribed 
  oath, the candidate's appointment is terminated.''.                     
     (b) Exception for Midshipmen From Foreign Countries.--Section 6957 of
  such title is amended by adding at the end the following new subsection:
     ``(d) A person receiving instruction under this section is not       
  subject to section 6958(d) of this title.''.                            
          SEC. 542. SERVICE ACADEMY FOREIGN EXCHANGE PROGRAM.                     
     (a) United States Military Academy.--(1) Chapter 403 of title 10,    
  United States Code, is amended by inserting after section 4344 the      
  following new section:                                                  
          ``4345. Exchange program with foreign military academies                
     ``(a) Exchange Program Authorized.--The Secretary of the Army may    
  permit a student enrolled at a military academy of a foreign country to 
  receive instruction at the Academy in exchange for a cadet receiving    
  instruction at that foreign military academy pursuant to an exchange    
  agreement entered into between the Secretary and appropriate officials  
  of the foreign country. Students receiving instruction at the Academy   
  under the exchange program shall be in addition to persons receiving    
  instruction at the Academy under section 4344 of this title.            
     ``(b) Limitations on Number and Duration of Exchanges.--An exchange  
  agreement under this section between the Secretary and a foreign country
  shall provide for the exchange of students on a one-for-one basis each  
  fiscal year. Not more than 10 cadets and a comparable number of students
  from all foreign military academies participating in the exchange       
  program may be exchanged during any fiscal year. The duration of an     
  exchange may not exceed the equivalent of one academic semester at the  
  Academy.                                                                
     ``(c) Costs and Expenses.--(1) A student from a military academy of a
  foreign country is not entitled to the pay, allowances, and emoluments  
  of a cadet by reason of attendance at the Academy under the exchange    
  program, and the Department of Defense may not incur any cost of        
  international travel required for transportation of such a student to   
  and from the sponsoring foreign country.                                
     ``(2) The Secretary may provide a student from a foreign country     
  under the exchange program, during the period of the exchange, with     
  subsistence, transportation within the continental United States,       
  clothing, health care, and other services to the same extent that the   
  foreign country provides comparable support and services to the         
  exchanged cadet in that foreign country.                                
     ``(3) The Academy shall bear all costs of the exchange program from  
  funds appropriated for the Academy. Expenditures in support of the      
  exchange program may not exceed $50,000 during any fiscal year.         
     ``(d) Application of Other Laws.--Subsections (c) and (d) of section 
  4344 of this title shall apply with respect to a student enrolled at a  
  military academy of a foreign country while attending the Academy under 
  the exchange program.                                                   
     ``(e) Regulations.--The Secretary shall prescribe regulations to     
  implement this section. Such regulations may include qualification      
  criteria and methods of selection for students of foreign military      
  academies to participate in the exchange program.''.                    
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 4344 the following new  
  item:                                                                   
      ``4345. Exchange program with foreign military academies.''.            
     (b) Naval Academy.--(1) Chapter 603 of title 10, United States Code, 
  is amended by inserting after section 6957 the following new section:   
          ``6957a. Exchange program with foreign military academies               
     ``(a) Exchange Program Authorized.--The Secretary of the Navy may    
  permit a student enrolled at a military academy of a foreign country to 
  receive instruction at the Naval Academy in exchange for a midshipman   
  receiving instruction at that foreign military academy pursuant to an   
  exchange agreement entered into between the Secretary and appropriate   
  officials of the foreign country. Students receiving instruction at the 
  Naval Academy under the exchange program shall be in addition to persons
  receiving instruction at the Academy under section 6957 of this title.  
     ``(b) Limitations on Number and Duration of Exchanges.--An exchange  
  agreement under this section between the Secretary and a foreign country
  shall provide for the exchange of students on a one-for-one basis each  
  fiscal year. Not more than 10 midshipmen and a comparable number of     
  students from all foreign military academies participating in the       
  exchange program may be exchanged during any fiscal year. The duration  
  of an exchange may not exceed the equivalent of one academic semester at
  the Naval Academy.                                                      
     ``(c) Costs and Expenses.--(1) A student from a military academy of a
  foreign country is not entitled to the pay, allowances, and emoluments  
  of a midshipman by reason of attendance at the Naval Academy under the  
  exchange program, and the Department of Defense may not incur any cost  
  of international travel required for transportation of such a student to
  and from the sponsoring foreign country.                                
     ``(2) The Secretary may provide a student from a foreign country     
  under the exchange program, during the period of the exchange, with     
  subsistence, transportation within the continental United States,       
  clothing, health care, and other services to the same extent that the   
  foreign country provides comparable support and services to the         
  exchanged midshipman in that foreign country.                           
     ``(3) The Naval Academy shall bear all costs of the exchange program 
  from funds appropriated for the Academy. Expenditures in support of the 
  exchange program may not exceed $50,000 during any fiscal year.         
     ``(d) Application of Other Laws.--Subsections (c) and (d) of section 
  6957 of this title shall apply with respect to a student enrolled at a  
  military academy of a foreign country while attending the Naval Academy 
  under the exchange program.                                             
     ``(e) Regulations.--The Secretary shall prescribe regulations to     
  implement this section. Such regulations may include qualification      
  criteria and methods of selection for students of foreign military      
  academies to participate in the exchange program.''.                    
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 6957 the following new  
  item:                                                                   
      ``6957a. Exchange program with foreign military academies.''.           
     (c) Air Force Academy.--(1) Chapter 903 of title 10, United States   
  Code, is amended by inserting after section 9344 the following new      
  section:                                                                
          ``9345. Exchange program with foreign military academies                
     ``(a) Exchange Program Authorized.--The Secretary of the Air Force   
  may permit a student enrolled at a military academy of a foreign country
  to receive instruction at the Air Force Academy in exchange for an Air  
  Force cadet receiving instruction at that foreign military academy      
  pursuant to an exchange agreement entered into between the Secretary and
  appropriate officials of the foreign country. Students receiving        
  instruction at the Academy under the exchange program shall be in       
  addition to persons receiving instruction at the Academy under section  
  9344 of this title.                                                     
     ``(b) Limitations on Number and Duration of Exchanges.--An exchange  
  agreement under this section between the Secretary and a foreign country
  shall provide for the exchange of students on a one-for-one basis each  
  fiscal year. Not more than 10 Air Force cadets and a comparable number  
  of students from all foreign military academies participating in the    
  exchange program may be exchanged during any fiscal year. The duration  
  of an exchange may not exceed the equivalent of one academic semester at
  the Air Force Academy.                                                  
     ``(c) Costs and Expenses.--(1) A student from a military academy of a
  foreign country is not entitled to the pay, allowances, and emoluments  
  of an Air Force cadet by reason of attendance at the Air Force Academy  
  under the exchange program, and the Department of Defense may not incur 
  any cost of international travel required for transportation of such a  
  student to and from the sponsoring foreign country.                     
     ``(2) The Secretary may provide a student from a foreign country     
  under the exchange program, during the period of the exchange, with     
  subsistence, transportation within the continental United States,       
  clothing, health care, and other services to the same extent that the   
  foreign country provides comparable support and services to the         
  exchanged Air Force cadet in that foreign country.                      
     ``(3) The Air Force Academy shall bear all costs of the exchange     
  program from funds appropriated for the Academy. Expenditures in support
  of the exchange program may not exceed $50,000 during any fiscal year.  
     ``(d) Application of Other Laws.--Subsections (c) and (d) of section 
  9344 of this title shall apply with respect to a student enrolled at a  
  military academy of a foreign country while attending the Air Force     
  Academy under the exchange program.                                     
     ``(e) Regulations.--The Secretary shall prescribe regulations to     
  implement this section. Such regulations may include qualification      
  criteria and methods of selection for students of foreign military      
  academies to participate in the exchange program.''.                    
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 9344 the following new  
  item:                                                                   
      ``9345. Exchange program with foreign military academies.''.            
     (d) Repeal of Obsolete Limitation.--Section 9353(a) of such title is 
  amended by striking out ``After the date of the accrediting of the      
  Academy, the'' and inserting in lieu thereof ``The''.                   
                    SEC. 543. REIMBURSEMENT OF EXPENSES INCURRED FOR INSTRUCTION  
          AT SERVICE ACADEMIES OF PERSONS FROM FOREIGN COUNTRIES.                 
     (a) United States Military Academy.--Section 4344(b) of title 10,    
  United States Code, is amended--                                        
       (1) in paragraph (2), by striking out the period at the end and     
   inserting in lieu thereof the following: ``, except that the            
   reimbursement rates may not be less than the cost to the United States  
   of providing such instruction, including pay, allowances, and           
   emoluments, to a cadet appointed from the United States.''; and         
     (2) by adding at the end the following new paragraph:                 
     ``(3) The amount of reimbursement waived under paragraph (2) may not 
  exceed 35 percent of the per-person reimbursement amount otherwise      
  required to be paid by a foreign country under such paragraph, except in
  the case of not more than five persons receiving instruction at the     
  Academy under this section at any one time.''.                          
    (b)  Naval Academy.--Section 6957(b) of such title is amended--       
       (1) in paragraph (2), by striking out the period at the end and     
   inserting in lieu thereof the following: ``, except that the            
   reimbursement rates may not be less than the cost to the United States  
   of providing such instruction, including pay, allowances, and           
   emoluments, to a midshipman appointed from the United States.''; and    
     (2) by adding at the end the following new paragraph:                 
     ``(3) The amount of reimbursement waived under paragraph (2) may not 
  exceed 35 percent of the per-person reimbursement amount otherwise      
  required to be paid by a foreign country under such paragraph, except in
  the case of not more than five persons receiving instruction at the     
  Naval Academy under this section at any one time.''.                    
    (c)  Air Force Academy.--Section 9344(b) of such title is amended--   
       (1) in paragraph (2), by striking out the period at the end and     
   inserting in lieu thereof the following: ``, except that the            
   reimbursement rates may not be less than the cost to the United States  
   of providing such instruction, including pay, allowances, and           
   emoluments, to a cadet appointed from the United States.''; and         
     (2) by adding at the end the following new paragraph:                 
     ``(3) The amount of reimbursement waived under paragraph (2) may not 
  exceed 35 percent of the per-person reimbursement amount otherwise      
  required to be paid by a foreign country under such paragraph, except in
  the case of not more than five persons receiving instruction at the     
  Academy under this section at any one time.''.                          
     (d) Effective Date.--The amendments made by this section apply with  
  respect to students from a foreign country entering the United States   
  Military Academy, the United States Naval Academy, or the United States 
  Air Force Academy on or after May 1, 1998.                              
          SEC. 544. CONTINUATION OF SUPPORT TO SENIOR MILITARY COLLEGES.          
     (a) Definition of Senior Military Colleges.--For purposes of this    
  section, the term ``senior military colleges'' means the following:     
     (1) Texas A&M University.                                             
     (2) Norwich University.                                               
     (3) The Virginia Military Institute.                                  
     (4) The Citadel.                                                      
     (5) Virginia Polytechnic Institute and State University.              
     (6) North Georgia College and State University.                       
    (b)  Findings.--Congress finds the following:                         
       (1) The senior military colleges consistently have provided         
   substantial numbers of highly qualified, long-serving leaders to the    
   Armed Forces.                                                           
       (2) The quality of the military leaders produced by the senior      
   military colleges is, in part, the result of the rigorous military      
   environment imposed on students attending the senior military colleges  
   by the colleges, as well as the result of the long-standing close       
   support relationship between the Corps of Cadets at each college and the
   Reserve Officer Training Corps personnel at the colleges who serve as   
   effective leadership role models and mentors.                           
       (3) In recognition of the quality of the young leaders produced by  
   the senior military colleges, the Department of Defense and the military
   services have traditionally maintained special relationships with the   
   colleges, including the policy to grant active duty service in the Army 
   to graduates of the colleges who desire such service and who are        
   recommended for such service by their ROTC professors of military       
   science.                                                                
       (4) Each of the senior military colleges has demonstrated an ability
   to adapt its systems and operations to changing conditions in, and      
   requirements of, the Armed Forces without compromising the quality of   
   leaders produced and without interruption of the close relationship     
   between the colleges and the Department of Defense.                     
     (c) Sense of Congress.--In light of the findings in subsection (b),  
  it is the sense of Congress that--                                      
       (1) the proposed initiative of the Secretary of the Army to end the 
   commitment to active duty service for all graduates of senior military  
   colleges who desire such service and who are recommended for such       
   service by their ROTC professors of military science is short-sighted   
   and contrary to the long-term interests of the Army;                    
       (2) as they have in the past, the senior military colleges can and  
   will continue to accommodate to changing military requirements to ensure
   that future graduates entering military service continue to be officers 
   of superb quality who are quickly assimilated by the Armed Forces and   
   fully prepared to make significant contributions to the Armed Forces    
   through extended military careers; and                                  
       (3) decisions of the Secretary of Defense or the Secretary of a     
   military department that fundamentally and unilaterally change the      
   long-standing relationship of the Armed Forces with the senior military 
   colleges are not in the best interests of the Department of Defense or  
   the Armed Forces and are patently unfair to students who made decisions 
   to enroll in the senior military colleges on the basis of existing      
   Department and Armed Forces policy.                                     
     (d) Continuation of Support for Senior Military Colleges.--Section   
  2111a of title 10, United States Code, is amended--                     
     (1) by redesignating subsection (d) as subsection (f); and            
     (2) by inserting after subsection (c) the following new subsections:  
     ``(d) Termination or Reduction of Program Prohibited.--The Secretary 
  of Defense and the Secretaries of the military departments may not take 
  or authorize any action to terminate or reduce a unit of the Senior     
  Reserve Officers' Training Corps at a senior military college unless the
  termination or reduction is specifically requested by the college.      
     ``(e) Assignment to Active Duty.--(1) The Secretary of the Army shall
  ensure that a graduate of a senior military college who desires to serve
  as a commissioned officer on active duty upon graduation from the       
  college, who is medically and physically qualified for active duty, and 
  who is recommended for such duty by the professor of military science at
  the college, shall be assigned to active duty. This paragraph shall     
  apply to                                                                
                    a member of the program at a senior military college who      
          graduates from the college after March 31, 1997.                        
     ``(2) Nothing in this section shall be construed to prohibit the     
  Secretary of the Army from requiring a member of the program who        
  graduates from a senior military college to serve on active duty.''.    
     (e) Technical Corrections.--Subsection (f) of such section, as       
  redesignated by subsection (d)(1), is amended--                         
       (1) in paragraph (2), by striking out ``College'' and inserting in  
   lieu thereof ``University''; and                                        
       (2) in paragraph (6), by inserting before the period the following: 
   ``and State University''.                                               
     (f) Clerical Amendments.--(1) The heading of such section is amended 
  to read as follows:                                                     
          ``2111a. Support for senior military colleges''.                        
     (2) The item relating to such section in the table of sections at the
  beginning of chapter 103 of title 10, United States Code, is amended to 
  read as follows:                                                        
      ``2111a. Support for senior military colleges.''.                       
                    SEC. 545. REPORT ON MAKING UNITED STATES NATIONALS ELIGIBLE   
          FOR PARTICIPATION IN SENIOR RESERVE OFFICERS' TRAINING CORPS.           
     (a) Report.--Not later than 180 days after the date of the enactment 
  of this Act, the Secretary of Defense shall submit to the Committee on  
  National Security of the House of Representatives and the Committee on  
  Armed Services of the Senate a report on the utility of permitting      
  United States nationals to participate in the Senior Reserve Officers'  
  Training Corps program.                                                 
     (b) Required Information.--The Secretary shall include in the report 
  the following information:                                              
       (1) A brief history of the prior admission of United States         
   nationals to the Senior Reserve Officers' Training Corps, including the 
   success rate of these cadets and midshipmen and how that rate compared  
   to the average success rate of cadets and midshipmen during that same   
   period.                                                                 
       (2) The advantages of permitting United States nationals to         
   participate in the Senior Reserve Officers' Training Corps program.     
       (3) The disadvantages of permitting United States nationals to      
   participate in the Senior Reserve Officers' Training Corps program.     
       (4) The incremental cost of including United States nationals in the
   Senior Reserve Officers' Training Corps.                                
       (5) Methods of minimizing the risk that United States nationals     
   admitted to the Senior Reserve Officers' Training Corps would be later  
   disqualified because of ineligibility for United States citizenship.    
       (6) The recommendations of the Secretary on whether United States   
   nationals should be eligible to participate in the Senior Reserve       
   Officers' Training Corps program, and if so, a legislative proposal     
   which would, if enacted, achieve that result.                           
                    SEC. 546. COORDINATION OF ESTABLISHMENT AND MAINTENANCE OF    
          JUNIOR RESERVE OFFICERS' TRAINING CORPS UNITS TO MAXIMIZE ENROLLMENT AND
          ENHANCE EFFICIENCY.                                                     
     (a) Requirement.--Chapter 102 of title 10, United States Code, is    
  amended by adding at the end the following new section:                 
                    ``2032. Responsibility of the Secretaries of the military     
          departments to maximize enrollment and enhance efficiency               
     ``(a) Coordination.--The Secretary of each military department, in   
  establishing, maintaining, transferring, and terminating Junior Reserve 
  Officers' Training Corps units under section 2031 of this title, shall  
  do so in a coordinated manner that is designed to maximize enrollment in
  the Corps and to enhance administrative efficiency in the management of 
  the Corps.                                                              
     ``(b) Consideration of New School Openings and Consolidations.--In   
  carrying out subsection (a), the Secretary of a military department     
  shall take into consideration--                                         
     ``(1) openings of new schools;                                        
     ``(2) consolidations of schools; and                                  
       ``(3) the desirability of continuing the opportunity for            
   participation in the Corps by participants whose continued participation
   would otherwise be adversely affected by new school openings and        
   consolidations of schools.''.                                           
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
            ``2032. Responsibility of the Secretaries of the military         
      departments to maximize enrollment and enhance efficiency.''.           
           PART II--OTHER EDUCATION MATTERS                                       
          SEC. 551. UNITED STATES NAVAL POSTGRADUATE SCHOOL.                      
     (a) Authority to Admit Enlisted Members as Students.--Section 7045 of
  title 10, United States Code, is amended--                              
     (1) in subsection (a)--                                               
     (A) by inserting ``(1)'' after ``(a)''; and                           
     (B) by adding at the end the following new paragraph:                 
     ``(2) The Secretary may permit an enlisted member of the armed forces
  who is assigned to the Naval Postgraduate School or to a nearby command 
  to receive instruction at the Naval Postgraduate School. Admission of   
  enlisted members for instruction under this paragraph shall be on a     
  space-available basis.'';                                               
     (2) in subsection (b)--                                               
       (A) by striking out ``the students'' and inserting in lieu thereof  
   ``officers''; and                                                       
       (B) by adding at the end the following new sentence: ``In the case  
   of an enlisted member permitted to receive instruction at the           
   Postgraduate School, the Secretary of the Navy shall charge that member 
   only for such costs and fees as the Secretary considers appropriate     
   (taking into consideration the admission of enlisted members on a       
   space-available basis).''; and                                          
     (3) in subsection (c)--                                               
       (A) by striking out ``officers'' both places it appears and         
   inserting in lieu thereof ``members''; and                              
       (B) by striking out ``same regulations'' and inserting in lieu      
   thereof ``such regulations, as determined appropriate by the Secretary  
   of the Navy,''.                                                         
     (b) Clerical Amendments.--(1) The heading of section 7045 of such    
  title is amended to read as follows:                                    
                    ``7045. Officers of the other armed forces; enlisted members: 
          admission''.                                                            
     (2) The item relating to section 7045 in the table of sections at the
  beginning of chapter 605 of such title is amended to read as follows:   
            ``7045. Officers of the other armed forces; enlisted members:     
      admission.''.                                                           
     (c) Amendment To Reflect Revised Civil Service Grade                 
  Structure.--Section 7043(b) of such title is amended by striking out    
  ``grade GS 18 of the General Schedule under section 5332 of title 5''   
  and inserting in lieu thereof ``level IV of the Executive Schedule''.   
          SEC. 552. COMMUNITY COLLEGE OF THE AIR FORCE.                           
     (a) Expansion of Members Eligible for Program To Include Instructors 
  at Air Force Training Schools.--Section 9315 of title 10, United States 
  Code, is amended--                                                      
       (1) in subsection (a)(1), by striking out ``enlisted members of the 
   Air Force'' and inserting in lieu thereof ``enlisted members described  
   in subsection (b)'';                                                    
       (2) by striking out ``(b) Subject to subsection (c),'' and inserting
   in lieu thereof ``(c)(1) Subject to paragraph (2),'';                   
       (3) by redesignating subsection (c) as paragraph (2) and in that    
   paragraph redesignating clauses (1) and (2) as clauses (A) and (B),     
   respectively; and                                                       
       (4) by inserting after subsection (a) the following new subsection  
   (b):                                                                    
     ``(b) Members Eligible for Programs.--Subject to such other          
  eligibility requirements as the Secretary concerned may prescribe, the  
  following members of the armed forces are eligible to participate in    
  programs of higher education under subsection (a)(1):                   
     ``(1) Enlisted members of the Air Force.                              
       ``(2) Enlisted members of the armed forces other than the Air Force 
   who are serving as instructors at Air Force training schools.''.        
    (b)  Clerical Amendments.--Such section is further amended--          
       (1) in subsection (a), by inserting `` Establishment and            
   Mission.--'' after ``(a)''; and                                         
       (2) in subsection (c), as redesignated by subsection (a)(2), by     
   inserting `` Conferral of Degrees.--'' after ``(c)''.                   
     (c) Effective Date.--Subsection (b) of section 9315 of such title, as
  added by subsection (a)(4), applies with respect to enrollments in the  
  Community College of the Air Force after March 31, 1996.                
                    SEC. 553. PRESERVATION OF ENTITLEMENT TO EDUCATIONAL          
          ASSISTANCE OF MEMBERS OF THE SELECTED RESERVE SERVING ON ACTIVE DUTY IN 
          SUPPORT OF A CONTINGENCY OPERATION.                                     
     (a) Preservation of Educational Assistance.--Section                 
  16131(c)(3)(B)(i) of title 10, United States Code, is amended by        
  striking out ``, in connection with the Persian Gulf War,''.            
     (b) Extension of 10- Year Period of Availability.--Section           
  16133(b)(4) of such title is amended--                                  
     (1) by striking out ``(A)'';                                          
     (2) by striking out ``, during the Persian Gulf War,'';               
       (3) by redesignating clauses (i) and (ii) as subparagraphs (A) and  
   (B), respectively; and                                                  
       (4) by striking out ``(B) For the purposes'' and all that follows   
   through ``title 38.''.                                                  
           PART III--TRAINING OF ARMY DRILL SERGEANTS                             
          SEC. 556. REFORM OF ARMY DRILL SERGEANT SELECTION AND TRAINING PROCESS. 
     (a) In General.--The Secretary of the Army shall reform the process  
  for selection and training of drill sergeants for the Army.             
     (b) Measures To Be Taken.--As part of such reform, the Secretary     
  shall undertake the following measures (unless, in the case of any such 
  measure, the Secretary determines that that measure would not result in 
  improved effectiveness and efficiency in the drill sergeant selection   
  and training process):                                                  
       (1) Review the overall process used by the Department of the Army   
   for selection of drill sergeants to determine--                         
       (A) whether that process is providing drill sergeant candidates in  
   sufficient quantity and quality to meet the needs of the training       
   system; and                                                             
       (B) whether duty as a drill sergeant is a career-enhancing          
   assignment (or is seen by potential drill sergeant candidates as a      
   career-enhancing assignment) and what steps could be taken to ensure    
   that such duty is in fact a career-enhancing assignment.                
       (2) Incorporate into the selection process for all drill sergeants  
   the views and recommendations of the officers and senior noncommissioned
   officers in the chain of command of each candidate for selection        
   (particularly those of senior noncommissioned officers) regarding the   
   candidate's suitability and qualifications to be a drill sergeant.      
       (3) Establish a requirement for psychological screening for each    
   drill sergeant candidate.                                               
       (4) Reform the psychological screening process for drill sergeant   
   candidates to improve the quality, depth, and rigor of that screening   
   process.                                                                
       (5) Revise the evaluation system for drill sergeants in training to 
   provide for a so-called ``whole person'' assessment that gives insight  
   into the qualifications and suitability of a drill sergeant candidate   
   beyond the candidate's ability to accomplish required performance tasks.
       (6) Revise the Army military personnel records system so that, under
   conditions and circumstances to be specified in regulations prescribed  
   by the Secretary, a drill sergeant trainee who fails to complete the    
   training to be a drill sergeant and is denied graduation will not have  
   the fact of that failure recorded in those personnel records.           
       (7) Provide each drill sergeant in training with the opportunity,   
   before or during that training, to work with new recruits in initial    
   entry training and to be evaluated on that opportunity.                 
     (c) Report.--Not later than March 31, 1998, the Secretary shall      
  submit to the Committee on National Security of the House of            
  Representatives and the Committee on Armed Services of the Senate a     
  report of the reforms adopted pursuant to this section or, in the case  
  of any measure specified in any of paragraphs (1) through (7) of        
  subsection (b) that was not adopted, the rationale why that measure was 
  not adopted.                                                            
                    SEC. 557. TRAINING IN HUMAN RELATIONS MATTERS FOR ARMY DRILL  
          SERGEANT TRAINEES.                                                      
     (a) In General.--(1) Chapter 401 of title 10, United States Code, is 
  amended by adding at the end the following new section:                 
          ``4318. Drill sergeant trainees: human relations training               
     ``(a) Human Relations Training Required.--The Secretary of the Army  
  shall include as part of the training program for drill sergeants a     
  course in human relations. The course shall be a minimum of two days in 
  duration.                                                               
     ``(b) Resources.--In developing a human relations course under this  
  section, the Secretary shall use the capabilities and expertise of the  
  Defense Equal Opportunity Management Institute (DEOMI).''.              
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
      ``4318. Drill sergeant trainees: human relations training.''.           
     (b) Effective Date.--Section 4318 of title 10, United States Code, as
  added by subsection (a), shall apply with respect to drill sergeant     
  trainee classes that begin after the end of the 90 day period beginning 
  on the date of the enactment of this Act.                               
           Subtitle F--Commission on Military Training and Gender-Related Issues   
          SEC. 561. ESTABLISHMENT AND COMPOSITION OF COMMISSION.                  
     (a) Establishment.--There is established a Commission on Military    
  Training and Gender-Related Issues to review requirements and           
  restrictions regarding cross-gender relationships of members of the     
  Armed Forces, to review the basic training programs of the Army, Navy,  
  Air Force, and Marine Corps, and to make recommendations on improvements
  to those programs, requirements, and restrictions.                      
     (b) Composition.--(1) The commission shall be composed of 10 members,
  appointed as follows:                                                   
       (A) Five members shall be appointed jointly by the chairman and     
   ranking minority party member of the Committee on National Security of  
   the House of Representatives.                                           
       (B) Five members shall be appointed jointly by the chairman and     
   ranking minority party member of the Committee on Armed Services of the 
   Senate.                                                                 
     (2) The members of the commission shall choose one of the members to 
  serve as chairman.                                                      
     (3) All members of the commission shall be appointed not later than  
  45 days after the date of the enactment of this Act.                    
     (c) Qualifications.--Members of the commission shall be appointed    
  from among private United States citizens with knowledge and expertise  
  in one or more of the following:                                        
     (1) Training of military personnel.                                   
       (2) Social and cultural matters affecting entrance into the Armed   
   Forces and affecting military service, military training, and military  
   readiness, such knowledge and expertise to have been gained through     
   recognized research, policy making and practical experience, as         
   demonstrated by retired military personnel, members of the reserve      
   components of the Armed Forces, representatives from educational        
   organizations, and leaders from civilian industry and other Government  
   agencies.                                                               
       (3) Factors that define appropriate military job qualifications,    
   including physical, mental, and educational factors.                    
     (4) Combat or other theater of war operations.                        
     (5) Organizational matters.                                           
     (6) Legal matters.                                                    
     (7) Management.                                                       
     (8) Gender integration matters.                                       
     (d) Appointments.--(1) Members of the commission shall be appointed  
  for the life of the commission.                                         
     (2) A vacancy in the membership shall not affect the commission's    
  powers, but shall be filled in the same manner as the original          
  appointment.                                                            
          SEC. 562. DUTIES.                                                       
     (a) Functions Relating to Requirements and Restrictions Regarding    
  Cross-Gender Relationships.--The commission shall consider issues       
  relating to personal relationships of members of the Armed Forces as    
  follows:                                                                
       (1) Review the laws, regulations, policies, directives, and         
   practices that govern personal relationships between men and women in   
   the Armed Forces and personal relationships between members of the Armed
   Forces and non-military personnel of the opposite sex.                  
       (2) Assess the extent to which the laws, regulations, policies, and 
   directives have been applied consistently throughout the Armed Forces   
   without regard to the armed force, grade, rank, or gender of the        
   individuals involved.                                                   
       (3) Assess the reports of the independent panel, the Department of  
   Defense task force, and the review of existing guidance on              
   fraternization and adultery that have been required by the Secretary of 
   Defense.                                                                
     (b) Functions Relating to Gender-Integrated and Gender-Segregated    
  Basic Training.--(1) The commission shall review the parts of the       
  initial entry training programs of the Army, Navy, Air Force, and Marine
  Corps that constitute the basic training of new recruits (in this       
  subtitle referred to as ``basic training''). The review shall include a 
  review of the basic training policies and practices of each of those    
  services with regard to gender-integrated and gender-segregated basic   
  training and, for each of the services, the effectiveness of            
  gender-integrated and gender-segregated basic training.                 
     (2) As part of the review under paragraph (1), the commission shall  
  (with respect to each of the services) take the following measures:     
       (A) Determine how each service defines gender-integration and       
   gender-segregation in the context of basic training.                    
       (B) Determine the historical rationales for the establishment and   
   disestablishment of gender-integrated or gender-segregated basic        
   training.                                                               
       (C) Examine, with respect to each service, the current rationale for
   the use of gender-integrated or gender-segregated basic training and the
   rationale that was current as of the time the service made a decision to
   integrate, or to segregate, basic training by gender (or as of the time 
   of the most recent decision to continue to use a gender-integrated      
   format or a gender-segregated format for basic training), and, as part  
   of the examination, evaluate whether at the time of that decision, the  
   Secretary of the military department with jurisdiction over that service
   had substantive reason to believe, or has since developed data to       
   support, that gender-integrated basic training, or gender-segregated    
   basic training, improves the readiness or performance of operational    
   units.                                                                  
       (D) Assess whether the concept of ``training as you will fight'' is 
   a valid rationale for gender-integrated basic training or whether the   
   training requirements and objectives for basic training are sufficiently
   different from those of operational units so that such concept, when    
   balanced against other factors relating to basic training, might not be 
   a sufficient rationale for gender-integrated basic training.            
       (E) Identify the requirements unique to each service that could     
   affect a decision by the Secretary concerned to adopt a                 
   gender-integrated or gender-segregated format for basic training and    
   assess whether the format in use by each service has been successful in 
   meeting those requirements.                                             
       (F) Assess, with respect to each service, the degree to which       
   different standards have been established, or if not established are in 
   fact being implemented, for males and females in basic training for     
   matters such as physical fitness, physical performance (such as         
   confidence and obstacle courses), military skills (such as marksmanship 
   and hand-grenade qualifications), and nonphysical tasks required of     
   individuals and, to the degree that differing standards exist or are in 
   fact being implemented, assess the effect of the use of those differing 
   standards.                                                              
       (G) Identify the goals that each service has set forth in regard to 
   readiness, in light of the gender-integrated or gender-segregated format
   that such service has adopted for basic training, and whether that      
   format contributes to the readiness of operational units.               
       (H) Assess the degree to which performance standards in basic       
   training are based on military readiness.                               
       (I) Evaluate the policies of each of the services regarding the     
   assignment of adequate numbers of female drill instructors in           
   gender-integrated training units who can serve as role models and       
   mentors for female trainees.                                            
       (J) Review Department of Defense and military department efforts to 
   objectively measure or evaluate the effectiveness of gender-integrated  
   basic training, as compared to gender-segregated basic training,        
   particularly with regard to the adequacy and scope of the efforts and   
   with regard to the relevancy of findings to operational unit            
   requirements, and determine whether the Department of Defense and the   
   military departments are capable of measuring or evaluating the         
   effectiveness of that training format objectively.                      
       (K) Compare the pattern of attrition in gender-integrated basic     
   training units with the pattern of attrition in gender-segregated basic 
   training units and assess the relevancy of the findings of such         
   comparison.                                                             
       (L) Compare the level of readiness and morale of gender-integrated  
   basic training units with the level of readiness and morale of          
   gender-segregated units, and assess the relevancy of the findings of    
   such comparison and the implications, for readiness, of any differences 
   found.                                                                  
       (M) Compare the experiences, policies, and practices of the armed   
   forces of other industrialized nations regarding gender-integrated      
   training with those of the Army, Navy, Air Force, and Marine Corps.     
       (N) Review, and take into consideration, the current practices,     
   relevant studies, and private sector training concepts pertaining to    
   gender-integrated training.                                             
       (O) Assess the feasibility and implications of conducting basic     
   training (or equivalent training) at the company level and below through
   separate units for male and female recruits, including the costs and    
   other resource commitments required to implement and conduct basic      
   training in such a manner and the implications for readiness and unit   
   cohesion.                                                               
       (P) Assess the feasibility and implications of requiring drill      
   instructors for basic training units to be of the same sex as the       
   recruits in those units if the basic training were to be conducted as   
   described in subparagraph (O).                                          
     (c) Functions Relating to Basic Training Programs Generally.--The    
  commission shall review the course objectives, structure, and length of 
  the basic training programs of the Army, Navy, Air Force, and Marine    
  Corps. The commission shall also review the relationship between those  
  basic training objectives and the advanced training provided in the     
  initial entry training programs of each of those services. As part of   
                    that review, the commission shall (with respect to each of    
          those services) take the following measures:                            
       (1) Determine the current end-state objectives established for      
   graduates of basic training, particularly in regard to--                
     (A) physical conditioning;                                            
     (B) technical and physical skills proficiency;                        
     (C) knowledge;                                                        
       (D) military socialization, including the inculcation of service    
   values and attitudes; and                                               
     (E) basic combat operational requirements.                            
       (2) Assess whether those current end-state objectives, and basic    
   training itself, should be modified (in structure, length, focus,       
   program of instruction, training methods or otherwise) based, in part,  
   on the following:                                                       
       (A) An assessment of the perspectives of operational units on the   
   quality and qualifications of the initial entry training graduates being
   assigned to those units, considering in particular whether the basic    
   training system produces graduates who arrive in operational units with 
   an appropriate level of skills, physical conditioning, and degree of    
   military socialization to meet unit requirements and needs.             
       (B) An assessment of the demographics, backgrounds, attitudes,      
   experience, and physical fitness of new recruits entering basic         
   training, considering in particular the question of whether, given the  
   entry level demographics, education, and background of new recruits, the
   basic training systems and objectives are most efficiently and          
   effectively structured and conducted to produce graduates who meet      
   service needs.                                                          
       (C) An assessment of the perspectives of personnel who conduct basic
   training with regard to measures required to improve basic training.    
       (3) Assess the extent to which the initial entry training programs  
   of each of the services continue, after the basic training phases of the
   programs, effectively to reinforce and advance the military             
   socialization (including the inculcation of service values and          
   attitudes), the physical conditioning, and the attainment and           
   improvement of knowledge and proficiency in fundamental military skills 
   that are begun in basic training.                                       
    (d)  Recommendations.--The commission shall prepare--                 
       (1) with respect to each of the Army, Navy, Air Force, and Marine   
   Corps, an evaluation of gender-integrated and gender-segregated basic   
   training programs, based upon the review under subsection (b);          
       (2) recommendations for such changes to the current system of basic 
   training as the commission considers warranted; and                     
       (3) recommendations for such changes to laws, regulations, policies,
   directives, and practices referred to in subsection (a)(1) as the       
   commission considers warranted.                                         
     (e) Reports.--(1) Not later than April 15, 1998, the commission shall
  submit to the Committee on Armed Services of the Senate and the         
  Committee on National Security of the House of Representatives a report 
  setting forth a strategic plan for the work of the commission and the   
  activities and initial findings of the commission.                      
     (2) Not later than September 16, 1998, the commission shall submit a 
  final report to the Committee on Armed Services of the Senate and the   
  Committee on National Security of the House of Representatives. The     
  final report shall set forth the activities, findings, and              
  recommendations of the commission, including any recommendations for    
  congressional action and administrative action that the commission      
  considers appropriate. The report shall specifically set forth the views
  of the Secretaries of the military departments regarding the matters    
  described in subparagraphs (O) and (P) of subsection (b)(2).            
          SEC. 563. ADMINISTRATIVE MATTERS.                                       
     (a) Meetings.--(1) The commission shall hold its first meeting not   
  later than 30 days after the date on which all members have been        
  appointed.                                                              
    (2) The commission shall meet upon the call of the chairman.          
     (3) A majority of the members of the commission shall constitute a   
  quorum, but a lesser number may hold meetings.                          
     (b) Authority of Individuals To Act for Commission.--Any member or   
  agent of the commission may, if authorized by the commission, take any  
  action which the commission is authorized to take under this title.     
     (c) Powers.--(1) The commission may hold such hearings, sit and act  
  at such times and places, take such testimony, and receive such evidence
  as the commission considers advisable to carry out its duties.          
     (2) The commission may secure directly from the Department of Defense
  and any other department or agency of the Federal Government such       
  information as the commission considers necessary to carry out its      
  duties. Upon the request of the chairman of the commission, the head of 
  a department or agency shall furnish the requested information          
  expeditiously to the commission.                                        
     (3) The commission may use the United States mails in the same manner
  and under the same conditions as other departments and agencies of the  
  Federal Government.                                                     
     (d) Pay and Expenses of Commission Members.--(1) Each member of the  
  commission who is not an employee of the Government shall be paid at a  
  rate equal to the daily equivalent of the annual rate of basic pay      
  prescribed for level IV of the Executive Schedule under section 5315 of 
  title 5, United States Code, for each day (including travel time) during
  which such member is engaged in performing the duties of the commission.
     (2) Members and personnel of the commission may travel on aircraft,  
  vehicles, or other conveyances of the Armed Forces when travel is       
  necessary in the performance of a duty of the commission except when the
  cost of commercial transportation is less expensive.                    
     (3) The members of the commission may be allowed travel expenses,    
  including per diem in lieu of subsistence, at rates authorized for      
  employees of agencies under subchapter I of chapter 57 of title 5,      
  United States Code, while away from their homes or regular places of    
  business in the performance of services for the commission.             
     (4)(A) A member of the commission who is an annuitant otherwise      
  covered by section 8344 or 8468 of title 5, United States Code, by      
  reason of membership on the commission shall not be subject to the      
  provisions of such section with respect to such membership.             
     (B) A member of the commission who is a member or former member of a 
  uniformed service shall not be subject to the provisions of subsections 
  (b) and (c) of section 5532 of such title with respect to membership on 
  the commission.                                                         
     (e) Staff and Administrative Support.--(1) The chairman of the       
  commission may, without regard to civil service laws and regulations,   
  appoint and terminate an executive director and up to three additional  
  staff members as necessary to enable the commission to perform its      
  duties. The chairman of the commission may fix the compensation of the  
  executive director and other personnel without regard to the provisions 
  of chapter 51, and subchapter III of chapter 53, of title 5, United     
  States Code, relating to classification of positions and General        
  Schedule pay rates, except that the rate of pay may not exceed the      
  maximum rate of pay for grade GS 15 under the General Schedule.         
     (2) Upon the request of the chairman of the commission, the head of  
  any department or agency of the Federal Government may detail, without  
  reimbursement, any personnel of the department or agency to the         
  commission to assist in carrying out its duties. A detail of an employee
  shall be without interruption or loss of civil service status or        
  privilege.                                                              
     (3) The chairman of the commission may procure temporary and         
  intermittent services under section 3109(b) of title 5, United States   
  Code, at rates for individuals that do not exceed the daily equivalent  
  of the annual rate of basic pay prescribed for level IV of the Executive
  Schedule under section 5315 of such title.                              
     (4) The Secretary of Defense shall furnish to the commission such    
  administrative and support services as may be requested by the chairman 
  of the commission.                                                      
          SEC. 564. TERMINATION OF COMMISSION.                                    
     The commission shall terminate 60 days after the date on which it    
  submits the final report under section 562(e)(2).                       
          SEC. 565. FUNDING.                                                      
     (a) From Department of Defense Appropriations.--Upon the request of  
  the chairman of the commission, the Secretary of Defense shall make     
  available to the commission, out of funds appropriated for the          
  Department of Defense, such amounts as the commission may require to    
  carry out its duties.                                                   
     (b) Period of Availability.--Funds made available to the commission  
  shall remain available, without fiscal year limitation, until the date  
  on which the commission terminates.                                     
          SEC. 566. SUBSEQUENT CONSIDERATION BY CONGRESS.                         
     After receipt of each report of the commission under section 562(e), 
  Congress shall consider the report and, based upon the results of the   
  review (and such other matters as Congress considers appropriate),      
  consider whether to require by law that the Secretaries of the military 
  departments conduct basic training on a gender-segregated or            
  gender-integrated basis.                                                
           Subtitle G--Military Decorations and Awards                             
                    SEC. 571. PURPLE HEART TO BE AWARDED ONLY TO MEMBERS OF THE   
          ARMED FORCES.                                                           
     (a) In General.--(1) Chapter 57 of title 10, United States Code, is  
  amended by adding at the end the following new section:                 
          ``1131. Purple Heart: limitation to members of the armed forces         
     ``The decoration known as the Purple Heart (authorized to be awarded 
  pursuant to Executive Order 11016) may only be awarded to a person who  
  is a member of the armed forces at the time the person is killed or     
  wounded under circumstances otherwise qualifying that person for award  
  of the Purple Heart.''.                                                 
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
      ``1131. Purple Heart: limitation to members of the armed forces.''.     
     (b) Effective Date.--Section 1131 of title 10, United States Code, as
  added by subsection (a), shall apply with respect to persons who are    
  killed or wounded after the end of the 180-day period beginning on the  
  date of the enactment of this Act.                                      
                    SEC. 572. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL FOR
          PARTICIPATION IN OPERATION JOINT ENDEAVOR OR OPERATION JOINT GUARD.     
     (a) Inclusion of Operations.--For the purpose of determining the     
  eligibility of members and former members of the Armed Forces for the   
  Armed Forces Expeditionary Medal, the Secretary of Defense shall        
  designate participation in Operation Joint Endeavor or Operation Joint  
  Guard in the Republic of Bosnia and Herzegovina, and in such other areas
  in the region as the Secretary considers appropriate, as service in an  
  area that meets the general requirements for the award of that medal.   
     (b) Individual Determination.--The Secretary of the military         
  department concerned shall determine whether individual members or      
  former members of the Armed Forces who participated in Operation Joint  
  Endeavor or Operation Joint Guard meet the individual service           
  requirements for award of the Armed Forces Expeditionary Medal as       
  established in applicable regulations. A member or former member shall  
  be considered to have participated in Operation Joint Endeavor or       
  Operation Joint Guard if the member--                                   
       (1) was deployed in the Republic of Bosnia and Herzegovina, or in   
   such other area in the region as the Secretary of Defense considers     
   appropriate, in direct support of one or both of the operations;        
       (2) served on board a United States naval vessel operating in the   
   Adriatic Sea in direct support of one or both of the operations; or     
       (3) operated in airspace above the Republic of Bosnia and           
   Herzegovina, or in such other area in the region as the Secretary of    
   Defense considers appropriate, while the operations were in effect.     
    (c)  Operations Defined.--For purposes of this section:               
       (1) The term ``Operation Joint Endeavor'' means operations of the   
   United States Armed Forces conducted in the Republic of Bosnia and      
   Herzegovina during the period beginning on November 20, 1995, and ending
   on December 20, 1996, to assist in implementing the General Framework   
   Agreement and Associated Annexes, initialed on November 21, 1995, in    
   Dayton, Ohio.                                                           
       (2) The term ``Operation Joint Guard'' means operations of the      
   United States Armed Forces conducted in the Republic of Bosnia and      
   Herzegovina as a successor to Operation Joint Endeavor during the period
   beginning on December 20, 1996, and ending on such date as the Secretary
   of Defense may designate.                                               
                    SEC. 573. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN     
          DECORATIONS TO SPECIFIED PERSONS.                                       
     (a) Waiver of Time Limitation.--Any limitation established by law or 
  policy for the time within which a recommendation for the award of a    
  military decoration or award must be submitted shall not apply in the   
  case of awards of decorations described in subsections (b), (c), and    
  (d), the award of each such decoration having been determined by the    
  Secretary of the military department concerned to be warranted in       
  accordance with section 1130 of title 10, United States Code.           
     (b) Silver Star Medal.--Subsection (a) applies to the award of the   
  Silver Star Medal as follows:                                           
       (1) To Joseph M. Moll, Jr. of Milford, New Jersey, for service      
   during World War II.                                                    
       (2) To Philip Yolinsky of Hollywood, Florida, for service during the
   Korean Conflict.                                                        
     (3) To Robert Norman of Reno, Nevada, for service during World War II.
     (c) Navy and Marine Corps Medal.--Subsection (a) applies to the award
  of the Navy and Marine Corps Medal to Gary A. Gruenwald of Damascus,    
  Maryland, for service in Tunisia in October 1977.                       
     (d) Distinguished Flying Cross.--Subsection (a) applies to awards of 
  the Distinguished Flying Cross for service during World War II or Korea 
  (including multiple awards to the same individual) in the case of each  
  individual concerning whom the Secretary of the Navy (or an officer of  
  the Navy acting on behalf of the Secretary) submitted to the Committee  
  on National Security of the House of Representatives and the Committee  
  on Armed Services of the Senate, before the date of the enactment of    
  this Act, a notice as provided in section 1130(b) of title 10, United   
  States Code, that the award of the Distinguished Flying Cross to that   
  individual is warranted and that a waiver of time restrictions          
  prescribed by law for recommendation for such award is recommended.     
                    SEC. 574. CLARIFICATION OF ELIGIBILITY OF MEMBERS OF READY    
          RESERVE FOR AWARD OF SERVICE MEDAL FOR HEROISM.                         
     (a) Soldier's Medal.--Section 3750(a) of title 10, United States     
  Code, is amended--                                                      
     (1) by inserting ``(1)'' after ``(a)''; and                           
     (2) by adding at the end the following new paragraph:                 
     ``(2) The authority in paragraph (1) includes authority to award the 
  medal to a member of the Ready Reserve who was not in a duty status     
  defined in section 101(d) of this title when the member distinguished   
  himself by heroism.''.                                                  
     (b) Navy and Marine Corps Medal.--Section 6246 of such title is      
  amended--                                                               
     (1) by designating the text of the section as subsection (a); and     
     (2) by adding at the end the following new subsection:                
     ``(b) The authority in subsection (a) includes authority to award the
  medal to a member of the Ready Reserve who was not in a duty status     
  defined in section 101(d) of this title when the member distinguished   
  himself by heroism.''.                                                  
    (c)  Airman's Medal.--Section 8750(a) of such title is amended--      
     (1) by inserting ``(1)'' after ``(a)''; and                           
     (2) by adding at the end the following new paragraph:                 
     ``(2) The authority in paragraph (1) includes authority to award the 
  medal to a member of the Ready Reserve who was not in a duty status     
  defined in section 101(d) of this title when the member distinguished   
  himself by heroism.''.                                                  
                    SEC. 575. ONE-YEAR EXTENSION OF PERIOD FOR RECEIPT OF         
          RECOMMENDATIONS FOR DECORATIONS AND AWARDS FOR CERTAIN MILITARY         
          INTELLIGENCE PERSONNEL.                                                 
     Section 523(b)(1) of the National Defense Authorization Act for      
  Fiscal Year 1996 (Public Law 104 106; 110 Stat. 311; 10 U.S.C. 1130     
  note) is amended by striking out ``during the one-year period beginning 
  on the date of the enactment of this Act'' and inserting in lieu thereof
  ``during the period beginning on February 10, 1996, and ending on       
  February 9, 1998''.                                                     
                    SEC. 576. ELIGIBILITY OF CERTAIN WORLD WAR II MILITARY        
          ORGANIZATIONS FOR AWARD OF UNIT DECORATIONS.                            
     (a) Authority.--A unit decoration may be awarded for any unit or     
  other organization of the Armed Forces (such as the Military            
  Intelligence Service of the Army) that (1) supported the planning or    
  execution of combat operations during World War II primarily through    
  unit personnel who were attached to other units of the Armed Forces or  
  of other allied armed forces, and (2) is not otherwise eligible for     
  award of the decoration by reason of not usually having been deployed as
  a unit in support of such operations.                                   
     (b) Time for Submission of Recommendation.--Any recommendation for   
  award of a unit decoration under subsection (a) shall be submitted to   
  the Secretary concerned (as defined in section 101(a)(9) of title 10,   
  United States Code), or to such other official as the Secretary         
  concerned may designate, not later than two years after the date of the 
  enactment of this Act.                                                  
          SEC. 577. RETROACTIVITY OF MEDAL OF HONOR SPECIAL PENSION.              
     (a) Entitlement.--In the case of Vernon J. Baker, Edward A. Carter,  
  Junior, and Charles L. Thomas, who were awarded the Medal of Honor      
  pursuant to section 561 of Public Law 104 201 (110 Stat. 2529) and whose
  names have been entered and recorded on the Army, Navy, Air Force, and  
  Coast Guard Medal of Honor Roll, the entitlement of those persons to the
  special pension provided under section 1562 of title 38, United States  
  Code (and antecedent provisions of law), shall be effective as follows: 
       (1) In the case of Vernon J. Baker, for months that begin after     
   April 1945.                                                             
       (2) In the case of Edward A. Carter, Junior, for months that begin  
   after March 1945.                                                       
       (3) In the case of Charles L. Thomas, for months that begin after   
   December 1944.                                                          
     (b) Amount.--The amount of the special pension payable under         
  subsection (a) for a month beginning before the date of the enactment of
  this Act shall be the amount of the special pension provided by law for 
  that month for persons entered and recorded on the Army, Navy, Air      
  Force, and Coast Guard Medal of Honor Roll (or an antecedent Medal of   
  Honor Roll required by law).                                            
     (c) Payment to Next of Kin.--In the case of a person referred to in  
  subsection (a) who died before receiving full payment of the pension    
  pursuant to this section, the Secretary of Veterans Affairs shall pay   
  the total amount of the accrued pension, upon receipt of application for
  payment within one year after the date of the enactment of this Act, to 
  the deceased person's spouse or, if there is no surviving spouse, then  
  to the deceased person's children, per stirpes, in equal shares.        
           Subtitle H--Military Justice Matters                                    
                    SEC. 581. ESTABLISHMENT OF SENTENCE OF CONFINEMENT FOR LIFE   
          WITHOUT ELIGIBILITY FOR PAROLE.                                         
     (a) Establishment of Sentence.--(1) Chapter 47 of title 10, United   
  States Code (the Uniform Code of Military Justice), is amended by       
  inserting after section 856 (article 56) the following new section      
  (article):                                                              
                    ``856a. Art. 56a. Sentence of confinement for life without    
          eligibility for parole                                                  
     ``(a) For any offense for which a sentence of confinement for life   
  may be adjudged, a court-martial may adjudge a sentence of confinement  
  for life without eligibility for parole.                                
     ``(b) An accused who is sentenced to confinement for life without    
  eligibility for parole shall be confined for the remainder of the       
  accused's life unless--                                                 
     ``(1) the sentence is set aside or otherwise modified as a result of--
       ``(A) action taken by the convening authority, the Secretary        
   concerned, or another person authorized to act under section 860 of this
   title (article 60); or                                                  
       ``(B) any other action taken during post-trial procedure and review 
   under any other provision of subchapter IX;                             
       ``(2) the sentence is set aside or otherwise modified as a result of
   action taken by a Court of Criminal Appeals, the Court of Appeals for   
   the Armed Forces, or the Supreme Court; or                              
     ``(3) the accused is pardoned.''.                                     
     (2) The table of sections at the beginning of subchapter VIII of such
  chapter is amended by inserting after the item relating to section 856  
  (article 56) the following new item:                                    
            ``856a. 56a. Sentence of confinement for life without eligibility 
      for parole.''.                                                          
     (b) Effective Date.--Section 856a of title 10, United States Code    
  (article 56a of the Uniform Code of Military Justice), as added by      
  subsection (a), shall be applicable only with respect to an offense     
  committed after the date of the enactment of this Act.                  
                    SEC. 582. LIMITATION ON APPEAL OF DENIAL OF PAROLE FOR        
          OFFENDERS SERVING LIFE SENTENCE.                                        
     (a) Exclusive Authority To Grant Parole on Appeal of Denial.--Section
  952 of title 10, United States Code, is amended--                       
     (1) by inserting ``(a)'' before ``The Secretary''; and                
     (2) by adding at the end the following new subsection:                
     ``(b) In a case in which parole for an offender serving a sentence of
  confinement for life is denied, only the President or the Secretary     
  concerned may grant the offender parole on appeal of that denial. The   
  authority to grant parole on appeal in such a case may not be           
  delegated.''.                                                           
     (b) Effective Date.--Subsection (b) of section 952 of title 10,      
  United States Code (as added by subsection (a)), shall apply only with  
  respect to any decision to deny parole made after the date of the       
  enactment of this Act.                                                  
           Subtitle I--Other Matters                                               
          SEC. 591. SEXUAL HARASSMENT INVESTIGATIONS AND REPORTS.                 
     (a) Investigations.--(1) Part II of subtitle A of title 10, United   
  States Code, is amended by inserting after chapter 79 the following new 
  chapter:                                                                
           ``CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES
      ``Sec.                                                                  
            ``1561. Complaints of sexual harassment: investigation by         
      commanding officers.                                                    
                    ``1561. Complaints of sexual harassment: investigation by     
          commanding officers                                                     
     ``(a) Action on Complaints Alleging Sexual Harassment.--A commanding 
  officer or officer in charge of a unit, vessel, facility, or area of the
  Army, Navy, Air Force, or Marine Corps who receives from a member of the
  command or a civilian employee under the supervision of the officer a   
  complaint alleging sexual harassment by a member of the armed forces or 
  a civilian employee of the Department of Defense shall carry out an     
  investigation of the matter in accordance with this section.            
     ``(b) Commencement of Investigation.--To the extent practicable, a   
  commanding officer or officer in charge receiving such a complaint      
  shall, within 72 hours after receipt of the complaint--                 
       ``(1) forward the complaint or a detailed description of the        
   allegation to the next superior officer in the chain of command who is  
   authorized to convene a general court-martial;                          
       ``(2) commence, or cause the commencement of, an investigation of   
   the complaint; and                                                      
     ``(3) advise the complainant of the commencement of the investigation.
     ``(c) Duration of Investigation.--To the extent practicable, a       
  commanding officer or officer in charge receiving such a complaint shall
  ensure that the investigation of the complaint is completed not later   
  than 14 days after the date on which the investigation is commenced.    
     ``(d) Report on Investigation.--To the extent practicable, a         
  commanding officer or officer in charge receiving such a complaint      
  shall--                                                                 
       ``(1) submit a final report on the results of the investigation,    
   including any action taken as a result of the investigation, to the next
   superior officer referred to in subsection (b)(1) within 20 days after  
   the date on which the investigation is commenced; or                    
       ``(2) submit a report on the progress made in completing the        
   investigation to the next superior officer referred to in subsection    
   (b)(1) within 20 days after the date on which the investigation is      
   commenced and every 14 days thereafter until the investigation is       
   completed and, upon completion of the investigation, then submit a final
   report on the results of the investigation, including any action taken  
   as a result of the investigation, to that next superior officer.        
     ``(e) Sexual Harassment Defined.--In this section, the term `sexual  
  harassment' means any of the following:                                 
     ``(1) Conduct (constituting a form of sex discrimination) that--      
       ``(A) involves unwelcome sexual advances, requests for sexual       
   favors, and deliberate or repeated offensive comments or gestures of a  
   sexual nature when--                                                    
       ``(i) submission to such conduct is made either explicitly or       
   implicitly a term or condition of a person's job, pay, or career;       
       ``(ii) submission to or rejection of such conduct by a person is    
   used as a basis for career or employment decisions affecting that       
   person; or                                                              
       ``(iii) such conduct has the purpose or effect of unreasonably      
   interfering with an individual's work performance or creates an         
   intimidating, hostile, or offensive working environment; and            
       ``(B) is so severe or pervasive that a reasonable person would      
   perceive, and the victim does perceive, the work environment as hostile 
   or offensive.                                                           
       ``(2) Any use or condonation, by any person in a supervisory or     
   command position, of any form of sexual behavior to control, influence, 
   or affect the career, pay, or job of a member of the armed forces or a  
   civilian employee of the Department of Defense.                         
       ``(3) Any deliberate or repeated unwelcome verbal comment or gesture
   of a sexual nature in the workplace by any member of the armed forces or
   civilian employee of the Department of Defense.''.                      
     (2) The tables of chapters at the beginning of subtitle A, and at the
  beginning of part II of subtitle A, of such title are amended by        
  inserting after the item relating to chapter 79 the following new item: 
         ``80. Miscellaneous Investigation Requirements and Other Duties        
        1561''.                                                                
     (b) Reports.--(1) Not later than January 1 of each of 1998 and 1999, 
  each officer receiving a complaint forwarded in accordance with section 
  1561(b) of title 10, United States Code, as added by subsection (a),    
  during the preceding year shall submit to the Secretary of the military 
  department concerned a report on all such complaints and the            
  investigations of such complaints (including the results of the         
  investigations, in cases of investigations completed during such        
  preceding year).                                                        
     (2)(A) Not later than March 1 of each of 1998 and 1999, each         
  Secretary receiving a report under paragraph (1) for a year shall submit
  to the Secretary of Defense a report on all such reports so received.   
     (B) Not later than the April 1 following receipt of a report for a   
  year under subparagraph (A), the Secretary of Defense shall transmit to 
  Congress all such reports received for the year under subparagraph (A)  
  together with the Secretary's assessment of each such report.           
                    SEC. 592. SENSE OF THE SENATE REGARDING STUDY OF MATTERS      
          RELATING TO GENDER EQUITY IN THE ARMED FORCES.                          
    (a)  Findings.--The Senate makes the following findings:              
       (1) In the all-volunteer force, women play an integral role in the  
   Armed Forces.                                                           
       (2) With increasing numbers of women in the Armed Forces, questions 
   arise concerning inequalities, and perceived inequalities, between the  
   treatment of men and women in the Armed Forces.                         
     (b) Sense of the Senate.--It is the sense of the Senate that the     
  Comptroller General should--                                            
       (1) conduct a study on any inequality, or perception of inequality, 
   in the treatment of men and women in the Armed Forces that arises out of
   the statutes and regulations governing the Armed Forces; and            
       (2) submit to the Senate a report on the study not later than one   
   year after the date of the enactment of this Act.                       
                    SEC. 593. AUTHORITY FOR PERSONNEL TO PARTICIPATE IN MANAGEMENT
          OF CERTAIN NON-FEDERAL ENTITIES.                                        
     (a) Military Personnel.--(1) Chapter 53 of title 10, United States   
  Code, is amended by inserting after section 1032 the following new      
  section:                                                                
                    ``1033. Participation in management of specified non-Federal  
          entities: authorized activities                                         
     ``(a) Authorization.--The Secretary concerned may authorize a member 
  of the armed forces under the Secretary's jurisdiction to serve without 
  compensation as a director, officer, or trustee, or to otherwise        
  participate, in the management of an entity designated under subsection 
  (b). Any such authorization shall be made on a case-by-case basis, for a
  particular member to participate in a specific capacity with a specific 
  designated entity. Such authorization may be made only for the purpose  
  of providing oversight and advice to, and coordination with, the        
  designated entity, and participation of the member in the activities of 
  the designated entity may not extend to participation in the day-to-day 
  operations of the entity.                                               
     ``(b) Designated Entities.--(1) The Secretary of Defense, and the    
  Secretary of Transportation in the case of the Coast Guard when it is   
  not operating as a service in the Navy, shall designate those entities  
  for which authorization under subsection (a) may be provided. The list  
  of entities so designated may not be revised more frequently than       
  semiannually. In making such designations, the Secretary shall designate
  each military welfare society and may designate any other entity        
  described in paragraph (3). No other entities may be designated.        
     ``(2) In this section, the term `military welfare society' means the 
  following:                                                              
     ``(A) Army Emergency Relief.                                          
     ``(B) Air Force Aid Society, Inc.                                     
     ``(C) Navy-Marine Corps Relief Society.                               
     ``(D) Coast Guard Mutual Assistance.                                  
     ``(3) An entity described in this paragraph is an entity that is not 
  operated for profit and is any of the following:                        
       ``(A) An entity that regulates and supports the athletic programs of
   the service academies (including athletic conferences).                 
     ``(B) An entity that regulates international athletic competitions.   
       ``(C) An entity that accredits service academies and other schools  
   of the armed forces (including regional accrediting agencies).          
       ``(D) An entity that (i) regulates the performance, standards, and  
   policies of military health care (including health care associations and
   professional societies), and (ii) has designated the position or        
   capacity in that entity in which a member of the armed forces may serve 
   if authorized under subsection (a).                                     
     ``(c) Publication of Designated Entities and of Authorized           
  Persons.--A designation of an entity under subsection (b), and an       
  authorization under subsection (a) of a member of the armed forces to   
  participate in the management of such an entity, shall be published in  
  the Federal Register.                                                   
     ``(d) Regulations.--The Secretary of Defense, and the Secretary of   
  Transportation in the case of the Coast Guard when it is not operating  
  as a service in the Navy, shall prescribe regulations to carry out this 
  section.''.                                                             
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 1032 the following new  
  item:                                                                   
            ``1033. Participation in management of specified non-Federal      
      entities: authorized activities.''.                                     
     (b) Civilian Personnel.--(1) Chapter 81 of such title is amended by  
  inserting after section 1588 the following new section:                 
                    ``1589. Participation in management of specified non-Federal  
          entities: authorized activities                                         
     ``(a) Authorization.--(1) The Secretary concerned may authorize an   
  employee described in paragraph (2) to serve without compensation as a  
  director, officer, or trustee, or to otherwise participate, in the      
  management of an entity designated under subsection (b). Any such       
  authorization shall be made on a case-by-case basis, for a particular   
  employee to participate in a specific capacity with a specific          
  designated entity. Such authorization may be made only for the purpose  
  of providing oversight and advice to, and coordination with, the        
  designated entity, and participation of the employee in the activities  
  of the designated entity may not extend to participation in the         
  day-to-day operations of the entity.                                    
     ``(2) Paragraph (1) applies to any employee of the Department of     
  Defense or, in the case of the Coast Guard when not operating as a      
  service in the Navy, of the Department of Transportation. For purposes  
  of this section, the term `employee' includes a civilian officer.       
     ``(b) Designated Entities.--The Secretary of Defense, and the        
  Secretary of Transportation in the case of the Coast Guard when it is   
  not operating as a service in the Navy, shall designate those entities  
  for which authorization under subsection (a) may be provided. The list  
  of entities so designated may not be revised more frequently than       
  semiannually. In making such designations, the Secretary shall designate
  each military welfare society named in paragraph (2) of section 1033(b) 
  of this title and may designate any other entity described in paragraph 
  (3) of such section. No other entities may be designated.               
     ``(c) Publication of Designated Entities and of Authorized           
  Persons.--A designation of an entity under subsection (b), and an       
  authorization under subsection (a) of an employee to participate in the 
  management of such an entity, shall be published in the Federal         
  Register.                                                               
     ``(d) Civilians Outside the Military Departments.--In this section,  
  the term `Secretary concerned' includes the Secretary of Defense with   
  respect to employees of the Department of Defense who are not employees 
  of a military department.                                               
     ``(e) Regulations.--The Secretary of Defense, and the Secretary of   
  Transportation in the case of the Coast Guard                           
                    when it is not operating as a service in the Navy, shall      
          prescribe regulations to carry out this section.''.                     
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 1588 the following new  
  item:                                                                   
            ``1589. Participation in management of specified non-Federal      
      entities: authorized activities.''.                                     
                    SEC. 594. TREATMENT OF PARTICIPATION OF MEMBERS IN DEPARTMENT 
          OF DEFENSE CIVIL MILITARY PROGRAMS.                                     
    Section 2012 of title 10, United States Code, is amended--            
       (1) by redesignating subsections (g) and (h) as subsections (h) and 
   (i), respectively; and                                                  
     (2) by inserting after subsection (f) the following new subsection:   
     ``(g) Treatment of Member's Participation in Provision of Support or 
  Services.--(1) The Secretary of a military department may not require or
  request a member of the armed forces to submit for consideration by a   
  selection board (including a promotion board, command selection board,  
  or any other kind of selection board) evidence of the member's          
  participation in the provision of support and services to non-Department
  of Defense organizations and activities under this section or the       
  member's involvement in, or support of, other community relations and   
  public affairs activities of the armed forces.                          
     ``(2) Paragraph (1) does not prevent a selection board from          
  considering material submitted voluntarily by a member of the armed     
  forces which provides evidence of the participation of that member or   
  another member in activities described in that paragraph.''.            
                    SEC. 595. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE  
          CIVIL MILITARY PROGRAMS.                                                
     (a) Study Required.--The Comptroller General shall conduct a study to
  evaluate the following:                                                 
       (1) The nature, extent, and cost to the Department of Defense of the
   support and services being provided by units and members of the Armed   
   Forces to non-Department of Defense organizations and activities under  
   the authority of section 2012 of title 10, United States Code.          
       (2) The degree to which the Armed Forces are in compliance with the 
   requirements of such section in the provision of such support and       
   services, especially the requirements that the assistance meet specific 
   requirements relative to military training and that the assistance      
   provided be incidental to military training.                            
       (3) The degree to which the regulations and procedures for          
   implementing such section, as required by subsection (f) of such        
   section, are consistent with the requirements of such section.          
       (4) The effectiveness of the Secretary of Defense and the           
   Secretaries of the military departments in conducting oversight of the  
   implementation of such section, and the provision of such support and   
   services under such section, to ensure compliance with the requirements 
   of such section.                                                        
     (b) Submission of Report.--Not later than March 31, 1998, the        
  Comptroller General shall submit to Congress a report containing the    
  results of the study required by subsection (a).                        
          SEC. 596. ESTABLISHMENT OF PUBLIC AFFAIRS SPECIALTY IN THE ARMY.        
     (a) New Specialty.--Chapter 307 of title 10, United States Code, is  
  amended by adding at the end the following new section:                 
          ``3083. Public Affairs Specialty                                        
     ``There is a career field in the Army known as the Public Affairs    
  Specialty. Members of the Army with the Public Affairs Specialty are--  
     ``(1) the Chief of Public Affairs;                                    
       ``(2) commissioned officers of the Army in the grade of major or    
   above who are selected and specifically educated, trained, and          
   experienced to perform as professional public affairs officers for the  
   remainder of their careers; and                                         
       ``(3) other members of the Army assigned to public affairs positions
   by the Secretary of the Army.''.                                        
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
      ``3083. Public Affairs Specialty.''.                                    
          SEC. 597. GRADE OF DEFENSE ATTACHE AE1 IN FRANCE.                       
     (a) In General.--Chapter 41 of title 10, United States Code, is      
  amended by inserting after section 713 the following new section:       
          ``714. Defense attache AE1 in France: required grade                    
     ``An officer may not be selected for assignment to the position of   
  defense attache AE1 to the United States embassy in France unless the   
  officer holds (or is on a promotion list for promotion to) the grade of 
  brigadier general or, in the case of the Navy, rear admiral (lower      
  half).''.                                                               
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by inserting after the item relating to section 
  713 the following new item:                                             
      ``714. Defense attache AE1 in France: required grade.''.                
          SEC. 598. REPORT ON CREW REQUIREMENTS OF WC 130J AIRCRAFT.              
     (a) Study.--The Secretary of the Air Force shall conduct a study of  
  the crew requirements for WC 130J aircraft to be procured for assignment
  to the aerial weather reconnaissance mission involving the eyewall      
  penetration of tropical cyclones. The study shall include study of the  
  anticipated operation of WC 130J aircraft in weather reconnaissance     
  missions configured to carry five crewmembers, including a navigator. In
  carrying out the study, the Secretary shall provide for participation by
  members of the Armed Forces currently assigned to units engaged in      
  weather reconnaissance operations.                                      
     (b) Report.--The Secretary shall submit to Congress a report on the  
  results of the study. The Secretary shall include                       
                    in the report the views of members of the Armed Forces        
          currently assigned to units engaged in weather reconnaissance operations
          who participated in the study. If as a result of the study the Secretary
          determines that there are crewmembers assigned to weather reconnaissance
          duties in excess of the crew requirements that will be applicable for WC
          130J aircraft, the Secretary shall include in the report a plan for     
          retraining or reassignment of those crewmembers. The study shall be     
          submitted not later than September 30, 1998.                            
                    SEC. 599. IMPROVEMENT OF MISSING PERSONS AUTHORITIES          
          APPLICABLE TO DEPARTMENT OF DEFENSE.                                    
     (a) Applicability to Department of Defense Civilian Employees and    
  Contractor Employees.--(1) Section 1501 of title 10, United States Code,
  is amended--                                                            
       (A) by striking out subsection (c) and inserting in lieu thereof the
   following:                                                              
     ``(c) Covered Persons.--(1) Section 1502 of this title applies in the
  case of any member of the armed forces on active duty--                 
       ``(A) who becomes involuntarily absent as a result of a hostile     
   action or under circumstances suggesting that the involuntary absence is
   a result of a hostile action; and                                       
     ``(B) whose status is undetermined or who is unaccounted for.         
     ``(2) Section 1502 of this title applies in the case of any other    
  person who is a citizen of the United States and a civilian officer or  
  employee of the Department of Defense or (subject to paragraph (3)) an  
  employee of a contractor of the Department of Defense--                 
       ``(A) who serves in direct support of, or accompanies, the armed    
   forces in the field under orders and becomes involuntarily absent as a  
   result of a hostile action or under circumstances suggesting that the   
   involuntary absence is a result of a hostile action; and                
     ``(B) whose status is undetermined or who is unaccounted for.         
     ``(3) The Secretary of Defense shall determine, with regard to a     
  pending or ongoing military operation, the specific employees, or groups
  of employees, of contractors of the Department of Defense to be         
  considered to be covered by this subsection.''; and                     
     (B) by adding at the end the following new subsection:                
     ``(f) Secretary Concerned.--In this chapter, the term `Secretary     
  concerned' includes, in the case of a civilian officer or employee of   
  the Department of Defense or an employee of a contractor of the         
  Department of Defense, the Secretary of the military department or head 
  of the element of the Department of Defense employing the officer or    
  employee or contracting with the contractor, as the case may be.''.     
    (2) Section 1503(c) of such title is amended--                        
       (A) in paragraph (1), by striking out ``one military officer'' and  
   inserting in lieu thereof ``one individual described in paragraph (2)'';
       (B) by redesignating paragraphs (2) and (3) as paragraphs (3) and   
   (4), respectively; and                                                  
     (C) by inserting after paragraph (1) the following new paragraph (2): 
    ``(2) An individual referred to in paragraph (1) is the following:    
       ``(A) A military officer, in the case of an inquiry with respect to 
   a member of the armed forces.                                           
       ``(B) A civilian, in the case of an inquiry with respect to a       
   civilian employee of the Department of Defense or of a contractor of the
   Department of Defense.''.                                               
    (3) Section 1504(d) of such title is amended--                        
       (A) in paragraph (1), by striking out ``who are'' and all that      
   follows in that paragraph and inserting in lieu thereof ``as follows:   
       ``(A) In the case of a board that will inquire into the whereabouts 
   and status of one or more members of the armed forces (and no civilians 
   described in subparagraph (B)), the board shall be composed of officers 
   having the grade of major or lieutenant commander or above.             
       ``(B) In the case of a board that will inquire into the whereabouts 
   and status of one or more civilian employees of the Department of       
   Defense or contractors of the Department of Defense (and no members of  
   the armed forces), the board shall be composed of--                     
       ``(i) not less than three employees of the Department of Defense    
   whose rate of annual pay is equal to or greater than the rate of annual 
   pay payable for grade GS 13 of the General Schedule under section 5332  
   of title 5; and                                                         
       ``(ii) such members of the armed forces as the Secretary considers  
   advisable.                                                              
       ``(C) In the case of a board that will inquire into the whereabouts 
   and status of both one or more members of the armed forces and one or   
   more civilians described in subparagraph (B)--                          
       ``(i) the board shall include at least one officer described in     
   subparagraph (A) and at least one employee of the Department of Defense 
   described in subparagraph (B)(i); and                                   
       ``(ii) the ratio of such officers to such employees on the board    
   shall be roughly proportional to the ratio of the number of members of  
   the armed forces who are subjects of the board's inquiry to the number  
   of civilians who are subjects of the board's inquiry.''; and            
       (B) in paragraph (4), by striking out ``section 1503(c)(3)'' and    
   inserting in lieu thereof ``section 1503(c)(4)''.                       
     (4) Paragraph (1) of section 1513 of such title is amended to read as
  follows:                                                                
     ``(1) The term `missing  person' means--                              
       ``(A) a member of the armed forces on active duty who is in a       
   missing status; or                                                      
       ``(B) a civilian employee of the Department of Defense or an        
   employee of a contractor of the Department of Defense who serves in     
   direct support of, or accompanies, the armed forces in the field under  
   orders and who is in a missing status.                                  
      Such term includes an unaccounted for person described in section    
   1509(b) of this title, under the circumstances specified in the last    
   sentence of section 1509(a) of this title.''.                           
     (b) Transmission to Theater Component Commander of Advisory Copy of  
  Missing Person Report.--(1) Section 1502 of such title is amended--     
     (A) by redesignating subsection (b) as subsection (c); and            
       (B) by inserting after subsection (a) the following new subsection  
   (b):                                                                    
     ``(b) Transmission of Advisory Copy to Theater Component             
  Commander.--When transmitting a report under subsection (a)(2)          
  recommending that a person be placed in a missing status, the commander 
  transmitting that report shall transmit an advisory copy of the report  
  to the theater component commander with jurisdiction over the missing   
  person.''.                                                              
     (2) Section 1513 of such title is amended by adding at the end the   
  following new paragraph:                                                
       ``(8) The term `theater component commander' means, with respect to 
   any of the combatant commands, an officer of any of the armed forces who
   (A) is commander of all forces of that armed force assigned to that     
   combatant command, and (B) is directly subordinate to the commander of  
   the combatant command.''.                                               
     (c) Information To Accompany Recommendation of Status of             
  Death.--Section 1507(b) of such title is amended adding at the end the  
  following new paragraphs:                                               
     ``(3) A description of the location of the body, if recovered.        
       ``(4) If the body has been recovered and is not identifiable through
   visual means, a certification by a forensic pathologist that the body   
   recovered is that of the missing person. In determining whether to make 
   such a certification, the forensic pathologist shall consider, as       
   determined necessary by the Secretary of the military department        
   concerned, additional evidence and information provided by appropriate  
   specialists in forensic medicine or other appropriate medical           
   sciences.''.                                                            
     (d) Missing Person's Counsel.--(1) Sections 1503(f)(1) and 1504(f)(1)
  of such title are amended by adding at the end the following: ``The     
  identity of counsel appointed under this paragraph for a missing person 
  shall be made known to the missing person's primary next of kin and any 
  other previously designated person of the person.''.                    
     (2) Section 1503(f)(4) of such title is amended by adding at the end 
  the following: ``The primary next of kin of a missing person and any    
  other previously designated person of the missing person shall have the 
  right to submit information to the missing person's counsel relative to 
  the disappearance or status of the missing person.''.                   
     (e) Scope of Preenactment Review.--(1) Section 1509 of such title is 
  amended by striking out subsection (a) and inserting in lieu thereof the
  following:                                                              
     ``(a) Review of Status.--(1) If new information (as defined in       
  paragraph (2)) is found or received that may be related to one or more  
  unaccounted for persons described in subsection (b) (whether or not such
  information specifically relates (or may specifically relate) to any    
  particular such unaccounted for person), that information shall be      
  provided to the Secretary of Defense. Upon receipt of such information, 
  the Secretary shall ensure that the information is treated under        
  paragraphs (2) and (3) of section 1505(c) of this title and under       
  section 1505(d) of this title in the same manner as information received
  under paragraph (1) of section 1505(c) of this title. For purposes of   
  the applicability of other provisions of this chapter in such a case,   
  each such unaccounted for person to whom the new information may be     
  related shall be considered to be a missing person.                     
     ``(2) For purposes of this subsection, new information is information
  that is credible and that--                                             
       ``(A) is found or received after the date of the enactment of the   
   National Defense Authorization Act for                                  
                    Fiscal Year 1998 by a United States intelligence agency, by a 
          Department of Defense agency, or by a person specified in section       
          1504(g) of this title; or                                               
       ``(B) is identified after the date of the enactment of the National 
   Defense Authorization Act for Fiscal Year 1998 in records of the United 
   States as information that could be relevant to the case of one or more 
   unaccounted for persons described in subsection (b).''.                 
     (2) Such section is further amended by adding at the end the         
  following new subsection:                                               
     ``(d) Establishment of Personnel Files for Korean Conflict           
  Cases.--The Secretary of Defense shall ensure that a personnel file is  
  established for each unaccounted for person who is described in         
  subsection (b)(1) if the Secretary possesses information relevant to    
  that person's status. In the case of a person described in subsection   
  (b)(1) for whom a personnel file does not exist, the Secretary shall    
  create a personnel file for such person upon receipt of new information 
  as provided in subsection (a). Each such file shall be handled in       
  accordance with, and subject to the provisions of, section 1506 of this 
  title in the same manner as applies to the file of a missing person.''. 
     (f) Withholding of Classified Information.--Section 1506(b) of such  
  title is amended--                                                      
     (1) by inserting ``(1)'' before ``The Secretary'';                    
       (2) by redesignating paragraphs (1) and (2) as subparagraphs (A) and
   (B), respectively; and                                                  
     (3) by adding at the end the following:                               
     ``(2) If classified information withheld under this subsection refers
  to one or more unnamed missing persons, the Secretary shall ensure that 
  notice of that withheld information, and notice of the date of the most 
  recent review of the classification of that withheld information, is    
  made reasonably accessible to the primary next of kin, members of the   
  immediate family, and the previously designated person.''.              
     (g) Withholding of Privileged Information.--Section 1506(d) of such  
  title is amended--                                                      
     (1) in paragraph (2)--                                                
       (A) by inserting ``or about unnamed missing persons'' in the first  
   sentence after ``the debriefing report'';                               
       (B) by striking out ``the missing person'' in the second sentence   
   and inserting in lieu thereof ``each missing person named in the        
   debriefing report''; and                                                
       (C) by adding at the end the following new sentence: ``Any          
   information contained in the extract of the debriefing report that      
   pertains to unnamed missing persons shall be made reasonably accessible 
   to the primary next of kin, members of the immediate family, and the    
   previously designated person.''; and                                    
       (2) in paragraph (3), by inserting ``, or part of a debriefing      
   report,'' after ``a debriefing report''.                                
           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS                     
                               SUBTITLE A--PAY AND ALLOWANCES                     
      Sec. 601. Increase in basic pay for fiscal year 1998.                   
      Sec. 602. Reform of basic allowance for subsistence.                    
            Sec. 603. Consolidation of basic allowance for quarters, variable 
      housing allowance, and overseas housing allowances.                     
            Sec. 604. Revision of authority to adjust compensation            
      necessitated by reform of subsistence and housing allowances.           
            Sec. 605. Protection of total compensation of members while       
      performing certain duty.                                                
                     SUBTITLE B--BONUSES AND SPECIAL AND INCENTIVE PAYS           
            Sec. 611. One-year extension of certain bonuses and special pay   
      authorities for reserve forces.                                         
            Sec. 612. One-year extension of certain bonuses and special pay   
      authorities for nurse officer candidates, registered nurses, and nurse  
      anesthetists.                                                           
            Sec. 613. One-year extension of authorities relating to payment of
      other bonuses and special pays.                                         
            Sec. 614. Increase in minimum monthly rate of hazardous duty      
      incentive pay for certain members.                                      
      Sec. 615. Increase in aviation career incentive pay.                    
      Sec. 616. Modification of aviation officer retention bonus.             
      Sec. 617. Availability of multiyear retention bonus for dental officers.
            Sec. 618. Increase in variable and additional special pays for    
      certain dental officers.                                                
            Sec. 619. Availability of special pay for duty at designated      
      hardship duty locations.                                                
      Sec. 620. Definition of sea duty for purposes of career sea pay.        
      Sec. 621. Modification of Selected Reserve reenlistment bonus.          
            Sec. 622. Modification of Selected Reserve enlistment bonus for   
      former enlisted members.                                                
            Sec. 623. Expansion of reserve affiliation bonus to include Coast 
      Guard Reserve.                                                          
            Sec. 624. Increase in special pay and bonuses for                 
      nuclear-qualified officers.                                             
            Sec. 625. Provision of bonuses in lieu of special pay for enlisted
      members extending tours of duty at designated locations overseas.       
      Sec. 626. Increase in amount of family separation allowance.            
      Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.  
                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            
            Sec. 631. Travel and transportation allowances for dependents     
      before approval of member's court-martial sentence.                     
      Sec. 632. Dislocation allowance.                                        
               SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED MATTERS    
            Sec. 641. One-year opportunity to discontinue participation in    
      Survivor Benefit Plan.                                                  
            Sec. 642. Time in which change in survivor benefit coverage from  
      former spouse to spouse may be made.                                    
      Sec. 643. Review of Federal former spouse protection laws.              
      Sec. 644. Annuities for certain military surviving spouses.             
            Sec. 645. Administration of benefits for so-called minimum income 
      widows.                                                                 
                                  SUBTITLE E--OTHER MATTERS                       
            Sec. 651. Loan repayment program for commissioned officers in     
      certain health professions.                                             
            Sec. 652. Conformance of NOAA commissioned officers separation pay
      to separation pay for members of other uniformed services.              
            Sec. 653. Eligibility of Public Health Service officers and NOAA  
      commissioned corps officers for reimbursement of adoption expenses.     
            Sec. 654. Payment of back quarters and subsistence allowances to  
      World War II veterans who served as guerrilla fighters in the           
      Philippines.                                                            
            Sec. 655. Subsistence of members of the Armed Forces above the    
      poverty level.                                                          
           Subtitle A--Pay and Allowances                                          
          SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1998.                   
     (a) Waiver of Section 1009 Adjustment.--The adjustment, to become    
  effective during fiscal year 1998, required by section 1009 of title 37,
  United States Code (as amended by section 604), in the rate of monthly  
  basic pay authorized members of the uniformed services by section 203(a)
  of such title shall not be made.                                        
     (b) Increase in Basic Pay.--Effective on January 1, 1998, the rates  
  of basic pay of members of the uniformed services are increased by 2.8  
  percent.                                                                
          SEC. 602. REFORM OF BASIC ALLOWANCE FOR SUBSISTENCE.                    
     (a) Entitlement to Allowance.--Section 402 of title 37, United States
  Code, is amended to read as follows:                                    
          ``402. Basic allowance for subsistence                                  
     ``(a) Entitlement to Allowance.--(1) Except as provided in paragraph 
  (2) or otherwise provided by law, each member of a uniformed service who
  is entitled to basic pay is entitled to a basic allowance for           
  subsistence as set forth in this section.                               
     ``(2) An enlisted member is not entitled to the basic allowance for  
  subsistence during basic training.                                      
     ``(b) Rates of Allowance Based on Food Costs.--(1) The monthly rate  
  of basic allowance for subsistence to be in effect for an enlisted      
  member for a year (beginning on January 1 of that year) shall be the    
  amount that is halfway between the following amounts, which are         
  determined by the Secretary of Agriculture as of October 1 of the       
  preceding year:                                                         
       ``(A) The amount equal to the monthly cost of a moderate-cost food  
   plan for a male in the United States who is between 20 and 50 years of  
   age.                                                                    
       ``(B) The amount equal to the monthly cost of a liberal food plan   
   for a male in the United States who is between 20 and 50 years of age.  
     ``(2) The monthly rate of basic allowance for subsistence to be in   
  effect for an officer for a year (beginning on January 1 of that year)  
  shall be the amount equal to the monthly rate of basic allowance for    
  subsistence in effect for officers for the preceding year, increased by 
  the same percentage by which the rate of basic allowance for subsistence
  for enlisted members for the preceding year is increased effective on   
  such January 1.                                                         
     ``(c) Advance Payment.--The allowance to an enlisted member may be   
  paid in advance for a period of not more than three months.             
     ``(d) Special Rule for Members Authorized To Mess Separately.--(1) In
  areas prescribed by the Secretary of Defense, and the Secretary of      
  Transportation with respect to the Coast Guard when it is not operating 
  as a service in the Navy, an enlisted member described in paragraph (2) 
  is entitled to not more than the pro rata allowance established under   
  subsection (b)(1) for each meal the member buys from a source other than
  a messing facility of the United States.                                
     ``(2) An enlisted member referred to in paragraph (1) is a member who
  is granted permission to mess separately and whose duties require the   
  member to buy at least one meal from a source other than a messing      
  facility of the United States.                                          
     ``(e) Policies on Use of Dining and Messing Facilities.--The         
  Secretary of Defense, in consultation with the Secretaries concerned,   
  shall prescribe policies regarding use of dining and field messing      
  facilities of the uniformed services.                                   
     ``(f) Regulations.--(1) The Secretary of Defense shall prescribe     
  regulations for the administration of this section. Before prescribing  
  the regulations, the Secretary shall consult with each Secretary        
  concerned.                                                              
     ``(2) The regulations shall include the specific rates of basic      
  allowance for subsistence required by subsection (b).''.                
     (b) Conforming Amendments.--(1) Section 404 of title 37, United      
  States Code, is amended--                                               
     (A) by striking out subsection (g); and                               
       (B) by redesignating subsections (h), (i), (j), and (k) as          
   subsections (g), (h), (i), and (j), respectively.                       
     (2) Section 6081(a) of title 10, United States Code, is amended by   
  striking out ``Except'' and all that follows through ``subsistence,     
  each'' and inserting in lieu thereof ``Each''.                          
     (c) Transitional Authority To Provide Basic Allowance for            
  Subsistence.--                                                          
       (1) Transitional authority.--Notwithstanding section 402 of title   
   37, United States Code, as amended by subsection (a), during the period 
   beginning on January 1, 1998, and ending on the date determined under   
   paragraph (2)--                                                         
       (A) the basic allowance for subsistence shall not be paid under such
   section 402;                                                            
       (B) a member of the uniformed services is entitled to the basic     
   allowance for subsistence only as provided in subsection (d);           
       (C) an enlisted member of the uniformed services may be paid a      
   partial basic allowance for subsistence as provided in subsection (e);  
   and                                                                     
       (D) the rates of the basic allowance for subsistence are those rates
   determined under subsection (f).                                        
       (2) Termination of transitional authority.--The transitional        
   authority provided under paragraph (1) shall terminate on the first day 
   of the month immediately following the first month for which the monthly
   equivalent of the rate of basic allowance for subsistence payable to    
   enlisted members of the uniformed services (when permission to mess     
   separately is granted), as determined under subsection (f)(2), is equal 
   to or is exceeded by the amount                                         
                    that, except for paragraph (1)(A), would otherwise be the     
          monthly rate of basic allowance for subsistence for enlisted members    
          under section 402(b)(1) of title 37, United States Code, as amended by  
          subsection (a).                                                         
    (d)  Transitional Entitlement to Allowance.--                         
     (1)  Enlisted members.--                                              
       (A) Types of entitlement.--An enlisted member is entitled to the    
   basic allowance for subsistence, on a daily basis, of under one or more 
   of the following circumstances:                                         
     (i) When rations in kind are not available                            
     (ii) When permission to mess separately is granted.                   
       (iii) When assigned to duty under emergency conditions where no     
   messing facilities of the United States are available.                  
       (B) Other entitlement circumstances.--An enlisted member is entitled
   to the allowance while on an authorized leave of absence, while confined
   in a hospital, or while performing travel under orders away from the    
   member's designated post of duty other than field duty or sea duty (as  
   defined in regulations prescribed by the Secretary of Defense). For     
   purposes of the preceding sentence, a member shall not be considered to 
   be performing travel under orders away from his designated post of duty 
   if such member--                                                        
       (i) is an enlisted member serving the member's first tour of active 
   duty;                                                                   
       (ii) has not actually reported to a permanent duty station pursuant 
   to orders directing such assignment; and                                
       (iii) is not actually traveling between stations pursuant to orders 
   directing a change of station.                                          
       (C) Advance payment.--The allowance to an enlisted member, when     
   authorized, may be paid in advance for a period of not more than three  
   months.                                                                 
       (2) Officers.--An officer of a uniformed service who is entitled to 
   basic pay is, at all times, entitled to the basic allowances for        
   subsistence. An aviation cadet of the Navy, Air Force, Marine Corps, or 
   Coast Guard is entitled to the same basic allowance for subsistence as  
   is provided for an officer of the Navy, Air Force, Marine Corps, or     
   Coast Guard, respectively.                                              
    (e)  Transitional Authority for Partial Allowance.--                  
       (1) Enlisted members furnished subsistence in kind.--The Secretary  
   of Defense may provide in regulations for an enlisted member of a       
   uniformed service to be paid a partial basic allowance for subsistence  
   when--                                                                  
     (A) rations in kind are available to the member;                      
     (B) the member is not granted permission to mess separately; or       
       (C) the member is assigned to duty under emergency conditions where 
   messing facilities of the United States are available.                  
       (2) Monthly payment.--Any partial basic allowance for subsistence   
   authorized under paragraph (1) shall be calculated on a daily basis and 
   paid on a monthly basis.                                                
    (f)  Transitional Rates.--                                            
       (1) Allowance for officers.--The monthly rate of basic allowance for
   subsistence for a year (beginning on January 1 of that year) that is    
   payable to officers of the uniformed services shall be the amount that  
   is equal to 101 percent of the rate of basic allowance for subsistence  
   that was payable to officers of the uniformed services for the preceding
   year.                                                                   
       (2) Allowance for enlisted member with permission to mess           
   separately.--The monthly rate of basic allowance for subsistence for a  
   year (beginning on January 1 of that year) that is payable to an        
   enlisted member of the uniformed services entitled to the allowance     
   under subsection (d)(1) shall be the amount that is equal to 101 percent
   of the rate of basic allowance for subsistence that was                 
                    in effect for similarly situated enlisted members of the      
          uniformed services for the preceding year.                              
       (3) Partial allowance for other enlisted members.--The monthly rate 
   of any partial basic allowance for subsistence for a year (beginning on 
   January 1 of that year) payable to an enlisted member of the uniformed  
   services eligible for the allowance under the regulations prescribed    
   under subsection (e)(1) shall be the amount equal to the lesser of the  
   following:                                                              
     (A) The sum of--                                                      
       (i) the partial basic allowance for subsistence in effect for the   
   preceding year; and                                                     
     (ii) the amount equal to the difference, if any, between--            
         (I) the monthly equivalent of the rate of basic allowance for      
    subsistence that was in effect for the preceding year for members of the
    uniformed services above grade E 1 (when permission to mess separately  
    is granted), increased by the same percentage by which the rates of     
    basic pay for members of the uniformed services is increased for the    
    current year; and                                                       
         (II) the amount equal to 101 percent of the monthly equivalent of  
    the rate of basic allowance for subsistence that was in effect for the  
    previous year for members of the uniformed services above grade E 1     
    (when permission to mess separately is granted),                        
      with the amount so determined under this clause multiplied by the    
   number of members estimated to be entitled to receive basic allowance   
   for subsistence under subsection (d) for the current year and then      
   divided by the number of members estimated to be eligible for the       
   partial allowance under the regulations prescribed under subsection     
   (e)(1) for that year.                                                   
     (B) The amount equal to the difference between--                      
       (i) the amount that, except for subsection (c)(1)(A), would         
   otherwise be the monthly rate of basic allowance for subsistence for    
   enlisted members under section 402(b)(1) of title 37, United States     
   Code; and                                                               
       (ii) the amount equal to the monthly equivalent of the value of a   
   daily ration, as determined by the Under Secretary of Defense           
   (Comptroller) as of October 1 of the preceding year.                    
     (g) Effective Date.--This section and the amendments made by this    
  section shall take effect on January 1, 1998.                           
                    SEC. 603. CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS,      
          VARIABLE HOUSING ALLOWANCE, AND OVERSEAS HOUSING ALLOWANCES.            
     (a) Consolidation of Allowances.--Section 403 of title 37, United    
  States Code, is amended to read as follows:                             
          ``403. Basic allowance for housing                                      
     ``(a) General Entitlement.--(1) Except as otherwise provided by law, 
  a member of a uniformed service who is entitled to basic pay is entitled
  to a basic allowance for housing at the monthly rates prescribed under  
  this section or another provision of law with regard to the applicable  
  component of the basic allowance for housing. The amount of the basic   
  allowance for housing for a member will vary according to the pay grade 
  in which the member is assigned or distributed for basic pay purposes,  
  the dependency status of the member, and the geographic location of the 
  member. The basic allowance for housing may be paid in advance.         
     ``(2) A member of a uniformed service with dependents is not entitled
  to a basic allowance for housing as a member with dependents unless the 
  member makes a certification to the Secretary concerned indicating the  
  status of each dependent of the member. The certification shall be made 
  in accordance with regulations prescribed by the Secretary of Defense.  
     ``(b) Basic Allowance for Housing Inside the United States.--(1) The 
  Secretary of Defense shall determine the costs of adequate housing in a 
  military housing area in the United States for all members of the       
  uniformed services entitled to a basic allowance for housing in that    
  area. The Secretary shall base the determination upon the costs of      
  adequate housing for civilians with comparable income levels in the same
  area.                                                                   
     ``(2) Subject to paragraph (3), the monthly amount of a basic        
  allowance for housing for an area of the United States for a member of a
  uniformed service is equal to the difference between--                  
       ``(A) the monthly cost of adequate housing in that area, as         
   determined by the Secretary of Defense, for members of the uniformed    
   services serving in the same pay grade and with the same dependency     
   status as the member; and                                               
       ``(B) 15 percent of the national average monthly cost of adequate   
   housing in the United States, as determined by the Secretary, for       
   members of the uniformed services serving in the same pay grade and with
   the same dependency status as the member.                               
     ``(3) The rates of basic allowance for housing shall be reduced as   
  necessary to comply with this paragraph. The total amount that may be   
  paid for a fiscal year for the basic allowance for housing under this   
  subsection is the product of--                                          
       ``(A) the total amount authorized to be paid for such allowance for 
   the preceding fiscal year (as adjusted under paragraph (5)); and        
     ``(B) a fraction--                                                    
       ``(i) the numerator of which is the index of the national average   
   monthly cost of housing for June of the preceding fiscal year; and      
       ``(ii) the denominator of which is the index of the national average
   monthly cost of housing for June of the fiscal year before the preceding
   fiscal year.                                                            
     ``(4) An adjustment in the rates of the basic allowance for housing  
  under this subsection as a result of the Secretary's redetermination of 
  housing costs in an area shall take effect on the same date as the      
  effective date of the next increase in basic pay under section 1009 of  
  this title or other provision of law.                                   
     ``(5) In making a determination under paragraph (3) for a fiscal     
  year, the amount authorized to be paid for the preceding fiscal year for
  the basic allowance for housing shall be adjusted to reflect changes    
  during the year for which the determination is made in the number, grade
  distribution, geographic distribution in the United States, and         
  dependency status of members of the uniformed services entitled to the  
  allowance from the number of such members during the preceding fiscal   
  year.                                                                   
     ``(6) So long as a member of a uniformed service retains             
  uninterrupted eligibility to receive a basic allowance for housing      
  within an area of the United States, the monthly amount of the allowance
  for the member may not be reduced as a result of changes in housing     
  costs in the area, changes in the national average monthly cost of      
  housing, or the promotion of the member.                                
     ``(7) In the case of a member without dependents who is assigned to  
  duty inside the United States, the location or the circumstances of     
  which make it necessary that the member be reassigned under the         
  conditions of low cost or no cost permanent change of station or        
  permanent change of assignment, the member may be treated as if the     
  member were not reassigned if the Secretary concerned determines that it
  would be inequitable to base the member's entitlement to, and amount of,
  a basic allowance for housing on the cost of housing in the area to     
  which the member is reassigned.                                         
     ``(c) Basic Allowance for Housing Outside the United States.--(1) The
  Secretary of Defense may prescribe an overseas basic allowance for      
  housing for a member of a uniformed service who is on duty outside of   
  the United States. The Secretary shall establish the basic allowance for
  housing                                                                 
                    under this subsection on the basis of housing costs in the    
          overseas area in which the member is assigned.                          
     ``(2) So long as a member of a uniformed service retains             
  uninterrupted eligibility to receive a basic allowance for housing in an
  overseas area and the actual monthly cost of housing for the member is  
  not reduced, the monthly amount of the allowance in an area outside the 
  United States may not be reduced as a result of changes in housing costs
  in the area or the promotion of the member. The monthly amount of the   
  allowance may be adjusted to reflect changes in currency rates.         
     ``(d) Basic Allowance for Housing When Dependents Are Unable To      
  Accompany Member.--(1) A member of a uniformed service with dependents  
  who is on permanent duty at a location described in paragraph (2) is    
  entitled to a family separation basic allowance for housing under this  
  subsection at a monthly rate equal to the rate of the basic allowance   
  for housing established under subsection (b) or the overseas basic      
  allowance for housing established under subsection (c), whichever       
  applies to that location, for members in the same grade at that location
  without dependents.                                                     
     ``(2) A permanent duty location referred to in paragraph (1) is a    
  location--                                                              
       ``(A) to which the movement of the member's dependents is not       
   authorized at the expense of the United States under section 406 of this
   title, and the member's dependents do not reside at or near the         
   location; and                                                           
       ``(B) at which quarters of the United States are not available for  
   assignment to the member.                                               
     ``(3) In the case of a member with dependents who is assigned to duty
  at a location or under circumstances that, as determined by the         
  Secretary concerned, require the member's dependents to reside at a     
  different location, the member shall receive a basic allowance for      
  housing, as provided in subsection (a) or (b), as if the member were    
  assigned to duty in the area in which the dependents reside, regardless 
  of whether the member resides in quarters of the United States or is    
  also entitled to a family separation basic allowance for housing by     
  reason of paragraph (1).                                                
     ``(4) The family separation basic allowance for housing under this   
  subsection shall be in addition to any other allowance or per diem that 
  the member is otherwise entitled to receive under this title. A member  
  may receive a basic allowance for housing under both paragraphs (1) and 
  (3).                                                                    
     ``(e) Effect of Assignment to Quarters.--(1) Except as otherwise     
  provided by law, a member of a uniformed service who is assigned to     
  quarters of the United States or a housing facility under the           
  jurisdiction of a uniformed service appropriate to the grade, rank, or  
  rating of the member and adequate for the member and dependents of the  
  member, if with dependents, is not entitled to a basic allowance for    
  housing.                                                                
     ``(2) A member without dependents who is in a pay grade above pay    
  grade E 6 and who is assigned to quarters in the United States or a     
  housing facility under the jurisdiction of a uniformed service,         
  appropriate to the grade or rank of the member and adequate for the     
  member, may elect not to occupy those quarters and instead to receive   
  the basic allowance for housing prescribed for the member's pay grade by
  this section.                                                           
     ``(3) A member without dependents who is in pay grade E 6 and who is 
  assigned to quarters of the United States that do not meet the minimum  
  adequacy standards established by the Secretary of Defense for members  
  in such pay grade, or to a housing facility under the jurisdiction of a 
  uniformed service that does not meet such standards, may elect not to   
  occupy such quarters or facility and instead to receive the basic       
  allowance for housing prescribed for the member's pay grade under this  
  section.                                                                
     ``(4) The Secretary concerned may deny the right to make an election 
  under paragraph (2) or (3) if the Secretary determines that the exercise
  of such an election would adversely affect a training mission, military 
  discipline, or military readiness.                                      
     ``(5) A member with dependents who is assigned to quarters of the    
  United States or a housing facility under the jurisdiction of a         
  uniformed service may be paid the basic allowance for housing if,       
  because of orders of competent authority, the dependents are prevented  
  from occupying those quarters.                                          
     ``(f) Ineligibility During Initial Field Duty or Sea Duty.--(1) A    
  member of a uniformed service without dependents who makes a permanent  
  change of station for assignment to a unit conducting field operations  
  is not entitled to a basic allowance for housing while on that initial  
  field duty unless the commanding officer of the member certifies that   
  the member was necessarily required to procure quarters at the member's 
  expense.                                                                
     ``(2)(A) Except as provided in subparagraphs (B) and (C), a member of
  a uniformed service without dependents who is in a pay grade below pay  
  grade E 6 is not entitled to a basic allowance for housing while the    
  member is on sea duty.                                                  
     ``(B) Under regulations prescribed by the Secretary concerned, the   
  Secretary may authorize the payment of a basic allowance for housing to 
  a member of a uniformed service without dependents who is serving in pay
  grade E 5 and is assigned to sea duty. In prescribing regulations under 
  this subparagraph, the Secretary concerned shall consider the           
  availability of quarters for members serving in pay grade E 5.          
     ``(C) Notwithstanding section 421 of this title, two members of the  
  uniformed services in a pay grade below pay grade E 6 who are married to
  each other, have no other dependents, and are simultaneously assigned to
  sea duty are jointly entitled to one basic allowance for housing during 
  the period of such simultaneous sea duty. The amount of the allowance   
  shall be based on the without dependents rate for the pay grade of the  
  senior member of the couple. However, this subparagraph shall not apply 
  to a couple if one or both of the members are entitled to a basic       
  allowance for housing under subparagraph (B).                           
     ``(3) The Secretary of Defense, and the Secretary of Transportation  
  with respect to the Coast Guard when it is not operating as a service in
  the Department of the Navy, shall prescribe regulation defining the     
  terms `field duty' and `sea duty' for purposes of this section.         
     ``(g) Reserve Members.--(1) A member of a reserve component without  
  dependents who is called or ordered to active duty in support of a      
  contingency operation, or a retired member without dependents who is    
  ordered to active duty under section 688(a) of title 10 in support of a 
  contingency operation, may not be denied a basic allowance for housing  
  if, because of that call or order, the member is unable to continue to  
  occupy a residence--                                                    
       ``(A) which is maintained as the primary residence of the member at 
   the time of the call or order; and                                      
       ``(B) which is owned by the member or for which the member is       
   responsible for rental payments.                                        
     ``(2) Paragraph (1) shall not apply if the member is authorized      
  transportation of household goods under section 406 of this title as    
  part of the call or order to active duty described in such paragraph.   
     ``(3) The Secretary of Defense shall establish a rate of basic       
  allowance for housing to be paid to a member of a reserve component     
  while the member serves on active duty under a call or order to active  
  duty specifying a period of less than 140 days, unless the call or order
  to active duty is in support of a contingency operation.                
     ``(h) Rental of Public Quarters.--Notwithstanding any other law      
  (including those restricting the occupancy of housing facilities under  
  the jurisdiction of a department or agency of the United States by      
  members, and their dependents, of the armed forces above specified      
  grades, or by members, and their dependents, of the National Oceanic and
  Atmospheric Administration and the Public Health Service), a member of a
  uniformed service, and the dependents of the member, may be accepted as 
  tenants in, and may occupy on a rental basis, any of those housing      
  facilities, other than public quarters constructed or designated for    
  assignment to an occupancy without charge by such a member and the      
  dependents of the member, if any. Such a member may not, because of     
  occupancy under this subsection, be deprived of any money allowance to  
  which the member is otherwise entitled for the rental of quarters.      
     ``(i) Temporary Housing Allowance While in Travel or Leave Status.--A
  member of a uniformed service who is in a pay grade E 4 (4 or more years
  of service) or above is entitled to a temporary basic allowance for     
  housing (at a rate determined by the Secretary of Defense) while the    
  member is in a travel or leave status between permanent duty stations,  
  including time granted as delay en route or proceed time, when the      
  member is not assigned to quarters of the United States.                
     ``(j) Aviation Cadets.--The eligibility of an aviation cadet of the  
  Navy, Air Force, Marine Corps, or Coast Guard for a basic allowance for 
  housing shall be determined as if the aviation cadet were a member of   
  the uniformed services in pay grade E 4.                                
     ``(k) Administration.--(1) The Secretary of Defense shall prescribe  
  regulations for the administration of this section.                     
     ``(2) The Secretary concerned may make such determinations as may be 
  necessary to administer this section, including determinations of       
  dependency and relationship. When warranted by the circumstances, the   
  Secretary concerned may reconsider and change or modify any such        
  determination. The authority of the Secretary concerned under this      
  subsection may be delegated. Any determination made under this section  
  with regard to a member of the uniformed services is final and is not   
  subject to review by any accounting officer of the United States or a   
  court, unless there is fraud or gross negligence.                       
     ``(3) Parking facilities (including utility connections) provided    
  members of the uniformed services for house trailers and mobile homes   
  not owned by the Government shall not be considered to be quarters for  
  the purposes of this section or any other provision of law. Any fees    
  established by the Government for the use of such a facility shall be   
  established in an amount sufficient to cover the cost of maintenance,   
  services, and utilities and to amortize the cost of construction of the 
  facility over the 25-year period beginning with the completion of such  
  construction.                                                           
     ``(l) Temporary Continuation of Allowance for Dependents of Members  
  Dying on Active Duty.--(1) The Secretary of Defense, or the Secretary of
  Transportation in the case of the Coast Guard when not operating as a   
  service in the Navy, may allow the dependents of a member of the armed  
  forces who dies on active duty and whose dependents are occupying family
  housing provided by the Department of Defense, or by the Department of  
  Transportation in the case of the Coast Guard, other than on a rental   
  basis on the date of the member's death to continue to occupy such      
  housing without charge for a period of 180 days.                        
     ``(2) The Secretary concerned may pay a basic allowance for housing  
  (at the rate that is payable for members of the same grade and          
  dependency status as the deceased member for the area where the         
  dependents are residing) to the dependents of a member of the uniformed 
  services who dies while on active duty and whose dependents--           
       ``(A) are not occupying a housing facility under the jurisdiction of
   a uniformed service on the date of the member's death;                  
     ``(B) are occupying such housing on a rental basis on such date; or   
       ``(C) vacate such housing sooner than 180 days after the date of the
   member's death.                                                         
     ``(3) The payment of the allowance under paragraph (2) shall         
  terminate 180 days after the date of the member's death.                
     ``(m) Members Paying Child Support.--(1) A member of a uniformed     
  service with dependents may not be paid a basic allowance for housing at
  the with dependents rate solely by reason of the payment of child       
  support by the member if--                                              
       ``(A) the member is assigned to a housing facility under the        
   jurisdiction of a uniformed service; or                                 
       ``(B) the member is assigned to sea duty, and elects not to occupy  
   assigned quarters for unaccompanied personnel, unless the member is in a
   pay grade above E 4.                                                    
     ``(2) A member of a uniformed service assigned to quarters of the    
  United States or a housing facility under the jurisdiction of a         
  uniformed service who is not otherwise authorized a basic allowance for 
  housing and who pays child support is entitled to the basic allowance   
  for housing differential, except for months for which the amount payable
  for the child support is less than the rate of the differential. Payment
  of a basic allowance for housing differential does not affect any       
  entitlement of the member to a partial allowance for quarters under     
  subsection (n).                                                         
     ``(3) The basic allowance for housing differential to which a member 
  is entitled under paragraph (2) is the amount equal to the difference   
  between--                                                               
       ``(A) the rate of the basic allowance for quarters (with dependents)
   for the member's pay grade, as such rate was in effect on December 31,  
   1997, under this section (as in effect on that date); and               
       ``(B) the rate of the basic allowance for quarters (without         
   dependents) for the member's pay grade, as such rate was in effect on   
   December 31, 1997, under this section (as in effect on that date).      
     ``(4) Whenever the rates of basic pay for members of the uniformed   
  services are increased, the monthly amount of the basic allowance for   
  housing differential computed under paragraph (3) shall be increased by 
  the average percentage increase in the rates of basic pay. The effective
  date of the increase shall be the same date as the effective date of the
  increase in the rates of basic pay.                                     
     ``(5) In the case of two members, who have one or more common        
  dependents (and no others), who are not married to each other, and one  
  of whom pays child support to the other, the amount of the basic        
  allowance for housing paid to each member under this section shall be   
  reduced in accordance with regulations prescribed by the Secretary of   
  Defense. The total amount of the basic allowances for housing paid to   
  the two members may not exceed the sum of the amounts of the allowance  
  to which each member would be otherwise entitled under this section.    
     ``(n) Partial Allowance for Members Without Dependents.--(1) A member
  of a uniformed service without dependents who is not entitled to receive
  a basic allowance for housing under subsection (b), (c), or (d) is      
  entitled to a partial basic allowance for housing at a rate determined  
  by the Secretary of Defense under paragraph (2).                        
     ``(2) The rate of the partial basic allowance for housing is the     
  partial rate of the basic allowance for quarters for the member's pay   
  grade as such partial rate was in effect on December 31, 1997, under    
  section 1009(c)(2) of this title (as such section was in effect on such 
  date).''.                                                               
     (b) Transition to Basic Allowance for Housing.--The Secretary of     
  Defense shall develop and implement a plan to incrementally manage the  
  rate of growth of the various components of the basic allowance for     
  housing authorized by section 403 of title 37, United States Code (as   
  amended by subsection (a)), during a transition period of not more than 
  six years. During the transition period, the Secretary may continue to  
  use the authorities provided under sections 403, 403a, 405(b), and      
  427(a) of title 37, United States Code (as in effect on the day before  
  the date of the enactment of this Act), but subject to such             
  modifications as the Secretary considers necessary, to provide          
  allowances for members of the uniformed services.                       
     (c) Repeal of Superseded Authorities.--(1) Section 403a of title 37, 
  United States Code, is repealed.                                        
    (2) Section 405 of such title is amended--                            
     (A) by striking out subsection (b); and                               
       (B) by redesignating subsections (c) and (d) as subsections (b) and 
   (c), respectively.                                                      
    (3) Section 427 of such title is amended--                            
     (A) by striking out subsection (a); and                               
     (B) in subsection (b)--                                               
       (i) by striking out ``(b) Additional Separation Allowance.--'' and  
   inserting in lieu thereof ``(a) Entitlement to Allowance.--'';          
     (ii) in paragraph (1)--                                               
       (I) by striking out ``, including subsection (a),'' in the matter   
   preceding the subparagraphs;                                            
     (II) by inserting ``or'' at the end of subparagraph (B);              
       (III) by striking out ``; or'' at the end of subparagraph (C) and   
   inserting in lieu thereof a period; and                                 
     (IV) by striking out subparagraph (D);                                
     (iii) in paragraph (3)--                                              
       (I) by striking out ``(3) An allowance'' and inserting in lieu      
   thereof ``(b) Entitlement When No Residence or Household Maintained for 
   Dependents.--An allowance''; and                                        
       (II) by striking out ``this subsection'' and inserting in lieu      
   thereof ``subsection (a)'';                                             
     (iv) in paragraph (4)--                                               
       (I) by striking out ``(4) A member'' and inserting in lieu thereof  
   ``(c) Effect of Election To Serve Unaccompanied Tour of Duty.--A        
   member''; and                                                           
       (II) by striking out ``paragraph (1)(A) of this subsection'' and    
   inserting in lieu thereof ``subsection (a)(1)(A)''; and                 
       (v) by striking out paragraph (5) and inserting in lieu thereof the 
   following new subsection:                                               
     ``(d) Entitlement While Spouse Entitled to Basic Pay.--A member      
  married to another member of the uniformed services becomes entitled,   
  regardless of any other dependency status, to an allowance under        
  subsection (a) by virtue of duty prescribed in subparagraph (A), (B), or
  (C) of paragraph (1) of such subsection if the members were residing    
  together immediately before being separated by reasons of execution of  
  military orders. Section 421 of this title does not apply to bar the    
  entitlement to an allowance under this section. However, not more than  
  one monthly allowance may be paid with respect to a married couple under
  this section.''.                                                        
     (4) The table of sections at the beginning of chapter 7 of title 37, 
  United States Code, is amended by striking out the items relating to    
  sections 403 and 403a and inserting in lieu thereof the following new   
  item:                                                                   
      ``403. Basic allowance for housing.''.                                  
     (d) Conforming Amendments.--(1) Title 37, United States Code, is     
  amended--                                                               
       (A) in section 101(25), by striking out ``basic allowance for       
   quarters (including any variable housing allowance or station housing   
   allowance)'' and inserting in lieu thereof ``basic allowance for        
   housing'';                                                              
       (B) in section 406(c), by striking out ``sections 404 and 405'' and 
   inserting in lieu thereof ``sections 403(c), 404, and 405'';            
       (C) in section 420(c), by striking out ``quarters'' and inserting in
   lieu thereof ``housing'';                                               
       (D) in section 551(3)(D), by striking out ``basic allowance for     
   quarters'' and inserting in lieu thereof ``basic allowance for          
   housing''; and                                                          
       (E) in section 1014(a), by striking out ``basic allowance for       
   quarters'' and inserting in lieu thereof ``basic allowance for          
   housing''.                                                              
    (2) Title 10, United States Code, is amended--                        
       (A) in section 708(c)(1), by striking out ``basic allowance for     
   quarters or basic allowance for subsistence'' and inserting in lieu     
   thereof ``basic allowance for housing under section 403 of title 37,    
   basic allowance for subsistence under section 402 of such title,'';     
     (B) in section 2830(a)--                                              
       (i) in paragraph (1), by striking out ``basic allowance for         
   quarters'' and inserting in lieu thereof ``basic allowance for housing  
   under section 403 of title 37''; and                                    
       (ii) in paragraph (2), by striking out ``basic allowance for        
   quarters'' and inserting in lieu thereof ``basic allowance for          
   housing'';                                                              
     (C) in section 2882(b)--                                              
       (i) in paragraph (1), by striking out ``section 403(b)'' and        
   inserting in lieu thereof ``section 403''; and                          
       (ii) in paragraph (2), by striking out ``basic allowance for        
   quarters'' and all that follows through the end of the paragraph and    
   inserting in lieu thereof ``basic allowance for housing under section   
   403 of title 37.'';                                                     
     (D) in section 7572(b)--                                              
       (i) in paragraph (1), by striking out ``the total of--'' and all    
   that follows through the end of the paragraph and inserting in lieu     
   thereof ``the basic allowance for housing payable under section 403 of  
   title 37 to a member of the same pay grade without dependents for the   
   period during which the member is deprived of quarters on board ship.'';
   and                                                                     
       (ii) in paragraph (2), by striking out ``basic allowance for        
   quarters'' and inserting in lieu thereof ``basic allowance for          
   housing''; and                                                          
       (E) in section 7573, by striking out ``basic allowance for          
   quarters'' and inserting in lieu thereof ``basic allowance for housing  
   under section 403 of title 37''.                                        
     (3) Section 5561(6)(D) of title 5, United States Code, is amended by 
  striking out ``basic allowance for quarters'' and inserting in lieu     
  thereof ``basic allowance for housing''.                                
     (4) Section 107(b) of title 32, United States Code, is amended by    
  striking out ``and quarters'' and inserting in lieu thereof ``and       
  housing''.                                                              
     (5) Section 4(k)(10) of the Military Selective Service Act (50 U.S.C.
  App. 454(k)(10)) is amended by striking out ``as such terms'' and all   
  that follows through ``extended or amended'' and inserting in lieu      
  thereof ``shall be entitled to receive a dependency allowance equal to  
  the basic allowance for housing provided for persons in pay grade E 1   
  under section 403 of title 37, United States Code,''.                   
     (e) Effective Date.--This section and the amendments made by this    
  section shall take effect on January 1, 1998.                           
                    SEC. 604. REVISION OF AUTHORITY TO ADJUST COMPENSATION        
          NECESSITATED BY REFORM OF SUBSISTENCE AND HOUSING ALLOWANCES.           
     (a) Removal of References to BAS and BAQ.--(1) Section 1009 of title 
  37, United States Code, is amended to read as follows:                  
          ``1009. Adjustments of monthly basic pay                                
     ``(a) Adjustment Required.--Whenever the General Schedule of         
  compensation for Federal classified employees, as contained in section  
  5332 of title 5, is adjusted upward as provided in section 5303 of such 
  title, the President shall immediately make an upward adjustment in the 
  monthly basic pay authorized members of the uniformed services by       
  section 203(a) of this title.                                           
     ``(b) Effectiveness of Adjustment.--An adjustment under this section 
  shall--                                                                 
     ``(1) have the force and effect of law; and                           
       ``(2) carry the same effective date as that applying to the         
   compensation adjustments provided General Schedule employees.           
     ``(c) Equal Percentage Increase for All Members.--Subject to         
  subsection (d), an adjustment under this section shall provide all      
  eligible members with an increase in the monthly basic pay which is of  
  the same percentage as the overall average percentage increase in the   
  General Schedule rates of both basic pay and locality pay for civilian  
  employees.                                                              
     ``(d) Allocation of Increase Among Pay Grades and                    
  Years-of-Service.--(1) Subject to paragraph (2), whenever the President 
  determines such action to be in the best interest of the Government, he 
  may allocate the overall percentage increase in the monthly basic pay   
  under subsection (a) among such pay grade and years-of-service          
  categories as he considers appropriate.                                 
     ``(2) In making any allocation of an overall percentage increase in  
  basic pay under paragraph (1)--                                         
       ``(A) the amount of the increase in basic pay for any given pay     
   grade and years-of-service category after any allocation made under this
   subsection may not be less than 75 percent of the amount of the increase
   in the monthly basic pay that would otherwise have been effective with  
   respect to such pay grade and years-of-service category under subsection
   (c); and                                                                
       ``(B) the percentage increase in the monthly basic pay in the case  
   of any member of the uniformed services with four years or less service 
   may not exceed the overall percentage increase in the General Schedule  
   rates of basic pay for civilian employees.                              
     ``(e) Notice of Allocations.--Whenever the President plans to        
  exercise the authority of the President under subsection (d) with       
  respect to any anticipated increase in the monthly basic pay of members 
  of the uniformed services, the President shall advise Congress, at the  
  earliest practicable time prior to the effective date of such increase, 
  regarding the proposed allocation of such increase.                     
     ``(f) Quadrennial Assessment of Allocations.--The allocations of     
  increases made under this section shall be assessed in conjunction with 
  the quadrennial review of military compensation required by section     
  1008(b) of this title.''.                                               
     (2) The item relating to such section in the table of sections at the
  beginning of chapter 19 of such title is amended to read as follows:    
      ``1009. Adjustments of monthly basic pay.''.                            
     (b) Effective Date.--The amendments made by subsection (a) shall take
  effect on January 1, 1998.                                              
                    SEC. 605. PROTECTION OF TOTAL COMPENSATION OF MEMBERS WHILE   
          PERFORMING CERTAIN DUTY.                                                
     Section 1009 of title 37, United States Code, as amended by section  
  604, is further amended--                                               
     (1) by redesignating subsection (f) as subsection (g); and            
     (2) by inserting after subsection (e) the following new subsection:   
     ``(f) Protection of Member's Total Compensation While Performing     
  Certain Duty.--(1) The total daily equivalent amount of the elements of 
  compensation described in paragraph (3), together with other pay and    
  allowances under this title, to be paid to a member of the uniformed    
  services who is temporarily assigned to duty away from the member's     
  permanent duty station or to duty under field conditions at the member's
  permanent duty station shall not be less, for any day during the        
  assignment period, than the total amount, for the day immediately       
  preceding the date of the assignment, of the elements of compensation   
  and other pay and allowances of the member.                             
     ``(2) Paragraph (1) shall not apply with respect to an element of    
  compensation or other pay or allowance of a member during an assignment 
  described in such paragraph to the extent that the element of           
  compensation or other pay or allowance is reduced or terminated due to  
  circumstances unrelated to the assignment.                              
     ``(3) The elements of compensation referred to in this subsection    
  mean--                                                                  
       ``(A) the monthly basic pay authorized members of the uniformed     
   services by section 203(a) of this title;                               
       ``(B) the basic allowance for subsistence authorized members of the 
   uniformed services by section 402 of this title; and                    
       ``(C) the basic allowance for housing authorized members of the     
   uniformed services by section 403 of this title.''                      
           Subtitle B--Bonuses and Special and Incentive Pays                      
                    SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL   
          PAY AUTHORITIES FOR RESERVE FORCES.                                     
     (a) Special Pay for Health Professionals in Critically Short Wartime 
  Specialties.--Section 302g(f) of title 37, United States Code, is       
  amended by striking out ``September 30, 1998'' and inserting in lieu    
  thereof ``September 30, 1999''.                                         
     (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title   
  37, United States Code, is amended by striking out ``September 30,      
  1998'' and inserting in lieu thereof ``September 30, 1999''.            
     (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 37, 
  United States Code, is amended by striking out ``September 30, 1998''   
  and inserting in lieu thereof ``September 30, 1999''.                   
     (d) Special Pay for Enlisted Members Assigned to Certain High        
  Priority Units.--Section 308d(c) of title 37, United States Code, is    
  amended by striking out ``September 30, 1998'' and inserting in lieu    
  thereof ``September 30, 1999''.                                         
     (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 37,
  United States Code, is amended by striking out ``September 30, 1998''   
  and inserting in lieu thereof ``September 30, 1999''.                   
     (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 308h(g)
  of title 37, United States Code, is amended by striking out ``September 
  30, 1998'' and inserting in lieu thereof ``September 30, 1999''.        
     (g) Prior Service Enlistment Bonus.--Section 308i(f) of title 37,    
  United States Code, as redesignated by section 622, is amended by       
  striking out ``September 30, 1998'' and inserting in lieu thereof       
  ``September 30, 1999''.                                                 
     (h) Repayment of Education Loans for Certain Health Professionals Who
  Serve in the Selected Reserve.--Section 16302(d) of title 10, United    
  States Code, is amended by striking out ``October 1, 1998'' and         
  inserting in lieu thereof ``October 1, 1999''.                          
                    SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL   
          PAY AUTHORITIES FOR NURSE OFFICER CANDIDATES, REGISTERED NURSES, AND    
          NURSE ANESTHETISTS.                                                     
     (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1)  
  of title 10, United States Code, is amended by striking out ``September 
  30, 1998'' and inserting in lieu thereof ``September 30, 1999''.        
     (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of    
  title 37, United States Code, is amended by striking out ``September 30,
  1998'' and inserting in lieu thereof ``September 30, 1999''.            
     (c) Incentive Special Pay for Nurse Anesthetists.--Section 302e(a)(1)
  of title 37, United States Code, is amended by striking out ``September 
  30, 1998'' and inserting in lieu thereof ``September 30, 1999''.        
                    SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO       
          PAYMENT OF OTHER BONUSES AND SPECIAL PAYS.                              
     (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,  
  United States Code, is amended by striking out ``September 30, 1998,''  
  and inserting in lieu thereof ``September 30, 1999,''.                  
     (b) Reenlistment Bonus for Active Members.--Section 308(g) of title  
  37, United States Code, is amended by striking out ``September 30,      
  1998'' and inserting in lieu thereof ``September 30, 1999''.            
     (c) Enlistment Bonuses for Members With Critical Skills.--Sections   
  308a(c) and 308f(c) of title 37, United States Code, are each amended by
  striking out ``September 30, 1998'' and inserting in lieu thereof       
  ``September 30, 1999''.                                                 
     (d) Special Pay for Nuclear Qualified Officers Extending Period of   
  Active Service.--Section 312(e) of title 37, United States Code, is     
  amended by striking out ``September 30, 1998'' and inserting in lieu    
  thereof ``September 30, 1999''.                                         
     (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37,    
  United States Code, is amended by striking out ``September 30, 1998''   
  and inserting in lieu thereof ``September 30, 1999''.                   
     (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of title 
  37, United States Code, is amended by striking out ``October 1, 1998''  
  and inserting in lieu thereof ``October 1, 1999''.                      
                    SEC. 614. INCREASE IN MINIMUM MONTHLY RATE OF HAZARDOUS DUTY  
          INCENTIVE PAY FOR CERTAIN MEMBERS.                                      
     (a) Aerial Flight Crewmembers.--The table in subsection (b) of       
  section 301 of title 37, United States Code, is amended--               
       (1) by striking out ``110'' each place it appears and inserting in  
   lieu thereof ``150''; and                                               
       (2) by striking out ``125'' each place it appears and inserting in  
   lieu thereof ``150''.                                                   
     (b) Air Weapons Controller Aircrew.--The table in subsection         
  (c)(2)(A) of such section is amended--                                  
       (1) by striking out ``100'' in the first column of amounts and      
   inserting in lieu thereof ``150'';                                      
       (2) by striking out ``110'' in the last column of amounts and       
   inserting in lieu thereof ``150''; and                                  
       (3) by striking out ``125'' each place it appears and inserting in  
   lieu thereof ``150''.                                                   
    (c)  Other Members.--Subsection (c)(1) of such section is amended--   
       (1) by striking out ``$110'' and inserting in lieu thereof ``$150'';
   and                                                                     
     (2) by striking out ``$165'' and inserting in lieu thereof ``$225''.  
          SEC. 615. INCREASE IN AVIATION CAREER INCENTIVE PAY.                    
     (a) Amounts.--The table in subsection (b)(1) of section 301a of title
  37, United States Code, is amended--                                    
     (1) by inserting at the end of phase I of the table the following:    
  ``Over 14                                                               
 840'';                                                                  
   and                                                                     
       (2) by striking out phase II of the table and inserting in lieu     
   thereof the following:                                                  
                                         ``PHASE II                               
        ``Monthly                                                              
        ``Years of service as an officer:                                      
        rate                                                                   
  ``Over 22                                                               
 $58515                                                                  
  ``Over 23                                                               
 49515                                                                   
  ``Over 24                                                               
 38515                                                                   
  ``Over 25                                                               
 250''.                                                                  
     (b) Conforming Amendments.--Such subsection is further amended in the
  matter after the table by striking out ``18 years'' both places it      
  appears and inserting in lieu thereof ``22 years''.                     
     (c) Effective Date and Applicability.--The amendments made by        
  subsection (a) shall take effect on January 1, 1999, and shall apply    
  with respect to months beginning on or after that date.                 
          SEC. 616. MODIFICATION OF AVIATION OFFICER RETENTION BONUS.             
     (a) Increase in Bonus Amounts.--Subsection (c) of section 301b of    
  title 37, United States Code, is amended--                              
       (1) in paragraph (1), by striking out ``$12,000'' and inserting in  
   lieu thereof ``$25,000''; and                                           
       (2) in paragraph (2), by striking out ``$6,000'' and inserting in   
   lieu thereof ``$12,000''.                                               
     (b) Duration of Agreement.--Paragraph (2) of such subsection is      
  further amended by striking out ``one or two years'' and inserting in   
  lieu thereof ``one, two, or three years''.                              
     (c) Content of Annual Report.--Subsection (i)(1) of such section is  
  amended--                                                               
     (1) by inserting ``and'' at the end of subparagraph (A);              
       (2) by striking out ``; and'' at the end of subparagraph (B) and    
   inserting in lieu thereof a period; and                                 
     (3) by striking out subparagraph (C).                                 
     (d) Definition of Aviation Specialty.--Subsection (j)(2) of such     
  section is amended by inserting ``specific'' before ``community'' both  
  places it appears.                                                      
     (e) Effective Dates and Applicability.--The amendments made by this  
  section shall take effect as of October 1, 1996, and shall apply with   
  respect to agreements accepted under section 301b of title 37, United   
  States Code, on or after that date.                                     
          SEC. 617. AVAILABILITY OF MULTIYEAR RETENTION BONUS FOR DENTAL OFFICERS.
     (a) Availability of Retention Bonus.--Chapter 5 of title 37, United  
  States Code, is amended by inserting after section 301d the following   
  new section:                                                            
          ``301e. Multiyear retention bonus: dental officers of the armed forces  
     ``(a) Bonus Authorized.--(1) A dental officer described in subsection
  (b) who executes a written agreement to remain on active duty for two,  
  three, or four years after completion of any other active-duty service  
  commitment may, upon acceptance of the written agreement by the         
  Secretary of the military department concerned, be paid a retention     
  bonus as provided in this section.                                      
     ``(2) The amount of a retention bonus under paragraph (1) may not    
  exceed $14,000 for each year covered by a four-year agreement. The      
  maximum yearly retention bonus for two-year and three-year agreements   
  shall be reduced to reflect the shorter service commitment.             
     ``(b) Officers Automatically Eligible.--Subsection (a) applies to an 
  officer of the armed forces who--                                       
       ``(1) is an officer of the Dental Corps of the Army or the Navy or  
   an officer of the Air Force designated as a dental officer;             
     ``(2) has a dental specialty in oral and maxillofacial surgery;       
     ``(3) is in a pay grade below pay grade 0 7;                          
       ``(4) has at least eight years of creditable service (computed as   
   described in section 302b(g) of this title) or has completed any        
   active-duty service commitment incurred for dental education and        
   training; and                                                           
       ``(5) has completed initial residency training (or will complete    
   such training before September 30 of the fiscal year in which the       
   officer enters into an agreement under subsection (a)).                 
     ``(c) Extension of Bonus to Other Dental Officers.--At the discretion
  of the Secretary of the military department concerned, the Secretary may
  enter into a written agreement described in subsection (a)(1) with a    
  dental officer who does not have the dental specialty specified in      
  subsection (b)(2), and pay a retention bonus to such an officer as      
  provided in this section, if the officer otherwise satisfies the        
  eligibility requirements specified in subsection (b). The Secretaries   
  shall exercise the authority provided in this section in a manner       
  consistent with regulations prescribed by the Secretary of Defense.     
     ``(d) Refunds.--(1) Refunds shall be required, on a pro rata basis,  
  of sums paid under this section if the officer who has received the     
  payment fails to complete the total period of active duty specified in  
  the agreement, as conditions and circumstances warrant.                 
     ``(2) An obligation to reimburse the United States imposed under     
  paragraph (1) is for all purposes a debt owed to the United States.     
     ``(3) A discharge in bankruptcy under title 11, United States Code,  
  that is entered less than five years after the termination of an        
  agreement under this section does not discharge the member signing such 
  agreement from a debt arising under such agreement or under paragraph   
  (1). This paragraph applies to any case commenced under title 11 after  
  the date of the enactment of the National Defense Authorization Act for 
  Fiscal Year 1998.''.                                                    
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by inserting after the item relating to section 
  301d the following new item:                                            
            ``301e. Multiyear retention bonus: dental officers of the armed   
      forces.''.                                                              
                    SEC. 618. INCREASE IN VARIABLE AND ADDITIONAL SPECIAL PAYS FOR
          CERTAIN DENTAL OFFICERS.                                                
     (a) Variable Special Pay for Junior Officers.--Paragraph (2) of      
  section 302b(a) of title 37, United States Code, is amended by striking 
  out subparagraphs (C), (D), (E), and (F) and inserting in lieu thereof  
  the following new subparagraphs:                                        
       ``(C) $7,000 per year, if the officer has at least six but less than
   eight years of creditable service.                                      
       ``(D) $12,000 per year, if the officer has at least eight but less  
   than 12 years of creditable service.                                    
       ``(E) $10,000 per year, if the officer has at least 12 but less than
   14 years of creditable service.                                         
       ``(F) $9,000 per year, if the officer has at least 14 but less than 
   18 years of creditable service.                                         
       ``(G) $8,000 per year, if the officer has 18 or more years of       
   creditable service.''.                                                  
     (b) Variable Special Pay for Senior Officers.--Paragraph (3) of such 
  section is amended by striking out ``$1,000'' and inserting in lieu     
  thereof ``$7,000''.                                                     
     (c) Additional Special Pay.--Paragraph (4) of such section is amended
  by striking out subparagraphs (B), (C), and (D) and inserting in lieu   
  thereof the following new subparagraphs:                                
       ``(B) $6,000 per year, if the officer has at least three but less   
   than 10 years of creditable service.                                    
       ``(C) $15,000 per year, if the officer has 10 or more years of      
   creditable service.''.                                                  
                    SEC. 619. AVAILABILITY OF SPECIAL PAY FOR DUTY AT DESIGNATED  
          HARDSHIP DUTY LOCATIONS.                                                
     (a) Special Pay Authorized.--Subsection (a) of section 305 of title  
  37, United States Code, is amended to read as follows:                  
     ``(a) Special Pay Authorized.--A member of a uniformed service who is
  entitled to basic pay may be paid special pay under this section at a   
  monthly rate not to exceed $300 while the member is on duty at a        
  location in the United States or outside the United States designated by
  the Secretary of Defense as a hardship duty location.''.                
     (b) Cross References and Regulations.--Such section is further       
  amended--                                                               
     (1) in subsection (b)--                                               
       (A) by inserting `` Exception for Certain Members Serving in Certain
   Locations.--'' after ``(b)''; and                                       
       (B) by striking out ``as foreign duty pay'' and inserting in lieu   
   thereof ``as hardship duty location pay'';                              
     (2) in subsection (c)--                                               
       (A) by inserting `` Exception for Members Receiving Career Sea      
   Pay.--'' after ``(c)''; and                                             
       (B) by striking out ``special pay under this section'' and inserting
   in lieu thereof ``hardship duty location pay under subsection (a)''; and
     (3) by adding at the end the following new subsection:                
     ``(d) Regulations.--The Secretary of Defense shall prescribe         
  regulations for the provision of hardship duty location pay under       
  subsection (a), including the specific monthly rates at which the       
  special pay will be available.''.                                       
     (c) Clerical Amendments.--(1) The heading of such section is amended 
  to read as follows:                                                     
          ``305. Special pay: hardship duty location pay''.                       
     (2) The table of sections at the beginning of chapter 5 of title 37, 
  United States Code, is amended by striking out the item relating to     
  section 305 and inserting in lieu thereof the following new item:       
      ``305. Special pay: hardship duty location pay.''.                      
     (d) Conforming Amendment.--Section 907(d) of title 37, United States 
  Code, is amended by striking out ``duty at certain places'' and         
  inserting in lieu thereof ``duty at a hardship duty location''.         
     (e) Transition.--Until such time as the Secretary of Defense         
  prescribes regulations regarding the provision of hardship duty location
  pay under section 305 of title 37, United States Code, as amended by    
  this section, the Secretary may continue to use the authority provided  
  by such section 305, as in effect on the day before the date of the     
  enactment of this Act, to provide special pay to enlisted members of the
  uniformed services on duty at certain places.                           
          SEC. 620. DEFINITION OF SEA DUTY FOR PURPOSES OF CAREER SEA PAY.        
    Section 305a(d) of title 37, United States Code, is amended--         
       (1) in paragraph (1)(A), by striking out ``, ship-based staff, or   
   ship-based aviation unit'';                                             
     (2) in paragraph (1)(B), by striking out ``or ship-based staff'';     
       (3) by redesignating paragraphs (2) and (3) as paragraphs (3) and   
   (4), respectively; and                                                  
     (4) by inserting after paragraph (1) the following new paragraph:     
     ``(2) The Secretary concerned may designate duty performed by a      
  member while serving on a ship the primary mission of which is          
  accomplished either while under way or in port as `sea duty' for        
  purposes of this section, even though the duty is performed while the   
  member is permanently or temporarily assigned to a ship-based staff or  
  other unit not covered by paragraph (1).''.                             
          SEC. 621. MODIFICATION OF SELECTED RESERVE REENLISTMENT BONUS.          
     (a) Eligible Members.--Subsection (a)(1) of section 308b of title 37,
  United States Code, is amended by striking out ``ten years'' and        
  inserting in lieu thereof ``14 years''.                                 
     (b) Bonus Amounts; Payment.--Subsection (b) of such section is       
  amended to read as follows:                                             
     ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus under this  
  section may not exceed--                                                
       ``(A) $5,000, in the case of a member who reenlists or extends an   
   enlistment for a period of six years;                                   
       ``(B) $2,500, in the case of a member who, having never received a  
   bonus under this section, reenlists or extends an enlistment for a      
   period of three years; and                                              
       ``(C) $2,000, in the case of a member who, having received a bonus  
   under this section for a previous three-year reenlistment or extension  
   of an enlistment, reenlists or extends the enlistment for an additional 
   period of three years.                                                  
     ``(2) Any bonus payable under this section shall be disbursed in one 
  initial payment of an amount not to exceed one-half of the total amount 
  of the bonus and subsequent periodic partial payments of the balance of 
  the bonus. The Secretary concerned shall prescribe the amount of each   
  partial payment and the schedule for making the partial payments.''.    
     (c) Special Eligibility Requirements; Number of Individual           
  Bonuses.--Subsection (c) of such section is amended to read as follows: 
     ``(c) Condition on Eligibility; Limitation on Number of Bonuses.--(1)
  To be eligible for a second bonus under this section in the amount      
  specified in subsection (b)(1)(C), a member must--                      
       ``(A) enter into the subsequent reenlistment or extension of an     
   enlistment for a period of three years not later than the date on which 
   the enlistment or extension for which the first bonus was paid would    
   expire; and                                                             
       ``(B) still satisfy the designated skill or unit requirements       
   required under subsection (a)(2).                                       
     ``(2) A member may not be paid more than one six-year bonus or two   
  three-year bonuses under this section.''.                               
     (d) Effect of Failure To Serve Satisfactorily.--Subsection (d) of    
  such section is amended to read as follows:                             
     ``(d) Repayment of Bonus.--A member who receives a bonus under this  
  section and who fails, during the period for which the bonus was paid,  
  to serve satisfactorily in the element of the Selected Reserve of the   
  Ready Reserve with respect to which the bonus was paid shall refund to  
  the United States an amount that bears the same ratio to the amount of  
  the bonus paid to the member as the period that the member failed to    
  serve satisfactorily bears to the total period for which the bonus was  
  paid.''.                                                                
    (e)  Clerical Amendments.--Such section is further amended--          
       (1) in subsection (a), by inserting `` Authority and Eligibility    
   Requirements.--'' after ``(a)'';                                        
       (2) in subsection (e), by inserting `` Regulations.--'' after       
   ``(e)''; and                                                            
       (3) in subsection (f), by inserting `` Termination of Authority.--''
   after ``(f)''.                                                          
                    SEC. 622. MODIFICATION OF SELECTED RESERVE ENLISTMENT BONUS   
          FOR FORMER ENLISTED MEMBERS.                                            
     (a) Eligible Persons.--Subsection (a)(2) of section 308i of title 37,
  United States Code, is amended--                                        
       (1) in subparagraph (A), by striking out ``10 years'' and inserting 
   in lieu thereof ``14 years'';                                           
     (2) in subparagraph (C), by striking out ``and'';                     
     (3) by redesignating subparagraph (D) as subparagraph (E);            
       (4) in subparagraph (E) (as so redesignated), by inserting ``(except
   under this section)'' after ``bonus''; and                              
       (5) by inserting after subparagraph (C) the following new           
   subparagraph:                                                           
       ``(D) is projected to occupy a position as a member of the Selected 
   Reserve in a specialty in which--                                       
       ``(i) the person successfully served while a member on active duty; 
   and                                                                     
       ``(ii) the person attained a level of qualification while a member  
   on active duty commensurate with the grade and years of service of the  
   member; and''.                                                          
     (b) Bonus Amounts; Payment.--Subsection (b) of such section is       
  amended to read as follows:                                             
     ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus under this  
  section may not exceed--                                                
       ``(A) $5,000, in the case of a person who enlists for a period of   
   six years;                                                              
       ``(B) $2,500, in the case of a person who, having never received a  
   bonus under this section, enlists for a period of three years; and      
       ``(C) $2,000, in the case of a person who, having received a bonus  
   under this section for a previous three-year enlistment, reenlists or   
   extends the enlistment for an additional period of three years.         
     ``(2) Any bonus payable under this section shall be disbursed in one 
  initial payment of an amount not to exceed one-half of the total amount 
  of the bonus and subsequent periodic partial payments of the balance of 
  the bonus. The Secretary concerned shall prescribe the amount of each   
  partial payment and the schedule for making the partial payments.''.    
     (c) Special Eligibility Requirements; Number of Individual           
  Bonuses.--Subsection (c) of such section is amended to read as follows: 
     ``(c) Condition on Eligibility; Limitation on Number of Bonuses.--(1)
  To be eligible for a second bonus under this section in the amount      
  specified in subsection (b)(1)(C), a person must--                      
       ``(A) enter into a reenlistment or extension of an enlistment for a 
   period of three years not later than the date on which the enlistment   
   for which the first bonus was paid would expire; and                    
     ``(B) still satisfy the eligibility requirements under subsection (a).
     ``(2) A person may not be paid more than one six-year bonus or two   
  three-year bonuses under this section.                                  
    (d)  Reorganization of Section.--Such section is further amended--    
       (1) by redesignating subsections (e), (f), and (g) as paragraphs    
   (2), (3), and (4), respectively, of subsection (d); and                 
       (2) by redesignating subsections (h) and (i) as subsections (e) and 
   (f), respectively.                                                      
     (e) Conforming and Clerical Amendments.--Such section is further     
  amended--                                                               
       (1) in subsection (a), by inserting `` Authority and Eligibility    
   Requirements.--'' after ``(a)'';                                        
     (2) in subsection (d)--                                               
     (A) by inserting `` Repayment of Bonus.--(1)'' after ``(d)'';         
       (B) in paragraphs (2) and (4), as redesignated by subsection (d)(1),
   by striking out ``subsection (d)'' and inserting in lieu thereof        
   ``paragraph (1)''; and                                                  
     (C) in paragraph (3), as redesignated by subsection (d)(1)--          
       (i) by striking out ``subsection (h)'' and inserting in lieu thereof
   ``subsection (e)''; and                                                 
       (ii) by striking out ``subsection (d)'' and inserting in lieu       
   thereof ``paragraph (1)'';                                              
       (3) in subsection (e), as redesignated by subsection (d)(2), by     
   inserting `` Regulations.--'' after ``(e)''; and                        
       (4) in subsection (f), as redesignated by subsection (d)(2), by     
   inserting `` Termination of Authority.--'' after ``(f)''.               
                    SEC. 623. EXPANSION OF RESERVE AFFILIATION BONUS TO INCLUDE   
          COAST GUARD RESERVE.                                                    
    Section 308e of title 37, United States Code, is amended--            
       (1) in subsection (a), by striking out ``Under regulations          
   prescribed by the Secretary of Defense, the Secretary of a military     
   department'' and inserting in lieu thereof ``The Secretary concerned''; 
       (2) in subsection (b)(3), by striking out ``designated by the       
   Secretary of Defense for the purposes of this section'' and inserting in
   lieu thereof ``designated for purposes of this section in the           
   regulations prescribed under subsection (f)'';                          
       (3) in subsection (c)(3), by striking out ``regulations prescribed  
   by the Secretary of Defense'' and inserting in lieu thereof ``the       
   regulations prescribed under subsection (f)''; and                      
     (4) by adding at the end the following new subsections:               
     ``(f) This section shall be administered under regulations prescribed
  by the Secretary of Defense for the armed forces under the jurisdiction 
  of the Secretary of Defense and by the Secretary of Transportation for  
  the Coast Guard when the Coast Guard is not operating as a service in   
  the Navy.                                                               
     ``(g) The authority in subsection (a) does not apply to the Secretary
  of Commerce and the Secretary of Health and Human Services.''.          
                    SEC. 624. INCREASE IN SPECIAL PAY AND BONUSES FOR             
          NUCLEAR-QUALIFIED OFFICERS.                                             
     (a) Special Pay for Officers Extending Period of Active              
  Service.--Section 312(a) of title 37, United States Code, is amended by 
  striking out ``$12,000'' and inserting in lieu thereof ``$15,000''.     
     (b) Nuclear Career Accession Bonus.--Section 312b(a)(1) of title 37, 
  United States Code, is amended by striking out ``$8,000'' and inserting 
  in lieu thereof ``$10,000''.                                            
     (c) Nuclear Career Annual Incentive Bonuses.--Section 312c of title  
  37, United States Code, is amended--                                    
       (1) in subsection (a)(1), by striking out ``$10,000'' and inserting 
   in lieu thereof ``$12,000''; and                                        
       (2) in subsection (b)(1), by striking out ``$4,500'' and inserting  
   in lieu thereof ``$5,500''.                                             
     (d) Effective Date.--(1) The amendments made by this section shall   
  take effect as of October 1, 1997.                                      
     (2) The amendments made by subsections (a) and (b) shall apply with  
  respect to agreements accepted under sections 312(a) and 312b(a),       
  respectively, of title 37, United States Code, on or after October 1,   
  1997.                                                                   
                    SEC. 625. PROVISION OF BONUSES IN LIEU OF SPECIAL PAY FOR     
          ENLISTED MEMBERS EXTENDING TOURS OF DUTY AT DESIGNATED LOCATIONS        
          OVERSEAS.                                                               
     (a) Inclusion of Bonus Incentive.--(1) Section 314 of title 37,      
  United States Code, is amended to read as follows:                      
                    ``314. Special pay or bonus: qualified enlisted members       
          extending duty at designated locations overseas                         
     ``(a) Covered Members.--This section applies with respect to an      
  enlisted member of an armed force who--                                 
     ``(1) is entitled to basic pay;                                       
       ``(2) has a specialty that is designated by the Secretary concerned 
   for the purposes of this section;                                       
       ``(3) has completed a tour of duty (as defined in accordance with   
   regulations prescribed by the Secretary concerned) at a location outside
   the 48 contiguous States and the District of Columbia that is designated
   by the Secretary concerned for the purposes of this section; and        
       ``(4) at the end of that tour of duty executes an agreement to      
   extend that tour for a period of not less than one year.                
     ``(b) Special Pay or Bonus Authorized.--Upon the acceptance by the   
  Secretary concerned of the agreement providing for an extension of the  
  tour of duty of an enlisted member described in subsection (a), the     
  member is entitled, at the election of the Secretary concerned, to      
  either--                                                                
       ``(1) special pay in monthly installments in an amount prescribed by
   the Secretary, but not to exceed $80 per month; or                      
       ``(2) an annual bonus in an amount prescribed by the Secretary, but 
   not to exceed $2,000 per year.                                          
     ``(c) Selection and Payment of Special Pay or Bonus.--Not later than 
  the date on which the Secretary concerned accepts an agreement described
  in subsection (a)(4) providing for the extension of a member's tour of  
  duty, the Secretary concerned shall notify the member regarding whether 
  the member will receive special pay or a bonus under this section. The  
  payment rate for the special pay or bonus shall be fixed at the time of 
  the agreement and may not be changed during the period of the extended  
  tour of duty. The Secretary concerned may pay a bonus under this section
  either in a lump sum or installments.                                   
     ``(d) Repayment of Bonus.--(1) A member who, having entered into a   
  written agreement to extend a tour of duty for a period under subsection
  (a), receives a bonus payment under subsection (b)(2) for a 12-month    
  period covered by the agreement and ceases during that 12-month period  
  to perform the agreed tour of duty shall refund to the United States the
  unearned portion of the bonus. The unearned portion of the bonus is the 
  amount by which the amount of the bonus paid to the member exceeds the  
  amount determined by multiplying the amount of the bonus paid by the    
  percent determined by dividing 12 into the number of full months during 
  which the member performed the duty in the 12-month period.             
     ``(2) The Secretary concerned may waive the obligation of a member to
  reimburse the United States under paragraph (1) if the Secretary        
  determines that conditions and circumstances warrant the waiver.        
     ``(3) An obligation to repay the United States imposed under         
  paragraph (1) is for all purposes a debt owed to the United States.     
     ``(4) A discharge in bankruptcy under title 11 that is entered less  
  than five years after the termination of the agreement does not         
  discharge the member signing the agreement from a debt arising under the
  agreement or under paragraph (1). This paragraph applies to any case    
  commenced under title 11 on or after the date of the enactment of the   
  National Defense Authorization Act for Fiscal Year 1998.                
     ``(e) Effect of Rest and Recuperative Absence.--A member who elects  
  to receive one of the benefits specified in section 705(b) of title 10  
  as part of the extension of a tour of duty is not entitled to the       
  special pay authorized by subsection (b)(1) for the period of the       
  extension of duty for which the benefit under such section is           
  provided.''.                                                            
     (2) The item relating to section 314 in the table of sections at the 
  beginning of chapter 5 of such title is amended to read as follows:     
            ``314. Special pay or bonus: qualified enlisted members extending 
      duty at designated locations overseas.''.                               
     (b) Application of Amendment.--Section 314 of title 37, United States
  Code, as amended by subsection (a), shall apply with respect to an      
  agreement to extend a tour of duty as provided in such section executed 
  on or after October 1, 1997.                                            
          SEC. 626. INCREASE IN AMOUNT OF FAMILY SEPARATION ALLOWANCE.            
     Section 427 of title 37, United States Code (as amended by section   
  603), is further amended in subsection (a)(1) by striking out ``$75''   
  and inserting in lieu thereof ``$100''.                                 
          SEC. 627. DEADLINE FOR PAYMENT OF READY RESERVE MUSTER DUTY ALLOWANCE.  
    Section 433(c) of title 37, United States Code, is amended--          
       (1) in the first sentence, by striking out ``and shall be'' and all 
   that follows through ``is performed''; and                              
       (2) by inserting after the first sentence the following new         
   sentence: ``The allowance may be paid to the member before, on, or after
   the date on which the muster duty is performed, but not later than 30   
   days after that date.''.                                                
           Subtitle C--Travel and Transportation Allowances                        
                    SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS 
          BEFORE APPROVAL OF MEMBER'S COURT-MARTIAL SENTENCE.                     
     Section 406(h)(2)(C) of title 37, United States Code, is amended by  
  striking out the comma at the end of clause (iii) and all that follows  
  through ``title 10.'' and inserting in lieu thereof a period.           
          SEC. 632. DISLOCATION ALLOWANCE.                                        
     (a) In General.--Section 407 of title 37, United States Code, is     
  amended to read as follows:                                             
          ``407. Travel and transportation allowances: dislocation allowance      
     ``(a) Eligibility for Primary Dislocation Allowance.--(1) Under      
  regulations prescribed by the Secretary concerned, a member of a        
  uniformed service described in paragraph (2) is entitled to a primary   
  dislocation allowance at the rate determined under subsection (c) for   
  the member's pay grade and dependency status.                           
     ``(2) A member of the uniformed services referred to in paragraph (1)
  is any of the following:                                                
       ``(A) A member who makes a change of permanent station and the      
   member's dependents actually make an authorized move in connection with 
   the change, including a move by the dependents--                        
       ``(i) to join the member at the member's duty station after an      
   unaccompanied tour of duty when the member's next tour of duty is an    
   accompanied tour at the same station; and                               
       ``(ii) to a location designated by the member after an accompanied  
   tour of duty when the member's next tour of duty is an unaccompanied    
   tour at the same duty station.                                          
       ``(B) A member whose dependents actually move pursuant to section   
   405a(a), 406(e), 406(h), or 554 of this title.                          
       ``(C) A member whose dependents actually move from their place of   
   residence under circumstances described in section 406a of this title.  
     ``(D) A member who is without dependents and--                        
       ``(i) actually moves to a new permanent station where the member is 
   not assigned to quarters of the United States; or                       
       ``(ii) actually moves from a place of residence under circumstances 
   described in section 406a of this title.                                
       ``(E) A member who is ordered to move in connection with the closure
   or realignment of a military installation and, as a result, the member's
   dependents actually move or, in the case of a member without dependents,
   the member actually moves.                                              
     ``(3) If a primary dislocation allowance is paid under this          
  subsection to a member described in subparagraph (C) or (D)(ii) of      
  paragraph (2), the member is not entitled to another dislocation        
  allowance as a member described in subparagraph (A) or (E) of such      
  paragraph in connection with the same move.                             
     ``(b) Secondary Allowance Authorized Under Certain                   
  Circumstances.--(1) Under regulations prescribed by the Secretary       
  concerned, whenever a member is entitled to a primary dislocation       
  allowance under subsection (a) as a member described in paragraph (2)(C)
  or (2)(D)(ii) of such subsection, the member is also entitled to a      
  secondary dislocation allowance at the rate determined under subsection 
  (c) for the member's pay grade and dependency status if, subsequent to  
  the member or the member's dependents actually moving from their place  
  of residence under circumstances described in section 406a of this      
  title, the member or member's dependents complete that move to a new    
  location and then actually move from that new location to another       
  location also under circumstances described in section 406a of this     
  title.                                                                  
     ``(2) If a secondary dislocation allowance is paid under this        
  subsection, the member is not entitled to a dislocation allowance as a  
  member described in paragraph (2)(A) or (2)(E) of subsection (a) in     
  connection with those moves.                                            
     ``(c) Dislocation Allowance Rates.--(1) The amount of the dislocation
  allowance to be paid under this section to a member shall be based on   
  the member's pay grade and dependency status at the time the member     
  becomes entitled to the allowance.                                      
     ``(2) The initial rate for the dislocation allowance, for each pay   
  grade and dependency status, shall be equal to the rate in effect for   
  that pay grade and dependency status on December 31, 1997, as adjusted  
  by the average percentage increase in the rates of basic pay for        
  calendar year 1998. Effective on the same date that the monthly rates of
  basic pay for members are increased for a subsequent calendar year, the 
  Secretary of Defense shall adjust the rates for the dislocation         
  allowance for that calendar year by the percentage equal to the average 
  percentage increase in the rates of basic pay for that calendar year.   
     ``(d) Fiscal Year Limitation; Exceptions.--(1) A member is not       
  entitled to more than one dislocation allowance under this section      
  during a fiscal year unless--                                           
       ``(A) the Secretary concerned finds that the exigencies of the      
   service require the member to make more than one change of permanent    
   station during the fiscal year;                                         
       ``(B) the member is ordered to a service school as a change of      
   permanent station;                                                      
       ``(C) the member's dependents are covered by section 405a(a),       
   406(e), 406(h), or 554 of this title; or                                
       ``(D) subparagraph (C) or (D)(ii) of subsection (a)(2) or subsection
   (b) apply with respect to the member or the member's dependents.        
     ``(2) This subsection does not apply in time of national emergency or
  in time of war.                                                         
     ``(e) First or Last Duty.--A member is not entitled to payment of a  
  dislocation allowance under this section when the member is ordered from
  the member's home to the member's first duty station or from the        
  member's last duty station to the member's home.                        
     ``(f) Rule of Construction.--For purposes of this section, a member  
  whose dependents may not make an authorized move in connection with a   
  change of permanent station is considered a member without dependents.  
     ``(g) Advance Payment.--A dislocation allowance payable under this   
  section may be paid in advance.''.                                      
     (b) Effective Date.--The amendment made by subsection (a) shall take 
  effect on January 1, 1998.                                              
           Subtitle D--Retired Pay, Survivor Benefits, and Related Matters         
                    SEC. 641. ONE-YEAR OPPORTUNITY TO DISCONTINUE PARTICIPATION IN
          SURVIVOR BENEFIT PLAN.                                                  
     (a) Election To Discontinue Within One Year After Second Anniversary 
  of Commencement of Payment of Retired Pay.--(1) Subchapter II of chapter
  73 of title 10, United States Code, is amended by inserting after       
  section 1448 the following new section:                                 
                    ``1448a. Election to discontinue participation: one-year      
          opportunity after second anniversary of commencement of payment of      
          retired pay                                                             
     ``(a) Authority.--A participant in the Plan may, subject to the      
  provisions of this section, elect to discontinue participation in the   
  Plan at any time during the one-year period beginning on the second     
  anniversary of the date on which payment of retired pay to the          
  participant commences.                                                  
    ``(b)  Concurrence of Spouse.--                                       
       ``(1) Concurrence required.--A married participant may not (except  
   as provided in paragraph (2)) make an election under subsection (a)     
   without the concurrence of the participant's spouse.                    
       ``(2) Exceptions.--A participant may make such an election without  
   the concurrence of the participant's spouse by establishing to the      
   satisfaction of the Secretary concerned that one of the conditions      
   specified in section 1448(a)(3)(C) of this title exists.                
       ``(3) Form of concurrence.--The concurrence of a spouse under       
   paragraph (1) shall be made in such written form and shall contain such 
   information as may be required under regulations prescribed by the      
   Secretary of Defense.                                                   
     ``(c) Limitation on Election When Former Spouse Coverage in          
  Effect.--The limitation set forth in section 1450(f)(2) of this title   
  applies to an election to discontinue participation in the Plan under   
  subsection (a).                                                         
     ``(d) Withdrawal of Election To Discontinue.--Section 1448(b)(1)(D)  
  of this title applies to an election under subsection (a).              
     ``(e) Consequences of Discontinuation.--Section 1448(b)(1)(E) of this
  title applies to an election under subsection (a).                      
     ``(f) Notice to Affected Beneficiaries.--The Secretary concerned     
  shall notify any former spouse or other natural person previously       
  designated under section 1448(b) of this title of an election to        
  discontinue participation under subsection (a).                         
     ``(g) Effective Date of Election.--An election under subsection (a)  
  is effective as of the first day of the first calendar month following  
  the month in which the election is received by the Secretary concerned. 
     ``(h) Inapplicability of Irrevocability Provisions.--Paragraphs      
  (4)(B) and (5)(C) of section 1448(a) of this title do not apply to      
  prevent an election under subsection (a).''.                            
     (2) The table of sections at the beginning of such subchapter is     
  amended by inserting after the item relating to section 1448 the        
  following new item:                                                     
            ``1448a. Election to discontinue participation: one-year          
      opportunity after second anniversary of commencement of payment of      
      retired pay.''.                                                         
     (b) Transition Provision for Current Participants.--Notwithstanding  
  the limitation on the time for making an election under section 1448a of
  title 10, United States Code (as added by subsection (a)), that is      
  specified in subsection (a) of such section, a participant in the       
  Survivor Benefit Plan under subchapter II of chapter 73 of such title   
  may make an election in accordance with that section within one year    
  after the effective date of that section under subsection (c) if the    
  second anniversary of the commencement of payment of retired pay to the 
  participant precedes that effective date.                               
     (c) Effective Date.--Section 1448a of title 10, United States Code,  
  as added by subsection (a), shall take effect 180 days after the date of
  the enactment of this Act.                                              
                    SEC. 642. TIME IN WHICH CHANGE IN SURVIVOR BENEFIT COVERAGE   
          FROM FORMER SPOUSE TO SPOUSE MAY BE MADE.                               
     (a) Extension of Time for Change.--Section 1450(f)(1)(C) of title 10,
  United States Code, is amended by adding at the end the following new   
  sentence: ``Notwithstanding the preceding sentence, a change of election
  under this subsection to provide an annuity to a spouse instead of a    
  former spouse may (subject to paragraph (2)) be made at any time after  
  the person providing the annuity remarries without regard to the time   
  limitation in section 1448(a)(5)(B) of this title.''.                   
     (b) Applicability.--The amendment made by subsection (a) shall apply 
  with respect to marriages occurring before, on, or after the date of the
  enactment of this Act.                                                  
          SEC. 643. REVIEW OF FEDERAL FORMER SPOUSE PROTECTION LAWS.              
     (a) Review Required.--The Secretary of Defense shall carry out a     
  comprehensive review (including a comparison) of--                      
       (1) the protections, benefits, and treatment afforded under Federal 
   law to members and former members of the uniformed services and former  
   spouses of such persons; and                                            
       (2) the protections, benefits, and treatment afforded under Federal 
   law to employees and former employees of the Government and former      
   spouses of such persons.                                                
     (b) Military Personnel Matters To Be Reviewed.--In the case of       
  members and former members of the uniformed services and former spouses 
  of such persons, the review under subsection (a) shall include the      
  following:                                                              
       (1) All provisions of law (principally those originally enacted in  
   the Uniformed Services Former Spouses' Protection Act (title X of Public
   Law 97 252)) that--                                                     
       (A) establish, provide for the enforcement of, or otherwise protect 
   interests of members and former members of the uniformed services and   
   former spouses of such persons in retired or retainer pay of members and
   former members; or                                                      
       (B) provide other benefits for members and former members of the    
   uniformed services and former spouses of such persons.                  
       (2) The experience of the uniformed services in administering those 
   provisions of law, including the adequacy and effectiveness of the legal
   assistance provided by the Department of Defense in matters related to  
   the Uniformed Services Former Spouses' Protection Act.                  
       (3) The experience of members and former members of the uniformed   
   services and former spouses of such persons in the administration of    
   those provisions of law.                                                
       (4) The experience of members and former members of the uniformed   
   services and former spouses of such persons in the application of those 
   provisions of law by State courts.                                      
       (5) The history of State statutes and State court interpretations of
   the Uniformed Services Former Spouses' Protection Act and other         
   provisions of Federal law described in paragraph (1)(A) and the extent  
   to which those interpretations follow those laws.                       
     (c) Civilian Personnel Matters To Be Reviewed.--In the case of former
  spouses of employees and former employees of the Government, the review 
  under subsection (a) shall include the following:                       
     (1) All provisions of law that--                                      
       (A) establish, provide for the enforcement of, or otherwise protect 
   interests of employees and former employees of the Government and former
   spouses of such persons in annuities of employees and former employees  
   under Federal employees' retirement systems; or                         
       (B) provide other benefits for employees and former employees of the
   Government and former spouses of such persons.                          
       (2) The experience of the Office of Personnel Management and other  
   agencies of the Government in administering those provisions of law.    
       (3) The experience of employees and former employees of the         
   Government and former spouses of such persons in the administration of  
   those provisions of law.                                                
       (4) The experience of employees and former employees of the         
   Government and former spouses of such persons in the application of     
   those provisions of law by State courts.                                
     (d) Sampling Authorized.--The Secretary may use sampling in carrying 
  out the review under this section.                                      
     (e) Report.--Not later than September 30, 1999, the Secretary shall  
  submit to the Committee on Armed Services of the Senate and the         
  Committee on National Security of the House of Representatives a report 
  on the results of the review under subsection (a). The report shall     
  include any recommendations for legislation that the Secretary considers
  appropriate.                                                            
          SEC. 644. ANNUITIES FOR CERTAIN MILITARY SURVIVING SPOUSES.             
     (a) Survivor Annuity.--(1) The Secretary concerned shall pay an      
  annuity to the qualified surviving spouse of each member of the         
  uniformed services who--                                                
       (A) died before March 21, 1974, and was entitled to retired or      
   retainer pay on the date of death; or                                   
       (B) was a member of a reserve component of the Armed Forces during  
   the period beginning on September 21, 1972, and ending on October 1,    
   1978, and at the time of his death would have been entitled to retired  
   pay under chapter 67 of title 10, United States Code (as in effect      
   before December 1, 1994), but for the fact that he was under 60 years of
   age.                                                                    
     (2) A qualified surviving spouse for purposes of this section is a   
  surviving spouse who has not remarried and who is not eligible for an   
  annuity under section 4 of Public Law 92 425 (10 U.S.C. 1448 note).     
     (b) Amount of Annuity.--(1) An annuity under this section shall be   
  paid at the rate of $165 per month, as adjusted from time to time under 
  paragraph (3).                                                          
     (2) An annuity paid to a surviving spouse under this section shall be
  reduced by the amount of any dependency and indemnity compensation (DIC)
  to which the surviving spouse is entitled under section 1311(a) of title
  38, United States Code.                                                 
     (3) Whenever after the date of the enactment of this Act retired or  
  retainer pay is increased under section 1401a(b)(2) of title 10, United 
  States Code, each annuity that is payable under this section shall be   
  increased at the same time and by the same total percent. The amount of 
  the increase shall be based on the amount of the monthly annuity payable
  before any reduction under this section.                                
     (c) Application Required.--No benefit shall be paid to any person    
  under this section unless an application for such benefit is filed with 
  the Secretary concerned by or on behalf of such person.                 
    (d)  Definitions.--For purposes of this section:                      
       (1) The terms ``uniformed services'' and ``Secretary concerned''    
   have the meanings given such terms in section 101 of title 37, United   
   States Code.                                                            
       (2) The term ``surviving spouse'' has the meaning given the terms   
   ``widow'' and ``widower'' in paragraphs (3) and (4) of section 1447 of  
   title 10, United States Code.                                           
     (e) Prospective Applicability.--(1) Annuities under this section     
  shall be paid for months beginning after the month in which this Act is 
  enacted.                                                                
     (2) No benefit shall accrue to any person by reason of the enactment 
  of this section for any period before the first month that begins after 
  the month in which this Act is enacted.                                 
     (f) Expiration of Authority.--The authority to pay annuities under   
  this section shall expire on September 30, 2001.                        
                    SEC. 645. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM    
          INCOME WIDOWS.                                                          
     (a) Payments To Be Made by Secretary of Veterans Affairs.--Section   
  653(d) of the National Defense Authorization Act, Fiscal Year 1989 (10  
  U.S.C. 1448 note) is amended--                                          
       (1) by inserting ``(1)'' before ``An annuity'' the first place it   
   appears; and                                                            
     (2) by adding at the end the following new paragraph:                 
     ``(2) Payment of annuities under this section shall be made by the   
  Secretary of Veterans Affairs. In making such payments, the Secretary   
  shall combine the payment under this section with the payment of any    
  amount due the same person under section 4 of Public Law 92 425 (10     
  U.S.C. 1448 note), as provided in subsection (e)(1) of that section. The
  Secretary                                                               
                    concerned shall transfer amounts for payments under this      
          section to the Secretary of Veterans Affairs in the same manner as is   
          provided under subsection (e)(2) of section 4 of Public Law 92 425 for  
          payments under that section.''.                                         
     (b) Combination With Other Benefits.--Section 4(e)(1) of Public Law  
  92 425 (10 U.S.C. 1448 note) is amended--                               
       (1) by inserting after the first sentence the following new         
   sentence: ``In making such payments, the Secretary shall combine with   
   the payment under this section payment of any amount due the same person
   under section 653(d) of the National Defense Authorization Act, Fiscal  
   Year 1989 (10 U.S.C. 1448 note).''; and                                 
       (2) by inserting ``(and, if applicable, under section 653(d) of the 
   National Defense Authorization Act, Fiscal Year 1989)'' after ``under   
   this section''.                                                         
     (c) Effective Date.--The amendments made by this section take effect 
  on the first day of the first month beginning after the date of the     
  enactment of this Act and shall apply with respect to payments of       
  benefits for months beginning on or after that date, except that the    
  Secretary of Veterans Affairs may provide, if necessary for             
  administrative implementation, that such amendments shall apply         
  beginning with a later month, not later than the first month beginning  
  more than 180 days after the date of the enactment of this Act.         
           Subtitle E--Other Matters                                               
                    SEC. 651. LOAN REPAYMENT PROGRAM FOR COMMISSIONED OFFICERS IN 
          CERTAIN HEALTH PROFESSIONS.                                             
     (a) Chapter 109 of title 10, United States Code, is amended by adding
  at the end the following new section:                                   
                    ``2173. Education loan repayment program: commissioned        
          officers in specified health professions                                
     ``(a) Authority To Repay Education Loans.--For the purpose of        
  maintaining adequate numbers of commissioned officers of the armed      
  forces on active duty who are qualified in the various health           
  professions, the Secretary of a military department may repay, in the   
  case of a person described in subsection (b), a loan that--             
       ``(1) was used by the person to finance education regarding a health
   profession; and                                                         
       ``(2) was obtained from a governmental entity, private financial    
   institution, school, or other authorized entity.                        
     ``(b) Eligible Persons.--To be eligible to obtain a loan repayment   
  under this section, a person must--                                     
     ``(1) satisfy one of the requirements specified in subsection (c);    
       ``(2) be fully qualified for, or hold, an appointment as a          
   commissioned officer in one of the health professions; and              
       ``(3) sign a written agreement to serve on active duty, or, if on   
   active duty, to remain on active duty for a period in addition to any   
   other incurred active duty obligation.                                  
     ``(c) Academic and Professional Requirements.--One of the following  
  academic requirements must be satisfied for purposes of determining the 
  eligibility of a person for a loan repayment under this section:        
       ``(1) The person is fully qualified in a health care profession that
   the Secretary of the military department concerned has determined to be 
   necessary to meet identified skill shortages.                           
       ``(2) The person is enrolled as a full-time student in the final    
   year of a course of study at an accredited educational institution      
   leading to a degree in a health profession other than medicine or       
   osteopathic medicine.                                                   
       ``(3) The person is enrolled in the final year of an approved       
   graduate program leading to specialty qualification in medicine,        
   dentistry, osteopathic medicine, or other health profession.            
     ``(d) Certain Persons Ineligible.--Participants of the Armed Forces  
  Health Professions Scholarship and Financial Assistance program under   
  subchapter I of chapter 105 of this title and students of the Uniformed 
  Services University of the Health Sciences established under section    
  2112 of this title are not eligible for the repayment of an education   
  loan under this section.                                                
     ``(e) Loan Repayments.--(1) Subject to the limits established by     
  paragraph (2), a loan repayment under this section may consist of       
  payment of the principal, interest, and related expenses of a loan      
  obtained by a person described in subsection (b) for--                  
       ``(A) all educational expenses, comparable to all educational       
   expenses recognized under section 2127(a) of this title for participants
   in the Armed Forces Health Professions Scholarship and Financial        
   Assistance program; and                                                 
       ``(B) reasonable living expenses, not to exceed expenses comparable 
   to the stipend paid under section 2121(d) of this title for participants
   in the Armed Forces Health Professions Scholarship and Financial        
   Assistance program.                                                     
     ``(2) For each year of obligated service that a person agrees to     
  serve in an agreement described in subsection (b)(3), the Secretary of  
  the military department concerned may pay not more than $22,000 on      
  behalf of the person. This maximum amount shall be increased annually by
  the Secretary of Defense effective October 1 of each year by the        
  percentage equal to the percent increase in the average annual cost of  
  educational expenses and stipend costs of a single scholarship under the
  Armed Forces Health Professions Scholarship and Financial Assistance    
  program. The total amount that may be repaid on behalf of any person may
  not exceed an amount determined on the basis of a four-year active duty 
  service obligation.                                                     
     ``(f) Active Duty Service Obligation.--(1) A person entering into an 
  agreement described in subsection (b)(3) incurs an active duty service  
  obligation. The length of this obligation shall be determined under     
  regulations prescribed by the Secretary of Defense, but those           
  regulations may not provide for a period of obligation of less than one 
  year for each maximum annual amount, or portion thereof, paid on behalf 
  of the person for qualified loans.                                      
     ``(2) For persons on active duty before entering into the agreement, 
  the active duty service obligation shall be served consecutively to any 
  other obligation incurred under the agreement.                          
     ``(g) Effect of Failure To Complete Obligation.--A commissioned      
  officer who is relieved of the officer's active duty obligation under   
  this section before the completion of that obligation may be given, with
  or without the consent of the officer, any alternative obligation       
  comparable to any of the alternative obligations authorized by section  
  2123(e) of this title for participants in the Armed Forces Health       
  Professions Scholarship and Financial Assistance program.               
     ``(h) Regulations.--The Secretary of Defense shall prescribe         
  regulations to carry out this section, including standards for qualified
  loans and authorized payees and other terms and conditions for the      
  making of loan repayments.''.                                           
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
            ``2173. Education loan repayment program: commissioned officers in
      specified health professions.''.                                        
                    SEC. 652. CONFORMANCE OF NOAA COMMISSIONED OFFICERS SEPARATION
          PAY TO SEPARATION PAY FOR MEMBERS OF OTHER UNIFORMED SERVICES.          
     (a) Elimination of Limitations on Amount of Separation Pay.--Section 
  9 of the Coast and Geodetic Survey Commissioned Officers' Act of 1948   
  (33 U.S.C. 853h) is amended--                                           
       (1) in subsection (b)(1), by striking out ``, or $30,000, whichever 
   is less'';                                                              
       (2) in subsection (b)(2), by striking out ``, but in no event more  
   than $15,000''; and                                                     
       (3) in subsection (d), by striking out ``(1)'', and by striking out 
   paragraph (2).                                                          
     (b) Waiver of Recoupment of Amounts Withheld for Tax Purposes From   
  Certain Separation Pay.--Section 9(e)(2) of the Coast and Geodetic      
  Survey Commissioned Officers' Act of 1948 (33 U.S.C. 853h(e)(2)) is     
  amended in the first sentence by inserting before the period at the end 
  the following: ``, less the amount of Federal income tax withheld from  
  such pay (such withholding being at the flat withholding rate for       
  Federal income tax withholding, as in effect pursuant to regulations    
  prescribed under chapter 24 of the Internal Revenue Code of 1986)''.    
     (c) Effective Date and Application.--The amendments made by this     
  section shall take effect as of October 1, 1997, and shall apply to     
  payments of separation pay that are made after September 30, 1997.      
                    SEC. 653. ELIGIBILITY OF PUBLIC HEALTH SERVICE OFFICERS AND   
          NOAA COMMISSIONED CORPS OFFICERS FOR REIMBURSEMENT OF ADOPTION EXPENSES.
     (a) Public Health Service.--Section 221(a) of the Public Health      
  Service Act (42 U.S.C. 213a(a)) is amended by adding at the end the     
  following new paragraph:                                                
     ``(16) Section 1052, Reimbursement for adoption expenses.''.          
     (b) National Oceanic and Atmospheric Administration.--Section 3(a) of
  the Act of August 10, 1956 (33 U.S.C. 857a(a)), is amended by adding at 
  the end the following new paragraph:                                    
     ``(16) Section 1052, Reimbursement for adoption expenses.''.          
     (c) Prospective Applicability.--The amendments made by this section  
  shall apply only to adoptions that are completed on or after the date of
  the enactment of this Act.                                              
                    SEC. 654. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES 
          TO WORLD WAR II VETERANS WHO SERVED AS GUERRILLA FIGHTERS IN THE        
          PHILIPPINES.                                                            
     (a) In General.--The Secretary of the military department concerned  
  shall pay, upon request, to an individual described in subsection (b)   
  the amount determined with respect to that individual under subsection  
  (c).                                                                    
     (b) Covered Individuals.--A payment under subsection (a) shall be    
  made to any individual who as a member of the Armed Forces during World 
  War II--                                                                
       (1) was captured within the territory of the Philippines by Japanese
   forces;                                                                 
     (2) escaped from captivity; and                                       
       (3) served as a guerrilla fighter in the Philippines during the     
   period from January 1942 through February 1945.                         
     (c) Amount To Be Paid.--The amount of a payment under subsection (a) 
  shall be the amount of quarters and subsistence allowance which accrued 
  to an individual described in subsection (b) during the period specified
  in paragraph (3) of subsection (b) and which was not paid to that       
  individual. For the purposes of this subsection, the Secretary of War   
  shall be deemed to have determined that conditions in the Philippines   
  during the specified period justified payment under applicable          
  regulations of quarters and subsistence allowances at the maximum       
  special rate for duty where emergency conditions existed. The Secretary 
  shall apply interest compounded at the three-month Treasury bill rate.  
     (d) Payment to Survivors.--In the case of any individual described in
  subsection (b) who is deceased, payment under this section with respect 
  to that individual shall be made to that individual's nearest surviving 
  relative, as determined by the Secretary concerned.                     
                    SEC. 655. SUBSISTENCE OF MEMBERS OF THE ARMED FORCES ABOVE THE
          POVERTY LEVEL.                                                          
     (a) Study and Report.--(1) The Secretary of Defense shall conduct a  
  study of members of the Armed Forces and their families who subsist at, 
  near, or below the poverty level. The study shall include the following:
       (A) An analysis of potential solutions for ensuring that members of 
   the Armed Forces and their families do not have to subsist at, near, or 
   below the poverty level, including potential solutions involving changes
   in the system of allowances for members.                                
       (B) Identification of the military populations most likely to need  
   income support under Federal Government programs, including--           
       (i) the populations living in areas of the United States where      
   housing costs are notably high;                                         
     (ii) the populations living outside the United States; and            
     (iii) the number of persons in each identified population.            
       (C) The desirability of increasing rates of basic pay and allowances
   for members over a defined period of years by a range of percentages    
   that provides for higher percentage increases for lower ranking members 
   than for higher ranking members.                                        
     (2) Not later than 180 days after the date of the enactment of this  
  Act, the Secretary of Defense shall submit to Congress a report         
  containing the results of the study and such recommendations as the     
  Secretary considers to be appropriate.                                  
     (b) Implementation of Department of Defense Special Supplemental Food
  Program for Personnel Outside the United States.--(1) Subsection (b) of 
  section 1060a of title 10, United States Code, is amended to read as    
  follows:                                                                
     ``(b) Federal Payments and Commodities.--For the purpose of obtaining
  Federal payments and commodities in order to carry out the program      
  referred to in subsection (a), the Secretary of Agriculture shall make  
  available to the Secretary of Defense the same payments and commodities 
  as are made for the special supplemental food program in the United     
  States under section 17 of the Child Nutrition Act of 1966 (42 U.S.C.   
  1786). The Secretary of Defense may use funds available for the         
  Department of Defense to carry out the program under subsection (a).''. 
     (2) Not later than 90 days after the date of the enactment of this   
  Act, the Secretary of Defense shall submit to Congress a report         
  regarding the intentions of the Secretary regarding implementation of   
  the program authorized under section 1060a of title 10, United States   
  Code, including any plans to implement the program.                     
           TITLE VII--HEALTH CARE PROVISIONS                                       
                              SUBTITLE A--HEALTH CARE SERVICES                    
            Sec. 701. Expansion of retiree dental insurance plan to include   
      surviving spouse and child dependents of certain deceased members.      
      Sec. 702. Provision of prosthetic devices to covered beneficiaries.     
      Sec. 703. Study concerning the provision of comparative information.    
                                 SUBTITLE B--TRICARE PROGRAM                      
      Sec. 711. Addition of definition of TRICARE program to title 10.        
      Sec. 712. Plan for expansion of managed care option of TRICARE program. 
                     SUBTITLE C--UNIFORMED SERVICES TREATMENT FACILITIES          
            Sec. 721. Implementation of designated provider agreements for    
      Uniformed Services Treatment Facilities.                                
      Sec. 722. Continued acquisition of reduced-cost drugs.                  
      Sec. 723. Limitation on total payments.                                 
              SUBTITLE D--OTHER CHANGES TO EXISTING LAWS REGARDING HEALTH CARE    
                                   MANAGEMENT                                     
            Sec. 731. Improvements in health care coverage and access for     
      members assigned to certain duty locations far from sources of care.    
            Sec. 732. Waiver or reduction of copayments under overseas dental 
      program.                                                                
            Sec. 733. Premium collection requirements for medical and dental  
      insurance programs; extension of deadline for implementation of dental  
      insurance program for military retirees.                                
            Sec. 734. Dental insurance plan coverage for retirees of the      
      Public Health Service and NOAA.                                         
            Sec. 735. Consistency between CHAMPUS and Medicare in payment     
      rates for services.                                                     
            Sec. 736. Use of personal services contracts for provision of     
      health care services and legal protection for providers.                
            Sec. 737. Portability of State licenses for Department of Defense 
      health care professionals.                                              
            Sec. 738. Standard form and requirements regarding claims for     
      payment for services.                                                   
      Sec. 739. Chiropractic health care demonstration program.               
                                  SUBTITLE E--OTHER MATTERS                       
            Sec. 741. Continued admission of civilians as students in         
      physician assistant training program of Army Medical Department.        
            Sec. 742. Payment for emergency health care overseas for military 
      and civilian personnel of the On-Site Inspection Agency.                
            Sec. 743. Authority for agreement for use of medical resource     
      facility, Alamogordo, New Mexico.                                       
            Sec. 744. Disclosures of cautionary information on prescription   
      medications.                                                            
      Sec. 745. Competitive procurement of certain ophthalmic services.       
            Sec. 746. Comptroller General study of adequacy and effect of     
      maximum allowable charges for physicians under CHAMPUS.                 
            Sec. 747. Comptroller General study of Department of Defense      
      pharmacy programs.                                                      
            Sec. 748. Comptroller General study of Navy graduate medical      
      education program.                                                      
            Sec. 749. Study of expansion of pharmaceuticals by mail program to
      include additional Medicare-eligible covered beneficiaries.             
            Sec. 750. Comptroller General study of requirement for military   
      medical facilities in National Capital Region.                          
            Sec. 751. Report on policies and programs to promote healthy      
      lifestyles for members of the Armed Forces and their dependents.        
      Sec. 752. Sense of Congress regarding quality health care for retirees. 
                              SUBTITLE F--PERSIAN GULF ILLNESS                    
      Sec. 761. Definitions.                                                  
      Sec. 762. Plan for health care services for Persian Gulf veterans.      
            Sec. 763. Comptroller General study of revised disability criteria
      for physical evaluation boards.                                         
            Sec. 764. Medical care for certain reserves who served in         
      Southwest Asia during the Persian Gulf War.                             
            Sec. 765. Improved medical tracking system for members deployed   
      overseas in contingency or combat operations.                           
            Sec. 766. Notice of use of investigational new drugs or drugs     
      unapproved for their applied use.                                       
            Sec. 767. Report on plans to track location of members in a       
      theater of operations.                                                  
            Sec. 768. Sense of Congress regarding the deployment of           
      specialized units for detecting and monitoring chemical, biological, and
      similar hazards in a theater of operations.                             
            Sec. 769. Report on effectiveness of research efforts regarding   
      Gulf War illnesses.                                                     
      Sec. 770. Persian Gulf illness clinical trials program.                 
      Sec. 771. Sense of Congress concerning Gulf War illness.                
           Subtitle A--Health Care Services                                        
                    SEC. 701. EXPANSION OF RETIREE DENTAL INSURANCE PLAN TO       
          INCLUDE SURVIVING SPOUSE AND CHILD DEPENDENTS OF CERTAIN DECEASED       
          MEMBERS.                                                                
    Section 1076c(b)(4) of title 10, United States Code, is amended--     
     (1) in subparagraph (A)--                                             
       (A) by striking out ``dies'' and inserting in lieu thereof ``died'';
   and                                                                     
     (B) by striking out ``or'' at the end of the subparagraph;            
       (2) by striking out the period at the end of subparagraph (B) and   
   inserting in lieu thereof ``; or''; and                                 
     (3) by adding at the end the following new subparagraph:              
       ``(C) who died while on active duty for a period of more than 30    
   days and whose eligible dependents are not eligible, or no longer       
   eligible, for dental benefits under section 1076a of this title pursuant
   to subsection (i)(2) of such section.''.                                
          SEC. 702. PROVISION OF PROSTHETIC DEVICES TO COVERED BENEFICIARIES.     
     (a) Inclusion Among Authorized Care.--Subsection (a) of section 1077 
  of title 10, United States Code, is amended by adding at the end the    
  following new paragraph:                                                
       ``(15) Prosthetic devices, as determined by the Secretary of Defense
   to be necessary because of significant conditions resulting from trauma,
   congenital anomalies, or disease.''.                                    
     (b) Conforming Amendment.--Subsection (b) of such section is amended 
  by striking out paragraph (2) and inserting in lieu thereof the         
  following new paragraph:                                                
       ``(2) Hearing aids, orthopedic footwear, and spectacles, except     
   that, outside of the United States and at stations inside the United    
   States where adequate civilian facilities are unavailable, such items   
   may be sold to dependents at cost to the United States.''.              
          SEC. 703. STUDY CONCERNING THE PROVISION OF COMPARATIVE INFORMATION.    
     (a) Study.--The Secretary of Defense shall conduct a study concerning
  the provision of the information described in subsection (b) to         
  beneficiaries under the TRICARE program established under the authority 
  of chapter 55 of title 10, United States Code, and prepare and submit to
  Congress a report concerning such study.                                
     (b) Provision of Comparative Information.--Information described in  
  this subsection, with respect to a managed care entity that contracts   
  with the Secretary of Defense to provide medical assistance under the   
  program described in subsection (a), shall include the following:       
     (1) The benefits covered by the entity involved, including--          
       (A) covered items and services beyond those provided under a        
   traditional fee-for-service program;                                    
     (B) any beneficiary cost sharing; and                                 
     (C) any maximum limitations on out-of-pocket expenses.                
     (2) The net monthly premium, if any, under the entity.                
     (3) The service area of the entity.                                   
       (4) To the extent available, quality and performance indicators for 
   the benefits under the entity (and how they compare to such indicators  
   under the traditional fee-for-service programs in the area involved),   
   including--                                                             
       (A) disenrollment rates for enrollees electing to receive benefits  
   through the entity for the previous two years (excluding disenrollment  
   due to death or moving outside the service area of the entity);         
     (B) information on enrollee satisfaction;                             
     (C) information on health process and outcomes;                       
     (D) grievance procedures;                                             
       (E) the extent to which an enrollee may select the health care      
   provider of their choice, including health care providers within the    
   network of the entity and out-of-network health care providers (if the  
   entity covers out-of-network items and services); and                   
       (F) an indication of enrollee exposure to balance billing and the   
   restrictions on coverage of items and services provided to such enrollee
   by an out-of-network health care provider.                              
       (5) Whether the entity offers optional supplemental benefits and the
   terms and conditions (including premiums) for such coverage.            
       (6) An overall summary description as to the method of compensation 
   of participating physicians.                                            
           Subtitle B--Tricare Program                                             
          SEC. 711. ADDITION OF DEFINITION OF TRICARE PROGRAM TO TITLE 10.        
     Section 1072 of title 10, United States Code, is amended by adding at
  the end the following new paragraph:                                    
       ``(7) The term `TRICARE program' means the managed health care      
   program that is established by the Department of Defense under the      
   authority of this chapter, principally section 1097 of this title, and  
   includes the competitive selection of contractors to financially        
   underwrite the delivery of health care services under the Civilian      
   Health and Medical Program of the Uniformed Services.''.                
          SEC. 712. PLAN FOR EXPANSION OF MANAGED CARE OPTION OF TRICARE PROGRAM. 
     (a) Plan for Expansion of TRICARE Prime.--The Secretary of Defense   
  shall prepare a plan for the expansion of the managed care option of the
  TRICARE Program, known as TRICARE Prime, into areas of the United States
  located outside of the catchment areas of medical treatment facilities  
  of the uniformed services, but in which the managed care option is a    
  cost-effective alternative because of--                                 
       (1) the significant number of members of the uniformed services and 
   covered beneficiaries under chapter 55 of title 10, United States Code  
   (including retired members of the Armed Forces and their dependents),   
   who reside in the areas; and                                            
       (2) the presence in the areas of sufficient nonmilitary health care 
   provider networks.                                                      
     (b) Alternatives.--As an alternative to expansion of TRICARE Prime to
  areas of the United States in which there are few or no nonmilitary     
  health care provider networks, the Secretary shall include in the plan  
  required under subsection (a) an evaluation of the feasibility and      
  cost-effectiveness of providing a member of the Armed Forces on active  
  duty who is stationed in such an area, or whose dependents reside in    
  such an area, with one or both of the following:                        
       (1) A monetary stipend to assist the member in obtaining health care
   services for the member or the member's dependents.                     
       (2) A reduction in the cost-sharing requirements applicable to the  
   TRICARE program options otherwise available to the member to match the  
   reduced cost-sharing responsibilities of the managed care option of the 
   TRICARE program.                                                        
     (c) Submission of Plan.--Not later than March 1, 1998, the Secretary 
  shall submit to Congress the plan required under subsection (a).        
           Subtitle C--Uniformed Services Treatment Facilities                     
                    SEC. 721. IMPLEMENTATION OF DESIGNATED PROVIDER AGREEMENTS FOR
          UNIFORMED SERVICES TREATMENT FACILITIES.                                
     (a) Commencement of Health Care Services Under Agreement.--Subsection
  (c) of section 722 of the National Defense Authorization Act for Fiscal 
  Year 1997 (Public Law 104 201, 10 U.S.C. 1073 note) is amended--        
       (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and
   (B);                                                                    
     (2) by inserting ``(1)'' before ``Unless''; and                       
     (3) by adding at the end the following new paragraph:                 
     ``(2) The Secretary may modify the effective date established under  
  paragraph (1) for an agreement to permit a transition period of not more
  than six months between the date on which the agreement is executed by  
  the parties and the date on which the designated provider commences the 
  delivery of health care services under the agreement.''.                
     (b) Temporary Continuation of Existing Participation                 
  Agreements.--Subsection (d) of such section is amended by inserting     
  before the period at the end the following: ``, including any           
  transitional period provided by the Secretary under paragraph (2) of    
  such subsection''.                                                      
          SEC. 722. CONTINUED ACQUISITION OF REDUCED-COST DRUGS.                  
     Section 722 of the National Defense Authorization Act for Fiscal Year
  1997 (Public Law 104 201; 10 U.S.C. 1073 note) is amended by adding at  
  the end the following new subsection:                                   
     ``(g) Continued Acquisition of Reduced-Cost Drugs.--A designated     
  provider shall be treated as part of the Department of Defense for      
  purposes of section 8126 of title 38, United States Code, in connection 
  with the provision by the designated provider of health care services to
  covered beneficiaries pursuant to the participation agreement of the    
  designated provider under section 718(c) of the National Defense        
  Authorization Act for Fiscal Year 1991 (Public Law 101 510; 42 U.S.C.   
  248c note) or pursuant to the agreement entered into under subsection   
  (b).''.                                                                 
          SEC. 723. LIMITATION ON TOTAL PAYMENTS.                                 
     Section 726(b) of the National Defense Authorization Act for Fiscal  
  Year 1997 (Public Law 104 201; 10 U.S.C. 1073 note) is amended by adding
  at the end the following new sentence: ``In establishing the ceiling    
  rate for enrollees with the designated providers who are also eligible  
  for the Civilian Health and Medical Program of the Uniformed Services,  
  the Secretary of Defense shall take into account the health status of   
  the enrollees.''.                                                       
                      Subtitle D--Other Changes to Existing Laws Regarding Health  
           Care Management                                                         
                    SEC. 731. IMPROVEMENTS IN HEALTH CARE COVERAGE AND ACCESS FOR 
          MEMBERS ASSIGNED TO CERTAIN DUTY LOCATIONS FAR FROM SOURCES OF CARE.    
     (a) Supplemental Care Program.--(1) Section 1074(c) of title 10,     
  United States Code, is amended--                                        
     (A) by inserting ``(1)'' after ``(c)''; and                           
     (B) by adding at the end the following new paragraphs:                
     ``(2)(A) Subject to such exceptions as the Secretary of Defense      
  considers necessary, coverage for medical care for members of the armed 
  forces under this subsection, and standards with respect to timely      
  access to such care, shall be comparable to coverage for medical care   
  and standards for timely access to such care under the managed care     
  option of the TRICARE program known as TRICARE Prime.                   
     ``(B) The Secretary of Defense shall enter into arrangements with    
  contractors under the TRICARE program or with other appropriate         
  contractors for the timely and efficient processing of claims under this
  subsection.                                                             
     ``(3)(A) The Secretary of Defense may not require a member of the    
  armed forces described in subparagraph (B) to receive routine primary   
  medical care at a military medical treatment facility.                  
     ``(B) A member referred to in subparagraph (A) is a member of the    
  armed forces on active duty who is entitled to medical care under this  
  subsection and who--                                                    
     ``(i) receives a duty assignment described in subparagraph (C); and   
       ``(ii) pursuant to the assignment of such duty, resides at a        
   location that is more than 50 miles, or approximately one hour of       
   driving time, from the nearest military medical treatment facility      
   adequate to provide the needed care.                                    
     ``(C) A duty assignment referred to in subparagraph (B) means any of 
  the following:                                                          
     ``(i) Permanent duty as a recruiter.                                  
       ``(ii) Permanent duty at an educational institution to instruct,    
   administer a program of instruction, or provide administrative services 
   in support of a program of instruction for the Reserve Officers'        
   Training Corps.                                                         
       ``(iii) Permanent duty as a full-time adviser to a unit of a reserve
   component.                                                              
       ``(iv) Any other permanent duty designated by the Secretary         
   concerned for purposes of this paragraph.''.                            
     (2) The amendments made by paragraph (1) shall apply with respect to 
  coverage of medical care for, and the provision of such care to, a      
  member of the Armed Forces under section 1074(c) of title 10, United    
  States Code, on and after the later of the following:                   
     (A) April 1, 1998.                                                    
       (B) The date on which the TRICARE program is in place in the service
   area of the member.                                                     
     (b) Temporary Authority for Managed Care Expansion to Members on     
  Active Duty at Certain Remote Locations.--(1) A member of the Armed     
  Forces described in subsection (c) is entitled to receive care under the
  Civilian Health and Medical Program of the Uniformed Services. In       
  connection with such care, the Secretary of Defense shall waive the     
  obligation of the member to pay a deductible, copayment, or annual fee  
  that would otherwise be applicable under that program for care provided 
  to the members under the program.                                       
     (2) A member who is entitled under paragraph (1) to receive health   
  care services under CHAMPUS shall receive such care from a network      
  provider under the TRICARE program if such a provider is available in   
  the service area of the member.                                         
     (3) Paragraph (1) shall take effect on the date of the enactment of  
  this Act and shall expire with respect to a member upon the later of the
  following:                                                              
       (A) The date that is one year after the date of the enactment of    
   this Act.                                                               
       (B) The date on which the amendments made by subsection (a) apply   
   with respect to the coverage of medical care for, and provision of such 
   care to, the member.                                                    
     (c) Eligible Members.--A member referred to in subsection (b) is a   
  member of the Armed Forces on active duty who--                         
     (1) receives a duty assignment described in subsection (d); and       
       (2) pursuant to the assignment of such duty, resides at a location  
   that is more than 50 miles, or approximately one hour of driving time,  
   from--                                                                  
       (A) the nearest health care facility of the uniformed services      
   adequate to provide the needed care under chapter 55 of title 10, United
   States Code; and                                                        
       (B) the nearest source of the needed care that is available to the  
   member under the TRICARE Prime plan.                                    
     (d) Duty Assignments Covered.--A duty assignment referred to in      
  subsection (c)(1) means any of the following:                           
     (1) Permanent duty as a recruiter.                                    
       (2) Permanent duty at an educational institution to instruct,       
   administer a program of instruction, or provide administrative services 
   in support of a program of instruction for the Reserve Officers'        
   Training Corps.                                                         
       (3) Permanent duty as a full-time adviser to a unit of a reserve    
   component of the Armed Forces.                                          
       (4) Any other permanent duty designated by the Secretary concerned  
   for purposes of this subsection.                                        
     (e) Payment of Costs.--Deductibles, copayments, and annual fees not  
  payable by a member by reason of a waiver granted under the regulations 
  prescribed pursuant to subsection (b) shall be paid out of funds        
  available to the Department of Defense for the Defense Health Program.  
    (f)  Definitions.--In this section:                                   
       (1) The term ``TRICARE program'' has the meaning given that term in 
   section 1072(7) of title 10, United States Code.                        
       (2) The term ``TRICARE Prime plan'' means a plan under the TRICARE  
   program that provides for the voluntary enrollment of persons for the   
   receipt of health care services to be furnished in a manner similar to  
   the manner in which health care services are furnished by health        
   maintenance organizations.                                              
                    SEC. 732. WAIVER OR REDUCTION OF COPAYMENTS UNDER OVERSEAS    
          DENTAL PROGRAM.                                                         
    Section 1076a(h) of title 10, United States Code, is amended--        
       (1) in the first sentence, by striking out ``Secretary'' and        
   inserting in lieu thereof ``Secretary of Defense''; and                 
       (2) by adding at the end the following new sentence: ``In the case  
   of such an overseas dental plan, the Secretary may waive or reduce the  
   copayments otherwise required by subsection (e) to the extent the       
   Secretary determines appropriate for the effective and efficient        
   operation of the plan.''.                                               
                    SEC. 733. PREMIUM COLLECTION REQUIREMENTS FOR MEDICAL AND     
          DENTAL INSURANCE PROGRAMS; EXTENSION OF DEADLINE FOR IMPLEMENTATION OF  
          DENTAL INSURANCE PROGRAM FOR MILITARY RETIREES.                         
     (a) Premium Collection for Selected Reserve Dental                   
  Insurance.--Paragraph (3) of section 1076b(b) of title 10, United States
  Code, is amended to read as follows:                                    
     ``(3) The Secretary of Defense shall establish procedures for the    
  collection of the member's share of the premium for coverage by the     
  dental insurance plan. To the maximum extent practicable, a member's    
  share shall be deducted and withheld from the basic pay payable to the  
  member for inactive duty training or basic pay payable to the member for
  active duty (if pay is available to the member). Such share shall be    
  used to pay the premium for coverage by the dental insurance plan.''.   
     (b) Premium Collection for Retiree Dental Insurance Plan.--Paragraph 
  (2) of section 1076c(c) of such title is amended to read as follows:    
     ``(2) The Secretary of Defense shall establish procedures for the    
  collection of the premiums charged for coverage by the dental insurance 
  plan. To the maximum extent practicable, the premiums payable by a      
  member entitled to retired pay shall be deducted and withheld from the  
  retired pay of the member (if pay is available to the member).''.       
     (c) Report to Congress.--Not later than March 1, 1998, the Secretary 
  of Defense shall submit to Congress a report on the premium collection  
  procedures established pursuant to paragraph (3) of section 1076b(b) of 
  title 10, United States Code, and paragraph (2) of section 1076c(c) of  
  such title. The report shall describe the extent to which premium       
  collections are made under such paragraphs through deductions and       
  withholding from pay.                                                   
     (d) Limitation on Implementation of Alternative Collection           
  Procedures.--The Secretary of Defense may not implement procedures for  
  collecting premiums under section 1076b(b)(3) of title 10, United States
  Code, or section 1076c(c)(2) of such title other than by deductions and 
  withholding from pay until 120 days after the date that the Secretary   
  submits a report to Congress describing the justifications for          
  implementing such alternative procedures.                               
     (e) Extension of Deadline for Implementation of Dental Insurance Plan
  for Military Retirees.--Section 703(b) of the National Defense          
  Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 Stat.   
  2590) is amended by striking ``October 1, 1997'' and inserting ``April  
  1, 1998''.                                                              
                    SEC. 734. DENTAL INSURANCE PLAN COVERAGE FOR RETIREES OF THE  
          PUBLIC HEALTH SERVICE AND NOAA.                                         
     (a) Eligibility.--(1) Subsection (a) of section 1076c of title 10,   
  United States Code, is amended by striking out ``military retirees'' and
  inserting in lieu thereof ``retirees of the uniformed services''.       
     (2) Subsection (b)(1) of such section is amended by striking out     
  ``Armed Forces'' and inserting in lieu thereof ``uniformed services''.  
     (b) Officials Responsible.--(1) Subsection (a) of such section (as   
  amended by subsection (a)) is further amended by inserting ``, in       
  consultation with the other administering Secretaries,'' after          
  ``Secretary of Defense''.                                               
     (2) Subsection (h) of such section is amended by striking out        
  ``Secretary of Transportation'' and inserting in lieu thereof ``other   
  administering Secretaries''.                                            
                    SEC. 735. CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT 
          RATES FOR SERVICES.                                                     
     (a) Conformity Between Rates.--Section 1079(h) of title 10, United   
  States Code, is amended by striking out paragraphs (1), (2), and (3) and
  inserting in lieu thereof the following new paragraph:                  
     ``(1) Except as provided in paragraphs (2) and (3), payment for a    
  charge for services by an individual health care professional (or other 
  noninstitutional health care provider) for which a claim is submitted   
  under a plan contracted for under subsection (a) shall be equal to an   
  amount determined to be appropriate, to the extent practicable, in      
  accordance with the same reimbursement rules as apply to payments for   
  similar services under title XVIII of the Social Security Act (42 U.S.C.
  1395 et seq.). The Secretary of Defense shall determine the appropriate 
  payment amount under this paragraph in consultation with the other      
  administering Secretaries.''.                                           
     (b) Reduced Rates Authorized.--Paragraph (5) of such section is      
  amended by adding at the end the following new sentence: ``With the     
  consent of the health care provider, the Secretary is also authorized to
  reduce the authorized payment for certain health care services below the
  amount otherwise required by the payment limitations under paragraph    
  (1).''.                                                                 
    (c)  Conforming Amendments.--Such section is further amended--        
       (1) in paragraph (5), by striking out ``paragraph (4), the          
   Secretary'' and inserting in lieu thereof ``paragraph (2), the Secretary
   of Defense''; and                                                       
       (2) by redesignating paragraphs (4), (5), and (6) as paragraphs (2),
   (3), and (4), respectively.                                             
                    SEC. 736. USE OF PERSONAL SERVICES CONTRACTS FOR PROVISION OF 
          HEALTH CARE SERVICES AND LEGAL PROTECTION FOR PROVIDERS.                
     (a) Use of Contracts Outside Medical Treatment Facilities.--Section  
  1091(a) of title 10, United States Code, is amended--                   
     (1) by inserting ``(1)'' before ``The Secretary of Defense''; and     
     (2) by adding at the end the following new paragraph:                 
     ``(2) The Secretary of Defense, and the Secretary of Transportation  
  with respect to the Coast Guard when it is not operating as a service in
  the Navy, may also enter into personal services contracts to carry out  
  other health care responsibilities of the Secretary (such as the        
  provision of medical screening examinations at Military Entrance        
  Processing Stations) at locations outside medical treatment facilities, 
  as determined necessary pursuant to regulations prescribed by the       
  Secretary. The Secretary may not enter into a contract under this       
  paragraph after the end of the one-year period beginning on the date of 
  the enactment of this paragraph.''.                                     
    (b)  Defense of Suits.--Section 1089 of such title is amended--       
       (1) in subsection (a), by adding at the end the following new       
   sentence: ``This subsection shall also apply if the physician, dentist, 
   nurse, pharmacist, or paramedical or other supporting personnel (or the 
   estate of such person) involved is serving under a personal services    
   contract entered into under section 1091 of this title.''; and          
     (2) in subsection (f)--                                               
     (A) by inserting ``(1)'' after ``(f)''; and                           
     (B) by adding at the end the following new paragraph:                 
     ``(2) With respect to the Secretary of Defense and the Armed Forces  
  Retirement Home Board, the authority provided by paragraph (1) also     
  includes the authority to provide for reasonable attorney's fees for    
  persons described in subsection (a), as determined necessary pursuant to
  regulations prescribed by the head of the agency concerned.''.          
     (c) Report.--Not later than March 31, 1998, the Secretary of Defense 
  shall submit to Congress a report on the feasible alternative means for 
  performing the medical screening examinations that are routinely        
  performed at Military Entrance Processing Stations. The report shall    
  contain a discussion of the feasibility and cost of the use of--        
     (1) the TRICARE system for the performance of the examinations; and   
     (2) each other alternative identified in the report.                  
                    SEC. 737. PORTABILITY OF STATE LICENSES FOR DEPARTMENT OF     
          DEFENSE HEALTH CARE PROFESSIONALS.                                      
    Section 1094 of title 10, United States Code, is amended--            
     (1) by redesignating subsection (d) as subsection (e); and            
     (2) by inserting after subsection (c) the following new subsection:   
     ``(d)(1) Notwithstanding any law regarding the licensure of health   
  care providers, a health-care professional described in paragraph (2)   
  may practice the health profession or professions of the health-care    
  professional in any State, the District of Columbia, or a Commonwealth, 
  territory, or possession of the United States, regardless of whether the
  practice occurs in a health care facility of the Department of Defense, 
  a civilian facility affiliated with the Department of Defense, or any   
  other location authorized by the Secretary of Defense .                 
     ``(2) A health-care professional referred to in paragraph (1) is a   
  member of the armed forces who--                                        
       ``(A) has a current license to practice medicine, osteopathic       
   medicine, dentistry, or another health profession; and                  
       ``(B) is performing authorized duties for the Department of         
   Defense.''.                                                             
                    SEC. 738. STANDARD FORM AND REQUIREMENTS REGARDING CLAIMS FOR 
          PAYMENT FOR SERVICES.                                                   
     (a) Clarification of Existing Requirements.--Section 1106 of title   
  10, United States Code, is amended to read as follows:                  
          ``1106. Submittal of claims: standard form; time limits                 
     ``(a) Standard Form.--The Secretary of Defense, after consultation   
  with the other administering Secretaries, shall prescribe by regulation 
  a standard form for the submission of claims for the payment of health  
  care services provided under this chapter.                              
     ``(b) Time for Submission.--A claim for payment for services provided
  under this chapter shall be submitted as provided in such regulations   
  not later than one year after the services are provided.''.             
     (b) Clerical Amendment.--The table of sections at the beginning of   
  chapter 55 of title 10, United States Code, is amended by striking out  
  the item relating to section 1106 and inserting in lieu thereof the     
  following new item:                                                     
      ``1106. Submittal of claims: standard form; time limits.''.             
          SEC. 739. CHIROPRACTIC HEALTH CARE DEMONSTRATION PROGRAM.               
     (a) Two-Year Extension.--Subsection (b) of section 731 of the        
  National Defense Authorization Act for Fiscal Year 1995 (Public Law 103 
  337; 10 U.S.C. 1092 note) is amended by striking out ``1997'' and       
  inserting in lieu thereof ``1999''.                                     
     (b) Expansion to at Least Three Additional Treatment                 
  Facilities.--Subsection (a)(2)(A) of such section is amended by striking
  out ``not less than 10'' and inserting in lieu thereof ``the National   
  Naval Medical Center, the Walter Reed Army Medical Center, and not less 
  than 11 other''.                                                        
    (c)  Reports.--Subsection (c) of such section is amended--            
     (1) by striking paragraph (3); and                                    
     (2) by adding at the end the following new paragraphs:                
     ``(3) Not later than January 30, 1998, the Secretary of Defense shall
  submit to the Committee on Armed Services of the Senate and the         
  Committee on National Security of the House of Representatives a report 
  that identifies the additional treatment facilities designated to       
  furnish chiropractic care under the program that were not so designated 
  before the report required by paragraph (1) was prepared, together with 
  the plan for the conduct of the program at the additional treatment     
  facilities.                                                             
     ``(4) Not later than May 1, 1998, the Secretary of Defense shall     
  modify the plan for evaluating the program submitted pursuant to        
  paragraph (2) in order to provide for the evaluation of the program at  
  all of the designated treatment facilities under the program, including 
  the treatment facilities referred to in paragraph (3).                  
     ``(5) Not later than May 1, 2000, the Secretary shall submit to the  
  committees referred to in paragraph (3) a final report in accordance    
  with the plan submitted pursuant to paragraph (2).''.                   
           Subtitle E--Other Matters                                               
                    SEC. 741. CONTINUED ADMISSION OF CIVILIANS AS STUDENTS IN     
          PHYSICIAN ASSISTANT TRAINING PROGRAM OF ARMY MEDICAL DEPARTMENT.        
     (a) Civilian Attendance.--(1) Chapter 407 of title 10, United States 
  Code, is amended by adding at the end the following new section:        
                    ``4416. Academy of Health Sciences: admission of civilians in 
          physician assistant training program                                    
     ``(a) In General.--The Secretary of the Army may, pursuant to an     
  agreement entered into with an accredited institution of higher         
  education--                                                             
       ``(1) permit students of the institution to attend the didactic     
   portion of the physician assistant training program conducted by the    
   Army Medical Department at the Academy of Health Sciences at Fort Sam   
   Houston, Texas; and                                                     
       ``(2) accept from the institution academic services to support the  
   physician assistant training program at the Academy.                    
     ``(b) Agreement for Exchange of Services.--An agreement entered into 
  with an institution of higher education under this section shall require
  the institution, in exchange for services provided under paragraph (1)  
  of subsection (a), to provide academic services described in paragraph  
  (2) of such subsection that the Secretary and authorized representatives
  of the institution consider appropriate.                                
     ``(c) Selection of Students.--In consultation with the authorized    
  representatives of the institution of higher education concerned, the   
  Secretary shall prescribe the qualifications and methods of selection   
  for students of the institution to receive instruction at the Academy   
  under this section. The qualifications shall be comparable to those     
  generally required for admission to the physician assistant training    
  program at the Academy.                                                 
     ``(d) Rules of Attendance.--Except as the Secretary determines       
  necessary, a student who receives instruction at the Academy under this 
  section shall be subject to the same regulations governing attendance,  
  discipline, discharge, and dismissal as apply to other persons attending
  the Academy.                                                            
    ``(e)  Limitations.--The Secretary shall ensure the following:        
       ``(1) That the Army Medical Department, in carrying out an agreement
   under this section, does not incur costs in excess of the costs that the
   department would incur to obtain, by means other than the agreement,    
   academic services that are comparable to those provided by the          
   institution pursuant to the agreement.                                  
       ``(2) That attendance of civilian students at the Academy under this
   section does not cause a decrease in the number of members of the armed 
   forces enrolled in the physician assistant training program at the      
   Academy.                                                                
     ``(f) Annual Report.--(1) Each year, the Secretary shall submit to   
  Congress a report on the exchange of services under this section during 
  the year. The report shall contain the following:                       
       ``(A) The number of civilian students who receive instruction at the
   Academy under this section.                                             
     ``(B) An assessment of the benefits derived by the United States.     
     ``(2) Reports are required under paragraph (1) only for years during 
  which an agreement is in effect under this section.''.                  
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
            ``4416. Academy of Health Sciences: admission of civilians in     
      physician assistant training program.''.                                
     (b) Effect on Existing Demonstration Program.--An agreement entered  
  into under the demonstration program for the admission of civilians as  
  physician assistant students at the Academy of Health Sciences, Fort Sam
  Houston, Texas, established pursuant to section 732 of the National     
  Defense Authorization Act for Fiscal Year 1995 (Public Law 103 337; 108 
  Stat. 2810) shall be treated as an agreement entered into under section 
  4416 of title 10, United States Code (as added by subsection (a)). The  
  agreement may be extended in such manner and for such period as the     
  parties to the agreement consider appropriate consistent with section   
  4416.                                                                   
                    SEC. 742. PAYMENT FOR EMERGENCY HEALTH CARE OVERSEAS FOR      
          MILITARY AND CIVILIAN PERSONNEL OF THE ON-SITE INSPECTION AGENCY.       
     (a) Payment of Costs.--The Secretary of Defense may pay the costs of 
  any emergency health care that--                                        
       (1) is needed by a member of the Armed Forces, civilian employee of 
   the Department of Defense, or civilian employee of a contractor         
   operating under a contract with the Department of Defense while the     
   member or employee is performing temporary or permanent duty with the   
   On-Site Inspection Agency outside the United States; and                
       (2) is furnished to such person during fiscal year 1998 by a source 
   outside the United States.                                              
     (b) Funding.--Funds authorized to be appropriated for the expenses of
  the On-Site Inspection Agency for fiscal year 1998 by this Act shall be 
  available to cover payments for emergency health care provided under    
  subsection (a).                                                         
                    SEC. 743. AUTHORITY FOR AGREEMENT FOR USE OF MEDICAL RESOURCE 
          FACILITY, ALAMOGORDO, NEW MEXICO.                                       
     (a) Authority.--(1) The Secretary of the Air Force may enter into an 
  agreement with Gerald Champion Hospital, Alamogordo, New Mexico, under  
  which the Secretary may furnish health care services to eligible        
  individuals in a medical resource facility in Alamogordo, New Mexico,   
  that is constructed and equipped, in part, using funds provided by the  
  Secretary under the agreement.                                          
    (2) For purposes of this section:                                     
       (A) The term ``eligible individual'' means any individual eligible  
   for medical and dental care under chapter 55 of title 10, United States 
   Code, including any member of the uniformed services entitled to such   
   care under section 1074(a) of that title.                               
       (B) The terms ``medical resource facility'' and ``facility'' mean   
   the medical resource facility to be constructed and equipped pursuant to
   the agreement authorized by paragraph (1).                              
       (C) The term ``Hospital'' means Gerald Champion Hospital,           
   Alamogordo, New Mexico.                                                 
     (b) Content of Agreement.--Any agreement entered into under          
  subsection (a) shall specify, at a minimum, the following:              
       (1) The relationship between the Hospital and the Secretary of the  
   Air Force in the provision of health care services to eligible          
   individuals in the medical resource facility, including--               
       (A) whether or not the Secretary and the Hospital are to use and    
   administer the facility jointly or independently; and                   
       (B) under what circumstances the Hospital is to act as a provider of
   health care services under the managed care option of the TRICARE       
   program known as TRICARE Prime.                                         
       (2) Matters relating to the administration of the agreement,        
   including--                                                             
     (A) the duration of the agreement;                                    
       (B) the rights and obligations of the Secretary and the Hospital    
   under the agreement, including any contracting or grievance procedures  
   applicable under the agreement;                                         
       (C) the types of care to be provided to eligible individuals under  
   the agreement, including the cost to the Department of the Air Force of 
   providing the care to eligible individuals during the term of the       
   agreement;                                                              
       (D) the access of Air Force medical personnel to the facility under 
   the agreement;                                                          
       (E) the rights and responsibilities of the Secretary and the        
   Hospital upon termination of the agreement; and                         
       (F) any other matters jointly identified by the Secretary and the   
   Hospital.                                                               
       (3) The nature of the arrangement between the Secretary and the     
   Hospital with respect to the ownership of the facility and any property 
   under the agreement, including--                                        
     (A) the nature of that arrangement while the agreement is in force;   
       (B) the nature of that arrangement upon termination of the          
   agreement; and                                                          
       (C) any requirement for reimbursement of the Secretary by the       
   Hospital as a result of the arrangement upon termination of the         
   agreement.                                                              
       (4) The amount of the funds made available under subsection (c) that
   the Secretary will contribute for the construction and equipping of the 
   facility.                                                               
       (5) Any conditions or restrictions relating to the construction,    
   equipping, or use of the facility.                                      
     (c) Availability of Funds for Construction and Equipping of          
  Facility.--(1) Of the amount authorized to be appropriated pursuant to  
  section 301(4) for operation and maintenance for the Air Force, not more
  than $7,000,000 may be used by the Secretary of the Air Force to make a 
  contribution toward the construction and equipping of the medical       
  resource facility in the event that the Secretary enters into the       
  agreement authorized by subsection (a). Notwithstanding any other       
  provision of law, the Secretary may not use other sources of funds to   
  make a contribution toward the construction or equipping of the         
  facility.                                                               
     (2) Notwithstanding subsection (b)(3) regarding the ownership and    
  reimbursement issues to be addressed in the agreement authorized by     
  subsection (a), the Secretary may not contribute funds made available   
  under paragraph (1) toward the construction and equipping of the        
  facility unless the agreement requires, in exchange for the             
  contribution, that the Hospital provide health care services to eligible
  individuals without charge to the Secretary or at a reduced rate. The   
  value of the services provided by the Hospital shall be at least equal  
  to the amount of the contribution made by the Secretary, and the        
  Hospital shall complete the provision of services equal in value to the 
  Secretary's contribution within seven years after the facility becomes  
  operational. The provision of additional discounted services to be      
  provided by the Hospital shall be included in the agreement. The value  
  and types of services to be provided by the Hospital shall be negotiated
  in accordance with principles of resource-sharing agreements under the  
  TRICARE program.                                                        
     (d) Notice and Wait.--The Secretary of the Air Force may not enter   
  into the agreement authorized by subsection (a) until 90 days after the 
  Secretary of Defense submits to the congressional defense committees the
  report required by subsection (e).                                      
     (e) Report on Proposed Agreement.--The Secretary of Defense shall    
  submit to Congress a report containing an analysis of, and              
  recommendations regarding, the agreement proposed to be entered into    
  under subsection (a), in particular, the implications of the agreement  
  on regional health care costs and its effect on implementation of the   
  TRICARE program in the region. The report shall also include a copy of  
  the agreement, the results of a cost-benefit analysis conducted by the  
  Secretary of the Air Force with respect to the agreement, and such other
  information with respect to the agreement as the Secretary of Defense   
  and the Secretary of the Air Force considers appropriate. The           
  cost-benefit analysis shall consider the effects of the agreement on    
  operation and maintenance and military construction requirements at     
  Holloman Air Force Base, New Mexico.                                    
     (f) Subsequent Reports.--If the Secretary of the Air Force enters    
  into the agreement authorized by subsection (a), the Secretary shall    
  submit to Congress an annual report containing a revised cost-benefit   
  analysis of the consequences of the agreement as in effect during the   
  year covered by the report, including a full accounting of any cost     
  savings realized by the Department of the Air Force as a result of the  
  agreement. A report shall be submitted for each year in which the       
  agreement is in effect or until the Hospital provides the full value of 
  health care services required under subsection (c)(2), whichever occurs 
  first.                                                                  
                    SEC. 744. DISCLOSURES OF CAUTIONARY INFORMATION ON            
          PRESCRIPTION MEDICATIONS.                                               
     (a) Regulations Required.--Not later than 180 days after the date of 
  the enactment of this Act, the Secretary of Defense, in consultation    
  with the administering Secretaries referred to in section 1073 of title 
  10, United States Code, shall prescribe regulations to require each     
  source described in subsection (d) that dispenses a prescription        
  medication to a beneficiary under chapter 55 of such title to include   
  with the medication the written cautionary information required by      
  subsection (b).                                                         
     (b) Information To Be Disclosed.--Information required to be         
  disclosed about a medication under the regulations shall include        
  appropriate cautions about usage of the medication, including possible  
  side effects and potentially hazardous interactions with foods.         
     (c) Form of Information.--The regulations shall require that         
  information be furnished in a form that, to the maximum extent          
  practicable, is easily read and understood.                             
    (d)  Covered Sources.--The regulations shall apply to the following:  
       (1) Pharmacies and any other dispensers of prescription medications 
   in medical facilities of the uniformed services.                        
       (2) Sources of prescription medications under any mail order        
   pharmaceuticals program provided by any of the administering Secretaries
   under chapter 55 of title 10, United States Code.                       
       (3) Pharmacies paid under the Civilian Health and Medical Program of
   the Uniformed Services (including the TRICARE program).                 
       (4) Pharmacies, and any other pharmaceutical dispensers, of         
   designated providers referred to in section 721(5) of the National      
   Defense Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 
   Stat. 2593; 10 U.S.C. 1073 note).                                       
          SEC. 745. COMPETITIVE PROCUREMENT OF CERTAIN OPHTHALMIC SERVICES.       
     (a) Competitive Procurement Required.--Beginning not later than      
  October 1, 1998, the Secretary of Defense shall competitively procure   
  from private-sector sources, or other sources outside of the Department 
  of Defense, all ophthalmic services related to the provision of single  
  vision and multivision eyeware for members of the Armed Forces, retired 
  members, and certain covered beneficiaries under chapter 55 of title 10,
  United States Code, who would otherwise receive such ophthalmic services
  through the Department of Defense.                                      
     (b) Exception.--Subsection (a) shall not apply to the extent that the
  Secretary of Defense determines that the use of sources within the      
  Department of Defense to provide such ophthalmic services--             
       (1) is necessary to meet the readiness requirements of the Armed    
   Forces; or                                                              
     (2) is more cost effective.                                           
     (c) Completion of Existing Orders.--Subsection (a) shall not apply to
  orders for ophthalmic services received on or before September 30, 1998.
                    SEC. 746. COMPTROLLER GENERAL STUDY OF ADEQUACY AND EFFECT OF 
          MAXIMUM ALLOWABLE CHARGES FOR PHYSICIANS UNDER CHAMPUS.                 
     (a) Study Required.--The Comptroller General shall conduct a study   
  regarding the adequacy of the maximum allowable charges for physicians  
  established under the Civilian Health and Medical Program of the        
  Uniformed Services (CHAMPUS) and the effect of such charges on the      
  participation of physicians in CHAMPUS. The study shall include an      
  evaluation of the following:                                            
       (1) The methodology used by the Secretary of Defense to establish   
   maximum allowable charges for physicians under CHAMPUS, and whether such
   methodology conforms to the requirements of section 1079(h) of title 10,
   United States Code.                                                     
       (2) The differences between the established charges under CHAMPUS   
   and reimbursement rates for similar services under title XVIII of the   
   Social Security Act and other health care programs.                     
       (3) The basis for physician complaints that the CHAMPUS established 
   charges are too low.                                                    
       (4) The difficultly of CHAMPUS in ensuring physician compliance with
   the CHAMPUS established charges in the absence of legal mechanisms to   
   enforce compliance, and the effect of noncompliance on patient          
   out-of-pocket expenses.                                                 
       (5) The effect of the established charges under CHAMPUS on the      
   participation of physicians in CHAMPUS, and the extent and success of   
   Department of Defense efforts to increase physician participation in    
   areas with low participation rates.                                     
     (b) Submission of Report.--Not later than March 1, 1998, the         
  Comptroller General shall submit to Congress a report containing the    
  results of the study required by subsection (a).                        
                    SEC. 747. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE  
          PHARMACY PROGRAMS.                                                      
     (a) Study.--Not later than March 31, 1998, the Comptroller General   
  shall submit to Congress a study evaluating the pharmacy programs of the
  Department of Defense. The study shall examine the impact of such       
  pharmacy programs on the aggregate cost, quality, and accessibility of  
  health care provided to covered beneficiaries under chapter 55 of title 
  10, United States Code, and shall include an examination of the         
  following:                                                              
       (1) The merits and feasibility of establishing a uniform formulary  
   for military treatment facility pharmacies and civilian contractor      
   pharmacy benefit administrators.                                        
       (2) The reasons that military treatment facilities deny covered     
   beneficiaries access to pharmacy care and shift such beneficiaries to   
   other sources of pharmacy care.                                         
       (3) The merits and feasibility of using private sector cost control 
   mechanisms implemented by authorized civilian contractors in the        
   Department of Defense medical programs, and the existence of any        
   barriers to the use of such mechanisms, including factors that may      
   undermine the incentives of such contractors to optimize treatment      
   outcomes in managing the care of covered beneficiaries without exceeding
   budgeted resources.                                                     
       (4) The cost impacts, if any, of the use of commercial managed care 
   methods of furnishing pharmaceuticals to covered beneficiaries by       
   TRICARE program contractors instead of procuring pharmaceuticals at     
   discounted prices pursuant to section 8126 of title 38, United States   
   Code.                                                                   
       (5) The existence of options for increasing the discounts available 
   to TRICARE program contractors without undermining controls for         
   preventing diversion of items procured by the Department of Defense to  
   nonmilitary populations.                                                
     (b) Response to Study.--Not later than 90 days after the Comptroller 
  General submits to Congress the study required by subsection (a), the   
  Secretary of Defense shall submit to Congress a report on the           
  feasibility and advisability of implementing changes to the pharmacy    
  programs of the Department of Defense based on the findings and         
  conclusions of the study.                                               
                    SEC. 748. COMPTROLLER GENERAL STUDY OF NAVY GRADUATE MEDICAL  
          EDUCATION PROGRAM.                                                      
     (a) Study Required.--The Comptroller General shall conduct a study to
  evaluate the validity of the recommendations made by the Medical        
  Education Policy Council of the Bureau of Medicine and Surgery of the   
  Navy regarding restructuring the graduate medical education program of  
  the Department of the Navy. The study shall specifically address the    
  Council's recommendations relating to residency training conducted at   
  Naval Medical Center, Portsmouth, Virginia, and National Naval Medical  
  Center, Bethesda, Maryland.                                             
     (b) Submission of Report.--Not later than March 1, 1998, the         
  Comptroller General shall submit to Congress and the Secretary of the   
  Navy a report containing the results of the study required by subsection
  (a).                                                                    
     (c) Moratorium on Restructuring.--Until the report required by       
  subsection (b) is submitted to Congress, the Secretary of the Navy may  
  not make any change in the types of residency programs conducted under  
  the Navy graduate medical education program or the locations at which   
  such residency programs are conducted or otherwise restructure the Navy 
  graduate medical education program.                                     
                    SEC. 749. STUDY OF EXPANSION OF PHARMACEUTICALS BY MAIL       
          PROGRAM TO INCLUDE ADDITIONAL MEDICARE-ELIGIBLE COVERED BENEFICIARIES.  
     Not later than six months after the date of the enactment of this    
  Act, the Secretary of Defense shall submit to Congress a report         
  regarding the feasibility and advisability of expanding the category of 
  persons eligible to participate in the demonstration project for the    
  purchase of prescription pharmaceuticals by mail, as required by section
  702(a) of the National Defense Authorization Act for Fiscal Year 1993   
  (Public Law 102 484; 10 U.S.C. 1079 note), to include persons referred  
  to in subsection (c) of section 1086 of title 10, United States Code,   
  who are covered by subsection (d)(1) of such section and reside in the  
  United States outside of the catchment area of a medical treatment      
  facility of the uniformed services.                                     
                    SEC. 750. COMPTROLLER GENERAL STUDY OF REQUIREMENT FOR        
          MILITARY MEDICAL FACILITIES IN NATIONAL CAPITAL REGION.                 
     (a) Study Required.--The Comptroller General shall conduct a study to
  evaluate the requirements for Army, Navy, and Air Force medical         
  facilities in the National Capital Region (as defined in section        
  2674(f)(2) of title 10, United States Code). The study shall--          
       (1) specifically address requirements with respect to geography,    
   facilities, integrated residencies, and medical environments; and       
       (2) provide specific recommendations with respect to how medical and
   health care provided by these facilities may be better coordinated to   
   more efficiently serve, throughout the National Capital Region, members 
   of the Armed Forces on active duty and covered beneficiaries under      
   chapter 55 of title 10, United States Code.                             
     (b) Submission of Report.--Not later than six months after the date  
  of the enactment of this Act, the Comptroller General shall submit to   
  Congress and the Secretary of Defense a report containing the results of
  the study required by subsection (a).                                   
                    SEC. 751. REPORT ON POLICIES AND PROGRAMS TO PROMOTE HEALTHY  
          LIFESTYLES FOR MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS.        
     (a) Report.--Not later than March 30, 1998, the Secretary of Defense 
  shall submit to the Committee on Armed Services of the Senate and the   
  Committee on National Security of the House of Representatives a report 
  on the effectiveness of the policies and programs of the Department of  
  Defense intended to promote healthy lifestyles for members of the Armed 
  Forces and their dependents.                                            
     (b) Policies and Programs To Be Assessed.--The report under          
  subsection (a) shall include an assessment of the effectiveness of the  
  following:                                                              
       (1) Programs intended to educate members of the Armed Forces and    
   their dependents about the potential health consequences of the use of  
   alcohol and tobacco.                                                    
       (2) Policies of the commissaries, post exchanges, and service clubs,
   and for entertainment activities of the Department of Defense, relating 
   to the sale and use of alcohol and tobacco.                             
       (3) Programs intended to provide support to members of the Armed    
   Forces and their dependents who choose to reduce or eliminate their use 
   of alcohol or tobacco.                                                  
       (4) Any other policies or programs intended to promote healthy      
   lifestyles for members of the Armed Forces and their dependents.        
          SEC. 752. SENSE OF CONGRESS REGARDING QUALITY HEALTH CARE FOR RETIREES. 
    (a)  Findings.--Congress makes the following findings:                
       (1) Many retired military personnel believe that they were promised 
   lifetime health care in exchange for 20 or more years of service.       
       (2) Military retirees are the only Federal Government personnel who 
   have been prevented from using their employer-provided health care at or
   after 65 years of age.                                                  
       (3) Military health care has become increasingly difficult to obtain
   for military retirees as the Department of Defense reduces its health   
   care infrastructure.                                                    
       (4) Military retirees deserve to have a health care program that is 
   at least comparable with that of retirees from civilian employment by   
   the Federal Government.                                                 
       (5) The availability of quality, lifetime health care is a critical 
   recruiting incentive for the Armed Forces.                              
       (6) Quality health care is a critical aspect of the quality of life 
   of the men and women serving in the Armed Forces.                       
    (b)  Sense of Congress.--It is the sense of Congress that--           
       (1) the United States has incurred a moral obligation to provide    
   health care to members and former members of the Armed Forces who are   
   entitled to retired or retainer pay (or its equivalent);                
       (2) it is, therefore, necessary to provide quality, affordable      
   health care to such retirees; and                                       
       (3) Congress and the President should take steps to address the     
   problems associated with the availability of health care for such       
   retirees within two years after the date of the enactment of this Act.  
           Subtitle F--Persian Gulf Illness                                        
          SEC. 761. DEFINITIONS.                                                  
    For purposes of this subtitle:                                        
       (1) The term ``Gulf War illness'' means any one of the complex of   
   illnesses and symptoms that might have been contracted by members of the
   Armed Forces as a result of service in the Southwest Asia theater of    
   operations during the Persian Gulf War.                                 
       (2) The term ``Persian Gulf War'' has the meaning given that term in
   section 101 of title 38, United States Code.                            
       (3) The term ``Persian Gulf veteran'' means an individual who served
   on active duty in the Armed Forces in the Southwest Asia theater of     
   operations during the Persian Gulf War.                                 
       (4) The term ``contingency operation'' has the meaning given that   
   term in section 101(a) of title 10, United States Code, and includes a  
   humanitarian operation, peacekeeping operation, or similar operation.   
          SEC. 762. PLAN FOR HEALTH CARE SERVICES FOR PERSIAN GULF VETERANS.      
     (a) Plan Required.--The Secretary of Defense and the Secretary of    
  Veterans Affairs, acting jointly, shall prepare a plan to provide       
  appropriate health care to Persian Gulf veterans (and dependents        
  eligible by law) who suffer from a Gulf War illness.                    
    (b)  Contents of Plan.--In preparing the plan, the Secretaries shall--
       (1) use the presumptions of service connection and illness specified
   in paragraphs (1) and (2) of section 721(d) of the National Defense     
   Authorization Act for Fiscal Year 1995 (Public Law 103 337; 10 U.S.C.   
   1074 note) to determine the Persian Gulf veterans (and dependents       
   eligible by law) who should be covered by the plan;                     
       (2) consider the need and methods available to provide health care  
   services to Persian Gulf veterans who are no longer on active duty in   
   the Armed Forces, such as Persian Gulf veterans who are members of the  
   reserve components and Persian Gulf veterans who have been separated    
   from the Armed Forces; and                                              
       (3) estimate the costs to the Government of providing full or       
   partial health care services under the plan to covered Persian Gulf     
   veterans (and covered dependents eligible by law).                      
     (c) Follow-up Treatment.--The plan required by subsection (a) shall  
  specifically address the measures to be used to monitor the quality,    
  appropriateness, and effectiveness of, and patient satisfaction with,   
  health care services provided to Persian Gulf veterans after their      
  initial medical examination as part of registration in the Persian Gulf 
  War Veterans Health Registry or the Comprehensive Clinical Evaluation   
  Program.                                                                
     (d) Submission of Plan.--Not later than March 1, 1998, the           
  Secretaries shall submit to Congress the plan required by subsection    
  (a).                                                                    
                    SEC. 763. COMPTROLLER GENERAL STUDY OF REVISED DISABILITY     
          CRITERIA FOR PHYSICAL EVALUATION BOARDS.                                
     Not later than March 1, 1998, the Comptroller General shall submit to
  Congress a study evaluating the revisions made by the Secretary of      
  Defense (as required by section 721(e) of the National Defense          
  Authorization Act for Fiscal Year 1995 (Public Law 103 337; 10 U.S.C.   
  1074 note)) to the Physical Evaluation Board criteria used to set       
  disability ratings for members of the Armed Forces who are no longer    
  medically qualified for continuation on active duty so as to ensure     
  accurate disability ratings related to a diagnosis of a Gulf War        
  illness.                                                                
                    SEC. 764. MEDICAL CARE FOR CERTAIN RESERVES WHO SERVED IN     
          SOUTHWEST ASIA DURING THE PERSIAN GULF WAR.                             
     (a) In General.--Chapter 55 of title 10, United States Code, is      
  amended by inserting after section 1074d the following new section:     
                    ``1074e. Medical care: certain Reserves who served in         
          Southwest Asia during the Persian Gulf Conflict                         
     ``(a) Entitlement to Medical Care.--A member of the armed forces     
  described in subsection (b) is entitled to medical care for a qualifying
  Persian Gulf symptom or illness to the same extent and under the same   
  conditions (other than the requirement that the member be on active     
  duty) as a member of a uniformed service who is entitled to such care   
  under section 1074(a) of this title.                                    
     ``(b) Covered Members.--Subsection (a) applies to a member of a      
  reserve component who--                                                 
     ``(1) is a Persian Gulf veteran;                                      
     ``(2) has a qualifying Persian Gulf symptom or illness; and           
       ``(3) is not otherwise entitled to medical care for such symptom or 
   illness under this chapter and is not otherwise eligible for hospital   
   care and medical services for such symptom or illness under section 1710
   of title 38.                                                            
    ``(c)  Definitions.--In this section:                                 
       ``(1) The term `Persian Gulf veteran' means a member of the armed   
   forces who served on active duty in the Southwest Asia theater of       
   operations during the Persian Gulf Conflict.                            
       ``(2) The term `qualifying Persian Gulf symptom or illness' means,  
   with respect to a member described in subsection (b), a symptom or      
   illness--                                                               
       ``(A) that the member registered before September 1, 1997, in the   
   Comprehensive Clinical Evaluation Program of the Department of Defense  
   and that is presumed under section 721(d) of the National Defense       
   Authorization Act for Fiscal Year 1995 (10 U.S.C. 1074 note) to be a    
   result of service in the Southwest Asia theater of operations during the
   Persian Gulf Conflict; or                                               
       ``(B) that the member registered before September 1, 1997, in the   
   Persian Gulf War Veterans Health Registry maintained by the Department  
   of Veterans Affairs pursuant to section 702 of the Persian Gulf War     
   Veterans' Health Status Act (38 U.S.C. 527 note).''.                    
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by inserting after the item relating to section 
  1074d the following new item:                                           
            ``1074e. Medical care: certain Reserves who served in Southwest   
      Asia during the Persian Gulf Conflict.''.                               
                    SEC. 765. IMPROVED MEDICAL TRACKING SYSTEM FOR MEMBERS        
          DEPLOYED OVERSEAS IN CONTINGENCY OR COMBAT OPERATIONS.                  
     (a) System Required.--(1) Chapter 55 of title 10, United States Code,
  is amended by inserting after section 1074e (as added by section 764)   
  the following new section:                                              
          ``1074f. Medical tracking system for members deployed overseas          
     ``(a) System Required.--The Secretary of Defense shall establish a   
  system to assess the medical condition of members of the armed forces   
  (including members of the reserve components) who are deployed outside  
  the United States or its territories or possessions as part of a        
  contingency operation (including a humanitarian operation, peacekeeping 
  operation, or similar operation) or combat operation.                   
     ``(b) Elements of System.--The system described in subsection (a)    
  shall include the use of predeployment medical examinations and         
  postdeployment medical examinations (including an assessment of mental  
  health and the drawing of blood samples) to accurately record the       
  medical condition of members before their deployment and any changes in 
  their medical condition during the course of their deployment. The      
  postdeployment examination shall be conducted when the member is        
  redeployed or otherwise leaves an area in which the system is in        
  operation (or as soon as possible thereafter).                          
     ``(c) Recordkeeping.--The results of all medical examinations        
  conducted under the system, records of all health care services         
  (including immunizations) received by members described in subsection   
  (a) in anticipation of their deployment or during the course of their   
  deployment, and records of events occurring in the deployment area that 
  may affect the health of such members shall be retained and maintained  
  in a centralized location to improve future access to the records.      
     ``(d) Quality Assurance.--The Secretary of Defense shall establish a 
  quality assurance program to evaluate the success of the system in      
  ensuring that members described in subsection (a) receive predeployment 
  medical examinations and postdeployment medical examinations and that   
  the recordkeeping requirements with respect to the system are met.''.   
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 1074e (as added by      
  section 764) the following new item:                                    
      ``1074f. Medical tracking system for members deployed overseas.''.      
     (b) Report.--Not later than March 1, 1998, the Secretary of Defense  
  shall submit to Congress an analysis of the administrative implications 
  of establishing and administering the medical tracking system required  
  by section 1074f of title                                               
                    10, United States Code, as added by subsection (a). The report
          shall include, for fiscal year 1999 and the 5 successive fiscal years, a
          separate analysis and specification of the projected costs and          
          operational considerations for each of the following required aspects of
          the system:                                                             
     (1) Predeployment medical examinations.                               
     (2) Postdeployment medical examinations.                              
     (3) Recordkeeping.                                                    
                    SEC. 766. NOTICE OF USE OF INVESTIGATIONAL NEW DRUGS OR DRUGS 
          UNAPPROVED FOR THEIR APPLIED USE.                                       
     (a) Notice Requirements.--Chapter 55 of title 10, United States Code,
  is amended by adding at the end the following new section:              
                    ``1107. Notice of use of an investigational new drug or a drug
          unapproved for its applied use                                          
     ``(a) Notice Required.--(1) Whenever the Secretary of Defense        
  requests or requires a member of the armed forces to receive an         
  investigational new drug or a drug unapproved for its applied use, the  
  Secretary shall provide the member with notice containing the           
  information specified in subsection (d).                                
     ``(2) The Secretary shall also ensure that health care providers who 
  administer an investigational new drug or a drug unapproved for its     
  applied use, or who are likely to treat members who receive such a drug,
  receive the information required to be provided under paragraphs (3) and
  (4) of subsection (d).                                                  
     ``(b) Time of Notice.--The notice required to be provided to a member
  under subsection (a)(1) shall be provided before the investigational new
  drug or drug unapproved for its applied use is first administered to the
  member, if practicable, but in no case later than 30 days after the drug
  is first administered to the member.                                    
     ``(c) Form of Notice.--The notice required under subsection (a)(1)   
  shall be provided in writing unless the Secretary of Defense determines 
  that the use of written notice is impractical because of the number of  
  members receiving the investigational new drug or drug unapproved for   
  its applied use, time constraints, or similar reasons. If the Secretary 
  provides notice under subsection (a)(1) in a form other than in writing,
  the Secretary shall submit to Congress a report describing the          
  notification method used and the reasons for the use of the alternative 
  method.                                                                 
     ``(d) Content of Notice.--The notice required under subsection (a)(1)
  shall include the following:                                            
       ``(1) Clear notice that the drug being administered is an           
   investigational new drug or a drug unapproved for its applied use.      
       ``(2) The reasons why the investigational new drug or drug          
   unapproved for its applied use is being administered.                   
       ``(3) Information regarding the possible side effects of the        
   investigational new drug or drug unapproved for its applied use,        
   including any known side effects possible as a result of the interaction
   of such drug with other drugs or treatments being administered to the   
   members receiving such drug.                                            
       ``(4) Such other information that, as a condition of authorizing the
   use of the investigational new drug or drug unapproved for its applied  
   use, the Secretary of Health and Human Services may require to be       
   disclosed.                                                              
     ``(e) Records of Use.--The Secretary of Defense shall ensure that the
  medical records of members accurately document--                        
       ``(1) the receipt by members of any investigational new drug or drug
   unapproved for its applied use; and                                     
     ``(2) the notice required by subsection (a)(1).                       
    ``(f)  Definitions.--In this section:                                 
       ``(1) The term `investigational new drug' means a drug covered by   
   section 505(i) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C.   
   355(i)).                                                                
       ``(2) The term `drug unapproved for its applied use' means a drug   
   administered for a use not described in the approved labeling of the    
   drug under section 505 of the Federal Food, Drug, and Cosmetic Act (21  
   U.S.C. 355).''.                                                         
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
            ``1107. Notice of use of an investigational new drug or a drug    
      unapproved for its applied use.''.                                      
                    SEC. 767. REPORT ON PLANS TO TRACK LOCATION OF MEMBERS IN A   
          THEATER OF OPERATIONS.                                                  
     Not later than March 1, 1998, the Secretary of Defense shall submit  
  to Congress a report containing a plan for collecting and maintaining   
  information regarding the daily location of units of the Armed Forces,  
  and to the extent practicable individual members of such units, serving 
  in a theater of operations during a contingency operation or combat     
  operation.                                                              
                    SEC. 768. SENSE OF CONGRESS REGARDING THE DEPLOYMENT OF       
          SPECIALIZED UNITS FOR DETECTING AND MONITORING CHEMICAL, BIOLOGICAL, AND
          SIMILAR HAZARDS IN A THEATER OF OPERATIONS.                             
     It is the sense of Congress that the Secretary of Defense, in        
  conjunction with the Chairman of the Joint Chiefs of Staff, should take 
  such actions as are necessary to ensure that the units of the Armed     
  Forces deployed in the theater of operations for each contingency       
  operation or combat operation include specialized units with sufficient 
  capability (including personnel with the appropriate training and       
  expertise, and the appropriate equipment) to detect and monitor the     
  presence of chemical, biological, and similar hazards to which members  
  of the Armed Forces could be exposed in that theater during the         
  operation.                                                              
                    SEC. 769. REPORT ON EFFECTIVENESS OF RESEARCH EFFORTS         
          REGARDING GULF WAR ILLNESSES.                                           
     Not later than March 1, 1998, the Secretary of Defense shall submit  
  to Congress a report evaluating the effectiveness of medical research   
  initiatives regarding Gulf War illnesses. The report shall address the  
  following:                                                              
       (1) The type and effectiveness of previous research efforts,        
   including the activities undertaken pursuant to section 743 of the      
   National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 
   201; 10 U.S.C. 1074 note), section 722 of the National Defense          
   Authorization Act for Fiscal Year 1995 (Public Law 103 337; 10 U.S.C.   
   1074 note), and sections 270 and 271 of the National Defense            
   Authorization Act for Fiscal Year 1994 (Public Law 103 160; 107 Stat.   
   1613).                                                                  
       (2) Recommendations regarding additional research regarding Gulf War
   illnesses, including research regarding the nature and causes of Gulf   
   War illnesses and appropriate treatments for such illnesses.            
       (3) The adequacy of Federal funding and the need for additional     
   funding for medical research initiatives regarding Gulf War illnesses.  
          SEC. 770. PERSIAN GULF ILLNESS CLINICAL TRIALS PROGRAM.                 
    (a)  Findings.--Congress finds the following:                         
       (1) There are many ongoing studies that investigate risk factors    
   which may be associated with the health problems experienced by Persian 
   Gulf veterans; however, there have been no studies that examine health  
   outcomes and the effectiveness of the treatment received by such        
   veterans.                                                               
       (2) The medical literature and testimony presented in hearings on   
   Gulf War illnesses indicate that there are therapies, such as cognitive 
   behavioral therapy, that have been effective in treating patients with  
   symptoms similar to those seen in many Persian Gulf veterans.           
     (b) Establishment of Program.--The Secretary of Defense and the      
  Secretary of Veterans Affairs, acting jointly, shall establish a program
  of cooperative clinical trials at multiple sites to assess the          
  effectiveness of protocols for treating Persian Gulf veterans who suffer
  from ill-defined or undiagnosed conditions. Such protocols shall include
  a multidisciplinary treatment model, of which cognitive behavioral      
  therapy is a component.                                                 
     (c) Funding.--Of the funds authorized to be appropriated in section  
  201(1) for research, development, test, and evaluation for the Army, the
  sum of $4,500,000 shall be available for program element 62787A (medical
  technology) in the budget of the Department of Defense for fiscal year  
  1998 to carry out the clinical trials program established pursuant to   
  subsection (b).                                                         
          SEC. 771. SENSE OF CONGRESS CONCERNING GULF WAR ILLNESS.                
    (a)  Findings.--Congress makes the following findings:                
       (1) Americans served in the Persian Gulf Conflict of 1991 in defense
   of vital national security interests of the United States.              
       (2) It was known to United States intelligence and military         
   commanders that biological and chemical agents were in theater          
   throughout the conflict.                                                
     (3) An undetermined amount of these agents were released into theater.
       (4) A large number of United States military veterans and allied    
   veterans who served in the Southwest Asia theater of operations have    
   been stricken with a variety of severe illnesses.                       
       (5) Previous efforts to discern the causes of those illnesses have  
   been inadequate, and those illnesses are affecting the health of both   
   veterans and their families.                                            
     (b) Sense of Congress.--It is the sense of Congress that all         
  promising technology and treatments relating to Gulf War illnesses      
  should be fully explored and tested to facilitate treatment for members 
  of the Armed Forces and veterans who served the United States in the    
  Persian Gulf conflict and are stricken with unexplainable illness.      
                      TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND  
           RELATED MATTERS                                                         
           SUBTITLE A--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 
                                 AND LIMITATIONS                                  
            Sec. 801. Expansion of authority to enter into contracts crossing 
      fiscal years to all severable service contracts not exceeding a year.   
            Sec. 802. Vesting of title in the United States under contracts   
      paid under progress payment arrangements or similar arrangements.       
      Sec. 803. Restriction on undefinitized contract actions.                
            Sec. 804. Limitation and report on payment of restructuring costs 
      under defense contracts.                                                
            Sec. 805. Increased price limitation on purchases of right-hand   
      drive vehicles.                                                         
      Sec. 806. Multiyear procurement contracts.                              
            Sec. 807. Audit of procurement of military clothing and           
      clothing-related items by military installations in the United States.  
            Sec. 808. Limitation on allowability of compensation for certain  
      contractor personnel.                                                   
      Sec. 809. Elimination of certification requirement for grants.          
      Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts. 
            Sec. 811. Item-by-item and country-by-country waivers of domestic 
      source limitations.                                                     
                         SUBTITLE B--ACQUISITION ASSISTANCE PROGRAMS              
      Sec. 821. One-year extension of pilot mentor-protege program.           
            Sec. 822. Test program for negotiation of comprehensive           
      subcontracting plans.                                                   
                            SUBTITLE C--ADMINISTRATIVE PROVISIONS                 
            Sec. 831. Retention of expired funds during the pendency of       
      contract litigation.                                                    
      Sec. 832. Protection of certain information from disclosure.            
      Sec. 833. Unit cost reports.                                            
            Sec. 834. Plan for providing contracting information to general   
      public and small businesses.                                            
            Sec. 835. Two-year extension of crediting of certain purchases    
      toward meeting subcontracting goals.                                    
                                  SUBTITLE D--OTHER MATTERS                       
      Sec. 841. Repeal of certain acquisition requirements and reports.       
            Sec. 842. Use of major range and test facility installations by   
      commercial entities.                                                    
            Sec. 843. Requirement to develop and maintain list of firms not   
      eligible for defense contracts.                                         
            Sec. 844. Sense of Congress regarding allowability of costs of    
      employee stock ownership plans.                                         
            Sec. 845. Expansion of personnel eligible to participate in       
      demonstration project relating to acquisition workforce.                
            Sec. 846. Time for submission of annual report relating to Buy    
      American Act.                                                           
            Sec. 847. Repeal of requirement for contractor guarantees on major
      weapon systems.                                                         
      Sec. 848. Requirements relating to micro-purchases.                     
      Sec. 849. Promotion rate for officers in an acquisition corps.          
      Sec. 850. Use of electronic commerce in Federal procurement.            
            Sec. 851. Conformance of policy on performance based management of
      civilian acquisition programs with policy established for defense       
      acquisition programs.                                                   
            Sec. 852. Modification of process requirements for the            
      solutions-based contracting pilot program.                              
            Sec. 853. Guidance and standards for defense acquisition workforce
      training requirements.                                                  
            Sec. 854. Study and report to Congress assessing dependence on    
      foreign sources for resistors and capacitors.                           
            Sec. 855. Department of Defense and Federal Prison Industries     
      joint study.                                                            
                      Subtitle A--Amendments to General Contracting Authorities,   
           Procedures, and Limitations                                             
                    SEC. 801. EXPANSION OF AUTHORITY TO ENTER INTO CONTRACTS      
          CROSSING FISCAL YEARS TO ALL SEVERABLE SERVICE CONTRACTS NOT EXCEEDING A
          YEAR.                                                                   
     (a) Expanded Authority.--Section 2410a of title 10, United States    
  Code, is amended to read as follows:                                    
          ``2410a. Severable service contracts for periods crossing fiscal years  
     ``(a) Authority.--The Secretary of Defense, the Secretary of a       
  military department, or the Secretary of Transportation with respect to 
  the Coast Guard when it is not operating as a service in the Navy, may  
  enter into a contract for procurement of severable services for a period
  that begins in one fiscal year and ends in the next fiscal year if      
  (without regard to any option to extend the period of the contract) the 
  contract period does not exceed one year.                               
     ``(b) Obligation of Funds.--Funds made available for a fiscal year   
  may be obligated for the total amount of a contract entered into under  
  the authority of subsection (a).''.                                     
     (b) Clerical Amendment.--The item relating to such section in the    
  table of sections at the beginning of chapter 141 of such title is      
  amended to read as follows:                                             
            ``2410a. Severable service contracts for periods crossing fiscal  
      years.''.                                                               
                    SEC. 802. VESTING OF TITLE IN THE UNITED STATES UNDER         
          CONTRACTS PAID UNDER PROGRESS PAYMENT ARRANGEMENTS OR SIMILAR           
          ARRANGEMENTS.                                                           
    Section 2307 of title 10, United States Code, is amended--            
     (1) by redesignating subsection (h) as subsection (i);  and           
       (2) by inserting after subsection (g) the following new subsection  
   (h):                                                                    
     ``(h) Vesting of Title in the United States.--If a contract paid by a
  method authorized under subsection (a)(1) provides for title to property
  to vest in the United States, the title to the property shall vest in   
  accordance with the terms of the contract, regardless of any security   
  interest in the property that is asserted before or after the contract  
  is entered into.''.                                                     
          SEC. 803. RESTRICTION ON UNDEFINITIZED CONTRACT ACTIONS.                
     (a) Applicability of Waiver Authority to Humanitarian or Peacekeeping
  Operations.--Section 2326(b)(4) of title 10, United States Code, is     
  amended to read as follows:                                             
     ``(4) The head of an agency may waive the provisions of this         
  subsection with respect to a contract of that agency if that head of an 
  agency determines that the waiver is necessary in order to support any  
  of the following operations:                                            
     ``(A) A contingency operation.                                        
     ``(B) A humanitarian or peacekeeping operation.''.                    
     (b) Humanitarian or Peacekeeping Operation Defined.--Section 2302(7) 
  of such title is amended--                                              
       (1) by striking out ``(7)(A)'' and inserting in lieu thereof        
   ``(7)''; and                                                            
       (2) by striking out ``(B) In subparagraph (A), the'' and inserting  
   in lieu thereof ``(8) The''.                                            
                    SEC. 804. LIMITATION AND REPORT ON PAYMENT OF RESTRUCTURING   
          COSTS UNDER DEFENSE CONTRACTS.                                          
     (a) In General.--(1) Chapter 137 of title 10, United States Code, is 
  amended by inserting after section 2324 the following new section:      
          ``2325. Restructuring costs                                             
     ``(a) Limitation on Payment of Restructuring Costs.--(1) The         
  Secretary of Defense may not pay, under section 2324 of this title, a   
  defense contractor for restructuring costs associated with a business   
  combination of the contractor unless the Secretary determines in writing
  either--                                                                
       ``(A) that the amount of projected savings for the Department of    
   Defense associated with the restructuring will be at least twice the    
   amount of the costs allowed; or                                         
       ``(B) that the amount of projected savings for the Department of    
   Defense associated with the restructuring will exceed the amount of the 
   costs allowed and that the business combination will result in the      
   preservation of a critical capability that otherwise might be lost to   
   the Department.                                                         
     ``(2) The Secretary may not delegate the authority to make a         
  determination under paragraph (1) to an official of the Department of   
  Defense below the level of an Assistant Secretary of Defense.           
     ``(b) Report.--Not later than March 1 in each of 1998, 1999, 2000,   
  2001, and 2002, the Secretary of Defense shall submit to Congress a     
  report that contains, with respect to business combinations occurring on
  or after August 15, 1994, the following:                                
       ``(1) For each defense contractor to which the Secretary has paid,  
   under section 2324 of this title, restructuring costs associated with a 
   business combination, a summary of the following:                       
       ``(A) An estimate of the amount of savings for the Department of    
   Defense associated with the restructuring that has been realized as of  
   the end of the preceding calendar year.                                 
       ``(B) An estimate of the amount of savings for the Department of    
   Defense associated with the restructuring that is expected to be        
   achieved on defense contracts.                                          
       ``(2) An identification of any business combination for which the   
   Secretary has paid restructuring costs under section 2324 of this title 
   during the preceding calendar year and, for each such business          
   combination--                                                           
     ``(A) the supporting rationale for allowing such costs;               
       ``(B) factual information associated with the determination made    
   under subsection (a) with respect to such costs; and                    
       ``(C) a discussion of whether the business combination would have   
   proceeded without the payment of restructuring costs by the Secretary.  
       ``(3) For business combinations of major defense contractors that   
   took place during the year preceding the year of the report--           
       ``(A) an assessment of any potentially adverse effects that the     
   business combinations could have on competition for Department of       
   Defense contracts (including potential horizontal effects, vertical     
   effects, and organizational conflicts of interest), the national        
   technology and industrial base, or innovation in the defense industry;  
   and                                                                     
     ``(B) the actions taken to mitigate the potentially adverse effects.  
     ``(c) Definition.--In this section, the term `business combination'  
  includes a merger or acquisition.''.                                    
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 2324 the following new  
  item:                                                                   
      ``2325. Restructuring costs.''.                                         
     (b) GAO Reports.--(1) Not later than April 1, 1998, the Comptroller  
  General shall--                                                         
       (A) in consultation with appropriate officials in the Department of 
   Defense--                                                               
       (i) identify major market areas affected by business combinations of
   defense contractors since January 1, 1990; and                          
       (ii) develop a methodology for determining the savings from business
   combinations of defense contractors on the prices paid on particular    
   defense contracts; and                                                  
       (B) submit to the congressional defense committees a report         
   describing, for each major market area identified pursuant to           
   subparagraph (A)(i), the changes in numbers of businesses competing for 
   major defense contracts since January 1, 1990.                          
     (2) Not later than December 1, 1998, the Comptroller General shall   
  submit to the congressional defense committees a report containing the  
  following:                                                              
     (A) Updated information on--                                          
       (i) restructuring costs of business combinations paid by the        
   Department of Defense pursuant to certifications under section 818 of   
   the National Defense Authorization Act for Fiscal Year 1995, and        
       (ii) savings realized by the Department of Defense as a result of   
   the business combinations for which the payment of restructuring costs  
   was so certified.                                                       
       (B) An assessment of the savings from business combinations of      
   defense contractors on the prices paid on a meaningful sample of defense
   contracts, determined in accordance with the methodology developed      
   pursuant to paragraph (1)(A)(ii), as well as a description of the       
   methodology.                                                            
       (C) Any recommendations that the Comptroller General considers      
   appropriate.                                                            
     (3) In this subsection, the term ``business combination'' has the    
  meaning given that term in section 2325(c) of title 10, United States   
  Code, as added by subsection (a).                                       
     (c) Effective Date.--Section 2325(a) of title 10, United States Code,
  as added by subsection (a), shall apply with respect to business        
  combinations that occur after the date of the enactment of this Act.    
     (d) Repeal of Superseded Provisions.--Subsections (a) and (g)(3) of  
  section 818 of the National Defense Authorization Act for Fiscal Year   
  1995 (10 U.S.C. 2324 note) are repealed.                                
                    SEC. 805. INCREASED PRICE LIMITATION ON PURCHASES OF          
          RIGHT-HAND DRIVE VEHICLES.                                              
     Section 2253(a)(2) of title 10, United States Code, is amended by    
  striking out ``$12,000'' and inserting in lieu thereof ``$30,000''.     
          SEC. 806. MULTIYEAR PROCUREMENT CONTRACTS.                              
     (a) Requirement for Authorization by Law in Acts Other Than          
  Appropriations Acts.--(1) Subsection (i) of section 2306b of title 10,  
  United States Code, is amended by adding at the end the following new   
  paragraph:                                                              
     ``(3) In the case of the Department of Defense, a multiyear contract 
  in an amount equal to or greater than $500,000,000 may not be entered   
  into for any fiscal year under this section unless the contract is      
  specifically authorized by law in an Act other than an appropriations   
  Act.''.                                                                 
     (2) Paragraph (3) of section 2306b(i) of title 10, United States     
  Code, as added by paragraph (1), shall not apply with respect to a      
  contract authorized by law before the date of the enactment of this Act.
     (b) Codification of Annual Recurring Multiyear Procurement           
  Requirements.--(1) Such section is further amended by adding at the end 
  the following new subsection:                                           
     ``(l) Various Additional Requirements With Respect to Multiyear      
  Defense Contracts.--(1)(A) The head of an agency may not initiate a     
  contract described in subparagraph (B) unless the congressional defense 
  committees are notified of the proposed contract at least 30 days in    
  advance of the award of the proposed contract.                          
    ``(B) Subparagraph (A) applies to the following contracts:            
     ``(i) A multiyear contract--                                          
       ``(I) that employs economic order quantity procurement in excess of 
   $20,000,000 in any one year of the contract; or                         
       ``(II) that includes an unfunded contingent liability in excess of  
   $20,000,000.                                                            
       ``(ii) Any 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.                                            
     ``(2) The head of an agency may not 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.                      
     ``(3) The head of an agency may not initiate a multiyear procurement 
  contract for any system (or component thereof) if the value of the      
  multiyear contract would exceed $500,000,000 unless authority for the   
  contract is specifically provided in an appropriations Act.             
     ``(4) The head of an agency may not terminate a multiyear procurement
  contract until 10 days after the date on which notice of the proposed   
  termination is provided to the congressional defense committees.        
     ``(5) The execution of multiyear contracting authority shall require 
  the use of a present value analysis to determine lowest cost compared to
  an annual procurement.                                                  
     ``(6) This subsection does not apply to the National Aeronautics and 
  Space Administration or to the Coast Guard.                             
     ``(7) In this subsection, the term `congressional defense committees'
  means the following:                                                    
       ``(A) The Committee on Armed Services of the Senate and the         
   Subcommittee on Defense of the Committee on Appropriations of the       
   Senate.                                                                 
       ``(B) The Committee on National Security of the House of            
   Representatives and the Subcommittee on National Security of the        
   Committee on Appropriations of the House of Representatives.''.         
     (2) The amendment made by paragraph (1) shall take effect on October 
  1, 1998.                                                                
     (c) Technical and Conforming Amendments.--Such section is further    
  amended as follows:                                                     
     (1) Subsection (a) is amended--                                       
       (A) by striking out ``finds--'' in the matter preceding paragraph   
   (1) and inserting in lieu thereof ``finds each of the following:'';     
       (B) by capitalizing the initial letter of the first word in each of 
   paragraphs (1) through (6);                                             
       (C) by striking out the semicolon at the end of paragraphs (1)      
   through (4) and inserting in lieu thereof a period; and                 
       (D) by striking out ``; and'' at the end of paragraph (5) and       
   inserting in lieu thereof a period.                                     
       (2) Subsection (d)(1) is amended by striking out ``paragraph (1)''  
   and inserting in lieu thereof ``subsection (a)''.                       
       (3) Subsection (i)(1) is amended by striking ``five-year'' and      
   inserting in lieu thereof ``future-years''.                             
                    SEC. 807. AUDIT OF PROCUREMENT OF MILITARY CLOTHING AND       
          CLOTHING-RELATED ITEMS BY MILITARY INSTALLATIONS IN THE UNITED STATES.  
     (a) Audit Requirement.--Not later than September 30, 1998, the       
  Inspector General of the Department of Defense shall perform an audit of
  purchases of military clothing and clothing-related items in excess of  
  the micro-purchase threshold by military installations during fiscal    
  years 1996 and 1997 to determine the extent to which such installations 
  procured military clothing and clothing-related items in violation of   
  the Buy American Act (41 U.S.C. 10a et seq.) during those fiscal years. 
    (b)  Installations To Be Audited.--The audit under subsection (a)--   
       (1) shall include an audit of the procurement of military clothing  
   and clothing-related items by a military installation of each of the    
   Army, Navy, Air Force, and Marine Corps; and                            
       (2) shall not cover procurements of clothing and clothing-related   
   items by the Defense Logistics Agency.                                  
     (c) Definition.--The term ``micro-purchase threshold'' has the       
  meaning provided by section 32(f) of the Office of Federal Procurement  
  Policy Act (41 U.S.C. 428(f)).                                          
     (d) Report.--Not later than October 31, 1998, the Inspector General  
  of the Department of Defense shall submit to Congress a report on the   
  results of the audit performed under subsection (a).                    
                    SEC. 808. LIMITATION ON ALLOWABILITY OF COMPENSATION FOR      
          CERTAIN CONTRACTOR PERSONNEL.                                           
     (a) Certain Compensation Not Allowable as Costs Under Defense        
  Contracts.--(1) Subsection (e)(1) of section 2324 of title 10, United   
  States Code, is amended by adding at the end the following:             
       ``(P) Costs of compensation of senior executives of contractors for 
   a fiscal year, regardless of the contract funding source, to the extent 
   that such compensation exceeds the benchmark compensation amount        
   determined applicable for the fiscal year by the Administrator for      
   Federal Procurement Policy under section 39 of the Office of Federal    
   Procurement Policy Act (41 U.S.C. 435).''.                              
     (2) Subsection (l) of such section is amended by adding at the end   
  the following:                                                          
       ``(4) The term `compensation', for a year, means the total amount of
   wages, salary, bonuses and deferred compensation for the year, whether  
   paid, earned, or otherwise accruing, as recorded in an employer's cost  
   accounting records for the year.                                        
       ``(5) The term `senior executive', with respect to a contractor,    
   means--                                                                 
       ``(A) the chief executive officer of the contractor or any          
   individual acting in a similar capacity for the contractor;             
       ``(B) the four most highly compensated employees in management      
   positions of the contractor other than the chief executive officer; and 
       ``(C) in the case of a contractor that has components which report  
   directly to the contractor's headquarters, the five most highly         
   compensated employees in management positions at each such component.   
       ``(6) The term `fiscal year' means a fiscal year established by a   
   contractor for accounting purposes.''.                                  
     (b) Certain Compensation Not Allowable as Costs Under Non-Defense    
  Contracts.--(1) Subsection (e)(1) of section 306 of the Federal Property
  and Administrative Services Act of 1949 (41 U.S.C. 256) is amended by   
  adding at the end the following:                                        
       ``(P) Costs of compensation of senior executives of contractors for 
   a fiscal year, regardless of the contract funding source, to the extent 
   that such compensation exceeds the benchmark compensation amount        
   determined applicable for the fiscal year by the Administrator for      
   Federal Procurement Policy under section 39 of the Office of Federal    
   Procurement Policy Act (41 U.S.C. 435).''.                              
     (2) Such section is further amended by adding at the end the         
  following:                                                              
    ``(m)  Other Definitions.--In this section:                           
       ``(1) The term `compensation', for a fiscal year, means the total   
   amount of wages, salary, bonuses and deferred compensation for the      
   fiscal year, whether paid, earned, or otherwise accruing, as recorded in
   an employer's cost accounting records for the fiscal year.              
       ``(2) The term `senior executive', with respect to a contractor,    
   means--                                                                 
       ``(A) the chief executive officer of the contractor or any          
   individual acting in a similar capacity for the contractor;             
       ``(B) the four most highly compensated employees in management      
   positions of the contractor other than the chief executive officer; and 
       ``(C) in the case of a contractor that has components which report  
   directly to the contractor's headquarters, the five most highly         
   compensated individuals in management positions at each such component. 
       ``(3) The term `fiscal year' means a fiscal year established by a   
   contractor for accounting purposes.''.                                  
     (c) Levels of Compensation Not allowable. --(1) The Office of Federal
  Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by adding at  
  the end the following:                                                  
                    ``SEC. 39. LEVELS OF COMPENSATION OF CERTAIN CONTRACTOR       
          PERSONNEL NOT ALLOWABLE AS COSTS UNDER CERTAIN CONTRACTS.               
     ``(a) Determination Required. --For purposes of section 2324(e)(1)(P)
  of title 10, United States Code, and section 306(e)(1)(P) of the Federal
  Property and Administrative Services Act of 1949 (41 U.S.C.             
  256(e)(1)(P)), the Administrator shall review commercially available    
  surveys of executive compensation and, on the basis of the results of   
  the review, determine a benchmark compensation amount to apply for each 
  fiscal year. In making determinations under this subsection the         
  Administrator shall consult with the Director of the Defense Contract   
  Audit Agency and such other officials of executive agencies as the      
  Administrator considers appropriate.                                    
     ``(b) Benchmark Compensation Amount. --The benchmark compensation    
  amount applicable for a fiscal year is the median amount of the         
  compensation provided for all senior executives of all benchmark        
  corporations for the most recent year for which date is available at the
  time the determination under subsection (a) is made.                    
    ``(c)  Definitions. --In this section:                                
       ``(1) The term `compensation', for a fiscal year, means the total   
   amount of wages, salary, bonuses and deferred compensation for the      
   fiscal year, whether paid, earned, or otherwise accruing, as recorded in
   an employer's cost accounting records for the fiscal year.              
       ``(2) The term `senior executive', with respect to a corporation,   
   means--                                                                 
       ``(A) the chief executive officer of the corporation or any         
   individual acting in a similar capacity for the corporation.            
       ``(B) the four most highly compensated employees in management      
   positions of the corporation other than the chief executive officer; and
       ``(C) in the case of a corporation that has components which report 
   directly to the corporate headquarters, the five most highly compensated
   individuals in management positions at each such component.             
       ``(3) The term `benchmark corporation', with respect to a fiscal    
   year, means a publicly-owned United States corporation that has annual  
   sales in excess of $50,000,000 for the fiscal year.                     
       ``(4) The term `publicly-owned United States corporation' means a   
   corporation organized under the laws of a State of the United States,   
   the District of Columbia, the Commonwealth of Puerto Rico, or a         
   possession of the United States the voting stock of which is publicly   
   traded.                                                                 
       ``(5) The term `fiscal year' means a fiscal year established by a   
   contractor for accounting purposes.''.                                  
     (2) The table of sections in section 1(b) of such Act is amended by  
  adding at the end the following:                                        
            ``Sec. 39. Levels of compensation of certain contractor personnel 
      not allowable as costs under certain contracts.''.                      
     (d) Regulations.--Regulations implementing the amendments made by    
  this section shall be published in the Federal Register not later than  
  the effective date of the amendments under subsection (e).              
    (e)  Effective Date.--The amendments made by this section shall--     
       (1) take effect on the date that is 90 days after the date of the   
   enactment of this Act; and                                              
       (2) apply with respect to costs of compensation incurred after      
   January 1, 1998, under covered contracts entered into before, on, or    
   after the date of the enactment of this Act.                            
     (f) Exclusive Applicability.--Notwithstanding any other provision of 
  law, no other limitation in law on the allowability of costs of         
  compensation of senior executives under covered contracts shall apply to
  such costs of compensation incurred after January 1, 1998.              
    (g)  Definitions.--In this section:                                   
       (1) The term ``covered contract'' has the meaning given such term in
   section 2324(l) of title 10, United States Code, and section 306(l) of  
   the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
   256(l)).                                                                
       (2) The terms ``compensation'' and ``senior executive'' have the    
   meanings given such terms in section 2324(l) of title 10, United States 
   Code, and section 306(m) of the Federal Property and Administrative     
   Services Act of 1949.                                                   
          SEC. 809. ELIMINATION OF CERTIFICATION REQUIREMENT FOR GRANTS.          
     Section 5153 of the Drug-Free Workplace Act of 1988 (Public Law 100  
  690; 102 Stat. 4306; 41 U.S.C. 702) is amended--                        
     (1) in subsection (a)--                                               
       (A) in paragraph (1), by striking out ``has certified to the        
   granting agency that it will'' and inserting in lieu thereof ``agrees   
   to''; and                                                               
       (B) in paragraph (2), by striking out ``certifies to the agency''   
   and inserting in lieu thereof ``agrees''; and                           
     (2) in subsection (b)(1)--                                            
     (A) by striking out subparagraph (A);                                 
       (B) by redesignating subparagraphs (B) and (C) as subparagraphs (A) 
   and (B), respectively; and                                              
       (C) in subparagraph (A), as so redesignated, by striking out ``such 
   certification by failing to carry out''.                                
          SEC. 810. REPEAL OF LIMITATION ON ADJUSTMENT OF SHIPBUILDING CONTRACTS. 
     (a) Repeal.--(1) Section 2405 of title 10, United States Code, is    
  repealed.                                                               
     (2) The table of sections at the beginning of chapter 141 of such    
  title is amended by striking out the item relating to section 2405.     
     (b) Applicability.--(1) Except as provided in paragraph (2), the     
  repeal made by subsection (a) shall be effective with respect to claims,
  requests for equitable adjustment, and demands for payment under        
  shipbuilding contracts that have been or are submitted before, on, or   
  after the date of the enactment of this Act.                            
     (2) Section 2405 of title 10, United States Code, as in effect       
  immediately before the date of the enactment of this Act, shall continue
  to apply to a contractor's claim, request for equitable adjustment, or  
  demand for payment under a shipbuilding contract that was submitted     
  before such date if--                                                   
       (A) a contracting officer denied the claim, request, or demand, and 
   the period for appealing the decision to a court or board under the     
   Contract Disputes Act of 1978 expired before such date;                 
       (B) a court or board of contract appeals considering the claim,     
   request, or demand (including any appeal of a decision of a contracting 
   officer to deny the claim, request, or demand) denied or dismissed the  
   claim, request, or demand (or the appeal), and the action of the court  
   or board became final and unappealable before such date; or             
     (C) the contractor released or releases the claim, request, or demand.
                    SEC. 811. ITEM-BY-ITEM AND COUNTRY-BY-COUNTRY WAIVERS OF      
          DOMESTIC SOURCE LIMITATIONS.                                            
     (a) Item-by-Item and Country-by-Country Implementation of Certain    
  Waiver Authority.--Section 2534 of title 10, United States Code, is     
  amended by adding at the end the following new subsection:              
     ``(i) Implementation of Certain Waiver Authority.--(1) The Secretary 
  of Defense may exercise the waiver authority described in paragraph (2) 
  only if the waiver is made for a particular item listed in subsection   
  (a) and for a particular foreign country.                               
     ``(2) This subsection applies to the waiver authority provided by    
  subsection (d) on the basis of the applicability of paragraph (2) or (3)
  of that subsection.                                                     
     ``(3) The waiver authority described in paragraph (2) may not be     
  delegated below the Under Secretary of Defense for Acquisition and      
  Technology.                                                             
     ``(4) At least 15 days before the effective date of any waiver made  
  under the waiver authority described in paragraph (2), the Secretary    
  shall publish in the Federal Register and submit to the congressional   
  defense committees a notice of the determination to exercise the waiver 
  authority.                                                              
     ``(5) Any waiver made by the Secretary under the waiver authority    
  described in paragraph (2) shall be in effect for a period not greater  
  than one year, as determined by the Secretary.''.                       
     (b) Effective Date.--Subsection (i) of section 2534 of such title, as
  added by subsection (a), shall apply with respect to--                  
       (1) contracts and subcontracts entered into on or after the date of 
   the enactment of this Act; and                                          
       (2) options for the procurement of items that are exercised after   
   such date under contracts that are entered into before such date if the 
   option prices are adjusted for any reason other than the application of 
   a waiver granted under subsection (d) of such section 2534, on the basis
   of the applicability of paragraph (2) or (3) of that subsection.        
           Subtitle B--Acquisition Assistance Programs                             
          SEC. 821. ONE-YEAR EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.           
     (a) One-Year Extension of Pilot Mentor-Protege Program.--Section     
  831(j) of the National Defense Authorization Act for Fiscal Year 1991   
  (10 U.S.C. 2302 note) is amended--                                      
       (1) in paragraph (1), by striking out ``1998'' and inserting in lieu
   thereof ``1999'';                                                       
       (2) in paragraph (2), by striking out ``1999'' and inserting in lieu
   thereof ``2000''; and                                                   
       (3) in paragraph (3), by striking out ``1999'' and inserting in lieu
   thereof ``2000''.                                                       
     (b) Study on Implementation of Pilot Mentor-Protege Program.--(1) The
  Comptroller General shall conduct a study on the implementation of the  
  Mentor-Protege Program established under section 831 of the National    
  Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note) and
  the extent to which the program is achieving the purposes established   
  under that section.                                                     
    (2) The study also shall include the following:                       
       (A) A review of the manner in which funds for the program have been 
   obligated.                                                              
       (B) An identification and assessment of the average amount spent by 
   the Department of Defense on individual mentor-protege agreements and   
   the correlation between levels of funding and the business development  
   of the protege firms.                                                   
       (C) An evaluation of the effectiveness of the incentives provided to
   mentor firms to participate in the program.                             
       (D) An assessment of the success of the mentor-protege program in   
   enhancing the business competitiveness and financial independence of    
   protege firms.                                                          
     (3) The Comptroller General shall submit to the Committee on Armed   
  Services of the Senate and the Committee on National Security of the    
  House of Representatives a report on the results of the study not later 
  than March 31, 1998.                                                    
                    SEC. 822. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE       
          SUBCONTRACTING PLANS.                                                   
     (a) Content of Subcontracting Plans.--Subsection (b)(2) of section   
  834 of the National Defense Authorization Act for Fiscal Years 1990 and 
  1991 (Public Law 101 189; 15 U.S.C. 637 note) is amended--              
       (1) by striking out ``plan--'' and inserting in lieu thereof ``plan 
   of a contractor--'';                                                    
     (2) by striking out subparagraph (A);                                 
       (3) by redesignating subparagraph (B) as subparagraph (A) and by    
   striking out the period at the end of such subparagraph and inserting in
   lieu thereof ``; and''; and                                             
     (4) by adding at the end the following:                               
       ``(B) shall cover each Department of Defense contract that is       
   entered into by the contractor and each subcontract that is entered into
   by the contractor as the subcontractor under a Department of Defense    
   contract.''.                                                            
     (b) Extension of Program.--Subsection (e) of such section is amended 
  by striking out ``September 30, 1998'' in the second sentence and       
  inserting in lieu thereof ``September 30, 2000.''.                      
           Subtitle C--Administrative Provisions                                   
                    SEC. 831. RETENTION OF EXPIRED FUNDS DURING THE PENDENCY OF   
          CONTRACT LITIGATION.                                                    
     (a) In General.--Chapter 141 of title 10, United States Code, is     
  amended by adding at the end the following new section:                 
                    ``2410m. Retention of amounts collected from contractor during
          the pendency of contract dispute                                        
     ``(a) Retention of Funds.--Notwithstanding sections 1552(a) and      
  3302(b) of title 31, any amount, including interest, collected from a   
  contractor as a result of a claim made by a military department or      
  Defense Agency under the Contract Disputes Act of 1978 (41 U.S.C. 601 et
  seq.), shall remain available in accordance with this section to pay--  
     ``(1) any settlement of the claim by the parties;                     
       ``(2) any judgment rendered in the contractor's favor on an appeal  
   of the decision on that claim to the Armed Services Board of Contract   
   Appeals under section 7 of such Act (41 U.S.C. 606); or                 
       ``(3) any judgment rendered in the contractor's favor in an action  
   on that claim in a court of the United States.                          
     ``(b) Period of Availability.--(1) The period of availability of an  
  amount under subsection (a), in connection with a claim--               
       ``(A) expires 180 days after the expiration of the period for       
   bringing an action on that claim in the United States Court of Federal  
   Claims under section 10(a) of the Contract Disputes Act of 1978 (41     
   U.S.C. 609(a)) if, within that 180-day period--                         
       ``(i) no appeal on the claim is commenced at the Armed Services     
   Board of Contract Appeals under section 7 of such Act; and              
       ``(ii) no action on the claim is commenced in a court of the United 
   States; or                                                              
     ``(B) if not expiring under subparagraph (A), expires--               
       ``(i) in the case of a settlement of the claim, 180 days after the  
   date of the settlement; or                                              
       ``(ii) in the case of a judgment rendered on the claim in an appeal 
   to the Armed Services Board of Contract Appeals under section 7 of the  
   Contract Disputes Act of 1978 or an action in a court of the United     
   States, 180 days after the date on which the judgment becomes final and 
   not appealable.                                                         
     ``(2) While available under this section, an amount may be obligated 
  or expended only for a purpose described in subsection (a).             
     ``(3) Upon the expiration of the period of availability of an amount 
  under paragraph (1), the amount shall be covered into the Treasury as   
  miscellaneous receipts.                                                 
     ``(c) Reporting Requirement.--Each year, the Under Secretary of      
  Defense (Comptroller) shall submit to Congress a report on the amounts, 
  if any, that are available for obligation pursuant to this section. The 
  report shall include, at a minimum, the following:                      
     ``(1) The total amount available for obligation.                      
       ``(2) The total amount collected from contractors during the year   
   preceding the year in which the report is submitted.                    
       ``(3) The total amount disbursed in such preceding year and a       
   description of the purpose for each disbursement.                       
       ``(4) The total amount returned to the Treasury in such preceding   
   year.''.                                                                
     (b) Clerical Amendment.--The table of sections at the beginning of   
  chapter 141 of title 10, United States Code, is amended by adding at the
  end the following new item:                                             
            ``2410m. Retention of amounts collected from contractor during the
      pendency of contract dispute.''.                                        
          SEC. 832. PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.            
     Section 2371 of title 10, United States Code, is amended by adding at
  the end the following new subsection:                                   
     ``(i) Protection of Certain Information From Disclosure.--(1)        
  Disclosure of information described in paragraph (2) is not required,   
  and may not be compelled, under section 552 of title 5 for five years   
  after the date on which the information is received by the Department of
  Defense.                                                                
     ``(2)(A) Paragraph (1) applies to information described in           
  subparagraph (B) that is in the records of the Department of Defense if 
  the information was submitted to the Department in a competitive or     
  noncompetitive process having the potential for resulting in an award,  
  to the party submitting the information, of a cooperative agreement that
  includes a clause described in subsection (d) or another transaction    
  authorized by subsection (a).                                           
     ``(B) The information referred to in subparagraph (A) is the         
  following:                                                              
     ``(i) A proposal, proposal abstract, and supporting documents.        
     ``(ii) A business plan submitted on a confidential basis.             
     ``(iii) Technical information submitted on a confidential basis.''.   
          SEC. 833. UNIT COST REPORTS.                                            
     (a) Immediate Report Required Only for Previously Unreported         
  Increased Costs.--Subsection (c) of section 2433 of title 10, United    
  States Code, is amended by striking out ``during the current fiscal year
  (other than the last quarterly unit cost report under subsection (b) for
  the preceding fiscal year)'' in the matter following paragraph (3).     
     (b) Immediate Report Not Required for Cost Variances or Schedule     
  Variances of Major Contracts.--Subsection (c) of such section is further
  amended--                                                               
     (1) by inserting ``or'' at the end of paragraph (1);                  
     (2) by striking out ``or'' at the end of paragraph (2); and           
     (3) by striking out paragraph (3).                                    
     (c) Congressional Notification of Increased Cost Not Conditioned on  
  Discovery Since Beginning of Fiscal Year.--Subsection (d)(3) of such    
  section is amended by striking out ``(for the first time since the      
  beginning of the current fiscal year)'' in the first sentence.          
                    SEC. 834. PLAN FOR PROVIDING CONTRACTING INFORMATION TO       
          GENERAL PUBLIC AND SMALL BUSINESSES.                                    
     (a) Requirement for Plan.--The Secretary of Defense shall develop a  
  plan for improving the responsiveness of the Department of Defense to   
  persons from the general public and small businesses seeking information
  on how to pursue contracting and technology development opportunities   
  with the department. The plan shall include an assessment and           
  recommendation on the designation of a central point of contact in the  
  department to provide such information.                                 
     (b) Submission.--Not later than March 31, 1998, the Secretary shall  
  submit the plan developed under subsection (a) to the Committee on Armed
  Services of the Senate and the Committee on National Security of the    
  House of Representatives.                                               
                    SEC. 835. TWO-YEAR EXTENSION OF CREDITING OF CERTAIN PURCHASES
          TOWARD MEETING SUBCONTRACTING GOALS.                                    
     Section 2410d(c) of title 10, United States Code, is amended,        
  effective as of September 30, 1997, by striking out ``September 30,     
  1997'' and inserting in lieu thereof ``September 30, 1999''.            
           Subtitle D--Other Matters                                               
          SEC. 841. REPEAL OF CERTAIN ACQUISITION REQUIREMENTS AND REPORTS        
     (a) Repeal of Reporting Requirement for Nonmajor Acquisition         
  Programs.--Section 2220(b) of title 10, United States Code, is amended  
  by striking out ``and nonmajor'' in the first sentence.                 
     (b) Repeal of Additional Approval Requirement Under Competition      
  Exception for International Agreements.--Section 2304(f)(2)(E) of title 
  10, United States Code, is amended by striking out ``and such document  
  is approved by the competition advocate for the procuring activity''.   
     (c) Content of Limited Selected Acquisition Reports.--Section        
  2432(h)(2) of title 10, United States Code, is amended--                
     (1) by striking out subparagraph (D); and                             
       (2) by redesignating subparagraphs (E) and (F) as subparagraphs (D) 
   and (E), respectively.                                                  
     (d) Repeal of Report Relating to Procurement Regulations.--Section 25
  of the Office of Federal Procurement Policy Act (41 U.S.C. 421) is      
  amended by striking out subsection (g).                                 
                    SEC. 842. USE OF MAJOR RANGE AND TEST FACILITY INSTALLATIONS  
          BY COMMERCIAL ENTITIES.                                                 
     (a) Extension of Authority.--Subsection (g) of section 2681 of title 
  10, United States Code, is amended by striking out ``1998'' and         
  inserting in lieu thereof ``2002''.                                     
     (b) Revised Reporting Requirement.--Subsection (h) of such section is
  amended to read as follows:                                             
     ``(h) Report.--Not later than March 1, 1998, the Secretary of Defense
  shall submit to the Committee on Armed Services of the Senate and the   
  Committee on National Security of the House of Representatives a report 
  identifying existing and proposed procedures to ensure that the use of  
  Major Range and Test Facility Installations by commercial entities does 
  not compete with private sector test and evaluation services.''.        
                    SEC. 843. REQUIREMENT TO DEVELOP AND MAINTAIN LIST OF FIRMS   
          NOT ELIGIBLE FOR DEFENSE CONTRACTS.                                     
    Section 2327 of title 10, United States Code, is amended--            
       (1) by redesignating subsections (d) and (e) as subsections (f) and 
   (g), respectively; and                                                  
     (2) by inserting after subsection (c) the following new subsections:  
     ``(d) List of Firms Subject to Prohibition.--(1) The Secretary of    
  Defense shall develop and maintain a list of all firms and subsidiaries 
  of firms that the Secretary has identified as being subject to the      
  prohibition in subsection (b).                                          
     ``(2)(A) A person may request the Secretary to include on the list   
  maintained under paragraph (1) any firm or subsidiary of a firm that the
  person believes to be owned or controlled by a foreign government       
  described in subsection (b)(2). Upon receipt of such a request, the     
  Secretary shall determine whether the conditions in paragraphs (1) and  
  (2) of subsection (b) exist in the case of that firm or subsidiary. If  
  the Secretary determines that such conditions do exist, the Secretary   
  shall include the firm or subsidiary on the list.                       
     ``(B) A firm or subsidiary of a firm included on the list may request
  the Secretary to remove such firm or subsidiary from the list on the    
  basis that it has been erroneously included on the list or its ownership
  circumstances have significantly changed. Upon receipt of such a        
  request, the Secretary shall determine whether the conditions in        
  paragraphs (1) and (2) of subsection (b) exist in the case of that firm 
  or subsidiary. If the Secretary determines that such conditions do not  
  exist, the Secretary shall remove the firm or subsidiary from the list. 
     ``(C) The Secretary shall establish procedures to carry out this     
  paragraph.                                                              
     ``(3) The head of an agency shall prohibit each firm or subsidiary of
  a firm awarded a contract by the agency from entering into a subcontract
  under that contract in an amount in excess of $25,000 with a firm or    
  subsidiary included on the list maintained under paragraph (1) unless   
  there is a compelling reason to do so. In the case of any subcontract   
  requiring consent by the head of an agency, the head of the agency shall
  not consent to the award of the subcontract to a firm or subsidiary     
  included on such list unless there is a compelling reason for such      
  approval.                                                               
     ``(e) Distribution of List.--The Administrator of General Services   
  shall ensure that the list developed and maintained under subsection (d)
  is made available to Federal agencies and the public in the same manner 
  and to the same extent as the list of suspended and debarred contractors
  compiled pursuant to subpart 9.4 of the Federal Acquisition             
  Regulation.''.                                                          
                    SEC. 844. SENSE OF CONGRESS REGARDING ALLOWABILITY OF COSTS OF
          EMPLOYEE STOCK OWNERSHIP PLANS.                                         
     It is the sense of Congress that the Secretary of Defense should not 
  disallow, under Department of Defense contracts, the following costs:   
       (1) Interest costs associated with deferred compensation employee   
   stock ownership plans that were incurred before January 1, 1994.        
       (2) Costs related to employee stock ownership plan (ESOP) debt,     
   control premiums, or marketability discounts associated with the        
   valuation of ESOP stock of closely held companies that were incurred    
   before January 1, 1995.                                                 
                    SEC. 845. EXPANSION OF PERSONNEL ELIGIBLE TO PARTICIPATE IN   
          DEMONSTRATION PROJECT RELATING TO ACQUISITION WORKFORCE.                
     (a) Covered Personnel.--(1) Subsection (a) of section 4308 of the    
  National Defense Authorization Act for Fiscal Year 1996 (Public Law 104 
  106; 10 U.S.C. 1701 note) is amended by adding before the period at the 
  end the following: ``and supporting personnel assigned to work directly 
  with the acquisition workforce''.                                       
     (2) Subsection (b)(3)(A) of such section is amended by inserting     
  before the semicolon the following: ``or involves a team of personnel   
  more than half of which consists of members of the acquisition workforce
  and the remainder of which consists of supporting personnel assigned to 
  work directly with the acquisition workforce''.                         
     (b) Commencement of Project.--Subsection (b)(3)(B) of such section is
  amended by striking out ``this Act'' and inserting in lieu thereof ``the
  National Defense Authorization Act for Fiscal Year 1998''.              
     (c) Limitation on Number of Participants.--Such section is further   
  amended by adding at the end the following:                             
     ``(d) Limitation on Number of Participants.--The total number of     
  persons who may participate in the demonstration project under this     
  section may not exceed 95,000.''.                                       
                    SEC. 846. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO BUY
          AMERICAN ACT.                                                           
     Section 827 of the National Defense Authorization Act for Fiscal Year
  1997 (Public Law 104 201; 110 Stat. 2611; 41 U.S.C. 10b 3) is amended by
  striking out ``120 days'' and inserting in lieu thereof ``90 days''.    
                    SEC. 847. REPEAL OF REQUIREMENT FOR CONTRACTOR GUARANTEES ON  
          MAJOR WEAPON SYSTEMS.                                                   
     (a) Repeal.--Section 2403 of title 10, United States Code, is        
  repealed.                                                               
     (b) Clerical and Conforming Amendments.--(1) The table of sections at
  the beginning of chapter 141 of such title is amended by striking out   
  the item relating to section 2403.                                      
     (2) Section 803 of the National Defense Authorization Act for Fiscal 
  Year 1997 (Public Law 104 201; 110 Stat. 2604; 10 U.S.C. 2430 note) is  
  amended--                                                               
     (A) in subsection (a), by striking out ``2403,'';                     
     (B) by striking out subsection (c); and                               
     (C) by redesignating subsection (d) as subsection (c).                
          SEC. 848. REQUIREMENTS RELATING TO MICRO-PURCHASES.                     
     (a) Requirement.--(1) Not later than October 1, 1998, at least 60    
  percent of all eligible purchases made by the Department of Defense for 
  an amount less than the micro-purchase threshold shall be made through  
  streamlined micro-purchase procedures.                                  
     (2) Not later than October 1, 2000, at least 90 percent of all       
  eligible purchases made by the Department of Defense for an amount less 
  than the micro-purchase threshold shall be made through streamlined     
  micro-purchase procedures.                                              
     (b) Eligible Purchases.--The Secretary of Defense shall establish    
  which purchases are eligible for purposes of subsection (a). In         
  establishing which purchases are eligible, the Secretary may exclude    
  those categories of purchases determined not to be appropriate or       
  practicable for streamlined micro-purchase procedures.                  
     (c) Plan.--Not later than March 1, 1998, the Secretary of Defense    
  shall provide to the Committee on Armed Services of the Senate and the  
  Committee on National Security of the House of Representatives a plan to
  implement this section.                                                 
     (d) Report.--Not later than March 1 in each of the years 1999, 2000, 
  and 2001, the Secretary of Defense shall submit to the congressional    
  defense committees a report on the implementation of this section. Each 
  report shall include--                                                  
       (A) the total dollar amount of all Department of Defense purchases  
   for an amount less than the micro-purchase threshold in the fiscal year 
   preceding the year in which the report is submitted;                    
       (B) the total dollar amount of such purchases that were considered  
   to be eligible purchases;                                               
       (C) the total amount of such eligible purchases that were made      
   through a streamlined micro-purchase method; and                        
       (D) a description of the categories of purchases excluded from the  
   definition of eligible purchases established under subsection (b).      
    (e)  Definitions.--In this section:                                   
       (1) The term ``micro-purchase threshold'' has the meaning provided  
   in section 32 of the Office of Federal Procurement Policy Act (41 U.S.C.
   428).                                                                   
       (2) The term ``streamlined micro-purchase procedures'' means        
   procedures providing for the use of the Government-wide commercial      
   purchase card or any other method for carrying out micro-purchases that 
   the Secretary of Defense prescribes in the regulations implementing this
   subsection.                                                             
          SEC. 849. PROMOTION RATE FOR OFFICERS IN AN ACQUISITION CORPS.          
     (a) Review of Acquisition Corps Promotion Selections.--Upon the      
  approval of the President or his designee of the report of a selection  
  board convened under section 611(a) of title 10, United States Code,    
  which considered members of an Acquisition Corps of a military          
  department for promotion to a grade above O 4, the Secretary of the     
  military department shall submit a copy of the report to the Under      
  Secretary of Defense for Acquisition and Technology for review.         
     (b) Reporting Requirement.--Not later than January 31 of each year,  
  the Under Secretary of Defense for Acquisition and Technology shall     
  submit to the Committee on Armed Services of the Senate and the         
  Committee on National Security of the House of Representatives a report 
  containing the Under Secretary's assessment of the extent to which each 
  military department is complying with the requirement set forth in      
  section 1731(b) of title 10, United States Code.                        
     (c) Termination of Requirements.--This section shall cease to be     
  effective on October 1, 2000.                                           
          SEC. 850. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.            
     (a) Policy.--Section 30 of the Office of Federal Procurement Policy  
  Act (41 U.S.C. 426) is amended to read as follows:                      
          ``SEC. 30. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.           
     ``(a) In General.--The head of each executive agency, after          
  consulting with the Administrator, shall establish, maintain, and use,  
  to the maximum extent that is practicable and cost-effective, procedures
  and processes that employ electronic commerce in the conduct and        
  administration of its procurement system.                               
     ``(b) Applicable Standards.--In conducting electronic commerce, the  
  head of an agency shall apply nationally and internationally recognized 
  standards that broaden interoperability and ease the electronic         
  interchange of information.                                             
     ``(c) Agency Procedures.--The head of each executive agency shall    
  ensure that systems, technologies, procedures, and processes established
  pursuant to this section--                                              
       ``(1) are implemented with uniformity throughout the agency, to the 
   extent practicable;                                                     
       ``(2) are implemented only after granting due consideration to the  
   use or partial use, as appropriate, of existing electronic commerce and 
   electronic data interchange systems and infrastructures such as the     
   Federal acquisition computer network architecture known as FACNET;      
       ``(3) facilitate access to Federal Government procurement           
   opportunities, including opportunities for small business concerns,     
   socially and economically disadvantaged small business concerns, and    
   business concerns owned predominantly by women; and                     
       ``(4) ensure that any notice of agency requirements or agency       
   solicitation for contract opportunities is provided in a form that      
   allows convenient and universal user access through a single,           
   Government-wide point of entry.                                         
     ``(d) Implementation.--The Administrator shall, in carrying out the  
  requirements of this section--                                          
       ``(1) issue policies to promote, to the maximum extent practicable, 
   uniform implementation of this section by executive agencies, with due  
   regard for differences in program requirements among agencies that may  
   require departures from uniform procedures and processes in appropriate 
   cases, when warranted because of the agency mission;                    
       ``(2) ensure that the head of each executive agency complies with   
   the requirements of subsection (c) with respect to the agency systems,  
   technologies, procedures, and processes established pursuant to this    
   section; and                                                            
       ``(3) consult with the heads of appropriate Federal agencies with   
   applicable technical and functional expertise, including the Office of  
   Information and Regulatory Affairs, the National Institute of Standards 
   and Technology, the General Services Administration, and the Department 
   of Defense.                                                             
     ``(e) Report.--Not later than March 1, 1998, and every year afterward
  through 2003, the Administrator shall submit to Congress a report       
  setting forth in detail the progress made in implementing the           
  requirements of this section. The report shall include the following:   
       ``(1) A strategic plan for the implementation of a Government-wide  
   electronic commerce capability.                                         
       ``(2) An agency-by-agency summary of implementation of the          
   requirements of subsection (c), including timetables, as appropriate,   
   addressing when individual agencies will come into full compliance.     
       ``(3) A specific assessment of compliance with the requirement in   
   subsection (c) to provide universal public access through a single,     
   Government-wide point of entry.                                         
       ``(4) Beginning with the report submitted on March 1, 1999, an      
   agency-by-agency summary of the volume and dollar value of transactions 
   that were conducted using electronic commerce methods during the        
   previous calendar year.                                                 
       ``(5) A discussion of possible incremental changes to the electronic
   commerce capability referred to in subsection (c)(4) to increase the    
   level of government contract information available to the private       
   sector, including an assessment of the advisability of including        
   contract award information in the electronic commerce functional        
   standard.                                                               
     ``(f) Electronic Commerce Defined.--For the purposes of this section,
  the term `electronic commerce' means electronic techniques for          
  accomplishing business transactions, including electronic mail or       
  messaging, World Wide Web technology, electronic bulletin boards,       
  purchase cards, electronic funds transfers, and electronic data         
  interchange.''.                                                         
     (b) Repeal of Requirements for Implementation of FACNET              
  Capability.--Section 30A of the Office of Federal Procurement Policy Act
  (41 U.S.C. 426a) is repealed.                                           
     (c) Repeal of Requirement for GAO Report.--Section 9004 of the       
  Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 426a note) is   
  repealed.                                                               
     (d) Repeal of Condition for Use of Simplified Acquisition            
  Procedures.--Section 31 of the Office of Federal Procurement Policy Act 
  (41 U.S.C. 427) is amended--                                            
     (1) by striking out subsection (e); and                               
       (2) by redesignating subsections (f) and (g) as subsections (e) and 
   (f), respectively.                                                      
     (e) Amendments to Procurement Notice Requirements.--(1) Section      
  8(g)(1) of the Small Business Act (15 U.S.C. 637(g)(1)) is amended--    
     (A) by striking out subparagraphs (A) and (B);                        
       (B) by redesignating subparagraphs (C), (D), (E), (F), (G), and (H) 
   as subparagraphs (B), (C), (D), (E), (F), and (G), respectively; and    
       (C) by inserting before subparagraph (B), as so redesignated, the   
   following new subparagraph (A):                                         
       ``(A) the proposed procurement is for an amount not greater than the
   simplified acquisition threshold and is to be conducted by--            
       ``(i) using widespread electronic public notice of the solicitation 
   in a form that allows convenient and universal user access through a    
   single, Government-wide point of entry; and                             
       ``(ii) permitting the public to respond to the solicitation         
   electronically.''.                                                      
     (2) Section 18(c)(1) of the Office of Federal Procurement Policy Act 
  (41 U.S.C. 416(c)(1)) is amended--                                      
     (A) by striking out subparagraphs (A) and (B);                        
       (B) by redesignating subparagraphs (C), (D), (E), (F), (G), and (H) 
   as subparagraphs (B), (C), (D), (E), (F), and (G), respectively; and    
       (C) by inserting before subparagraph (B), as so redesignated, the   
   following new subparagraph (A):                                         
       ``(A) the proposed procurement is for an amount not greater than the
   simplified acquisition threshold and is to be conducted by--            
       ``(i) using widespread electronic public notice of the solicitation 
   in a form that allows convenient and universal user access through a    
   single, Government-wide point of entry; and                             
       ``(ii) permitting the public to respond to the solicitation         
   electronically.''.                                                      
     (3) The amendments made by paragraphs (1) and (2) shall be           
  implemented in a manner consistent with any applicable international    
  agreements.                                                             
     (f) Conforming and Technical Amendments.--(1) Section 5061 of the    
  Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 413 note) is    
  amended--                                                               
     (A) in subsection (c)(4)--                                            
       (i) by striking out ``the Federal acquisition computer network      
   (`FACNET')'' and inserting in lieu thereof ``the electronic commerce''; 
   and                                                                     
     (ii) by striking out ``(as added by section 9001)''; and              
       (B) in subsection (e)(9)(A), by striking out ``, or by dissemination
   through FACNET,''.                                                      
     (2) Section 5401 of the Clinger-Cohen Act of 1996 (divisions D and E 
  of Public Law 104 106; 40 U.S.C. 1501) is amended--                     
     (A) in subsection (a)--                                               
       (i) by striking out ``through the Federal Acquisition Computer      
   Network (in this section referred to as `FACNET')''; and                
     (ii) by striking out the last sentence;                               
     (B) in subsection (b)--                                               
       (i) by striking out `` Additional FACNET Functions.--'' and all that
   follows through ``(41 U.S.C. 426(b)), the FACNET architecture'' and     
   inserting in lieu thereof `` Functions.--(1) The system for providing   
   on-line computer access''; and                                          
       (ii) in paragraph (2), by striking out ``The FACNET architecture''  
   and inserting in lieu there for ``The system for providing on-line      
   computer access'';                                                      
       (C) in subsection (c)(1), by striking out ``the FACNET              
   architecture'' and inserting in lieu thereof ``the system for providing 
   on-line computer access''; and                                          
     (D) by striking out subsection (d).                                   
     (3)(A) Section 2302c of title 10, United States Code, is amended to  
  read as follows:                                                        
          ``2302c. Implementation of electronic commerce capability               
     ``(a) Implementation of Electronic Commerce Capability.--(1) The head
  of each agency named in paragraphs (1), (5) and (6) shall implement the 
  electronic commerce capability required by section 30 of the Office of  
  Federal Procurement Policy Act (41 U.S.C. 426).                         
     ``(2) The Secretary of Defense shall act through the Under Secretary 
  of Defense for Acquisition and Technology to implement the capability   
  within the Department of Defense.                                       
     ``(3) In implementing the electronic commerce capability pursuant to 
  paragraph (1), the head of an agency referred to in paragraph (1) shall 
  consult with the Administrator for Federal Procurement Policy.          
     ``(b) Designation of Agency Official.--The head of each agency named 
  in paragraph (5) or (6) of section 2303 of this title shall designate a 
  program manager to implement the electronic commerce capability for that
  agency. The program manager shall report directly to an official at a   
  level not lower than the senior procurement executive designated for the
  agency under section 16(3) of the Office of Federal Procurement Policy  
  Act (41 U.S.C. 414(3)).''.                                              
     (B) Section 2304(g)(4) of such title 10 is amended by striking out   
  ``31(g)'' and inserting in lieu thereof ``31(f)''.                      
     (4)(A) Section 302C of the Federal Property and Administrative       
  Services Act of 1949 (41 U.S.C. 252c) is amended to read as follows:    
          ``SEC. 302C. IMPLEMENTATION OF ELECTRONIC COMMERCE CAPABILITY.          
     ``(a) Implementation of Electronic Commerce Capability.--(1) The head
  of each executive agency shall implement the electronic commerce        
  capability required by section 30 of the Office of Federal Procurement  
  Policy Act (41 U.S.C. 426).                                             
     ``(2) In implementing the electronic commerce capability pursuant to 
  paragraph (1), the head of an executive agency shall consult with the   
  Administrator for Federal Procurement Policy.                           
     ``(b) Designation of Agency Official.--The head of each executive    
  agency shall designate a program manager to implement the electronic    
  commerce capability for that agency. The program manager shall report   
  directly to an official at a level not lower than the senior procurement
  executive designated for the executive agency under section 16(3) of the
  Office of Federal Procurement Policy Act (41 U.S.C. 414(3)).''.         
     (B) Section 303(g)(5) of the Federal Property and Administrative     
  Services Act (41 U.S.C. 253(g)(5)) is amended by striking out ``31(g)'' 
  and inserting in lieu thereof ``31(f)''.                                
     (g) Effective Date.--(1) Except as provided in paragraph (2), the    
  amendments made by this section shall take effect 180 days after the    
  date of the enactment of this Act.                                      
     (2) The repeal made by subsection (c) of this section shall take     
  effect on the date of the enactment of this Act.                        
                    SEC. 851. CONFORMANCE OF POLICY ON PERFORMANCE BASED          
          MANAGEMENT OF CIVILIAN ACQUISITION PROGRAMS WITH POLICY ESTABLISHED FOR 
          DEFENSE ACQUISITION PROGRAMS.                                           
     (a) Performance Goals.--Section 313(a) of the Federal Property and   
  Administrative Services Act of 1949 (41 U.S.C. 263(a)) is amended to    
  read as follows:                                                        
     ``(a) Congressional Policy.--It is the policy of Congress that the   
  head of each executive agency should achieve, on average, 90 percent of 
  the cost, performance, and schedule goals established for major         
  acquisition programs of the agency.''.                                  
     (b) Conforming Amendment to Reporting Requirement.--Section 6(k) of  
  the Office of Federal Procurement Policy Act (41 U.S.C. 405(k)) is      
  amended by inserting ``regarding major acquisitions that is'' in the    
  first sentence after ``policy''.                                        
                    SEC. 852. MODIFICATION OF PROCESS REQUIREMENTS FOR THE        
          SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.                              
     (a) Source Selection.--Paragraph (9) of section 5312(c) of the       
  Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104 106; 40  
  U.S.C. 1492(c)) is amended--                                            
       (1) in subparagraph (A), by striking out ``, and ranking of         
   alternative sources,'' and inserting in lieu thereof ``or sources,'';   
     (2) in subparagraph (B)--                                             
       (A) in the matter preceding clause (i), by inserting ``(or a longer 
   period, if approved by the Administrator)'' after ``30 to 60 days'';    
     (B) in clause (i), by inserting ``or sources'' after ``source''; and  
       (C) in clause (ii), by striking out ``that source'' and inserting in
   lieu thereof ``the source whose offer is determined to be most          
   advantageous to the Government''; and                                   
       (3) in subparagraph (C), by striking out ``with alternative sources 
   (in the order ranked)''.                                                
     (b) Time Management Discipline.--Paragraph (12) of such section is   
  amended by inserting before the period at the end the following: ``,    
  except that the Administrator may approve the application of a longer   
  standard period''.                                                      
                    SEC. 853. GUIDANCE AND STANDARDS FOR DEFENSE ACQUISITION      
          WORKFORCE TRAINING REQUIREMENTS.                                        
     The Secretary of Defense shall develop appropriate guidance and      
  standards to ensure that the Department of Defense will continue, where 
  appropriate and cost-effective, to enter into contracts for the training
  requirements of sections 1723, 1724, and 1735 of title 10, United States
  Code, while maintaining appropriate control over the content and quality
  of such training.                                                       
                    SEC. 854. STUDY AND REPORT TO CONGRESS ASSESSING DEPENDENCE ON
          FOREIGN SOURCES FOR RESISTORS AND CAPACITORS.                           
     (a) Study.--The Secretary of Defense shall conduct a study of the    
  capacitor and resistor industries in the United States and the degree of
  United States dependence on foreign sources for resistors and           
  capacitors.                                                             
     (b) Report.--Not later than May 1, 1998, the Secretary shall submit  
  to Congress a report on the results of the study under subsection (a).  
  The report shall include the following:                                 
       (1) An assessment of the industrial base for the production of      
   resistors and capacitors within the United States and a projection of   
   any changes in that base that are likely to occur after the             
   implementation of relevant tariff reductions required by the Information
   Technology Agreement entered into at the World Trade Organization       
   Ministerial in Singapore in December 1996.                              
       (2) An assessment of the level of dependence on foreign sources for 
   procurement of resistors and capacitors and a projection of the level of
   dependence on foreign sources that is likely to occur after the         
   implementation of relevant tariff reductions required by the Information
   Technology Agreement.                                                   
       (3) The implications for the national security of the United States 
   of the projections reported under paragraphs (1) and (2).               
       (4) Recommendations for appropriate changes, if any, in defense     
   procurement policies or other Federal policies based on such            
   implications.                                                           
                    SEC. 855. DEPARTMENT OF DEFENSE AND FEDERAL PRISON INDUSTRIES 
          JOINT STUDY.                                                            
     (a) Study of Existing Procurement Procedures.--The Secretary of      
  Defense and the Director of Federal Prison Industries shall jointly     
  conduct a study of the procurement procedures, regulations, and statutes
  that govern procurement transactions between the Department of Defense  
  and Federal Prison Industries.                                          
     (b) Report.--(1) The Secretary and the Director shall, not later than
  180 days after the date of the enactment of this Act, submit to the     
  committees listed in paragraph (2) a report containing the findings of  
  the study and recommendations on the means to improve the efficiency and
  reduce the cost of transactions described in subsection (a).            
    (2) The committees referred to in paragraph (1) are the following:    
       (A) The Committee on Armed Services and the Committee on the        
   Judiciary of the Senate.                                                
       (B) The Committee on National Security and the Committee on the     
   Judiciary of the House of Representatives.                              
           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT             
           SUBTITLE A--DEPARTMENT OF DEFENSE POSITIONS AND ORGANIZATIONS AND OTHER
                                 GENERAL MATTERS                                  
            Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff 
      for National Guard matters and for Reserve matters.                     
      Sec. 902. Use of CINC Initiative Fund for force protection.             
            Sec. 903. Revision to required frequency for provision of policy  
      guidance for contingency plans.                                         
            Sec. 904. Annual justification for Department of Defense advisory 
      committees.                                                             
      Sec. 905. Airborne reconnaissance management.                           
      Sec. 906. Termination of the Armed Services Patent Advisory Board.      
            Sec. 907. Coordination of Department of Defense criminal          
      investigations and audits.                                              
                   SUBTITLE B--DEPARTMENT OF DEFENSE PERSONNEL MANAGEMENT         
            Sec. 911. Reduction in personnel assigned to management           
      headquarters and headquarters support activities.                       
      Sec. 912. Defense acquisition workforce.                                
                    SUBTITLE C--DEPARTMENT OF DEFENSE SCHOOLS AND CENTERS         
      Sec. 921. Professional military education schools.                      
      Sec. 922. Center for Hemispheric Defense Studies.                       
            Sec. 923. Correction to reference to George C. Marshall European  
      Center for Security Studies.                                            
               SUBTITLE D--DEPARTMENT OF DEFENSE INTELLIGENCE-RELATED MATTERS     
            Sec. 931. Transfer of certain military department programs from   
      TIARA budget aggregation.                                               
            Sec. 932. Report on coordination of access of commanders and      
      deployed units to intelligence collected and analyzed by the            
      intelligence community.                                                 
            Sec. 933. Protection of imagery, imagery intelligence, and        
      geospatial information and data.                                        
      Sec. 934. POW/MIA intelligence analysis.                                
                      Subtitle A--Department of Defense Positions and Organizations
           and Other General Matters                                               
                    SEC. 901. ASSISTANTS TO THE CHAIRMAN OF THE JOINT CHIEFS OF   
          STAFF FOR NATIONAL GUARD MATTERS AND FOR RESERVE MATTERS.               
     (a) Establishment of Positions.--The Secretary of Defense shall      
  establish the following positions within the Joint Staff:               
       (1) Assistant to the Chairman of the Joint Chiefs of Staff for      
   National Guard Matters.                                                 
       (2) Assistant to the Chairman of the Joint Chiefs of Staff for      
   Reserve Matters.                                                        
     (b) Selection.--(1) The Assistant to the Chairman of the Joint Chiefs
  of Staff for National Guard Matters shall be selected by the Chairman   
  from officers of the Army National Guard of the United States or the Air
  Guard of the United States who--                                        
       (A) are recommended for such selection by their respective Governors
   or, in the case of the District of Columbia, the commanding general of  
   the District of Columbia National Guard;                                
       (B) have had at least 10 years of federally recognized commissioned 
   service in the National Guard; and                                      
     (C) are in a grade above the grade of colonel.                        
     (2) The Assistant to the Chairman of the Joint Chiefs of Staff for   
  Reserve Matters shall be selected by the Chairman from officers of the  
  Army Reserve, the Naval Reserve, the Marine Corps Reserve or the Air    
  Force Reserve who--                                                     
       (A) are recommended for such selection by the Secretary of the      
   military department concerned;                                          
       (B) have had at least 10 years of commissioned service in their     
   reserve component; and                                                  
       (C) are in a grade above the grade of colonel or, in the case of the
   Naval Reserve, captain.                                                 
     (c) Term of Office.--Each Assistant to the Chairman under subsection 
  (a) serves at the pleasure of the Chairman for a term of two years and  
  may be continued in that assignment in the same manner for one          
  additional term. However, in time of war there is no limit on the number
  of terms.                                                               
     (d) Grade.--Each Assistant to the Chairman, while so serving, holds  
  the grade of major general or, in the case of the Naval Reserve, rear   
  admiral. Each such officer shall be considered to be serving in a       
  position external to that officer's Armed Force for purposes of section 
  721 of title 10, United States Code, as added by section 501(a).        
     (e) Duties.--The Assistant to the Chairman for National Guard Matters
  is an adviser to the Chairman on matters relating to the National Guard 
  and performs the duties prescribed for that position by the Chairman.   
  The Assistant to the Chairman for Reserve Matters is an adviser to the  
  Chairman on matters relating to the reserves and performs the duties    
  prescribed for that position by the Chairman.                           
     (f) Other Reserve Component Representation on Joint Staff.--(1) The  
  Secretary of Defense, in consultation with the Chairman of the Joint    
  Chiefs, shall develop appropriate policy guidance to ensure that, to the
  maximum extent practicable, the level of reserve component officer      
  representation within the Joint Staff is commensurate with the          
  significant role of the reserve components within the Total Force.      
     (2) Not later than March 1, 1998, the Secretary shall submit to the  
  Committee on Armed Services of the Senate and the Committee on National 
  Security of the House of Representatives a report describing the steps  
  taken and being taken to implement this subsection.                     
     (g) Effective Date.--The positions specified in subsection (a) shall 
  be established by the Secretary of Defense not later than 60 days after 
  the date of the enactment of this Act.                                  
          SEC. 902. USE OF CINC INITIATIVE FUND FOR FORCE PROTECTION.             
     Section 166a(b) of title 10, United States Code, is amended by adding
  at the end the following:                                               
     ``(9) Force protection.''.                                            
                    SEC. 903. REVISION TO REQUIRED FREQUENCY FOR PROVISION OF     
          POLICY GUIDANCE FOR CONTINGENCY PLANS.                                  
    Section 113(g)(2) of title 10, United States Code, is amended--       
     (1) in the first sentence, by striking out ``annually''; and          
       (2) in the second sentence, by inserting ``be provided every two    
   years or more frequently as needed and shall'' after ``Such guidance    
   shall''.                                                                
                    SEC. 904. ANNUAL JUSTIFICATION FOR DEPARTMENT OF DEFENSE      
          ADVISORY COMMITTEES.                                                    
     (a) Annual Justification Required.--Chapter 7 of title 10, United    
  States Code, is amended by adding after section 182, as added by section
  382(a)(1), the following new section:                                   
          ``183. Advisory committees: annual justification required               
     ``(a) Annual Report.--The Secretary of Defense shall include in the  
  annual report of the Secretary under section 113(c) of this title a     
  report on advisory committees of the Department of Defense. In each such
  report, the Secretary shall--                                           
       ``(1) identify each advisory committee that the Secretary proposes  
   to support, or that the Secretary is required by law or direction from  
   the President to support, during the next fiscal year; and              
     ``(2) for each committee identified under paragraph (1), set forth--  
     ``(A) the justification or requirement for that committee; and        
       ``(B) the projected cost to the Department of Defense to support    
   that committee during the next fiscal year.                             
     ``(b) Advisory Committee Defined.--In this section, the term         
  `advisory committee' means an entity that is subject to the provisions  
  of the Federal Advisory Committee Act (5 U.S.C. App.).''.               
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding after the item relating to section    
  182, as added by section 382(a)(2), the following new item:             
      ``183. Advisory committees: annual justification required.''.           
          SEC. 905. AIRBORNE RECONNAISSANCE MANAGEMENT.                           
     (a) Reorganization of Defense Airborne Reconnaissance                
  Management.--Not later than September 30, 1998, the Secretary of Defense
  shall reorganize the management of defense airborne reconnaissance      
  within the Department                                                   
           of Defense in accordance with the plan developed under subsection (b). 
     (b) Plan and Report.--(1) The Secretary of Defense shall develop a   
  plan to reorganize the following organizations by transferring functions
  as required under subsections (c) and (d):                              
       (A) The organization within the Department of Defense that is       
   subordinate to the Under Secretary of Defense for Acquisition and       
   Technology and known as the Defense Airborne Reconnaissance Office.     
       (B) The organization within the Department of Defense that is       
   subordinate to the Secretary of the Navy and known as the Unmanned      
   Aerial Vehicle Joint Program Office.                                    
     (2) The Secretary shall submit to the congressional defense          
  committees a report containing--                                        
     (A) the plan developed under paragraph (1); and                       
       (B) an explanation of how the plan addresses the findings and       
   recommendations in the final report of the Task Force on Defense Reform 
   (established by the Secretary of Defense on May 14, 1997, and headed by 
   the Deputy Secretary of Defense).                                       
     (3) The plan under paragraph (1) shall be developed, and the report  
  under paragraph (2) shall be submitted, not later than March 1, 1998.   
     (c) Transfer of Certain Functions to Secretaries of Military         
  Departments.--(1) Not later than September 30, 1998, the Secretary of   
  Defense shall transfer to the Secretaries of the military departments   
  those functions specified in paragraph (2) that were performed on the   
  day before the date of the enactment this Act by the Defense Airborne   
  Reconnaissance Office and the Unmanned Aerial Vehicle Joint Program     
  Office.                                                                 
     (2) The functions referred to in paragraph (1) are the functions of  
  the Defense Airborne Reconnaissance Office and the Unmanned Aerial      
  Vehicle Joint Program Office relating to their responsibilities for     
  acquisition of systems, budgeting, program management (for research,    
  development, test, and evaluation, for procurement, for life-cycle      
  support, and for operations), and related responsibilities for          
  individual airborne reconnaissance programs.                            
     (d) Transfer of Certain Functions to Defense Airborne Reconnaissance 
  Office.--(1) Not later than September 30, 1998, the Secretary of Defense
  shall transfer to the Defense Airborne Reconnaissance Office those      
  functions specified in paragraph (2) that were performed on the day     
  before the date of the enactment of this Act by the Unmanned Aerial     
  Vehicle Joint Program Office.                                           
     (2) The functions referred to in paragraph (1) are the functions of  
  the Unmanned Aerial Vehicle Joint Program Office relating to its        
  responsibilities for management and oversight of defense airborne       
  reconnaissance architecture, requirements, and system interfaces (other 
  than the responsibilities specified in subsection (c)(2)).              
          SEC. 906. TERMINATION OF THE ARMED SERVICES PATENT ADVISORY BOARD.      
     (a) Termination of Board.--The organization within the Department of 
  Defense known as the Armed Services Patent Advisory Board is terminated.
  No funds available for the Department of Defense may be used for the    
  operation of that Board after the effective date specified in subsection
  (c).                                                                    
     (b) Transfer of Functions.--All functions performed on the day before
  the date of the enactment of this Act by the Armed Services Patent      
  Advisory Board (including performance of the responsibilities of the    
  Department of Defense for security review of patent applications under  
  chapter 17 of title 35, United States Code) shall be transferred to the 
  Defense Technology Security Administration.                             
     (c) Effective Date.--Subsection (a) shall take effect at the end of  
  the 120-day period beginning on the date of the enactment of this Act.  
                    SEC. 907. COORDINATION OF DEPARTMENT OF DEFENSE CRIMINAL      
          INVESTIGATIONS AND AUDITS.                                              
     (a) Military Department Criminal Investigative Organizations.--(1)   
  The heads of the military department criminal investigative             
  organizations shall take such action as may be practicable to conserve  
  the limited resources available to the military department criminal     
  investigative organizations by sharing personnel, expertise,            
  infrastructure, training, equipment, software, and other resources.     
     (2) The heads of the military department criminal investigative      
  organizations shall meet on a regular basis to determine the manner in  
  which and the extent to which the military department criminal          
  investigative organizations will be able to share resources.            
     (b) Defense Auditing Organizations.--(1) The heads of the defense    
  auditing organizations shall take such action as may be practicable to  
  conserve the limited resources available to the defense auditing        
  organizations by sharing personnel, expertise, infrastructure, training,
  equipment, software, and other resources.                               
     (2) The heads of the defense auditing organizations shall meet on a  
  regular basis to determine the manner in which and the extent to which  
  the defense auditing organizations will be able to share resources.     
     (c) Implementation Plan.--Not later than December 31, 1997, the      
  Secretary of Defense shall submit to Congress a plan designed to        
  maximize the resources available to the military department criminal    
  investigative organizations and the defense auditing organizations, as  
  required by this section.                                               
    (d)  Definitions.--For purposes of this section:                      
       (1) The term ``military department criminal investigative           
   organizations'' means--                                                 
     (A) the Army Criminal Investigation Command;                          
     (B) the Naval Criminal Investigative Service; and                     
     (C) the Air Force Office of Special Investigations.                   
     (2) The term ``defense auditing organizations'' means--               
     (A) the Office of the Inspector General of the Department of Defense; 
     (B) the Defense Contract Audit Agency;                                
     (C) the Army Audit Agency;                                            
     (D) the Naval Audit Service; and                                      
     (E) the Air Force Audit Agency.                                       
           Subtitle B--Department of Defense Personnel Management                  
                    SEC. 911. REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT       
          HEADQUARTERS AND HEADQUARTERS SUPPORT ACTIVITIES.                       
     (a) In General.--(1) Chapter 3 of title 10, United States Code, is   
  amended by adding at the end the following new section:                 
                    ``130a. Management headquarters and headquarters support      
          activities personnel: limitation                                        
     ``(a) Limitation.--Effective October 1, 2002, the number of          
  management headquarters and headquarters support activities personnel in
  the Department of Defense may not exceed 75 percent of the baseline     
  number.                                                                 
     ``(b) Phased Reduction.--The number of management headquarters and   
  headquarters support activities personnel in the Department of Defense--
       ``(1) as of October 1, 1998, may not exceed 95 percent of the       
   baseline number;                                                        
       ``(2) as of October 1, 1999, may not exceed 90 percent of the       
   baseline number;                                                        
       ``(3) as of October 1, 2000, may not exceed 85 percent of the       
   baseline number; and                                                    
       ``(4) as of October 1, 2001, may not exceed 80 percent of the       
   baseline number.                                                        
     ``(c) Baseline Number.--In this section, the term `baseline number'  
  means the number of management headquarters                             
                    and headquarters support activities personnel in the          
          Department of Defense as of October 1, 1997.                            
     ``(d) Limitation on Management Headquarters and Headquarters Support 
  Personnel Assigned to the United States Transportation Command.--(1)    
  Effective October 1, 1998, the number of management headquarters        
  activities and management headquarters support activities personnel     
  assigned to, or employed in, the United States Transportation Command   
  may not exceed the number equal to 95 percent of the number of such     
  personnel as of October 1, 1997.                                        
     ``(2) For purposes of paragraph (1), the United States Transportation
  Command shall be considered to include the following:                   
     ``(A) The United States Transportation Command Headquarters.          
     ``(B) The Air Mobility Command of the Air Force.                      
     ``(C) The Military Sealift Command of the Navy.                       
     ``(D) The Military Traffic Management Command of the Army.            
     ``(E) The Defense Courier Service.                                    
       ``(F) Any other element of the Department of Defense assigned to the
   United States Transportation Command.                                   
     ``(3) The Secretary of Defense may waive or suspend operation of     
  paragraph (1) in the event of a war or national emergency.              
     ``(e) Management Headquarters and Headquarters Support Activities    
  Personnel Defined.--In this section:                                    
       ``(1) The term `management headquarters and headquarters support    
   activities personnel' means military and civilian personnel of the      
   Department of Defense who are assigned to, or employed in, functions in 
   management headquarters activities or in management headquarters support
   activities.                                                             
       ``(2) The terms `management headquarters activities' and `management
   headquarters support activities' have the meanings given those terms in 
   Department of Defense Directive 5100.73, entitled `Department of Defense
   Management Headquarters and Headquarters Support Activities', as in     
   effect on November 12, 1996.                                            
     ``(f) Limitation on Reassignment of Functions.--In carrying out      
  reductions in the number of personnel assigned to, or employed in,      
  management headquarters and headquarters support activities in order to 
  comply with this section, the Secretary of Defense and the Secretaries  
  of the military departments may not reassign functions in order to evade
  the requirements of this section.                                       
     ``(g) Flexibility.--If the Secretary of Defense determines, and      
  certifies to Congress, that the limitation in subsection (b) with       
  respect to any fiscal year would adversely affect United States national
  security, the Secretary may waive the limitation under that subsection  
  with respect to that fiscal year. If the Secretary of Defense           
  determines, and certifies to Congress, that the limitation in subsection
  (a) during fiscal year 2001 would adversely affect United States        
  national security, the Secretary may waive the limitation under that    
  subsection with respect to that fiscal year. The authority under this   
  subsection may be used only once, with respect to a single fiscal       
  year.''.                                                                
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
            ``130a. Management headquarters and headquarters support          
      activities personnel: limitation.''.                                    
     (b) Implementation Report.--Not later than January 15, 1998, the     
  Secretary of Defense shall submit to Congress a report--                
       (1) containing a plan to achieve the personnel reductions required  
   by section 130a of title 10, United States Code, as added by subsection 
   (a); and                                                                
     (2) including the recommendations of the Secretary regarding--        
       (A) the revision, replacement, or augmentation of Department of     
   Defense Directive 5100.73, entitled ``Department of Defense Management  
   Headquarters                                                            
                    and Headquarters Support Activities'', as in effect on        
          November 12, 1996; and                                                  
       (B) the revision of the definitions of the terms ``management       
   headquarters activities'' and ``management headquarters support         
   activities'' under that Directive so that those terms apply uniformly   
   throughout the Department of Defense.                                   
     (c) Duties of Task Force on Defense Reform to Include Consideration  
  Of Management Headquarters Activities.--(1) The Secretary of Defense    
  shall require that the areas of study of the Task Force on Defense      
  Reform (established by the Secretary of Defense on May 14, 1997, and    
  headed by the Deputy Secretary of Defense) include an examination of the
  missions, functions, and responsibilities of the various management     
  headquarters activities and management headquarters support activities  
  of the Department of Defense. In carrying out that examination of those 
  activities, the Task Force shall identify areas of duplication in those 
  activities and recommend to the Secretary options to streamline, reduce,
  and eliminate redundancies.                                             
     (2) The examination of the missions, functions, and responsibilities 
  of the various management headquarters activities and management        
  headquarters support activities of the Department of Defense under      
  paragraph (1) shall include the following:                              
       (A) An assessment of benefits of consolidation or selected          
   elimination of Department of Defense management headquarters activities 
   and management headquarters support activities.                         
       (B) An assessment of the opportunities to streamline the management 
   headquarters and management headquarters support infrastructure that    
   were realized as a result of the enactment of the Federal Acquisition   
   Streamlining Act of 1994 (Public Law 103 355) and the Clinger-Cohen Act 
   of 1996 (divisions D and E of Public Law 104 106) or as result of other 
   management reform initiatives implemented administratively during the   
   period from 1993 through 1997.                                          
       (C) An assessment of such other options for streamlining or         
   restructuring the management headquarters and management headquarters   
   support infrastructure as the Task Force considers appropriate and as   
   can be carried out under existing provisions of law.                    
     (3) Not later than March 1, 1998, the Secretary of Defense shall     
  submit to Congress a report on the results of the examination by the    
  Task Force under this subsection. The Secretary shall include in the    
  report any report to the Secretary from the Task Force with respect to  
  the matters described in paragraphs (1) and (2).                        
     (d) Codification of Prior Permanent Limitation on OSD Personnel.--(1)
  Chapter 4 of title 10, United States Code, is amended by adding at the  
  end a new section 143 consisting of--                                   
     (A) a heading as follows:                                             
          ``143. Office of the Secretary of Defense personnel: limitation'';      
     and                                                                   
       (B) a text consisting of the text of subsections (a) through (f) of 
   section 903 of the National Defense Authorization Act for Fiscal Year   
   1997 (Public Law 104 201; 110 Stat. 2617).                              
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
      ``143. Office of the Secretary of Defense personnel: limitation.''.     
     (3) Section 903 of the National Defense Authorization Act for Fiscal 
  Year 1997 (Public Law 104 201; 110 Stat. 2617) is repealed.             
          SEC. 912. DEFENSE ACQUISITION WORKFORCE.                                
     (a) Reduction of Defense Acquisition Workforce.--(1) The Secretary of
  Defense shall accomplish reductions in defense acquisition personnel    
  positions during fiscal year 1998 so that the total number of such      
  personnel as                                                            
                    of October 1, 1998, is less than the total number of such     
          personnel as of October 1, 1997, by at least the applicable number      
          determined under paragraph (2).                                         
     (2)(A) The applicable number for purposes of paragraph (1) is 25,000.
  However, the Secretary of Defense may specify a lower number, which may 
  not be less than 10,000, as the applicable number for purposes of       
  paragraph (1) if the Secretary determines, and certifies to Congress not
  later than June 1, 1998, that an applicable number greater than the     
  number specified by the Secretary would be inconsistent with the        
  cost-effective management of the defense acquisition system to obtain   
  best value equipment and would adversely affect military readiness.     
     (B) The Secretary shall include with such a certification a detailed 
  explanation of each of the matters certified.                           
     (C) The authority of the Secretary under subparagraph (A) may only be
  delegated to the Deputy Secretary of Defense.                           
     (3) For purposes of this subsection, the term ``defense acquisition  
  personnel'' means military and civilian personnel (other than civilian  
  personnel who are employed at a maintenance depot) who are assigned to, 
  or employed in, acquisition organizations of the Department of Defense  
  (as specified in Department of Defense Instruction numbered 5000.58     
  dated January 14, 1992).                                                
     (b) Report on Specific Acquisition Positions Previously              
  Eliminated.--Not later than 30 days after the date of the enactment of  
  this Act, the Secretary of Defense shall submit to Congress a report on 
  reductions in the defense acquisition workforce made since fiscal year  
  1989. The report shall show aggregate reductions by fiscal year and     
  shall show for each fiscal year reductions identified by specific job   
  title, classification, or position. The report shall also identify those
  reductions carried out pursuant to law (and how the Secretary           
  implemented any statutory requirement for such reductions, including    
  definition of the workforce subject to the reduction) and those         
  reductions carried out as a result of base closures and realignments    
  under the so-called BRAC process. The Secretary shall include in the    
  report a definition of the term ``defense acquisition workforce'' that  
  is to be applied uniformly throughout the Department of Defense.        
     (c) Implementation Plan To Streamline and Improve Acquisition        
  Organizations.--(1) Not later than April 1, 1998, the Secretary of      
  Defense shall submit to Congress a report containing a plan to          
  streamline the acquisition organizations, workforce, and infrastructure 
  of the Department of Defense. The Secretary shall include with the      
  report a detailed discussion of the recommendations of the Secretary    
  based on the review under subsection (d) and the assessment of the Task 
  Force on Defense Reform pursuant to subsection (e), together with a     
  request for the enactment of any legislative changes necessary for      
  implementation of the plan. The Secretary shall include in the report   
  the results of the review under subsection (d) and the independent      
  assessment of the Task Force on Defense Reform pursuant to subsection   
  (e).                                                                    
     (2) In carrying out this subsection and subsection (d), the Secretary
  of Defense shall formally consult with the Chairman of the Joint Chiefs 
  of Staff, the Director of Program Analysis and Evaluation, the Under    
  Secretary of Defense (Comptroller), and the Under Secretary for         
  Acquisition and Technology.                                             
     (d) Review of Acquisition Organizations and Functions.--The Secretary
  of Defense shall conduct a review of the organizations and functions of 
  the Department of Defense acquisition activities and of the personnel   
  required to carry out those functions. The review shall identify the    
  following:                                                              
       (1) Opportunities for cross-service, cross-functional arrangements  
   within the military services and defense agencies.                      
       (2) Specific areas of overlap, duplication, and redundancy among the
   various acquisition organizations.                                      
     (3) Opportunities to further streamline acquisition processes.        
       (4) Benefits of an enhanced Joint Requirements Oversight Council in 
   the acquisition process.                                                
     (5) Alternative consolidation options for acquisition organizations.  
       (6) Alternative methods for performing industry oversight and       
   quality assurance.                                                      
     (7) Alternative options to shorten the procurement cycle.             
       (8) Alternative acquisition infrastructure reduction options within 
   current authorities.                                                    
       (9) Alternative organizational arrangements that capitalize on core 
   acquisition competencies among the military services and defense        
   agencies.                                                               
     (10) Future acquisition personnel requirements of the Department.     
       (11) Adequacy of the Program, Plans, and Budgeting System in        
   fulfilling current and future acquisition needs of the Department.      
       (12) Effect of technology and advanced management tools in the      
   future acquisition system.                                              
       (13) Applicability of more flexible alternative approaches to the   
   current civil service system for the acquisition workforce.             
       (14) Adequacy of Department of Defense Instruction numbered 5000.58 
   dated January 14, 1992.                                                 
     (e) Duties of Task Force on Defense Reform to Include Consideration  
  Of Acquisition Organizations.--(1) The Secretary of Defense shall       
  require that the areas of study of the Task Force on Defense Reform     
  (established by the Secretary of Defense on May 14, 1997, and headed by 
  the Deputy Secretary of Defense) include an examination of the missions,
  functions, and responsibilities of the various acquisition organizations
  of the Department of Defense, including the acquisition workforce of the
  Department. In carrying out that examination of those organizations and 
  that workforce, the Task Force shall identify areas of duplication in   
  defense acquisition organization and recommend to the Secretary options 
  to streamline, reduce, and eliminate redundancies.                      
     (2) The examination of the missions, functions, and responsibilities 
  of the various acquisition organizations of the Department of Defense   
  under paragraph (1) shall include the following:                        
       (A) An assessment of benefits of consolidation or selected          
   elimination of Department of Defense acquisition organizations.         
       (B) An assessment of the opportunities to streamline the defense    
   acquisition infrastructure that were realized as a result of the        
   enactment of the Federal Acquisition Streamlining Act of 1994 (Public   
   Law 103 355) and the Clinger-Cohen Act of 1996 (divisions D and E of    
   Public Law 104 106) or as result of other acquisition reform initiatives
   implemented administratively during the period from 1993 through 1997.  
       (C) An assessment of such other options for streamlining or         
   restructuring the defense acquisition infrastructure as the Task Force  
   considers appropriate and as can be carried out under existing          
   provisions of law.                                                      
     (3) Not later than March 1, 1998, the Task Force shall submit to the 
  Secretary a report on the results of its review of the acquisition      
  organizations of the Department of Defense, including any               
  recommendations of the Task Force for improvements to those             
  organizations.                                                          
     (f) Technical Reference Correction.--Section 1721(c) of title 10,    
  United States Code, is amended by striking out ``November 25, 1988'' and
  inserting in lieu thereof ``November 12, 1996''.                        
           Subtitle C--Department of Defense Schools and Centers                   
          SEC. 921. PROFESSIONAL MILITARY EDUCATION SCHOOLS.                      
     (a) Component Institutions of the National Defense University.--(1)  
  Chapter 108 of title 10, United States Code, is amended by adding at the
  end the following new section:                                          
          ``2165. National Defense University: component institutions             
     ``(a) In General.--There is a National Defense University in the     
  Department of Defense.                                                  
     ``(b) Component Institutions.--The National Defense University       
  consists of the following institutions:                                 
     ``(1) The National War College.                                       
     ``(2) The Industrial College of the Armed Forces.                     
     ``(3) The Armed Forces Staff College.                                 
     ``(4) The Institute for National Strategic Studies.                   
     ``(5) The Information Resources Management College.''.                
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
      ``2165. National Defense University: component institutions.''.         
     (b) Marine Corps University as Professional Military Education       
  School.--Subsection (d) of section 2162 of such title is amended to read
  as follows:                                                             
     ``(d) Professional Military Education Schools.--This section applies 
  to each of the following professional military education schools:       
     ``(1) The National Defense University.                                
     ``(2) The Army War College.                                           
     ``(3) The College of Naval Warfare.                                   
     ``(4) The Air War College.                                            
     ``(5) The United States Army Command and General Staff College.       
     ``(6) The College of Naval Command and Staff.                         
     ``(7) The Air Command and Staff College.                              
     ``(8) The Marine Corps University.''.                                 
     (c) Repeal of Duplicative Definition.--Section 1595(d) of such title 
  is amended--                                                            
     (1) by striking out ``(1)'' before ``In the case of''; and            
     (2) by striking out paragraph (2).                                    
          SEC. 922. CENTER FOR HEMISPHERIC DEFENSE STUDIES.                       
     (a) Institution of the National Defense University.--Subsection (b)  
  of section 2165 of title 10, United States Code, as added by section    
  921(a)(1), is amended by adding at the end the following new paragraph: 
     ``(6) The Center for Hemispheric Defense Studies.''.                  
     (b) Civilian Faculty Members.--Section 1595 of title 10, United      
  States Code, is amended by striking out subsections (e) and (f) and     
  inserting in lieu thereof the following:                                
     ``(e) Applicability to Director and Deputy Director at Certain       
  Institutions.--In addition to the persons specified in subsection (a),  
  this section also applies with respect to the Director and the Deputy   
  Director of the following:                                              
     ``(1) The George C. Marshall European Center for Security Studies.    
     ``(2) The Asia-Pacific Center for Security Studies.                   
     ``(3) The Center for Hemispheric Defense Studies.''.                  
                    SEC. 923. CORRECTION TO REFERENCE TO GEORGE C. MARSHALL       
          EUROPEAN CENTER FOR SECURITY STUDIES.                                   
     (a) Correction to Reference to Name of Center.--Subsection (a) of    
  section 506 of the Intelligence Authorization Act, Fiscal Year 1990     
  (Public Law 101 193; 8 U.S.C. 1430 note), is amended by striking out    
  ``the United States Army Russian Institute'' and inserting in lieu      
  thereof ``the George C. Marshall European Center for Security Studies''.
     (b) Section Heading.--The heading of such section is amended to read 
  as follows:                                                             
 ``requirements for citizenship for staff of george c. marshall european 
                     center for security studies''.                      
           Subtitle D--Department of Defense Intelligence Matters                  
                    SEC. 931. TRANSFER OF CERTAIN MILITARY DEPARTMENT PROGRAMS    
          FROM TIARA BUDGET AGGREGATION.                                          
     (a) Transfer.--Effective March 1, 1998, the Secretary of Defense     
  shall, for each program identified by the Secretary under subsection    
  (c)(2), transfer the management and budgeting of funds for that program 
  from the TIARA budget aggregation to a nonintelligence budget activity  
  of the military department responsible for that program.                
     (b) Assessment.--The Secretary of Defense shall conduct an assessment
  of the policy of the Department of Defense that is used for determining 
  the programs of the Department that are included within the TIARA budget
  aggregation. In conducting the assessment, the Secretary--              
       (1) shall consider whether the current policy is in need of revision
   to reflect changes in technology and battlefield use of TIARA systems;  
       (2) shall specifically consider the appropriateness of the continued
   inclusion in the TIARA budget aggregation of each of the programs       
   described in subsection (e); and                                        
       (3) may consider the appropriateness of the continued inclusion in  
   the TIARA budget aggregation of any other program (in addition to the   
   programs described to in subsection (e)) that as of the date of the     
   enactment of this Act is managed and budgeted as part of the TIARA      
   budget aggregation.                                                     
     (c) Report.--Not later than March 1, 1998, the Secretary of Defense  
  shall submit to Congress a report on the assessment carried out under   
  section (b). The Secretary shall include in the report--                
       (1) a description of any proposed changes to Department of Defense  
   policies for determining which programs are included in the TIARA budget
   aggregation; and                                                        
       (2) identification of each program (among the programs considered   
   pursuant to paragraphs (2) and (3) of subsection (b)) for which the     
   management and budgeting of funds is to be transferred under subsection 
   (a).                                                                    
     (d) Identification of Programs.--(1) In specifying the programs to be
  included on the list under subsection (c)(2), the Secretary--           
       (A) shall (except as otherwise provided pursuant to a waiver under  
   paragraph (2)) include each program described in subsection (e); and    
       (B) may include such additional programs considered in the          
   assessment pursuant to subsection (b)(3) as the Secretary determines    
   appropriate.                                                            
     (2) The Secretary, after considering the results of the assessment   
  under subsection (c), may waive the applicability of paragraph (1)(A) to
  any program described in subsection (e). The Secretary shall include in 
  the report under subsection (c) identification of each such program for 
  which the Secretary has granted such a waiver and supporting rationale  
  for each waiver.                                                        
     (e) Covered Programs.--The programs described in this subsection are 
  the following (each of which, as of the date of the enactment of this   
  Act, is managed and budgeted as part of the TIARA budget aggregation):  
       (1) Each targeting or target acquisition program of the Department  
   of Defense, including the Joint Surveillance and Target Attack Radar    
   System (JSTARS) and the Advanced Deployable System.                     
       (2) Each Tactical Warning and Attack Assessment program of the      
   Department of Defense, including the Defense Support Program, the       
   Space-Based Infrared Program, and early warning radars.                 
       (3) Each tactical communications system of the Department of        
   Defense, including the Joint Tactical Terminal.                         
     (f) TIARA Budget Aggregation Defined.--For purposes of this section, 
  the term ``TIARA budget aggregation'' means the aggregation of programs 
  of the Department of Defense for which funds are managed and budgeted   
  through a common designation as Tactical Intelligence and Related       
  Activities (TIARA) of the Department of Defense.                        
                    SEC. 932. REPORT ON COORDINATION OF ACCESS OF COMMANDERS AND  
          DEPLOYED UNITS TO INTELLIGENCE COLLECTED AND ANALYZED BY THE            
          INTELLIGENCE COMMUNITY.                                                 
    (a)  Findings.--Congress makes the following findings:                
       (1) Coordination of operational intelligence support for the        
   commanders of the combatant commands and deployed units of the Armed    
   Forces has proven to be inadequate.                                     
       (2) Procedures used to reconcile information among various          
   intelligence community and Department of Defense data bases have proven 
   to be inadequate and, being inadequate, have diminished the usefulness  
   of that information and have precluded commanders and planners within   
   the Armed Forces from fully benefiting from key information that should 
   have been available to them.                                            
       (3) Excessive compartmentalization of responsibilities and          
   information within the Department of Defense and the other elements of  
   the intelligence community has resulted in inaccurate analysis of       
   important intelligence material.                                        
       (4) Excessive restrictions on the distribution of information within
   the executive branch have disadvantaged units of the Armed Forces that  
   would have benefited most from the information.                         
       (5) Procedures used in the Department of Defense to ensure that     
   critical intelligence information is provided to the right combat units 
   in a timely manner failed during the Persian Gulf War and, as a result, 
   information about potential chemical weapons storage locations did not  
   reach the units that eventually destroyed those storage areas.          
       (6) A recent, detailed review of the events leading to and following
   the destruction of chemical weapons by members of the Armed Forces at   
   Khamisiyah, Iraq, during the Persian Gulf War has revealed a number of  
   inadequacies in the way the Department of Defense and the other elements
   of the intelligence community handled, distributed, recorded, and stored
   intelligence information about the threat of exposure of United States  
   forces to chemical weapons and the toxic agents in those weapons.       
       (7) The inadequacy of procedures for recording the receipt of, and  
   reaction to, intelligence reports provided by the intelligence community
   to combat units of the Armed Forces during the Persian Gulf War has     
   caused it to be impossible to analyze the failures in transmission of   
   intelligence-related information on the location of chemical weapons at 
   Khamisiyah, Iraq, that resulted in the demolition of chemical weapons by
   members of the Armed Forces unaware of the hazards to which they were   
   exposed.                                                                
     (b) Report Requirement.--Not later than March 1, 1998, the Secretary 
  of Defense shall submit to Congress a report that identifies the        
  specific actions that have been taken or are being taken to ensure that 
  there is adequate coordination of access of commanders of the combatant 
  commands and deployed units of the Armed Forced to intelligence         
  collected and analyzed by the intelligence community.                   
                    SEC. 933. PROTECTION OF IMAGERY, IMAGERY INTELLIGENCE, AND    
          GEOSPATIAL INFORMATION AND DATA.                                        
     (a) Protection of Information on Capabilities.--Paragraph (1)(B) of  
  section 455(b) of title 10, United States Code, is amended by inserting 
  ``, or capabilities,'' after ``methods''.                               
     (b) Products Protected.--(1) Paragraph (2) of such section is amended
  to read as follows:                                                     
     ``(2) In this subsection, the term `geodetic product' means imagery, 
  imagery intelligence, or geospatial information.''.                     
    (2) Section 467(4) of title 10, United States Code, is amended--      
     (A) by inserting ``and'' at the end of subparagraph (A);              
       (B) in subparagraph (B), by striking out ``and geodetic data; and'' 
   and inserting in lieu thereof ``geodetic data, and related products.''; 
   and                                                                     
     (C) by striking out subparagraph (C).                                 
          SEC. 934. POW/MIA INTELLIGENCE ANALYSIS.                                
     (a) Intelligence Analysis.--The Director of Central Intelligence, in 
  consultation with the Secretary of Defense, shall provide intelligence  
  analysis on matters concerning prisoners of war and missing persons (as 
  defined in chapter 76 of title 10, United States Code) to all           
  departments and agencies of the Federal Government involved in such     
  matters.                                                                
     (b) Use of Intelligence in Analysis of POW/MIA Cases in Department of
  Defense.--The Secretary of Defense shall ensure that the Defense        
  Prisoner of War/Missing Personnel Office of the Department of Defense   
  takes into full account all intelligence regarding matters concerning   
  prisoners of war and missing persons (as defined in chapter 76 of title 
  10, United States Code) in analyzing cases involving such persons.      
           TITLE X--GENERAL PROVISIONS                                             
                                SUBTITLE A--FINANCIAL MATTERS                     
      Sec. 1001. Transfer authority.                                          
      Sec. 1002. Incorporation of classified annex.                           
            Sec. 1003. Authority for obligation of unauthorized fiscal year   
      1997 defense appropriations.                                            
            Sec. 1004. Authorization of prior emergency supplemental          
      appropriations for fiscal year 1997.                                    
      Sec. 1005. Increase in fiscal year 1996 transfer authority.             
      Sec. 1006. Revision of authority for Fisher House trust funds.          
            Sec. 1007. Flexibility in financing closure of certain outstanding
      contracts for which a small final payment is due.                       
      Sec. 1008. Biennial financial management improvement plan.              
            Sec. 1009. Estimates and requests for procurement and military    
      construction for the reserve components.                                
            Sec. 1010. Sense of Congress regarding funding for reserve        
      component modernization not requested in President's budget.            
      Sec. 1011. Management of working-capital funds.                         
            Sec. 1012. Authority of Secretary of Defense to settle claims     
      relating to pay, allowances, and other benefits.                        
            Sec. 1013. Payment of claims by members for loss of personal      
      property due to flooding in Red River Basin.                            
      Sec. 1014. Advances for payment of public services.                     
      Sec. 1015. United States Man and the Biosphere Program limitation.      
                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                
            Sec. 1021. Procedures for sale of vessels stricken from the Naval 
      Vessel Register.                                                        
            Sec. 1022. Authority to enter into a long-term charter for a      
      vessel in support of the Surveillance Towed-Array Sensor (SURTASS)      
      program.                                                                
      Sec. 1023. Transfer of two specified obsolete tugboats of the Army.     
            Sec. 1024. Congressional review period with respect to transfer of
      ex-U.S.S. Hornet (CV 12) and ex-U.S.S. Midway (CV 41).                  
      Sec. 1025. Transfers of naval vessels to certain foreign countries.     
            Sec. 1026. Reports relating to export of vessels that may contain 
      polychlorinated biphenyls.                                              
            Sec. 1027. Conversion of defense capability preservation authority
      to Navy shipbuilding capability preservation authority.                 
                             SUBTITLE C--COUNTER-DRUG ACTIVITIES                  
            Sec. 1031. Use of National Guard for State drug interdiction and  
      counter-drug activities.                                                
            Sec. 1032. Authority to provide additional support for            
      counter-drug activities of Mexico.                                      
            Sec. 1033. Authority to provide additional support for            
      counter-drug activities of Peru and Colombia.                           
            Sec. 1034. Annual report on development and deployment of         
      narcotics detection technologies.                                       
                  SUBTITLE D--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS       
      Sec. 1041. Repeal of miscellaneous reporting requirements.              
      Sec. 1042. Study of transfer of modular airborne fire fighting system.  
      Sec. 1043. Overseas infrastructure requirements.                        
            Sec. 1044. Additional matters for annual report on activities of  
      the General Accounting Office.                                          
      Sec. 1045. Eye safety at small arms firing ranges.                      
            Sec. 1046. Reports on Department of Defense procedures for        
      investigating military aviation accidents and for notifying and         
      assisting families of victims.                                          
                          SUBTITLE E--MATTERS RELATING TO TERRORISM               
            Sec. 1051. Oversight of counterterrorism and antiterrorism        
      activities; report.                                                     
            Sec. 1052. Provision of adequate troop protection equipment for   
      Armed Forces personnel engaged in peace operations; report on           
      antiterrorism activities and protection of personnel.                   
                      SUBTITLE F--MATTERS RELATING TO DEFENSE PROPERTY            
      Sec. 1061. Lease of nonexcess personal property of military departments.
      Sec. 1062. Lease of nonexcess property of Defense Agencies.             
            Sec. 1063. Donation of excess chapel property to churches damaged 
      or destroyed by arson or other acts of terrorism.                       
            Sec. 1064. Authority of the Secretary of Defense concerning       
      disposal of assets under cooperative agreements on air defense in       
      Central Europe.                                                         
            Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition  
      and ammunition components.                                              
      Sec. 1066. Transfer of B 17 aircraft to museum.                         
      Sec. 1067. Report on disposal of excess and surplus materials.          
                                  SUBTITLE G--OTHER MATTERS                       
            Sec. 1071. Authority for special agents of the Defense Criminal   
      Investigative Service to execute warrants and make arrests.             
            Sec. 1072. Study of investigative practices of military criminal  
      investigative organizations relating to sex crimes.                     
      Sec. 1073. Technical and clerical amendments.                           
      Sec. 1074. Sustainment and operation of the Global Positioning System.  
            Sec. 1075. Protection of safety-related information voluntarily   
      provided by air carriers.                                               
            Sec. 1076. National Guard Challenge Program to create             
      opportunities for civilian youth.                                       
            Sec. 1077. Disqualification from certain burial-related benefits  
      for persons convicted of capital crimes.                                
            Sec. 1078. Restrictions on the use of human subjects for testing  
      of chemical or biological agents.                                       
      Sec. 1079. Treatment of military flight operations.                     
            Sec. 1080. Naturalization of certain foreign nationals who serve  
      honorably in the Armed Forces during a period of conflict.              
            Sec. 1081. Applicability of certain pay authorities to members of 
      specified independent study organizations.                              
      Sec. 1082. Display of POW/MIA flag.                                     
            Sec. 1083. Program to commemorate 50th anniversary of the Korean  
      conflict.                                                               
            Sec. 1084. Commendation of members of the Armed Forces and        
      Government civilian personnel who served during the Cold War;           
      certificate of recognition.                                             
      Sec. 1085. Sense of Congress on granting of statutory Federal charters. 
      Sec. 1086. Sense of Congress regarding military voting rights.          
            Sec. 1087. Designation of Bob Hope as an honorary veteran of the  
      Armed Forces of the United States.                                      
      Sec. 1088. Five-year extension of aviation insurance program.           
           Subtitle A--Financial Matters                                           
          SEC. 1001. TRANSFER AUTHORITY.                                          
     (a) Authority To Transfer Authorizations.--(1) Upon determination by 
  the Secretary of Defense that such action is necessary in the national  
  interest, the Secretary may transfer amounts of authorizations made     
  available to the Department of Defense in this division for fiscal year 
  1998 between any such authorizations for that fiscal year (or any       
  subdivisions thereof). Amounts of authorizations so transferred shall be
  merged with and be available for the same purposes as the authorization 
  to which transferred.                                                   
     (2) The total amount of authorizations that the Secretary of Defense 
  may transfer under the authority of this section may not exceed         
  $2,000,000,000.                                                         
     (b) Limitations.--The authority provided by this section to transfer 
  authorizations--                                                        
       (1) may only be used to provide authority for items that have a     
   higher priority than the items from which authority is transferred; and 
       (2) may not be used to provide authority for an item that has been  
   denied authorization by Congress.                                       
     (c) Effect on Authorization Amounts.--A transfer made from one       
  account to another under the authority of this section shall be deemed  
  to increase the amount authorized for the account to which the amount is
  transferred by an amount equal to the amount transferred.               
     (d) Notice to Congress.--The Secretary shall promptly notify Congress
  of each transfer made under subsection (a).                             
          SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.                           
     (a) Status of Classified Annex.--The Classified Annex prepared by the
  committee of conference to accompany the conference report on the bill  
  H.R. 1119 of the One Hundred Fifth Congress and transmitted to the      
  President is hereby incorporated into this Act.                         
     (b) Construction With Other Provisions of Act.--The amounts specified
  in the Classified Annex are not in addition to amounts authorized to be 
  appropriated by other provisions of this Act.                           
     (c) Limitation on Use of Funds.--Funds appropriated pursuant to an   
  authorization contained in this Act that are made available for a       
  program, project, or activity referred to in the Classified Annex may   
  only be expended for such program, project, or activity in accordance   
  with such terms, conditions, limitations, restrictions, and requirements
  as are set out for that program, project, or activity in the Classified 
  Annex.                                                                  
     (d) Distribution of Classified Annex.--The President shall provide   
  for appropriate distribution of the Classified Annex, or of appropriate 
  portions of the annex, within the executive branch of the Government.   
                    SEC. 1003. AUTHORITY FOR OBLIGATION OF UNAUTHORIZED FISCAL    
          YEAR 1997 DEFENSE APPROPRIATIONS.                                       
     (a) Authority.--The amounts described in subsection (b) may be       
  obligated and expended for programs, projects, and activities of the    
  Department of Defense in accordance with fiscal year 1997 defense       
  appropriations.                                                         
     (b) Covered Amounts.--The amounts referred to in subsection (a) are  
  the amounts provided for programs, projects, and activities of the      
  Department of Defense in fiscal year 1997 defense appropriations that   
  are in excess of the amounts provided for such programs, projects, and  
  activities in fiscal year 1997 defense authorizations.                  
    (c)  Definitions.--For the purposes of this section:                  
       (1) Fiscal year 1997 defense appropriations.--The term ``fiscal year
   1997 defense appropriations'' means amounts appropriated or otherwise   
   made available to the Department of Defense for fiscal year 1997 in the 
   Department of Defense Appropriations Act, 1997 (as contained in section 
   101(b) of Public Law 104 208).                                          
       (2) Fiscal year 1997 defense authorizations.--The term ``fiscal year
   1997 defense authorizations'' means amounts authorized to be            
   appropriated for the Department of Defense for fiscal year 1997 in the  
   National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 
   201).                                                                   
                    SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL      
          APPROPRIATIONS FOR FISCAL YEAR 1997.                                    
     Amounts authorized to be appropriated to the Department of Defense   
  for fiscal year 1997 in the National Defense Authorization Act for      
  Fiscal Year 1997 (Public Law 104 201) are hereby adjusted, with respect 
  to any such authorized amount, by the amount by which appropriations    
  pursuant to such authorization were increased (by a supplemental        
  appropriation) or decreased (by a rescission), or both, in the 1997     
  Emergency Supplemental Appropriations Act for Recovery from Natural     
  Disasters, and for Overseas Peacekeeping Efforts, Including Those in    
  Bosnia (Public Law 105 18).                                             
          SEC. 1005. INCREASE IN FISCAL YEAR 1996 TRANSFER AUTHORITY.             
     Section 1001(a)(2) of the National Defense Authorization Act for     
  Fiscal Year 1996 (Public Law 104 106; 100 Stat. 414) is amended by      
  striking out ``$2,000,000,000'' and inserting in lieu thereof           
  ``$3,100,000,000''.                                                     
          SEC. 1006. REVISION OF AUTHORITY FOR FISHER HOUSE TRUST FUNDS.          
     (a) Correction To Eliminate Use of Term Associated With Funding      
  Authorities.--Section 2221(c) of title 10, United States Code, is       
  amended by striking out ``or maintenance'' each place it appears.       
     (b) Corpus of Air Force Trust Fund.--The Secretary of the Air Force  
  shall deposit in the Fisher House Trust Fund, Department of the Air     
  Force, an amount that the Secretary determines appropriate to establish 
  the corpus of the fund.                                                 
                    SEC. 1007. FLEXIBILITY IN FINANCING CLOSURE OF CERTAIN        
          OUTSTANDING CONTRACTS FOR WHICH A SMALL FINAL PAYMENT IS DUE.           
     (a) Closure of Outstanding Contracts.--The Secretary of Defense may  
  make the final payment on a contract                                    
                    to which this section applies from the account established    
          pursuant to subsection (d).                                             
     (b) Covered Contracts.--This section applies to any contract of the  
  Department of Defense--                                                 
     (1) that was entered into before December 5, 1990; and                
       (2) for which an unobligated balance of an appropriation that had   
   been initially applied to the contract was canceled before December 5,  
   1990, pursuant to section 1552 of title 31, United States Code, as in   
   effect before that date.                                                
     (c) Authority Limited to Small Final Payments.--The Secretary may use
  the authority provided by this section only for a contract for which the
  amount of the final payment due is not greater than the micro-purchase  
  threshold (as defined in section 32 of the Office of Federal Procurement
  Policy Act (41 U.S.C. 428)).                                            
     (d) Account.--The Secretary may establish an account for the purposes
  of this section. The Secretary may from time to time transfer into the  
  account, from funds made available to the Department of Defense for     
  procurement or for research, development, test, and evaluation, such    
  amounts as the Secretary determines to be needed for the purposes of the
  account, except that the total of such transfers may not exceed         
  $1,000,000. Amounts in the account may be used only for the purposes of 
  this section.                                                           
     (e) Closure of Account.--When the Secretary determines that all      
  contracts to which this section applies have been closed and there is no
  further need for the account established under subsection (d), the      
  Secretary shall close the account. Any amounts remaining in the account 
  shall be covered into the Treasury as miscellaneous receipts.           
          SEC. 1008. BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN.              
     (a) Biennial Plan.--(1) Chapter 131 of title 10, United States Code, 
  is amended by adding at the end the following new section:              
          ``2222. Biennial financial management improvement plan                  
     ``(a) Biennial Plan Required.--The Secretary of Defense shall submit 
  to Congress a biennial strategic plan for the improvement of financial  
  management within the Department of Defense. The plan shall be submitted
  not later than September 30 of each even-numbered year.                 
     ``(b) Concept of Operations.--Each plan under subsection (a) shall   
  include a statement of the Secretary of Defense's concept of operations 
  for the financial management of the Department of Defense. Each such    
  statement shall be a clear description of the manner in which the       
  Department's financial management operations are carried out or will be 
  carried out under the improvements set forth in the plan under          
  subsection (a), including identification of operations that must be     
  performed.                                                              
     ``(c) Matters To Be Addressed in Plan.--(1) Each plan under          
  subsection (a) shall address all aspects of financial management within 
  the Department of Defense, including the finance systems, accounting    
  systems, and data feeder systems of the Department that support         
  financial functions of the Department.                                  
     ``(2) For the purposes of paragraph (1), a data feeder system is an  
  automated or manual system from which information is derived for a      
  financial management system or an accounting system.''.                 
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
      ``2222. Biennial financial management improvement plan.''.              
     (b) Additional Content of First Plan.--The first financial management
  improvement plan submitted under section 2222 of title 10, United States
  Code (as added by subsection (a)), shall include the following:         
       (1) A description of the costs and benefits of integrating the      
   various finance and accounting systems of the Department of Defense and 
   reducing the total number of such systems, together with the Secretary's
   assessment of the feasibility of implementing such an integration.      
       (2) Identification of problems with the accuracy of data included in
   the finance systems, accounting systems, and data feeder systems that   
   support financial functions of the Department of Defense, together with 
   a description of the actions that the Secretary can take to address     
   those problems.                                                         
       (3) Identification of weaknesses in the internal controls of the    
   systems referred to in paragraph (2), together with a description of the
   actions that the Secretary can take to address those weaknesses.        
       (4) A description of actions that the Secretary can take to         
   eliminate negative unliquidated obligations, unmatched disbursements,   
   and in-transit disbursements and to avoid such obligations and          
   disbursements in the future.                                            
       (5) A description of the status of the efforts being undertaken in  
   the Department to consolidate and eliminate--                           
     (A) redundant or unneeded finance systems; and                        
     (B) redundant or unneeded accounting systems.                         
       (6) A description of efforts being undertaken to consolidate or     
   eliminate redundant personnel data systems, acquisition data systems,   
   asset accounting systems, time and attendance systems, and other data   
   feeder systems of the Department.                                       
       (7) A description of efforts being undertaken to integrate the data 
   feeder systems of the Department with the finance and accounting systems
   of the Department.                                                      
       (8) A description of problems with the organization or performance  
   of the Operating Locations and Service Centers of the Defense Finance   
   and Accounting Service, together with a description of the actions the  
   Secretary can take to address those problems.                           
       (9) A description of the costs and benefits of reorganizing the     
   Operating Locations and Service Centers of the Defense Finance and      
   Accounting Service according to                                         
                    function, together with the Secretary's assessment of the     
          feasibility of carrying out such a reorganization.                      
       (10) A description of the costs and benefits of contracting for     
   private-sector performance of specific functions currently performed by 
   the Defense Finance and Accounting Service, together with the           
   Secretary's assessment of the feasibility of contracting for such       
   performance.                                                            
       (11) A description of actions that can be taken to ensure that each 
   comptroller position (and comparable position) in the Department of     
   Defense, whether filled by a member of the Armed Forces or by a civilian
   employee, is held by a person who, by reason of education, technical    
   competence, and experience, has the core competencies for financial     
   management.                                                             
       (12) A description of any other change in the financial management  
   structure of the Department or revision of the financial processes and  
   business practices of the Department that the Secretary considers       
   necessary to improve financial management in the Department.            
     (c) Additional Matters.--For each of the problems and actions        
  identified pursuant to paragraphs (1) through (12) of subsection (b) or 
  in any other part of the plan covered by that subsection, the Secretary 
  shall include statements of objectives, performance measures, and       
  schedules and shall specify the individual and organizational           
  responsibilities.                                                       
     (d) Definition.--In subsection (b), the term ``data feeder system''  
  has the meaning given that term in subsection (c)(2) of section 2222 of 
  title 10, United States Code, as added by subsection (a).               
                    SEC. 1009. ESTIMATES AND REQUESTS FOR PROCUREMENT AND MILITARY
          CONSTRUCTION FOR THE RESERVE COMPONENTS.                                
     (a) Detailed Presentation in Future-Years Defense Program.--Section  
  10543 of title 10, United States Code, is amended--                     
       (1) by inserting ``(a) In General.--'' before ``The Secretary of    
   Defense''; and                                                          
     (2) by adding at the end the following:                               
     ``(b) Associated Annexes.--The associated annexes of the future-years
  defense program shall specify, at the same level of detail as is set    
  forth in the annexes for the active components, the amount requested    
  for--                                                                   
       ``(1) procurement of each item of equipment to be procured for each 
   reserve component; and                                                  
       ``(2) each military construction project to be carried out for each 
   reserve component, together with the location of the project.           
     ``(c) Report.--(1) If the aggregate of the amounts specified in      
  paragraphs (1) and (2) of subsection (b) for a fiscal year is less than 
  the amount equal to 90 percent of the average authorized amount         
  applicable for that fiscal year under paragraph (2), the Secretary of   
  Defense shall submit to Congress a report specifying for each reserve   
  component the additional items of equipment that would be procured, and 
  the additional military construction projects that would be carried out,
  if that aggregate amount were an amount equal to such average authorized
  amount. The report shall be at the same level of detail as is required  
  by subsection (b).                                                      
     ``(2) In this subsection, the term `average authorized amount', with 
  respect to a fiscal year, means the average of--                        
       ``(A) the aggregate of the amounts authorized to be appropriated for
   the preceding fiscal year for the procurement of items of equipment, and
   for military construction, for the reserve components; and              
       ``(B) the aggregate of the amounts authorized to be appropriated for
   the fiscal year preceding the fiscal year referred to in subparagraph   
   (A) for the procurement of items of equipment, and for military         
   construction, for the reserve components.''.                            
     (b) Prohibition.--The level of detail provided for procurement and   
  military construction in the future-years defense programs for fiscal   
  years after fiscal year 1998 may not be less than the level of detail   
  provided for procurement and military construction in the future-years  
  defense program for fiscal year 1998.                                   
                    SEC. 1010. SENSE OF CONGRESS REGARDING FUNDING FOR RESERVE    
          COMPONENT MODERNIZATION NOT REQUESTED IN PRESIDENT'S BUDGET.            
     (a) Criteria.--It is the sense of Congress that, to the maximum      
  extent practicable, Congress should authorize appropriations for        
  procurement of reserve component modernization equipment for a fiscal   
  year for equipment that is not included in the budget of the President  
  for that fiscal year only if--                                          
       (1) there is a requirement for that equipment that has been         
   validated by the Joint Requirements Oversight Council;                  
       (2) procurement of that equipment is included for reserve component 
   modernization in the modernization plan of the military department      
   concerned and is incorporated into the current future-years defense     
   program;                                                                
       (3) procurement of that equipment is consistent with planned use of 
   reserve component forces under Department of Defense war plans; and     
       (4) funds for that procurement, if authorized and appropriated for  
   that fiscal year, could be obligated during that fiscal year.           
     (b) Consideration of Views of Chairman of Joint Chiefs of Staff.--It 
  is further the sense of Congress that, in applying the criteria set     
  forth in subsection (a) with respect to procurement of reserve component
  modernization equipment, Congress should obtain the views of the        
  Chairman of the Joint Chiefs of Staff on whether, under Department of   
  Defense war plans, that equipment is appropriate for procurement for,   
  and assignment to, reserve component forces.                            
          SEC. 1011. MANAGEMENT OF WORKING-CAPITAL FUNDS.                         
     (a) Contracting for Capital Assets Procurement in Advance of         
  Funds.--Section 2208 of title 10, United States Code, is amended by     
  striking out subsection (k) and inserting in lieu thereof the following 
  new subsection:                                                         
     ``(k)(1) Subject to paragraph (2), a contract for the procurement of 
  a capital asset financed by a working-capital fund may be awarded in    
  advance of the availability of funds in the working-capital fund for the
  procurement.                                                            
     ``(2) Paragraph (1) applies to any of the following capital assets   
  that have a development or acquisition cost of not less than $100,000:  
       ``(A) An unspecified minor military construction project under      
   section 2805(c)(1) of this title.                                       
     ``(B) Automatic data processing equipment or software.                
     ``(C) Any other equipment.                                            
     ``(D) Any other capital improvement.''.                               
     (b) Use of Advance Billing.--Such section is further amended by      
  adding at the end the following new subsection:                         
     ``(l)(1) An advance billing of a customer of a working-capital fund  
  may be made if the Secretary of the military department concerned       
  submits to Congress written notification of the advance billing within  
  30 days after the end of the month in which the advanced billing was    
  made. The notification shall include the following:                     
     ``(A) The reasons for the advance billing.                            
       ``(B) An analysis of the effects of the advance billing on military 
   readiness.                                                              
       ``(C) An analysis of the effects of the advance billing on the      
   customer.                                                               
     ``(2) The Secretary of Defense may waive the notification            
  requirements of paragraph (1)--                                         
     ``(A) during a period war or national emergency; or                   
       ``(B) to the extent that the Secretary determines necessary to      
   support a contingency operation.                                        
    ``(3) In this subsection:                                             
       ``(A) The term `advance billing', with respect to a working-capital 
   fund, means a billing of a customer by the fund, or a requirement for a 
   customer to reimburse or otherwise credit the fund, for the cost of     
   goods or services provided (or for other expenses incurred) on behalf of
   the customer that is rendered or imposed before the customer receives   
   the goods or before the services have been performed.                   
       ``(B) The term `customer' means a requisitioning component or       
   agency.''.                                                              
     (c) Fiscal Year Limitations.--(1) The total amount of advance        
  billings for Department of the Navy working-capital funds and the       
  Defense Business Operations Fund may not exceed--                       
     (A) $1,000,000,000 for fiscal year 1998; and                          
     (B) $800,000,000 for fiscal year 1999.                                
     (2) For purposes of paragraph (1), the term ``advance billing'' has  
  the meaning given such term in section 2208(l)(3) of title 10, United   
  States Code, as added by subsection (b).                                
                    SEC. 1012. AUTHORITY OF SECRETARY OF DEFENSE TO SETTLE CLAIMS 
          RELATING TO PAY, ALLOWANCES, AND OTHER BENEFITS.                        
    Section 3702(e) of title 31, United States Code, is amended--         
       (1) in paragraph (1), by striking out ``Comptroller General'' and   
   inserting in lieu thereof ``Secretary of Defense''; and                 
       (2) by striking out paragraph (2) and inserting in lieu thereof the 
   following new paragraph:                                                
     ``(2) Payment of a claim settled under paragraph (1) shall be made   
  from an appropriation that is available, for the fiscal year in which   
  the payment is made, for the same purpose as the appropriation to which 
  the obligation claimed would have been charged if the obligation had    
  been timely paid.''.                                                    
                    SEC. 1013. PAYMENT OF CLAIMS BY MEMBERS FOR LOSS OF PERSONAL  
          PROPERTY DUE TO FLOODING IN RED RIVER BASIN.                            
     (a) Payment Authorized.--Notwithstanding section 3721(e) of title 31,
  United States Code, the Secretary of a military department may pay the  
  claim of a member of the Armed Forces who resided (or whose dependents  
  resided) in the vicinity of Grand Forks Air Force Base, North Dakota,   
  during April and May 1997 for loss and damage to personal property      
                    incurred by the member as a direct result of the flooding in  
          the Red River Basin during such months.                                 
     (b) Report on Department Policy.--The Secretary of Defense shall     
  submit to Congress a report describing the Department of Defense policy 
  regarding the payment of a claim by a member of the Armed Forces who is 
  not assigned to quarters of the United States for losses and damage to  
  personal property of the member incurred at the member's residence as a 
  result of a natural disaster. The report shall include a description of 
  the number of such claims received over the past 10 years, the number of
  claims paid, and the number of claims rejected. If the Secretary        
  determines the Department of Defense should modify its policy in order  
  to accept additional claims by members who are not assigned to quarters 
  of the United States for losses and damage to personal property, the    
  Secretary shall also include in the report any legislative changes that 
  the Secretary considers necessary to enable the Secretary to implement  
  the policy change.                                                      
          SEC. 1014. ADVANCES FOR PAYMENT OF PUBLIC SERVICES.                     
     (a) In General.--Subsection (a) of section 2396 of title 10, United  
  States Code, is amended--                                               
     (1) by striking out ``and'' at the end of paragraph (2);              
       (2) by striking out the period at the end of paragraph (3) and      
   inserting in lieu thereof ``; and''; and                                
     (3) by adding at the end the following new paragraph:                 
     ``(4) public service utilities.''.                                    
     (b) Clerical Amendments.--(1) The heading of such section is amended 
  to read as follows:                                                     
                    ``2396. Advances for payments for compliance with foreign     
          laws, rent in foreign countries, tuition, public utility services, and  
          pay and supplies of armed forces of friendly foreign countries''.       
     (2) The item relating to such section in the table of sections at the
  beginning of chapter 141 of such title is amended to read as follows:   
            ``2396. Advances for payments for compliance with foreign laws,   
      rent in foreign countries, tuition, public utility services, and pay and
      supplies of armed forces of friendly foreign countries.''.              
          SEC. 1015. UNITED STATES MAN AND THE BIOSPHERE PROGRAM LIMITATION.      
     During fiscal year 1998, the Secretary of Defense may not take any   
  steps to carry out or support the United States Man and the Biosphere   
  Program or any related project.                                         
           Subtitle B--Naval Vessels and Shipyards                                 
                    SEC. 1021. PROCEDURES FOR SALE OF VESSELS STRICKEN FROM THE   
          NAVAL VESSEL REGISTER.                                                  
     Section 7305(c) of title 10, United States Code, is amended to read  
  as follows:                                                             
     ``(c) Procedures for Sale.--(1) A vessel stricken from the Naval     
  Vessel Register and not subject to disposal under any other law may be  
  sold under this section.                                                
    ``(2) In such a case, the Secretary may--                             
       ``(A) sell the vessel to the highest acceptable bidder, regardless  
   of the appraised value of the vessel, after publicly advertising the    
   sale of the vessel for a period of not less than 30 days; or            
       ``(B) subject to paragraph (3), sell the vessel by competitive      
   negotiation to the acceptable offeror who submits the offer that is most
   advantageous to the United States (taking into account price and such   
   other factors as the Secretary determines appropriate).                 
     ``(3) Before entering into negotiations to sell a vessel under       
  paragraph (2)(B), the Secretary shall publish notice of the intention to
  do so in the Commerce Business Daily sufficiently in advance of         
  initiating the negotiations that all interested parties are given a     
  reasonable opportunity to prepare and submit proposals. The Secretary   
  shall afford an opportunity to participate in the negotiations to all   
  acceptable offerors submitting proposals that the Secretary considers as
  having the potential to be the most advantageous to the United States   
  (taking into account price and such other factors as the Secretary      
  determines appropriate).''.                                             
                    SEC. 1022. AUTHORITY TO ENTER INTO A LONG-TERM CHARTER FOR A  
          VESSEL IN SUPPORT OF THE SURVEILLANCE TOWED-ARRAY SENSOR (SURTASS)      
          PROGRAM.                                                                
     The Secretary of the Navy is authorized to enter into a contract in  
  accordance with section 2401 of title 10, United States Code, for the   
  charter, for a period through fiscal year 2003, of the vessel RV CORY   
  CHOUEST (United States official number 933435) in support of the        
  Surveillance Towed-Array Sensor (SURTASS) program.                      
          SEC. 1023. TRANSFER OF TWO SPECIFIED OBSOLETE TUGBOATS OF THE ARMY.     
     (a) Authority To Transfer Vessels.--The Secretary of the Army may    
  transfer the two obsolete tugboats of the Army described in subsection  
  (b) to the Brownsville Navigation District, Brownsville, Texas.         
     (b) Vessels Covered.--Subsection (a) applies to the following two    
  decommissioned tugboats of the Army, each of which is listed as of the  
  date of the enactment of this Act as being surplus to the needs of the  
  Army: the Normandy (LT 1971) and the Salerno (LT 1953).                 
     (c) Transfers To Be at No Cost to United States.--A transfer         
  authorized by this section shall be made at no cost to the United       
  States.                                                                 
     (d) Terms and Conditions.--The Secretary may require such additional 
  terms and conditions in connection with the transfers authorized by this
  section as the Secretary considers appropriate.                         
                    SEC. 1024. CONGRESSIONAL REVIEW PERIOD WITH RESPECT TO        
          TRANSFER OF EX-U.S.S. HORNET (CV 12) AND EX-U.S.S. MIDWAY (CV 41).      
     (a) Reduction in Congressional Review Period.--In applying section   
  7306 of title 10, United States Code, with respect to the transfer of a 
  vessel specified in subsection (c), subsection (d)(1)(B) of that section
  shall be applied by substituting ``30 days'' for ``60 days''.           
     (b) Waiver if Only One Qualified Entity Applies for Transfer of      
  Vessel.--If in the case of a vessel specified in subsection (c) only a  
  single qualified entity, as determined by the Secretary of the Navy,    
  applies for transfer of the vessel, the Secretary may carry out the     
  transfer of the vessel under section 7306 of title 10, United States    
  Code, without regard to subsection (d)(1)(B) of that section. In such a 
  case, the transfer may be made only after 10 days of continuous session 
  of Congress (determined in the manner specified in section 7306(d)(2) of
  title 10, United States Code) have expired following the date on which  
  the Secretary submits to Congress a certification that only a single    
  qualified entity applied for transfer of the vessel.                    
     (c) Covered Vessels.--This section applies to the following vessels  
  (each of which is a decommissioned aircraft carrier):                   
     (1) Ex-U.S.S. HORNET (CV 12).                                         
     (2) Ex-U.S.S. MIDWAY (CV 41).                                         
          SEC. 1025. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.      
     (a) Authority.--The Secretary of the Navy is authorized to transfer  
  vessels to foreign countries on a sales basis under section 21 of the   
  Arms Export Control Act (22 U.S.C. 2761) as follows:                    
       (1) To the Government of Brazil, the HUNLEY class submarine tender  
   HOLLAND (AS 32).                                                        
       (2) To the Government of Chile, the KAISER class oiler ISHERWOOD (T 
   AO 191).                                                                
     (3) To the Government of Egypt:                                       
     (A) The following frigates of the KNOX class:                         
     (i) The PAUL (FF 1080).                                               
     (ii) The MILLER (FF 1091).                                            
     (iii) The JESSE L. BROWN (FFT 1089).                                  
     (iv) The MOINESTER (FFT 1097).                                        
     (B) The following frigates of the OLIVER HAZARD PERRY class:          
     (i) The FAHRION (FFG 22).                                             
     (ii) The LEWIS B. PULLER (FFG 23).                                    
       (4) To the Government of Israel, the NEWPORT class tank landing ship
   PEORIA (LST 1183).                                                      
       (5) To the Government of Malaysia, the NEWPORT class tank landing   
   ship BARBOUR COUNTY (LST 1195).                                         
       (6) To the Government of Mexico, the KNOX class frigate ROARK (FF   
   1053).                                                                  
       (7) To the Taipei Economic and Cultural Representative Office in the
   United States (the Taiwan instrumentality that is designated pursuant to
   section 10(a) of the Taiwan Relations Act), the following frigates of   
   the KNOX class:                                                         
     (A) The WHIPPLE (FF 1062).                                            
     (B) The DOWNES (FF 1070).                                             
       (8) To the Government of Thailand, the NEWPORT class tank landing   
   ship SCHENECTADY (LST 1185).                                            
     (b) Costs of Transfers.--Any expense incurred by the United States in
  connection with a transfer authorized by subsection (a) shall be charged
  to the recipient.                                                       
     (c) Repair and Refurbishment in United States Shipyards.--To the     
  maximum extent practicable, the Secretary of the Navy shall require, as 
  a condition of the transfer of a vessel under this section, that the    
  country to which the vessel is transferred have such repair or          
  refurbishment of the vessel as is needed, before the vessel joins the   
  naval forces of that country, performed at a shipyard located in the    
  United States, including a United States Navy shipyard.                 
     (d) Expiration of Authority.--The authority to transfer a vessel     
  under subsection (a) shall expire at the end of the two-year period     
  beginning on the date of the enactment of this Act.                     
                    SEC. 1026. REPORTS RELATING TO EXPORT OF VESSELS THAT MAY     
          CONTAIN POLYCHLORINATED BIPHENYLS.                                      
     (a) Reports Required.--Not later than March 1, 1998, the Secretary of
  the Navy (with respect to the Navy), the Administrator of the Maritime  
  Administration (with respect to the Maritime Administration), and the   
  Administrator of the Environmental Protection Agency (with respect to   
  the Environmental Protection Agency) shall each submit to Congress a    
  report on the implementation of the agreement between the Department of 
  the Navy and the Environmental Protection Agency that became effective  
  August 6, 1997, and that is titled ``Export of Naval Vessels that May   
  Contain Polychlorinated Biphenyls for Scrapping Outside the United      
  States''.                                                               
     (b) Contents of Reports.--The reports required by subsection (a)     
  shall address, at a minimum, the following:                             
       (1) An assessment of the effects of the notification requirements   
   regarding the export of vessels for scrapping, any impediments that     
   those requirements may create for the export of vessels, and any changes
   to the agreement that may be required to address those impediments.     
       (2) An explanation of the process by which it is determined which   
   solid items containing polychlorinated biphenyls are readily removable  
   and must be removed before the export of a vessel for scrapping, what   
   types of polychlorinated biphenyls have been determined to be readily   
   removable pursuant to this process, any impediments that such           
   determinations may create for the export of vessels, and any changes to 
   the agreement that may be required to address those impediments or to   
   ensure protection of human health and the environment.                  
     (c) Amendments Relating to Disposal of Obsolete Vessels From the     
  National Defense Reserve Fleet.--Section 6 of the National Maritime     
  Heritage Act of 1994 (Public Law 103 451; 108 Stat. 4776; 16 U.S.C.     
  5405) is amended--                                                      
     (1) in subsections (a)(1) and (b)(2)--                                
     (A) by inserting ``or 510(i)'' after ``508''; and                     
     (B) by inserting ``or 1160(i)'' after ``1158'';                       
       (2) in subsection (b)(2), by striking out ``first 6'' and inserting 
   in lieu thereof ``first 8''; and                                        
       (3) in subsection (c)(1)(A), by striking out ``1999'' and inserting 
   in lieu thereof ``2001''.                                               
                    SEC. 1027. CONVERSION OF DEFENSE CAPABILITY PRESERVATION      
          AUTHORITY TO NAVY SHIPBUILDING CAPABILITY PRESERVATION AUTHORITY.       
     (a) In General.--(1) Chapter 633 of title 10, United States Code, is 
  amended by adding at the end the following new section:                 
          ``7315. Preservation of Navy shipbuilding capability                    
     ``(a) Shipbuilding Capability Preservation Agreements.--The Secretary
  of the Navy may enter into an agreement, to be known as a `shipbuilding 
  capability preservation agreement', with a shipbuilder under which the  
  cost reimbursement rules described in subsection (b) shall be applied to
  the shipbuilder under a Navy contract for the construction of a ship.   
  Such an agreement may be entered into in any case in which the Secretary
  determines that the application of such cost reimbursement rules would  
  facilitate the achievement of the policy objectives set forth in section
  2501(b) of this title.                                                  
     ``(b) Cost Reimbursement Rules.--The cost reimbursement rules        
  applicable under an agreement entered into under subsection (a) are as  
  follows:                                                                
       ``(1) The Secretary of the Navy shall, in determining the           
   reimbursement due a shipbuilder for its indirect costs of performing a  
   contract for the construction of a ship for the Navy, allow the         
   shipbuilder to allocate indirect costs to its private sector work only  
   to the extent of the shipbuilder's allocable indirect private sector    
   costs, subject to paragraph (3).                                        
       ``(2) For purposes of paragraph (1), the allocable indirect private 
   sector costs of a shipbuilder are those costs of the shipbuilder that   
   are equal to the sum of the following:                                  
     ``(A) The incremental indirect costs attributable to such work.       
       ``(B) The amount by which the revenue attributable to such private  
   sector work exceeds the sum of--                                        
     ``(i) the direct costs attributable to such private sector work; and  
       ``(ii) the incremental indirect costs attributable to such private  
   sector work.                                                            
       ``(3) The total amount of allocable indirect private sector costs   
   for a contract covered by the agreement may not exceed the amount of    
   indirect costs that a shipbuilder would have allocated to its private   
   sector work during the period covered by the agreement in accordance    
   with the shipbuilder's established accounting practices.                
     ``(c) Authority To Modify Cost Reimbursement Rules.--The cost        
  reimbursement rules set forth in subsection (b) may be modified by the  
  Secretary of the Navy for a particular agreement if the Secretary       
  determines that modifications are appropriate to the particular         
  situation to facilitate achievement of the policy set forth in section  
  2501(b) of this title.                                                  
     ``(d) Applicability.--(1) An agreement entered into with a           
  shipbuilder under subsection (a) shall apply to each of the following   
  Navy contracts with the shipbuilder:                                    
       ``(A) A contract that is in effect on the date on which the         
   agreement is entered into.                                              
     ``(B) A contract that is awarded during the term of the agreement.    
     ``(2) In a shipbuilding capability preservation agreement applicable 
  to a shipbuilder, the Secretary may agree to apply the cost             
  reimbursement rules set forth in subsection (b) to allocations of       
  indirect costs to private sector work performed by the shipbuilder only 
  with respect to costs that the shipbuilder incurred on or after the date
  of the enactment of the National Defense Authorization Act for Fiscal   
  Year 1998 under a contract between the shipbuilder and a private sector 
  customer of the shipbuilder that became effective on or after January   
  26, 1996.''.                                                            
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
      ``7315. Preservation of Navy shipbuilding capability.''.                
     (b) Implementation.--Not later than 30 days after the date of the    
  enactment of this Act, the Secretary of the Navy shall establish        
  application procedures and procedures for expeditious consideration of  
  shipbuilding capability preservation agreements as authorized by section
  7315 of title 10, United States Code, as added by subsection (a).       
     (c) Report.--Not later than February 15, 1998, the Secretary of the  
  Navy shall submit to Congress a report on applications for shipbuilding 
  capability preservation agreements under section 7315 of title 10,      
  United States Code, as added by subsection (a). The report shall specify
  the number of the applications received, the number of the applications 
  approved, and a discussion of the reasons for disapproval of any        
  application disapproved.                                                
     (d) Repeal of Superseded Provision.--Section 808 of the National     
  Defense Authorization Act for Fiscal Year 1996 (Public Law 104 106; 110 
  Stat. 393; 10 U.S.C. 2501 note) is repealed.                            
           Subtitle C--Counter-Drug Activities                                     
                    SEC. 1031. USE OF NATIONAL GUARD FOR STATE DRUG INTERDICTION  
          AND COUNTER-DRUG ACTIVITIES.                                            
     (a) Relationship to Training and Readiness.--Subsection (b) of       
  section 112 of title 32, United States Code, is amended--               
     (1) by inserting ``(1)'' before ``Under regulations''; and            
     (2) by adding at the end the following new paragraphs:                
     ``(2) To ensure that the use of units and personnel of the National  
  Guard of a State pursuant to a State drug interdiction and counter-drug 
  activities plan is not detrimental to the training and readiness of such
  units and personnel, the requirements of section 2012(d) of title 10    
  shall apply in determining the drug interdiction and counter-drug       
  activities that units and personnel of the National Guard of a State may
  perform.                                                                
     ``(3) Section 508 of this title, regarding the provision of          
  assistance to certain specified youth and charitable organizations,     
  shall apply in any case in which a unit or member of the National Guard 
  of a State is proposed to be used pursuant to a State drug interdiction 
  and counter-drug activities plan to provide to an organization specified
  in subsection (d) of such section any of the services described in      
  subsection (b) of such section or services regarding counter-drug       
  education.''.                                                           
     (b) Engineer-Type Activities.--Subsection (c) of such section is     
  amended--                                                               
       (1) by redesignating paragraphs (4) and (5) as paragraphs (5) and   
   (6), respectively; and                                                  
     (2) by inserting after paragraph (3) the following new paragraph:     
       ``(4) certify that any engineer-type activities (as defined by the  
   Secretary of Defense) under the plan will be performed only by units and
   members of the National Guard;''.                                       
    (c)  Annual Report.--Such section is further amended--                
       (1) by redesignating subsections (g) and (h) as subsections (h) and 
   (i), respectively; and                                                  
     (2) by inserting after subsection (f) the following new subsection:   
     ``(g) Annual Report.--The Secretary of Defense shall submit to       
  Congress an annual report regarding assistance provided and activities  
  carried out under this section during the preceding fiscal year. The    
  report shall include the following:                                     
       ``(1) The number of members of the National Guard excluded under    
   subsection (e) from the computation of end strengths.                   
       ``(2) A description of the drug interdiction and counter-drug       
   activities conducted under State drug interdiction and counter-drug     
   activities plans referred to in subsection (c) with funds provided under
   this section.                                                           
     ``(3) An accounting of the amount of funds provided to each State.    
       ``(4) A description of the effect on military training and readiness
   of using units and personnel of the National Guard to perform activities
   under the State drug interdiction and counter-drug activities plans.''. 
     (d) Conforming Amendments.--Subsection (e) of such section is        
  amended--                                                               
     (1) by striking out ``(1)'' before ``Members''; and                   
     (2) by striking out paragraph (2).                                    
                    SEC. 1032. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR        
          COUNTER-DRUG ACTIVITIES OF MEXICO.                                      
     (a) Extension of Authority; Consultation of Secretary of             
  State.--Subsection (a) of section 1031 of the National Defense          
  Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 Stat.   
  2637), is amended--                                                     
       (1) by striking out ``fiscal year 1997'' and inserting in lieu      
   thereof ``fiscal years 1997 and 1998''; and                             
       (2) by inserting after the first sentence the following new         
   sentence: ``In providing support to the Government of Mexico under this 
   section, the Secretary of Defense shall consult with the Secretary of   
   State.''.                                                               
     (b) Extension of Availability of Funds.--Subsection (d) of such      
  section is amended--                                                    
       (1) by striking out ``not more than'' and inserting in lieu thereof 
   ``an amount not to exceed''; and                                        
       (2) by adding at the end the following new sentences: ``Funds made  
   available for fiscal year 1997 under this subsection and unobligated by 
   September 30, 1997, may be obligated during fiscal year 1998. No funds  
   are authorized to be appropriated for fiscal year 1998 for the provision
   of support under this section.''.                                       
                    SEC. 1033. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR        
          COUNTER-DRUG ACTIVITIES OF PERU AND COLOMBIA.                           
     (a) Authority To Provide Support.--Subject to subsection (f), during 
  fiscal years 1998 through 2002, the Secretary of Defense may provide    
  either or both of the foreign governments named in subsection (b) with  
  the support described in subsection (c) for the counter-drug activities 
  of that government. In providing support to a government under this     
  section, the Secretary of Defense shall consult with the Secretary of   
  State. The support provided under the authority of this section shall be
  in addition to support provided to the governments under any other      
  provision of law.                                                       
     (b) Governments Eligible To Receive Support.--The foreign governments
  eligible to receive counter-drug support under this section are as      
  follows:                                                                
     (1) The Government of Peru.                                           
     (2) The Government of Colombia.                                       
     (c) Types of Support.--The authority under subsection (a) is limited 
  to the provision of the following types of support to a government named
  in subsection (b):                                                      
       (1) The types of support specified in paragraphs (1), (2), and (3)  
   of section 1031(b) of the National Defense Authorization Act for Fiscal 
   Year 1997 (Public Law 104 201; 110 Stat. 2637).                         
     (2) The transfer of riverine patrol boats.                            
       (3) The maintenance and repair of equipment of the government that  
   is used for counter-drug activities.                                    
     (d) Applicability of Other Support Authorities.--Except as otherwise 
  provided in this section, the provisions of section 1004 of the National
  Defense Authorization Act for Fiscal Year 1991 (Public Law 101 510; 10  
  U.S.C. 374 note) shall apply to the provision of support under this     
  section.                                                                
     (e) Fiscal Year 1998 Funding; Limitation on Obligations.--(1) Of the 
  amount authorized to be appropriated under section 301(20) for drug     
  interdiction and counter-drug activities, an amount not to exceed       
  $9,000,000 shall be available for the provision of support under this   
  section.                                                                
     (2) Amounts made available to carry out this section shall remain    
  available until expended, except that the total amount obligated and    
  expended under this section may not exceed $20,000,000 during any of the
  fiscal years 1999 through 2002.                                         
     (f) Condition on Provision of Support.--(1) The Secretary of Defense 
  may not obligate or expend funds during a fiscal year to provide support
  under this section to a government named in subsection (b) until the end
  of the 15-day period beginning on the date on which the Secretary       
  submits to the congressional committees the written certification       
  described in subsection (g) for that fiscal year.                       
     (2) In the case of the first fiscal year in which support is to be   
  provided under this section to a government named in subsection (b), the
  obligation or expenditure of funds under this section to provide support
  to that government shall also be subject to the condition that--        
       (A) the Secretary submit to the congressional committees the        
   riverine counter-drug plan described in subsection (h); and             
       (B) a period of 60 days expires after the date on which the report  
   is submitted.                                                           
     (3) In the case of subsequent fiscal years in which support is to be 
  provided under this section to a government named in subsection (b), the
  obligation or expenditure of funds under this section to provide support
  to that government shall also be subject to the condition that the      
  Secretary submit to the congressional committees any revision of the    
  counter-drug plan described in subsection (h) applicable to that        
  government.                                                             
     (4) For purposes of this subsection, the term ``congressional        
  committees'' means the following:                                       
       (A) The Committee on Armed Services and the Committee on Foreign    
   Relations of the Senate.                                                
       (B) The Committee on National Security and the Committee on         
   International Relations of the House of Representatives.                
     (g) Required Certification.--The written certification required by   
  subsection (f)(1) for a fiscal year is a certification of the following 
  with respect to each government to receive support under this section:  
       (1) That the provision of the support to the government will not    
   adversely affect the military preparedness of the United States Armed   
   Forces.                                                                 
       (2) That the equipment and materiel provided as support will be used
   only by officials and employees of the government who have undergone    
   background investigations by that government and have been approved by  
   that government to perform counter-drug activities on the basis of the  
   background investigations.                                              
       (3) That the government has certified to the Secretary of Defense   
   that--                                                                  
       (A) the equipment and material provided as support will be used only
   by the officials and employees referred to in paragraph (2);            
       (B) none of the equipment or materiel will be transferred (by sale, 
   gift, or otherwise) to any person or entity not authorized by the United
   States to receive the equipment or materiel; and                        
       (C) the equipment and materiel will be used only for the purposes   
   intended by the United States Government.                               
       (4) That the government has implemented, to the satisfaction of the 
   Secretary of Defense, a system that will provide an accounting and      
   inventory of the equipment and materiel provided as support.            
       (5) That the departments, agencies, and instrumentalities of the    
   government will grant United States Government personnel access to any  
   of the equipment or materiel provided as support, or to any of the      
   records relating to such equipment or materiel, under terms and         
   conditions similar to the terms and conditions imposed with respect to  
   such access under section 505(a)(3) of the Foreign Assistance Act of    
   1961 (22 U.S.C. 2314(a)(3)).                                            
       (6) That the government will provide security with respect to the   
   equipment and materiel provided as support that is substantially the    
   same degree of security that the United States Government would provide 
   with respect to such equipment and materiel.                            
       (7) That the government will permit continuous observation and      
   review by United States Government personnel of the use of the equipment
   and materiel provided as support under terms and conditions similar to  
   the terms and conditions imposed with respect to such observation and   
   review under section 505(a)(3) of the Foreign Assistance Act of 1961 (22
   U.S.C. 2314(a)(3)).                                                     
     (h) Riverine Counter-Drug Plan.--The Secretary of Defense, in        
  consultation with the Secretary of State, shall prepare for fiscal year 
  1998 (and revise as necessary for subsequent fiscal years) a riverine   
  counter-drug plan involving the governments named in subsection (b) to  
  which support will be provided under this section. The plan for a fiscal
  year shall include the following with respect to each government to     
  receive support under this section:                                     
       (1) A detailed security assessment, including a discussion of the   
   threat posed by illicit drug traffickers in the foreign country.        
       (2) An evaluation of previous and ongoing riverine counter-drug     
   operations by the government.                                           
       (3) An assessment of the monitoring of past and current assistance  
   provided by the United States under this section to the government to   
   ensure the appropriate use of such assistance.                          
       (4) A description of the centralized management and coordination    
   among Federal agencies involved in the development and implementation of
   the plan.                                                               
       (5) A description of the roles and missions and coordination among  
   agencies of the government involved in the development and              
   implementation of the plan.                                             
       (6) A description of the resources to be contributed by the         
   Department of Defense and the Department of State for the fiscal year or
   years covered by the plan and the manner in which such resources will be
   utilized under the plan.                                                
       (7) For the first fiscal year in which support is to be provided    
   under this section, a schedule for establishing a riverine counter-drug 
   program that can be sustained by the government within five years, and  
   for subsequent fiscal years, a description of the progress made in      
   establishing and carrying out the program.                              
       (8) A reporting system to measure the effectiveness of the riverine 
   counter-drug program.                                                   
       (9) A detailed discussion of how the riverine counter-drug program  
   supports the national drug control strategy of the United States.       
                    SEC. 1034. ANNUAL REPORT ON DEVELOPMENT AND DEPLOYMENT OF     
          NARCOTICS DETECTION TECHNOLOGIES.                                       
     (a) Report Requirement.--Not later than December 1st of each year,   
  the Director of the Office of National Drug Control Policy shall submit 
  to Congress and the President a report on the development and deployment
  of narcotics detection technologies by Federal agencies. Each such      
  report shall be prepared in consultation with the Secretary of Defense, 
  the Secretary of State, the Secretary of Transportation, and the        
  Secretary of the Treasury.                                              
     (b) Matters To Be Included.--Each report under subsection (a) shall  
  include--                                                               
       (1) a description of each project implemented by a Federal agency   
   relating to the development or deployment of narcotics detection        
   technology;                                                             
       (2) the agency responsible for each project described in paragraph  
   (1);                                                                    
       (3) the amount of funds obligated or expended to carry out each     
   project described in paragraph (1) during the fiscal year in which the  
   report is submitted or during any fiscal year preceding the fiscal year 
   in which the report is submitted;                                       
       (4) the amount of funds estimated to be obligated or expended for   
   each project described in paragraph (1) during any fiscal year after the
   fiscal year in which the report is submitted to Congress; and           
       (5) a detailed timeline for implementation of each project described
   in paragraph (1).                                                       
           Subtitle D--Miscellaneous Report Requirements and Repeals               
          SEC. 1041. REPEAL OF MISCELLANEOUS REPORTING REQUIREMENTS.              
     (a) Requirement for Notice of Conversion of Certain Heating Systems  
  at Installations in Europe.--Section 2690(b) of title 10, United States 
  Code, is amended by striking out ``unless the Secretary--'' and all that
  follows and inserting in lieu thereof the following: ``unless the       
  Secretary determines that the conversion--                              
       ``(1) is required by the government of the country in which the     
   facility is located; or                                                 
     ``(2) is cost-effective over the life cycle of the facility.''.       
     (b) Report on Availability of Suitable Alternative Housing.--Section 
  2823 of title 10, United States Code, is amended--                      
     (1) by striking out subsection (b); and                               
       (2) by redesignating subsections (c) and (d) as subsections (b) and 
   (c), respectively.                                                      
     (c) Report on Stretchout of Major Defense Acquisition                
  Programs.--Section 117 of the National Defense Authorization Act, Fiscal
  Year 1989 (Public Law 100 456; 102 Stat. 1933; 10 U.S.C. 2431 note), is 
  repealed.                                                               
     (d) Elimination of Requirement for Quarterly Report Concerning Travel
  Funding for Chemical Demilitarization Citizens' Advisory                
  Commissioners.--(1) Section 1412(g) of the National Defense             
  Authorization Act for Fiscal Year 1986 (50 U.S.C. 1521(g)) is amended-- 
     (A) by striking out paragraph (3);                                    
     (B) by striking out the last sentence of paragraph (4); and           
     (C) by redesignating paragraph (4) (as so amended) as paragraph (3).  
     (2) Section 153(b) of the National Defense Authorization Act for     
  Fiscal Year 1996 (50 U.S.C. 1521 note) is amended--                     
     (A) by striking out `` Quarterly'' in the heading; and                
     (B) by striking out paragraphs (4) and (5).                           
          SEC. 1042. STUDY OF TRANSFER OF MODULAR AIRBORNE FIRE FIGHTING SYSTEM.  
     Not later than six months after the date of the enactment of this    
  Act, the Secretary of Defense, in consultation with the Secretary of    
  Agriculture, shall submit to Congress a report evaluating the           
  feasibility of transferring jurisdiction over units of the Modular      
  Airborne Fire Fighting System from the Department of Agriculture to the 
  Department of Defense.                                                  
          SEC. 1043. OVERSEAS INFRASTRUCTURE REQUIREMENTS.                        
    (a)  Findings.--Congress makes the following findings:                
       (1) United States military forces have been withdrawn from the      
   Philippines.                                                            
       (2) United States military forces are to be withdrawn from Panama by
   2000.                                                                   
       (3) There continues to be local opposition to the continued presence
   of United States military forces in Okinawa.                            
       (4) The Quadrennial Defense Review lists ``the loss of U.S. access  
   to critical facilities and lines of communication in key regions'' as   
   one of the so-called ``wild card'' scenarios covered in the review.     
       (5) The National Defense Panel states that ``U.S. forces' long-term 
   access to forward bases, to include air bases, ports, and logistics     
   facilities, cannot be assumed''.                                        
    (b)  Sense of Congress.--It is the sense of Congress that--           
       (1) the President should develop alternatives to the current        
   arrangement for forward basing of the Armed Forces outside the United   
   States, including alternatives to the existing infrastructure for       
   forward basing of forces and alternatives to the existing international 
   agreements that provide for basing of United States forces in foreign   
   countries; and                                                          
       (2) because the Pacific Rim continues to emerge as a region of      
   significant economic and military importance to the United States, a    
   continued presence of the Armed Forces in that region is vital to the   
   capability of the United States to timely protect its interests in the  
   region.                                                                 
     (c) Report Required.--Not later than March 31, 1998, the Secretary of
  Defense shall submit to the Committee on Armed Services of the Senate   
  and the Committee on National Security of the House of Representatives a
  report on the overseas infrastructure requirements of the Armed Forces. 
    (d)  Content.--The report shall contain the following:                
       (1) The quantity and types of forces that the United States must    
   station in each region of the world in order to support the current     
   national military strategy of the United States.                        
       (2) The quantity and types of forces that the United States will    
   need to station in each region of the world in order to meet the        
   expected or potential future threats to the national security interests 
   of the United States.                                                   
       (3) The requirements for access to, and use of, air space and ground
   maneuver areas in each such region for training for the quantity and    
   types of forces identified for the region pursuant to paragraphs (1) and
   (2).                                                                    
       (4) A list of the international agreements, currently in force, that
   the United States has entered into with foreign countries regarding the 
   basing of United States forces in those countries and the dates on which
   the agreements expire.                                                  
       (5) A discussion of any anticipated political opposition or other   
   opposition to the renewal of any of those international agreements.     
       (6) A discussion of future overseas basing requirements for United  
   States forces, taking into account expected changes in national security
   strategy, national security environment, and weapons systems.           
       (7) The expected costs of maintaining the overseas infrastructure   
   for foreign based forces of the United States, including the costs of   
   constructing any new facilities that will be necessary overseas to meet 
   emerging requirements relating to the national security interests of the
   United States.                                                          
     (e) Form of Report.--The report may be submitted in a classified or  
  unclassified form.                                                      
                    SEC. 1044. ADDITIONAL MATTERS FOR ANNUAL REPORT ON ACTIVITIES 
          OF THE GENERAL ACCOUNTING OFFICE.                                       
     Section 719(b) of title 31, United States Code, is amended by adding 
  at the end the following:                                               
     ``(3) The report under subsection (a) shall also include a statement 
  of the staff hours and estimated cost of work performed on audits,      
  evaluations, investigations, and related work during each of the three  
  fiscal years preceding the fiscal year in which the report is submitted,
  stated separately for each division of the General Accounting Office by 
  category as follows:                                                    
       ``(A) A category for work requested by the chairman of a committee  
   of Congress, the chairman of a subcommittee of such a committee, or any 
   other Member of Congress.                                               
       ``(B) A category for work required by law to be performed by the    
   Comptroller General.                                                    
       ``(C) A category for work initiated by the Comptroller General in   
   the performance of the Comptroller General's general                    
   responsibilities.''.                                                    
          SEC. 1045. EYE SAFETY AT SMALL ARMS FIRING RANGES.                      
    (a)  Actions Required.--The Secretary of the Defense shall--          
       (1) conduct a study of eye safety at small arms firing ranges of the
   Armed Forces; and                                                       
       (2) develop for the use of the Armed Forces a protocol for reporting
   eye injuries incurred in small arms firing activities at the ranges.    
     (b) Agency Tasking.--The Secretary may delegate authority to carry   
  out the responsibilities set forth in subsection (a) to the United      
  States Army Center for Health Promotion and Preventive Medicine or any  
  other element of the Department of Defense that the Secretary considers 
  well qualified to carry out those responsibilities.                     
     (c) Content of Study.--The study under subsection (a)(1) shall       
  include the following:                                                  
       (1) An evaluation of the existing policies, procedures, and         
   practices of the Armed Forces regarding medical surveillance of eye     
   injuries resulting from weapons fire at the small arms ranges.          
       (2) An examination of the existing policies, procedures, and        
   practices of the Armed Forces regarding reporting on vision safety      
   issues resulting from weapons fire at the small arms ranges.            
       (3) Determination of rates of eye injuries, and trends in eye       
   injuries, resulting from weapons fire at the small arms ranges.         
       (4) An evaluation of the costs and benefits of a requirement for use
   of eye protection devices by all personnel firing small arms at the     
   ranges.                                                                 
     (d) Report.--The Secretary shall submit a report on the activities   
  required under this section to the Committees on Armed Services and on  
  Veterans' Affairs of the Senate and the Committees on National Security 
  and on Veterans' Affairs of the House of Representatives. The report    
  shall include--                                                         
       (1) the findings resulting from the study under paragraph (1) of    
   subsection (a); and                                                     
     (2) the protocol developed under paragraph (2) of such subsection.    
     (e) Schedule.--(1) The Secretary shall ensure that the study is      
  commenced not later than January 1, 1998, and is completed not later    
  than six months after the date on which it is commenced.                
     (2) The Secretary shall submit the report required under subsection  
  (d) not later than 30 days after the completion of the study.           
                    SEC. 1046. REPORTS ON DEPARTMENT OF DEFENSE PROCEDURES FOR    
          INVESTIGATING MILITARY AVIATION ACCIDENTS AND FOR NOTIFYING AND         
          ASSISTING FAMILIES OF VICTIMS.                                          
     (a) Report on Aviation Accident Investigation Procedures.--Not later 
  than February 1, 1998, the Secretary of Defense shall submit to Congress
  a report on the advisability of establishing a process for investigating
  Department of Defense aviation accidents that combines accident         
  investigation with safety investigation into a single, public           
  investigation process, similar to the accident investigation process of 
  the National Transportation Safety Board. The report shall include a    
  discussion of the advantages and disadvantages of adopting such an      
  investigation process.                                                  
     (b) Report on Family Assistance.--Not later than April 2, 1998, the  
  Secretary of Defense shall submit to Congress a report on assistance    
  provided by the Department of Defense to families of casualties among   
  military and civilian personnel of the department in the case of        
  aviation accidents involving such personnel. The report shall include-- 
       (1) a discussion of the adequacy and effectiveness of the family    
   notification procedures of the Department of Defense, including the     
   procedures of the military departments; and                             
       (2) a description of the assistance provided to members of the      
   families of such personnel.                                             
     (c) Report by Department of Defense Inspector General.--Not later    
  than December 1, 1997, the Inspector General of the Department of       
  Defense shall review the procedures of the Federal Aviation             
  Administration and the National Transportation Safety Board for         
  providing information and assistance to members of families of          
  casualties of nonmilitary aviation accidents and shall submit to        
  Congress a report on the review. The report shall include a discussion  
  of the following:                                                       
       (1) Designation of an experienced non-profit organization to provide
   assistance in meeting the needs of families of accident casualties.     
       (2) An assessment of the system and procedures for providing        
   families with information on accidents and accident investigations.     
       (3) Protection of members of families from unwanted solicitations   
   relating to the accident.                                               
       (4) A recommendation regarding whether the procedures reviewed      
   (including the matters discussed under paragraphs (1), (2), and (3)) or 
   similar procedures should be adopted by the Department of Defense for   
   use by the Department in providing information and assistance to members
   of families of casualties of military aviation accidents and, if the    
   recommendation is not to adopt such procedures, a detailed justification
   for the recommendation.                                                 
     (d) Unclassified Form of Reports.--The reports under this section    
  shall be submitted in unclassified form.                                
           Subtitle E--Matters Relating to Terrorism                               
                    SEC. 1051. OVERSIGHT OF COUNTERTERRORISM AND ANTITERRORISM    
          ACTIVITIES; REPORT.                                                     
     (a) Oversight of Counterterrorism and Antiterrorism Activities.--Not 
  later than 120 days after the date of the enactment of this Act, the    
  Director of the Office of Management and Budget shall--                 
       (1) establish a reporting system for executive agencies with respect
   to the budget and expenditure of funds by such agencies for the purpose 
   of carrying out counterterrorism and antiterrorism programs and         
   activities; and                                                         
     (2) using such reporting system, collect information on--             
       (A) the budget and expenditure of funds by executive agencies during
   the current fiscal year for purposes of carrying out counterterrorism   
   and antiterrorism programs and activities; and                          
       (B) the specific programs and activities for which such funds were  
   expended.                                                               
     (b) Report.--Not later than March 1 of each year, the President shall
  submit to Congress a report in classified and unclassified form (using  
  the information described in subsection (a)(2)) describing, for each    
  executive agency and for the executive branch as a whole, the following:
       (1) The amounts proposed to be expended for counterterrorism and    
   antiterrorism programs and activities for the fiscal year beginning in  
   the calendar year in which the report is submitted.                     
       (2) The amounts proposed to be expended for counterterrorism and    
   antiterrorism programs and activities for the fiscal year in which the  
   report is submitted and the amounts that have already been expended for 
   such programs and activities for that fiscal year.                      
       (3) The specific counterterrorism and antiterrorism programs and    
   activities being implemented, any priorities with respect to such       
   programs and activities, and whether there has been any duplication of  
   efforts in implementing such programs and activities.                   
                    SEC. 1052. PROVISION OF ADEQUATE TROOP PROTECTION EQUIPMENT   
          FOR ARMED FORCES PERSONNEL ENGAGED IN PEACE OPERATIONS; REPORT ON       
          ANTITERRORISM ACTIVITIES AND PROTECTION OF PERSONNEL.                   
     (a) Protection of Personnel.--The Secretary of Defense shall take    
  appropriate actions to ensure that units of the Armed Forces engaged in 
  a peace operation are provided adequate troop protection equipment for  
  that operation.                                                         
     (b) Specific Actions.--In taking actions under subsection (a), the   
  Secretary shall--                                                       
       (1) identify the additional troop protection equipment, if any,     
   required to equip a division (or the equivalent of a division) with     
   adequate troop protection equipment for peace operations; and           
       (2) establish procedures to facilitate the exchange or transfer of  
   troop protection equipment among units of the Armed Forces.             
     (c) Designation of Responsible Official.--The Secretary of Defense   
  shall designate an official within the Department of Defense to be      
  responsible for--                                                       
       (1) ensuring the appropriate allocation of troop protection         
   equipment among the units of the Armed Forces engaged in peace          
   operations; and                                                         
       (2) monitoring the availability, status or condition, and location  
   of such equipment.                                                      
     (d) Troop Protection Equipment Defined.--In this section, the term   
  ``troop protection equipment'' means the equipment required by units of 
  the Armed Forces to defend against any hostile threat that is likely    
  during a peace operation, including an attack by a hostile crowd, small 
  arms fire, mines, and a terrorist bombing attack.                       
     (e) Report on Antiterrorism Activities of the Department of Defense  
  and Protection of Personnel.--Not later than 120 days after the date of 
  the enactment of this Act, the Secretary of Defense shall submit to     
  Congress a report, in classified and unclassified form, on antiterrorism
  activities of the Department of Defense and the actions taken by the    
  Secretary under subsections (a), (b) and (c). The report shall include  
  the following:                                                          
       (1) A description of the programs designed to carry out             
   antiterrorism activities of the Department of Defense, any deficiencies 
   in those programs, and any actions taken by the Secretary to improve    
   implementation of such programs.                                        
       (2) An assessment of the current policies and practices of the      
   Department of Defense with respect to the protection of members of the  
   Armed Forces overseas against terrorist attack, including any           
   modifications to such policies or practices that are proposed or        
   implemented as a result of the assessment.                              
       (3) An assessment of the procedures of the Department of Defense for
   determining accountability, if any, in the command structure of the     
   Armed Forces in instances in which a terrorist attack results in the    
   loss of life at an overseas military installation or facility.          
       (4) A detailed description of the roles of the Office of the        
   Secretary of Defense, the Chairman of the Joint Chiefs of Staff, the    
   Secretaries of the military departments, and the combatant commanders in
   providing guidance and support with respect to the protection of members
   of the Armed Forces deployed overseas against terrorist attack (both    
   before and after the November, 1995 bombing in Riyadh, Saudi Arabia) and
   how these roles have changed since the June 25, 1996, terrorist bombing 
   at Khobar Towers in Dhahran, Saudi Arabia.                              
       (5) A description of the actions taken by the Secretary of Defense  
   under subsections (a), (b), and (c) to provide adequate troop protection
   equipment for units of the Armed Forces engaged in a peace operation.   
           Subtitle F--Matters Relating to Defense Property                        
          SEC. 1061. LEASE OF NONEXCESS PERSONAL PROPERTY OF MILITARY DEPARTMENTS.
     (a) Receipt of Fair Market Value.--Subsection (b)(4) of section 2667 
  of title 10, United States Code, is amended by striking out ``, in the  
  case of the lease of real property,''.                                  
    (b)  Competitive Selection.--Such section is further amended--        
     (1) by redesignating subsection (g) as subsection (h); and            
     (2) by inserting after subsection (f) the following new subsection:   
     ``(g)(1) If a proposed lease under subsection (a) involves only      
  personal property, the lease term exceeds one year, and the fair market 
  value of the lease interest exceeds $100,000, as determined by the      
  Secretary concerned, the Secretary shall use competitive procedures to  
  select the lessee.                                                      
     ``(2) Not later than 45 days before entering into a lease described  
  in paragraph (1), the Secretary concerned shall submit to Congress      
  written notice describing the terms of the proposed lease and the       
  competitive procedures used to select the lessee.''.                    
     (c) Clerical Amendments.--(1) The heading of such section is amended 
  to read as follows:                                                     
          ``2667. Leases: non-excess property of military departments''.          
     (2) The table of sections at the beginning of chapter 159 of title   
  10, United States Code, is amended by striking out the item relating to 
  section 2667 and inserting in lieu thereof the following new item:      
      ``2667. Leases: non-excess property of military departments.''.         
     (d) Conforming Amendment.--Section 2490a(f)(2) of title 10, United   
  States Code, is amended by striking out ``section 2667(g)'' and         
  inserting in lieu thereof ``section 2667(h)''.                          
          SEC. 1062. LEASE OF NONEXCESS PROPERTY OF DEFENSE AGENCIES.             
     (a) Lease Authority.--Chapter 159 of title 10, United States Code, is
  amended by inserting after section 2667 the following new section:      
          ``2667a. Leases: non-excess property of Defense Agencies                
     ``(a) Lease Authority.--Whenever the Secretary of Defense considers  
  it advantageous to the United States, the Secretary may lease to such   
  lessee and upon such terms as the Secretary considers will promote the  
  national defense or to be in the public interest, personal property that
  is--                                                                    
     ``(1) under the control of a Defense Agency;                          
     ``(2) not for the time needed for public use; and                     
       ``(3) not excess property, as defined by section 3 of the Federal   
   Property and Administrative Services Act of 1949 (40 U.S.C. 472).       
     ``(b) Limitation, Terms, and Conditions.--A lease under subsection   
  (a)--                                                                   
       ``(1) may not be for more than five years unless the Secretary of   
   Defense determines that a lease for a longer period will promote the    
   national defense or be in the public interest;                          
       ``(2) may give the lessee the first right to buy the property if the
   lease is revoked to allow the United States to sell the property under  
   any other provision of law;                                             
       ``(3) shall permit the Secretary to revoke the lease at any time,   
   unless the Secretary determines that the omission of such a provision   
   will promote the national defense or be in the public interest;         
       ``(4) shall provide for the payment (in cash or in kind) by the     
   lessee of consideration in an amount that is not less than the fair     
   market value of the lease interest, as determined by the Secretary; and 
       ``(5) may provide, notwithstanding any other provision of law, for  
   the improvement, maintenance, protection, repair, restoration, or       
   replacement by the lessee, of the property leased as the payment of part
   or all of the consideration for the lease.                              
     ``(c) Competitive Selection.--(1) If the term of a proposed lease    
  under subsection (a) exceeds one year and the fair market value of the  
  lease interest exceeds $100,000, as determined by the Secretary of      
  Defense, the Secretary shall use competitive procedures to select the   
  lessee.                                                                 
     ``(2) Not later than 45 days before entering into a lease described  
  in paragraph (1), the Secretary shall submit to Congress a written      
  notice describing the terms of the proposed lease and the competitive   
  procedures used to select the lessee.                                   
     ``(d) Disposition of Money Rent.--Money rentals received pursuant to 
  a lease entered into by the Secretary of Defense under subsection (a)   
  shall be deposited in a special account in the Treasury established for 
  the Defense Agency whose property is subject to the lease. Amounts in a 
  Defense Agency's special account shall be available, to the extent      
  provided in appropriations Acts, solely for the maintenance, repair,    
  restoration, or replacement of the leased property.''.                  
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by inserting after the item relating to section 
  2667 the following new item:                                            
      ``2667a. Leases: non-excess property of Defense Agencies.''.            
                    SEC. 1063. DONATION OF EXCESS CHAPEL PROPERTY TO CHURCHES     
          DAMAGED OR DESTROYED BY ARSON OR OTHER ACTS OF TERRORISM.               
     (a) Authority to Donate.--Chapter 153 of title 10, United States     
  Code, is amended by adding at the end the following new section:        
          ``2580. Donation of excess chapel property                              
     ``(a) Authority to Donate.--The Secretary of a military department   
  may donate personal property specified in subsection (b) to an          
  organization described in section 501(c)(3) of the Internal Revenue Code
  of 1986 that is a religious organization in order to assist the         
  organization in restoring or replacing property of the organization that
  has been damaged or destroyed as a result of an act of arson or         
  terrorism, as determined pursuant to procedures prescribed by the       
  Secretary of Defense.                                                   
     ``(b) Property Covered.--(1) The property authorized to be donated   
  under subsection (a) is furniture and other personal property that--    
       ``(A) is in, or was formerly in, a chapel under the jurisdiction of 
   the Secretary of a military department and closed or being closed; and  
       ``(B) is determined by the Secretary to be excess to the            
   requirements of the armed forces.                                       
    ``(2) No real property may be donated under this section.             
     ``(c) Donees Not To Be Charged.--No charge may be imposed by the     
  Secretary of a military department on a donee of property under this    
  section in connection with the donation. However, the donee shall agree 
  to defray any expense for shipping or other transportation of property  
  donated under this section from the location of the property when       
  donated to any other location.''.                                       
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
      ``2580. Donation of excess chapel property.''.                          
                    SEC. 1064. AUTHORITY OF THE SECRETARY OF DEFENSE CONCERNING   
          DISPOSAL OF ASSETS UNDER COOPERATIVE AGREEMENTS ON AIR DEFENSE IN       
          CENTRAL EUROPE.                                                         
     (a) General Authorities.--The Secretary of Defense, pursuant to an   
  amendment or amendments to the European air defense agreements, may     
  dispose of any defense articles owned by the United States and acquired 
  to carry out such agreements by providing such articles to the Federal  
  Republic of Germany. In carrying out such disposal, the Secretary--     
       (1) may provide without monetary charge to the Federal Republic of  
   Germany articles specified in the agreements; and                       
       (2) may accept from the Federal Republic of Germany (in exchange for
   the articles provided under paragraph (1)) articles, services, or any   
   other consideration, as determined appropriate by the Secretary.        
     (b) Definition of European Air Defense Agreements.--For the purposes 
  of this section, the term ``European air defense agreements'' means--   
       (1) the agreement entitled ``Agreement between the Secretary of     
   Defense of the United States of America and the Minister of Defense of  
   the Federal Republic of Germany on Cooperative Measures for Enhancing   
   Air Defense for Central Europe'', signed on December 6, 1983; and       
       (2) the agreement entitled ``Agreement between the Secretary of     
   Defense of the United States of America and the Minister of Defense of  
   the Federal Republic of Germany in implementation of the 6 December 1983
   Agreement on Cooperative Measures for Enhancing Air Defense for Central 
   Europe'', signed on July 12, 1984.                                      
                    SEC. 1065. SALE OF EXCESS, OBSOLETE, OR UNSERVICEABLE         
          AMMUNITION AND AMMUNITION COMPONENTS.                                   
     (a) Authority.--(1) Chapter 443 of title 10, United States Code, is  
  amended by adding at the end the following new section:                 
                    ``4687. Sale of excess, obsolete, or unserviceable ammunition 
          and ammunition components                                               
     ``(a) Authority To Sell Outside DoD.--The Secretary of the Army may  
  sell to an eligible purchaser described in subsection (c) ammunition or 
  ammunition components that are excess, obsolete, or unserviceable and   
  have not been demilitarized if--                                        
       ``(1) the purchaser enters into an agreement, in advance, with the  
   Secretary--                                                             
     ``(A) to demilitarize the ammunition or components; and               
       ``(B) to reclaim, recycle, or reuse the component parts or          
   materials; or                                                           
       ``(2) the Secretary, or an official of the Department of the Army   
   designated by the Secretary, approves the use of the ammunition or      
   components proposed by the purchaser as being consistent with the public
   interest.                                                               
     ``(b) Method of Sale.--The Secretary shall use competitive procedures
  to sell ammunition and ammunition components under this section, except 
  that the Secretary may use procedures other than competitive procedures 
  in any case in which the Secretary determines that there is only one    
  potential buyer of the items being offered for sale.                    
     ``(c) Eligible Purchasers.--To be eligible to purchase excess,       
  obsolete, or unserviceable ammunition or ammunition components under    
  this section, the purchaser shall be a licensed manufacturer (as defined
  in section 921(10) of title 18) that, as determined by the Secretary,   
  has a capability to modify, reclaim, transport, and either store or sell
  the ammunition or ammunition components sought to be purchased.         
     ``(d) Hold Harmless Agreement.--The Secretary shall require a        
  purchaser of ammunition or ammunition components under this section to  
  agree to hold harmless and indemnify the United States from any claim   
  for damages for death, injury, or other loss resulting from a use of the
  ammunition or ammunition components, except in a case of willful        
  misconduct or gross negligence of a representative of the United States.
     ``(e) Verification of Demilitarization.--The Secretary shall         
  establish procedures for ensuring that a purchaser of ammunition or     
  ammunition components under this section demilitarizes the ammunition or
  ammunition components in accordance with any agreement to do so under   
  subsection (a)(1). The procedures shall include on-site verification of 
  demilitarization activities.                                            
     ``(f) Consideration.--The Secretary may accept ammunition, ammunition
  components, or ammunition demilitarization                              
                    services as consideration for ammunition or ammunition        
          components sold under this section. The fair market value of any such   
          consideration shall be equal to or exceed the fair market value or, if  
          higher, the sale price of the ammunition or ammunition components sold. 
     ``(g) Relationship to Arms Export Control Act.--Nothing in this      
  section shall be construed to affect the applicability of section 38 of 
  the Arms Export Control Act (22 U.S.C. 2778) to sales of ammunition or  
  ammunition components on the United States Munitions List.              
    ``(h)  Definitions.--In this section:                                 
       ``(1) The term `excess, obsolete, or unserviceable', with respect to
   ammunition or ammunition components, means that the ammunition or       
   ammunition components are no longer necessary for war reserves or for   
   support of training of the Army or production of ammunition or          
   ammunition components.                                                  
       ``(2) The term `demilitarize', with respect to ammunition or        
   ammunition components--                                                 
       ``(A) means to destroy the military offensive or defensive          
   advantages inherent in the ammunition or ammunition components; and     
       ``(B) includes any mutilation, scrapping, melting, burning, or      
   alteration that prevents the use of the ammunition or ammunition        
   components for the military purposes for which the ammunition or        
   ammunition components was designed or for a lethal purpose.''.          
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
            ``4687. Sale of excess, obsolete, or unserviceable ammunition and 
      ammunition components.''.                                               
     (b) Review of Initial Sales.--(1) For each of the first three fiscal 
  years during which the Secretary of the Army sells ammunition or        
  ammunition components under the authority of section 4687 of title 10,  
  United States Code, as added by subsection (a), the Director of the Army
  Audit Agency shall conduct a review of sales under such section to      
  ensure that--                                                           
       (A) purchasers that enter into an agreement under subsection (a)(1) 
   of such section to demilitarize the purchased ammunition or ammunition  
   components fully comply with the agreement; and                         
       (B) purchasers that are authorized under subsection (a)(2) of such  
   section to use the purchased ammunition or ammunition components        
   actually use the ammunition or ammunition components in the manner      
   proposed.                                                               
     (2) Not later than 180 days after the end of each fiscal year in     
  which the review is conducted, the Secretary of the Army shall submit to
  Congress a report containing the results of the review for the fiscal   
  year covered by the report.                                             
          SEC. 1066. TRANSFER OF B 17 AIRCRAFT TO MUSEUM.                         
     (a) Authority.--The Secretary of the Air Force may convey, without   
  consideration to the Planes of Fame Museum, Chino, California (in this  
  section referred to as the ``museum''), all right, title, and interest  
  of the United States in and to the B 17 aircraft known as the           
  ``Picadilly Lilly'', an aircraft that has been in the possession of the 
  museum since 1959. Such a conveyance shall be made by means of a        
  conditional deed of gift.                                               
     (b) Condition of Aircraft.--The Secretary may not convey ownership of
  the aircraft under subsection (a) until the Secretary determines that   
  the museum has altered the aircraft in such manner as the Secretary     
  determines necessary to ensure that the aircraft does not have any      
  capability for use as a platform for launching or releasing munitions or
  any other combat capability that it was designed to have. The Secretary 
  is not required to repair or alter the condition of the aircraft before 
  conveying ownership of the aircraft.                                    
     (c) Reverter Upon Transfer of Ownership or Possession.--The Secretary
  shall include in the instrument of conveyance of the aircraft--         
       (1) a condition that the museum not convey any ownership interest   
   in, or transfer possession of, the aircraft to any other party without  
   the prior approval of the Secretary of the Air Force; and               
       (2) a condition that if the Secretary of the Air Force determines at
   any time that the museum has conveyed an ownership interest in, or      
   transferred possession of, the aircraft to any other party without the  
   prior approval of the Secretary, all right, title, and interest in and  
   to the aircraft, including any repair or alteration of the aircraft,    
   shall revert to the United States, and the United States shall have the 
   right of immediate possession of the aircraft.                          
     (d) Conveyance at No Cost to the United States.--The conveyance      
  authorized by this section shall be made at no cost to the United       
  States. Any costs associated with such conveyance, including costs of   
  determining compliance with subsection (b), shall be borne by the       
  museum.                                                                 
     (e) Additional Terms and Conditions.--The Secretary of the Air Force 
  may require such additional terms and conditions in connection with the 
  conveyance under this section as the Secretary considers appropriate to 
  protect the interests of the United States.                             
     (f) Clarification of Liability.--Notwithstanding any other provision 
  of law, upon conveyance of ownership of the B 17 aircraft specified in  
  subsection (a) to the museum, the United States shall not be liable for 
  any death, injury, loss, or damage that results from any use of that    
  aircraft by any person other than the United States.                    
          SEC. 1067. REPORT ON DISPOSAL OF EXCESS AND SURPLUS MATERIALS.          
     (a) Report Required.--Not later than January 31, 1998, the Secretary 
  of Defense shall submit to Congress a report on the actions that have   
  been taken or are planned to be taken within the Department of Defense  
  to address problems with the sale or other disposal of materials that   
  are excess or surplus to the needs of the Department of Defense.        
     (b) Required Content.-- At a minimum, the report shall address the   
  following issues:                                                       
       (1) The effort to standardize the coding of military equipment for  
   demilitarization at all stages of the process, from initial acquisition 
   through disposal.                                                       
       (2) The changes underway to improve the methods used for the        
   demilitarization of military equipment.                                 
       (3) Recent efforts to improve the accuracy of coding performed by   
   Government employees and contractor employees.                          
       (4) Recent efforts to improve the enforcement of the penalties that 
   are applicable to Government employees and contractor employees who fail
   to comply with rules or procedures applicable to the demilitarization of
   military equipment.                                                     
       (5) The methods of oversight and enforcement used by the Department 
   of Defense to review the demilitarization of military equipment by the  
   purchasers of the equipment.                                            
       (6) The current and planned controls designed to prevent the        
   inappropriate transfer of excess military equipment outside the United  
   States.                                                                 
       (7) The current procedures used by the Department, including        
   repurchase, to recover military equipment that is sold or otherwise     
   disposed of without appropriate action having been taken to demilitarize
   the equipment or to provide for demilitarization of the equipment.      
       (8) The legislative changes, if any, that would be necessary to     
   improve the recovery rate under the procedures identified under         
   paragraph (7).                                                          
     (c) Identification of Frequent Errors and Misuse.--Based on fiscal   
  year 1997 findings, the Secretary of Defense shall identify in the      
  report--                                                                
       (1) the 50 categories of military equipment that most frequently    
   received an erroneous demilitarization code; and                        
       (2) the categories of military equipment that are particularly      
   vulnerable to improper use after disposal.                              
           Subtitle G--Other Matters                                               
                    SEC. 1071. AUTHORITY FOR SPECIAL AGENTS OF THE DEFENSE        
          CRIMINAL INVESTIGATIVE SERVICE TO EXECUTE WARRANTS AND MAKE ARRESTS.    
     (a) Authority.--Chapter 81 of title 10, United States Code, is       
  amended by inserting after section 1585 the following new section:      
                    ``1585a. Special agents of the Defense Criminal Investigative 
          Service: authority to execute warrants and make arrests                 
     ``(a) Authority.--The Secretary of Defense may authorize any DCIS    
  special agent described in subsection (b)--                             
       ``(1) to execute and serve any warrant or other process issued under
   the authority of the United States; and                                 
     ``(2) to make arrests without a warrant--                             
       ``(A) for any offense against the United States committed in the    
   presence of that agent; and                                             
       ``(B) for any felony cognizable under the laws of the United States 
   if the agent has probable cause to believe that the person to be        
   arrested has committed or is committing the felony.                     
     ``(b) Agents To Have Authority.--Subsection (a) applies to any DCIS  
  special agent whose duties include conducting, supervising, or          
  coordinating investigations of criminal activity in programs and        
  operations of the Department of Defense.                                
     ``(c) Guidelines on Exercise of Authority.--The authority provided   
  under subsection (a) shall be exercised in accordance with guidelines   
  prescribed by the Inspector General of the Department of Defense and    
  approved by the Attorney General and any other applicable guidelines    
  prescribed by the Secretary of Defense or the Attorney General.         
     ``(d) DCIS Special Agent Defined.--In this section, the term `DCIS   
  special agent' means an employee of the Department of Defense who is a  
  special agent of the Defense Criminal Investigative Service (or any     
  successor to that service).''.                                          
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by inserting after the item relating to section 
  1585 the following new item:                                            
            ``1585a. Special agents of the Defense Criminal Investigative     
      Service: authority to execute warrants and make arrests.''.             
                    SEC. 1072. STUDY OF INVESTIGATIVE PRACTICES OF MILITARY       
          CRIMINAL INVESTIGATIVE ORGANIZATIONS RELATING TO SEX CRIMES.            
     (a) Independent Study Required.--(1) The Secretary of Defense shall  
  provide for an independent study of the policies, procedures, and       
  practices of the military criminal investigative organizations for the  
  conduct of investigations of complaints of sex crimes and other criminal
  sexual misconduct arising in the Armed Forces.                          
     (2) The Secretary shall provide for the study to be conducted by the 
  National Academy of Public Administration. The amount of a contract for 
  the study may not exceed $2,000,000.                                    
     (3) The Secretary shall require that all components of the Department
  of Defense cooperate fully with the organization carrying out the study.
     (b) Matters To Be Included in Study.--The Secretary shall require    
  that the organization conducting the study under this section           
  specifically consider each of the following matters:                    
       (1) The need (if any) for greater organizational independence and   
   autonomy for the military criminal investigative organizations than     
   exists under current chain-of-command structures within the military    
   departments.                                                            
       (2) The authority of each of the military criminal investigative    
   organizations to investigate allegations of sex crimes and other        
   criminal sexual misconduct and the policies of those organizations for  
   carrying out such investigations.                                       
       (3) The training (including training in skills and techniques       
   related to the conduct of interviews) provided by                       
                    each of those organizations to agents or prospective agents   
          responsible for conducting or providing support to investigations of    
          alleged sex crimes and other criminal sexual misconduct, including--    
       (A) the extent to which that training is comparable to the training 
   provided by the Federal Bureau of Investigation and other civilian law  
   enforcement agencies; and                                               
       (B) the coordination of training and investigative policies related 
   to alleged sex crimes and other criminal sexual misconduct of each of   
   those organizations with the Federal Bureau of Investigation and other  
   civilian Federal law enforcement agencies.                              
       (4) The procedures and relevant professional standards of each      
   military criminal investigative organization with regard to recruitment 
   and hiring of agents, including an evaluation of the extent to which    
   those procedures and standards provide for--                            
       (A) sufficient screening of prospective agents based on background  
   investigations; and                                                     
       (B) obtaining sufficient information about the qualifications and   
   relevant experience of prospective agents.                              
       (5) The advantages and disadvantages of establishing, within each of
   the military criminal investigative organizations or within the Defense 
   Criminal Investigative Service only, a special unit for the             
   investigation of alleged sex crimes and other criminal sexual           
   misconduct.                                                             
       (6) The clarity of guidance for, and consistency of investigative   
   tactics used by, each of the military criminal investigative            
   organizations for the investigation of alleged sex crimes and other     
   criminal sexual misconduct, together with a comparison with the guidance
   and tactics used by the Federal Bureau of Investigation and other       
   civilian law enforcement agencies for such investigations.              
       (7) The number of allegations of agent misconduct in the            
   investigation of sex crimes and other criminal sexual misconduct for    
   each of those organizations, together with a comparison with the number 
   of such allegations concerning agents of the Federal Bureau of          
   Investigation and other civilian law enforcement agencies for such      
   investigations.                                                         
       (8) The procedures of each of the military criminal investigative   
   organizations for administrative identification (known as ``titling'')  
   of persons suspected of committing sex crimes or other criminal sexual  
   misconduct, together with a comparison with the comparable procedures of
   the Federal Bureau of Investigation and other civilian Federal law      
   enforcement agencies for such investigations.                           
       (9) The accuracy, timeliness, and completeness of reporting of sex  
   crimes and other criminal sexual misconduct by each of the military     
   criminal investigative organizations to the National Crime Information  
   Center maintained by the Department of Justice.                         
       (10) Any recommendation for legislation or administrative action to 
   revise the organizational or operational arrangements of the military   
   criminal investigative organizations or to alter recruitment, training, 
   or operational procedures, as they pertain to the investigation of sex  
   crimes and other criminal sexual misconduct.                            
     (c) Report.--(1) The Secretary of Defense shall require the          
  organization conducting the study under this section to submit to the   
  Secretary a report on the study not later than one year after the date  
  of the enactment of this Act. The organization shall include in the     
  report its findings and conclusions concerning each of the matters      
  specified in subsection (b).                                            
     (2) The Secretary shall submit the report under paragraph (1),       
  together with the Secretary's comments on the report, to Congress not   
  later than 30 days after the date on which the report is submitted to   
  the Secretary under paragraph (1).                                      
     (d) Military Criminal Investigative Organization Defined.--For the   
  purposes of this section, the term ``military criminal investigative    
  organization'' means any of the following:                              
     (1) The Army Criminal Investigation Command.                          
     (2) The Naval Criminal Investigative Service.                         
     (3) The Air Force Office of Special Investigations.                   
     (4) The Defense Criminal Investigative Service.                       
     (e) Criminal Sexual Misconduct Defined.--For the purposes of this    
  section, the term ``criminal sexual misconduct'' means conduct by a     
  member of the Armed Forces involving sexual abuse, sexual harassment, or
  other sexual misconduct that constitutes an offense under the Uniform   
  Code of Military Justice.                                               
          SEC. 1073. TECHNICAL AND CLERICAL AMENDMENTS.                           
     (a) Title 10 , United States Code.--Title 10, United States Code, is 
  amended as follows:                                                     
       (1) The tables of chapters at the beginning of subtitle A, and at   
   the beginning of part I of subtitle A, are each amended by striking out 
   ``471'' in the item relating to chapter 23 and inserting in lieu thereof
   ``481''.                                                                
       (2) The tables of chapters at the beginning of subtitle A, and at   
   the beginning of part IV of subtitle A, are each amended by striking out
   ``2540'' in the item relating to chapter 152 and inserting in lieu      
   thereof ``2541''.                                                       
       (3) Section 116(b)(2) is amended by striking out ``such subsection''
   and inserting in lieu thereof ``subsection (a)''.                       
       (4) Section 129c(e)(1) is amended by striking out ``section         
   115a(g)(2)'' and inserting in lieu thereof ``section 115a(e)(2)''.      
       (5) Section 193(d)(1) is amended by striking out ``performs'' and   
   inserting in lieu thereof ``perform''.                                  
       (6) Section 382(g) is amended by striking out ``the date of the     
   enactment of the National Defense Authorization Act for Fiscal Year     
   1997'' and inserting in lieu thereof ``September 23, 1996''.            
       (7) Section 443(b)(1) is amended by striking out the period at the  
   end and inserting in lieu thereof a semicolon.                          
     (8) Section 445 is amended--                                          
     (A) by striking out ``(1)'' before ``Except with'';                   
       (B) by redesignating subparagraphs (A), (B), and (C) as paragraphs  
   (1), (2), and (3), respectively;                                        
       (C) by striking out ``(2)'' before ``Whenever it appears'' and      
   inserting in lieu thereof ``(b) Injunctive Relief.--''; and             
       (D) by striking out ``paragraph (1)'' and inserting in lieu thereof 
   ``subsection (a)''.                                                     
       (9) Section 858b(a)(1) is amended in the first sentence by striking 
   out ``forfeiture'' and all that follows through ``due that member'' and 
   inserting in lieu thereof ``forfeiture of pay, or of pay and allowances,
   due that member''.                                                      
       (10) The item relating to section 895 (article 95) in the table of  
   sections at the beginning of subchapter X of chapter 47 is amended by   
   striking out ``Art.''.                                                  
     (11) Section 943(c) is amended--                                      
       (A) by capitalizing the initial letter of the third word of the     
   subsection heading;                                                     
       (B) in the second sentence, by striking out ``Court'' and inserting 
   in lieu thereof ``court''; and                                          
       (C) in the third sentence, by striking out ``such positions'' and   
   inserting in lieu thereof ``positions referred to in the preceding      
   sentences''.                                                            
       (12) Section 954 is amended by striking out ``this'' and inserting  
   in lieu thereof ``his''.                                                
       (13) Section 971(b)(4) is amended by capitalizing the first letter  
   of the fifth and sixth words.                                           
       (14) Section 972(b) is amended by striking out ``the date of the    
   enactment of the National Defense Authorization Act for Fiscal Year     
   1996'' in the matter preceding paragraph (1) and inserting in lieu      
   thereof ``February 10, 1996''.                                          
       (15) Section 976(f) is amended by striking out ``shall,'' and all   
   that follows and inserting in lieu thereof ``shall be fined under title 
   18 or imprisoned not more than 5 years, or both, except that, in the    
   case of an organization (as defined in section 18 of such title), the   
   fine shall not be less than $25,000.''.                                 
     (16) Section 977 is amended--                                         
       (A) in subsection (c), by striking out ``Beginning on October 1,    
   1996, not more than'' and inserting in lieu thereof ``Not more than'';  
   and                                                                     
       (B) in subsection (d)(2), by striking out ``before October 1,       
   1996,'' and all that follows through ``so assigned'' the second place it
   appears.                                                                
       (17) Section 1078a(g)(4)(B)(iii)(II) is amended by striking out     
   ``section 1447(8)'' and inserting in lieu thereof ``section 1447(13)''. 
     (18) Section 1129(c) is amended--                                     
       (A) by striking out ``the date of the enactment of this section,''  
   and inserting in lieu thereof ``November 30, 1993,''; and               
       (B) by striking out ``before the date of the enactment of this      
   section or'' and inserting in lieu thereof ``before such date or''.     
       (19) Section 1151(b) is amended by capitalizing the first letter of 
   the second word in the subsection heading.                              
       (20) Section 1152(g) is amended by inserting ``(1)'' before ``The   
   Secretary may''.                                                        
       (21) Section 1143(d) is amended by striking out ``section 806(a)(2) 
   of the Military Family Act of 1985'' and inserting in lieu thereof      
   ``section 1784(a)(2) of this title''.                                   
     (22) Section 1174(a)(1) is amended by striking out ``, 1177,''.       
     (23) Section 1406 is amended--                                        
       (A) by striking out ``3962(b)'' in footnote number 3 in the table in
   subsection (b)(1) and in footnote number 1 in the table in subsection   
   (c)(1) and inserting in lieu thereof ``3962''; and                      
       (B) by striking out ``8962(b)'' in footnote number 3 in the table in
   subsection (b)(1) and in footnote number 1 in the table in subsection   
   (e)(1) and inserting in lieu thereof ``8962''.                          
     (24) Section 1408(d) is amended--                                     
       (A) by decapitalizing the first letter of the fifth word in the     
   subsection heading;                                                     
     (B) by redesignating the second paragraph (6) as paragraph (7); and   
       (C) in paragraph (7), as so redesignated, by striking out ``out-of  
   State'' in subparagraph (A) and inserting in lieu thereof               
   ``out-of-State''.                                                       
       (25) Section 1408(g) is amended by decapitalizing the first letter  
   of the second and ninth words in the subsection heading.                
       (26) Section 1444a(b) is amended by striking out ``section 1455(c)''
   and inserting in lieu thereof ``section 1455(d)(2)''.                   
       (27) Section 1448 is amended by capitalizing the first letter of the
   third word of the section heading.                                      
       (28) Section 1451(a)(2) is amended by inserting a period in the     
   paragraph heading before the one-em dash.                               
     (29) Section 1452 is amended--                                        
       (A) in subsection (a)(1)(A), by striking out ``providing'' in the   
   matter preceding clause (i) and inserting in lieu thereof ``provided''; 
   and                                                                     
       (B) in subsection (e), by striking out ``section 8339(i)'' and      
   ``section 8331(b)'' and inserting in lieu thereof ``section 8339(j)''   
   and ``section 8341(b)'', respectively.                                  
       (30) Section 1504(i)(1) is amended by striking out ``this           
   subsection'' and inserting in lieu thereof ``this section''.            
       (31) Section 1599c(c)(1)(F) is amended by striking out ``Sections   
   106(f)'' and inserting in lieu thereof ``Sections 106(e)''.             
       (32) Section 1613(a) is amended by striking out ``1604'' and        
   inserting in lieu thereof ``1603''.                                     
     (33) Section 1763 is amended--                                        
       (A) by striking out ``On and after October 1, 1993, the Secretary of
   Defense'' and inserting in lieu thereof ``The Secretary of Defense'';   
   and                                                                     
       (B) by striking out ``secretaries'' and inserting in lieu thereof   
   ``Secretaries''.                                                        
     (34) Section 1792 is amended--                                        
       (A) in subsection (a)(1), by striking out the comma after           
   ``implementing''; and                                                   
       (B) in subsection (d)(2), by striking out ``section 1794'' and      
   inserting in lieu thereof ``section 1784''.                             
     (35) Section 2010(e) is repealed.                                     
       (36) Section 2107a(g) is amended by inserting ``the'' after ``August
   1, 1979, as a member of''.                                              
       (37) Section 2109(c)(1)(A) is amended by striking out ``section     
   2106(b)(6)'' and inserting in lieu thereof ``section 2104(b)(6)''.      
       (38) Section 2114(h) is amended by striking out ``section           
   2123(e)(1)'' and inserting in lieu thereof ``section 2123(e)''.         
       (39) Section 2198(c) is amended by striking out ``identified in''   
   and all that follows through the period at the end and inserting in lieu
   thereof ``that is identified under section 2505 of this title as        
   critical for attaining the national security objectives set forth in    
   section 2501(a) of this title.''.                                       
       (40) Section 2249a(a)(1) is amended by striking out ``50 App.       
   2405(j)'' and inserting in lieu thereof ``50 U.S.C. App.                
   2405(j)(1)(A)''.                                                        
       (41) Section 2302d(a)(2) is amended by striking out ``procurement   
   of'' and inserting in lieu thereof ``procurement for the system is      
   estimated to be''.                                                      
       (42) Section 2304(c)(5) is amended by striking out ``subsection     
   (j)'' and inserting in lieu thereof ``subsection (k)''.                 
     (43) Section 2304(f) is amended--                                     
       (A) in paragraph (1)(B)(iii), by striking out ``(6)(C)'' and        
   inserting in lieu thereof ``(6)(B)''; and                               
     (B) in paragraph (6)--                                                
     (i) by striking out subparagraph (B); and                             
       (ii) by redesignating subparagraph (C) as subparagraph (B) and in   
   that subparagraph by striking out ``paragraph (1)(B)(iv)'' and inserting
   in lieu thereof ``paragraph (1)(B)(iii)''.                              
       (44) Section 2305a(a) is amended by striking out ``(41 U.S.C.'' and 
   inserting in lieu thereof ``(40 U.S.C.''.                               
       (45) Section 2306(h) is amended by inserting ``for the purchase of  
   property'' after ``Multiyear contracting authority''.                   
       (46) Section 2306a(a)(5) is amended by striking out ``subsection    
   (b)(1)(B)'' and inserting in lieu thereof ``subsection (b)(1)(C)''.     
       (47) Section 2306b is amended by striking out ``this subsection'' in
   the first sentence of subsection (k) and inserting in lieu thereof      
   ``this section''.                                                       
     (48)(A) The heading of section 2306b is amended to read as follows:   
          ``2306b. Multiyear contracts: acquisition of property''.                
       (B) The item relating to such section in the table of sections at   
   the beginning of chapter 137 is amended to read as follows:             
      ``2306b. Multiyear contracts: acquisition of property.''.               
       (49) Section 2315(a) is amended by striking out ``the Information   
   Technology Management Reform Act of 1996'' and inserting in lieu thereof
   ``division E of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et        
   seq.)''.                                                                
       (50) Section 2371a is amended by inserting ``Defense'' before       
   ``Advanced Research Projects Agency''.                                  
     (51) Section 2375(c) is amended--                                     
       (A) by striking out ``provisions relating to exceptions'' and       
   inserting in lieu thereof ``a provision relating to an exception''; and 
       (B) by striking out ``section 2306a(d)'' and inserting in lieu      
   thereof ``section 2306a(b)''.                                           
       (52) Section 2401a(a) is amended by striking out ``leasing of such  
   vehicles'' and inserting in lieu thereof ``such leasing''.              
       (53) Section 2491(8) is amended by striking out ``that appears'' and
   all that follows through the period at the end and inserting in lieu    
   thereof ``that is identified under section 2505 of this title as        
   critical for attaining the national security objectives set forth in    
   section 2501(a) of this title.''.                                       
       (54) Section 2533(a) is amended by striking out the first closing   
   parenthesis after ``41 U.S.C. 10a''.                                    
       (55) Section 2534(b)(3) is amended by striking out ``(a)(3)(A)(ii)''
   and inserting in lieu thereof ``(a)(3)(A)(iii)''.                       
       (56) Section 2554(c)(1) is amended by striking out ``the date of the
   enactment of this Act'' and inserting in lieu thereof ``September 23,   
   1996''.                                                                 
       (57) Section 2645(a)(1)(B) is amended by striking out ``on which''  
   after ``the date on which''.                                            
       (58) Section 2684(b) is amended by striking out ``, United States   
   Code,''.                                                                
       (59) Section 2694(b)(1)(D) is amended by striking out ``executive   
   ageny'' and inserting in lieu thereof ``executive agency''.             
       (60) Section 2878(d)(4) is amended by striking out ``11401'' and    
   inserting in lieu thereof ``11411''.                                    
       (61) Section 2885 is amended by striking out ``five years after the 
   date of the enactment of the National Defense Authorization Act for     
   Fiscal Year 1996'' and inserting in lieu thereof ``on February 10,      
   2001''.                                                                 
       (62) Sections 4342(a)(10), 6954(a)(10), and 9342(a)(10) are amended 
   by striking out ``Marianas'' and inserting in lieu thereof ``Mariana''. 
       (63) Section 7606(e) is amended by striking out ``sections'' and    
   inserting in lieu thereof ``section''.                                  
       (64) Section 7902(b)(8) is amended by inserting ``United States''   
   before ``Geological Survey''.                                           
     (65) Section 8038(e) is amended by striking out ``(1)''.              
       (66) The item relating to section 8069 in the table of sections at  
   the beginning of chapter 807 is amended by striking out ``Nurse Corps'' 
   and inserting in lieu thereof ``nurses''.                               
     (67) Section 12733(3) is amended--                                    
     (A) by inserting a comma after ``(B)''; and                           
       (B) by striking out ``in which the date of the enactment of the     
   National Defense Authorization Act for Fiscal Year 1997 occurs'' and    
   inserting in lieu thereof ``that includes September 23, 1996,''.        
       (68) Section 14317(d) is amended by striking out ``section 14314''  
   in the first sentence and inserting in lieu thereof ``section 14315''.  
     (b) Title 37 , United States Code.--Section 205(d) of title 37,      
  United States Code, is amended by striking out the period after ``August
  1, 1979'' and inserting in lieu thereof a comma.                        
     (c) Public Law 104 201.--Effective as of September 23, 1996, and as  
  if included therein as enacted, the National Defense Authorization Act  
  for Fiscal Year 1997 (Public Law 104 201) is amended as follows:        
       (1) Section 324(b)(2) (110 Stat. 2480) is amended by inserting after
   ``In this subsection'' the following: ``and subsection (c)''.           
     (2) Section 367 (110 Stat. 2496) is amended--                         
       (A) in subsection (a), by striking out ``Subchapter II of chapter'' 
   and inserting in lieu thereof ``Chapter''; and                          
       (B) in subsection (b), by striking out ``subchapter'' and inserting 
   in lieu thereof ``chapter''.                                            
       (3) Section 371(a) (110 Stat. 2499) is amended by striking out      
   ``Section 559(a)(1)'' and inserting in lieu thereof ``Section 559''.    
       (4) Section 531(a) (110 Stat. 2517) is amended by inserting ``of    
   title 10, United States Code,'' before ``is amended''.                  
       (5) Section 614(b)(2)(B) (110 Stat. 2544) is amended by striking out
   ``the period'' and inserting in lieu thereof ``the semicolon''.         
       (6) Section 802(1) (110 Stat. 2604) is amended by striking out      
   ``1995'' in the first quoted matter therein and inserting in lieu       
   thereof ``1996''.                                                       
     (7) Section 829(c) (110 Stat. 2612) is amended--                      
       (A) in paragraph (2), by striking out ``Section 2502(b)'' and       
   inserting in lieu thereof ``Section 2502(c)''; and                      
       (B) by redesignating paragraph (3) as subparagraph (C) of paragraph 
   (2).                                                                    
       (8) Section 1116(b) (110 Stat. 2686) is amended by striking out     
   ``section 1122'' and inserting in lieu thereof ``section 1111''.        
     (9) Section 1606 (110 Stat. 2737) is amended--                        
     (A) in subsection (a)(1)--                                            
     (i) by striking out the comma before ``or are''; and                  
     (ii) by inserting a semicolon after ``Secretary of Defense'';         
       (B) in subsection (b)(1)(A), by striking out ``Secretary of each''  
   and inserting in lieu thereof ``secretary of each''; and                
       (C) in subsection (b)(2)(B), by inserting a semicolon after         
   ``Defense''.                                                            
    (d)  Other Annual Defense Authorization Acts.--                       
       (1) Effective as of February 10, 1996, and as if included therein as
   enacted, the National Defense Authorization Act for Fiscal Year 1996    
   (Public Law 104 106) is amended as follows:                             
       (A) Section 321(a)(2)(A) (110 Stat. 251) is amended by striking out 
   ``2710(d)'' and inserting in lieu thereof ``2701(d)''.                  
       (B) Section 356(d)(3) (110 Stat. 271) is amended by striking out    
   ``or'' after ``to any provision'' and inserting in lieu thereof ``of''. 
       (C) Section 533(b) (110 Stat. 315) is amended by inserting before   
   the period at the end the following: ``and the amendments made by       
   subsection (b), effective as of October 5, 1994''.                      
       (D) Section 703(b) (110 Stat. 372) is amended by striking out ``Such
   paragraph'' and inserting in lieu thereof ``Such section''.             
     (E) Section 1501 (110 Stat. 500) is amended--                         
       (i) in subsection (d)(1), by striking out ``337(b)'' and ``2717''   
   and inserting in lieu thereof ``377(b)'' and ``2737'', respectively; and
       (ii) in subsection (f)(2), by inserting ``of the Reserve Officer    
   Personnel Management Act'' before ``shall take''.                       
       (2) The National Defense Authorization Act for Fiscal Year 1993     
   (Public Law 102 484) is amended as follows:                             
       (A) Section 812(c) (10 U.S.C. 1723 note) is amended by inserting    
   ``and Technology'' after ``for Acquisition''.                           
       (B) Section 1091( l)(3) (32 U.S.C. 501 note) is amended by striking 
   out ``the day preceding the date of the enactment of this Act'' and     
   inserting in lieu thereof ``October 19, 1994''.                         
       (C) Section 4471 (10 U.S.C. 2501 note) is amended by realigning     
   subsection (e) so as to be flush to the left margin.                    
       (3) Section 807(b)(2)(A) of the National Defense Authorization Act  
   for Fiscal Years 1992 and 1993 (Public Law 102 190; 10 U.S.C. 2320 note)
   is amended by inserting before the period the following: ``and          
   Technology''.                                                           
       (4) The National Defense Authorization Act for Fiscal Year 1991     
   (Public Law 101 510) is amended as follows:                             
       (A) Section 1205 (10 U.S.C. 1746 note) is amended by striking out   
   ``Under Secretary of Defense for Acquisition'' each place it appears and
   inserting in lieu thereof ``Under Secretary of Defense for Acquisition  
   and Technology''.                                                       
     (B) Section 2905 (10 U.S.C. 2687 note) is amended--                   
       (i) in subsection (b)(7), by striking out ``4331'' in subparagraphs 
   (K)(iii) and (L)(iv)(III) and inserting in lieu thereof ``4321''; and   
       (ii) in subsection (f)(3), by striking out ``section 2873(a)'' and  
   inserting in lieu thereof ``section 2883(a)''.                          
     (C) Section 2921 (10 U.S.C. 2687 note) is amended--                   
       (i) in subsection (e)(3)(B), by striking out ``Defense              
   Subcommittees'' and inserting in lieu thereof ``Subcommittee on         
   Defense''; and                                                          
       (ii) in subsection (f)(2), by striking out ``the Committees on Armed
   Services of the Senate and House of Representatives'' and inserting in  
   lieu thereof ``the Committee on Armed Services of the Senate and the    
   Committee on National Security of the House of Representatives''.       
       (5) Section 1121(c) of the National Defense Authorization Act for   
   Fiscal Years 1988 and 1989 (Public Law 100 180; 10 U.S.C. 113 note) is  
   amended by striking out ``under this section--'' and all that follow    
   through ``fiscal year 1990'' and inserting in lieu thereof ``under this 
   section may not exceed 5,000 during any fiscal year''.                  
       (6) Section 204(e)(3) of the Defense Authorization Amendments and   
   Base Closure and Realignment Act (Public Law 100 526; 10 U.S.C. 2687    
   note) is amended by striking out ``section 2873(a)'' and inserting in   
   lieu thereof ``section 2883(a)''.                                       
     (e) Title 5 , United States Code.--Title 5, United States Code, is   
  amended as follows:                                                     
     (1) Section 5315 is amended--                                         
       (A) in the item relating to the Chief Information Officer of the    
   Department of the Interior, by inserting ``the'' before ``Interior'';   
   and                                                                     
       (B) in the item relating to the Chief Information Officer of the    
   Department of the Treasury, by inserting ``the'' before ``Treasury''.   
       (2) Section 5316 is amended by striking out ``Atomic Energy'' after 
   ``Assistant to the Secretary of Defense for'' and inserting in lieu     
   thereof ``Nuclear and Chemical and Biological Defense Programs''.       
     (f) Act of August 10, 1956.--Section 3(a)(3) of the Act of August 10,
  1956 (33 U.S.C. 857a) is amended by striking out ``1374,''.             
    (g)  Acquisition Policy Statutes.--                                   
       (1) Section 309 of the Federal Property and Administrative Services 
   Act of 1949 (41 U.S.C. 259) is amended by striking out ``and'' at the   
   end of subsection (b)(2).                                               
       (2) The Office of Federal Procurement Policy Act is amended as      
   follows:                                                                
       (A) The item relating to section 27 in the table of contents in     
   section 1(b) is amended to read as follows:                             
            ``Sec. 27. Restrictions on disclosing and obtaining contractor bid
      or proposal information or source selection information.''.             
     (B) Section 6(d) (41 U.S.C. 405(d)) is amended--                      
       (i) by striking out the period at the end of paragraph (5)(J) and   
   inserting in lieu thereof a semicolon;                                  
     (ii) by moving paragraph (6) two ems to the left; and                 
       (iii) in paragraph (12), by striking out ``small business'' and     
   inserting in lieu thereof ``small businesses''.                         
       (C) Section 35(b)(2) (41 U.S.C. 431(b)(2)) is amended by striking   
   out ``commercial'' and inserting in lieu thereof ``commercially         
   available''.                                                            
       (3) Section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 605)  
   is amended in subsections (d) and (e) by striking out ``(as in effect on
   September 30, 1995)'' each place it appears.                            
       (4) Subsections (d)(1) and (e) of section 16 of the Small Business  
   Act (15 U.S.C. 645) are each amended by striking out ``concerns'' and   
   inserting in lieu thereof ``concern''.                                  
     (h) Amendments To Conform Change in Short Title of Information       
  Technology Management Reform Act of 1996.--                             
       (1) Section 20 of the National Institute of Standards and Technology
   Act (15 U.S.C. 278g 3) is amended in subsections (a)(4) and (b)(2) by   
   striking out ``Information Technology Management Reform Act of 1996''   
   and inserting in lieu thereof ``Clinger-Cohen Act of 1996 (40 U.S.C.    
   1441)''.                                                                
       (2) Section 612(f) of title 28, United States Code, is amended by   
   striking out ``the Information Technology Management Reform Act of      
   1996'' and inserting in lieu thereof ``division E of the Clinger-Cohen  
   Act of 1996 (40 U.S.C. 1401 et seq.)''.                                 
       (3) Section 310(b) of title 38, United States Code, is amended by   
   striking out ``the Information Technology Management Reform Act of      
   1996'' and inserting in lieu thereof ``division E of the Clinger-Cohen  
   Act of 1996 (40 U.S.C. 1401 et seq.)''.                                 
       (4) Section 6(b) of the Computer Security Act of 1987 (40 U.S.C.    
   1441 note) is amended by striking out ``Information Technology          
   Management Reform Act of 1996'' and inserting in lieu thereof           
   ``Clinger-Cohen Act of 1996 (40 U.S.C. 1441)''.                         
     (5) Chapter 35 of title 44, United States Code, is amended--          
     (A) in section 3502(9)--                                              
       (i) by striking out ``the Information Technology Management Reform  
   Act of 1996'' and inserting in lieu thereof ``the Clinger-Cohen Act of  
   1996 (40 U.S.C. 1401)''; and                                            
     (ii) by inserting  ``(40 U.S.C. 1452)'' after ``that Act'';           
       (B) in section 3504(h)(2), by striking out ``the Information        
   Technology Management Reform Act of 1996'' and inserting in lieu thereof
   ``division E of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et        
   seq.)''; and                                                            
       (C) in sections 3504(g)(2), 3504(g)(3), 3504(h)(1)(B), and 3518(d)  
   by striking out ``Information Technology Management Reform Act of 1996''
   and inserting in lieu thereof ``Clinger-Cohen Act of 1996 (40 U.S.C.    
   1441)''.                                                                
     (i) Coordination With Other Amendments.--For purposes of applying    
  amendments made by provisions of this Act other than provisions of this 
  section, this section shall be treated as having been enacted           
  immediately before the other provisions of this Act.                    
          SEC. 1074. SUSTAINMENT AND OPERATION OF THE GLOBAL POSITIONING SYSTEM.  
    (a)  Findings.--Congress makes the following findings:                
       (1) The Global Positioning System (consisting of a constellation of 
   satellites and associated facilities capable of providing users on earth
   with a highly precise statement of their location on earth) makes       
   significant contributions to the attainment of the national security and
   foreign policy goals of the United States, the safety and efficiency of 
   international transportation, and the economic growth, trade, and       
   productivity of the United States.                                      
       (2) The infrastructure for the Global Positioning System (including 
   both space and ground segments of the infrastructure) is vital to the   
   effectiveness of United States and allied military forces and to the    
   protection of the national security interests of the United States.     
       (3) In addition to having military uses, the Global Positioning     
   System has essential civil, commercial, and scientific uses.            
       (4) As a result of the increasing demand of civil, commercial, and  
   scientific users of the Global Positioning System--                     
       (A) there has emerged in the United States a new commercial industry
   to provide Global Positioning System equipment and related services to  
   the many and varied users of the system; and                            
       (B) there have been rapid technical advancements in Global          
   Positioning System equipment and services that have contributed         
   significantly to reductions in the cost of the Global Positioning System
   and increases in the technical capabilities and availability of the     
   system for military uses.                                               
       (5) It is in the national interest of the United States for the     
   United States--                                                         
       (A) to support continuation of the multiple-use character of the    
   Global Positioning System;                                              
       (B) to promote broader acceptance and use of the Global Positioning 
   System and the technological standards that facilitate expanded use of  
   the system for civil purposes;                                          
       (C) to coordinate with other countries to ensure (i) efficient      
   management of the electromagnetic spectrum used by the Global           
   Positioning System, and (ii) protection of that spectrum in order to    
   prevent disruption of signals from the system and interference with that
   portion of the electromagnetic spectrum used by the system; and         
       (D) to encourage open access in all international markets to the    
   Global Positioning System and supporting equipment, services, and       
   techniques.                                                             
     (b) International Cooperation.--Congress urges the President to      
  promote the security of the United States and its allies, the public    
  safety, and commercial interests by taking the following steps:         
       (1) Undertaking a coordinated effort within the executive branch to 
   seek to establish the Global Positioning System, and augmentations to   
   the system, as a worldwide resource.                                    
       (2) Seeking to enter into international agreements to establish     
   signal and service standards that protect the Global Positioning System 
   from disruption and interference.                                       
       (3) Undertaking efforts to eliminate any barriers to, and other     
   restrictions of foreign governments on, peaceful uses of the Global     
   Positioning System.                                                     
       (4) Requiring that any proposed international agreement involving   
   nonmilitary use of the Global Positioning System or any augmentation to 
   the system not be agreed to by the United States unless the proposed    
   agreement has been reviewed by the Secretary of State, the Secretary of 
   Defense, the Secretary of Transportation, and the Secretary of Commerce 
   (acting as the Interagency Global Positioning System Executive Board    
   established by Presidential Decision Directive NSTC 6, dated March 28,  
   1996).                                                                  
     (c) Fiscal Year 1998 Prohibition of Support of Foreign System.--None 
  of the funds authorized to be appropriated under this Act may be used to
  support the operation and maintenance or enhancement of a satellite     
  navigation system operated by a foreign country.                        
     (d) In General.--(1) Part IV of subtitle A of title 10, United States
  Code, is amended by inserting after chapter 134 the following new       
  chapter:                                                                
           ``CHAPTER 136--PROVISIONS RELATING TO SPECIFIC PROGRAMS                
      ``Sec.                                                                  
      ``2281. Global Positioning System.                                      
          ``2281. Global Positioning System                                       
     ``(a) Sustainment and Operation for Military Purposes.--The Secretary
  of Defense shall provide for the sustainment of the capabilities of the 
  Global Positioning System (hereinafter in this section referred to as   
  the `GPS'), and the operation of basic GPS services, that are beneficial
  for the                                                                 
                    national security interests of the United States. In doing so,
          the Secretary shall--                                                   
       ``(1) develop appropriate measures for preventing hostile use of the
   GPS so as to make it unnecessary for the Secretary to use the selective 
   availability feature of the system continuously while not hindering the 
   use of the GPS by the United States and its allies for military         
   purposes; and                                                           
       ``(2) ensure that United States armed forces have the capability to 
   use the GPS effectively despite hostile attempts to prevent the use of  
   the system by such forces.                                              
     ``(b) Sustainment and Operation for Civilian Purposes.--The Secretary
  of Defense shall provide for the sustainment and operation of the GPS   
  Standard Positioning Service for peaceful civil, commercial, and        
  scientific uses on a continuous worldwide basis free of direct user     
  fees. In doing so, the Secretary--                                      
       ``(1) shall provide for the sustainment and operation of the GPS    
   Standard Positioning Service in order to meet the performance           
   requirements of the Federal Radionavigation Plan prepared jointly by the
   Secretary of Defense and the Secretary of Transportation pursuant to    
   subsection (c);                                                         
       ``(2) shall coordinate with the Secretary of Transportation         
   regarding the development and implementation by the Government of       
   augmentations to the basic GPS that achieve or enhance uses of the      
   system in support of transportation;                                    
       ``(3) shall coordinate with the Secretary of Commerce, the United   
   States Trade Representative, and other appropriate officials to         
   facilitate the development of new and expanded civil and commercial uses
   for the GPS;                                                            
       ``(4) shall develop measures for preventing hostile use of the GPS  
   in a particular area without hindering peaceful civil use of the system 
   elsewhere; and                                                          
       ``(5) may not agree to any restriction on the Global Positioning    
   System proposed by the head of a department or agency of the United     
   States outside the Department of Defense in the exercise of that        
   official's regulatory authority that would adversely affect the military
   potential of the Global Positioning System.                             
     ``(c) Federal Radionavigation Plan.--The Secretary of Defense and the
  Secretary of Transportation shall jointly prepare the Federal           
  Radionavigation Plan. The plan shall be revised and updated not less    
  often than every two years. The plan shall be prepared in accordance    
  with the requirements applicable to such plan as first prepared pursuant
  to section 507 of the International Maritime Satellite                  
  Telecommunications Act (47 U.S.C. 756). The plan, and any amendment to  
  the plan, shall be published in the Federal Register.                   
     ``(d) Biennial Report.--(1) Not later than 30 days after the end of  
  each even-numbered fiscal year, the Secretary of Defense shall submit to
  the Committee on Armed Services of the Senate and the Committee on      
  National Security of the House of Representatives a report on the Global
  Positioning System. The report shall include a discussion of the        
  following matters:                                                      
     ``(A) The operational status of the system.                           
       ``(B) The capability of the system to satisfy effectively (i) the   
   military requirements for the system that are current as of the date of 
   the report, and (ii) the performance requirements of the Federal        
   Radionavigation Plan.                                                   
       ``(C) The most recent determination by the President regarding      
   continued use of the selective availability feature of the system and   
   the expected date of any change or elimination of the use of that       
   feature.                                                                
       ``(D) The status of cooperative activities undertaken by the United 
   States with the governments of other countries concerning the capability
   of the system or any augmentation of the system to satisfy civil,       
   commercial, scientific, and military requirements, including a          
   discussion of the status and results of activities undertaken under any 
   regional international agreement.                                       
       ``(E) Any progress made toward establishing GPS as an international 
   standard for consistency of navigational service.                       
       ``(F) Any progress made toward protecting GPS from disruption and   
   interference.                                                           
       ``(G) The effects of use of the system on national security,        
   regional security, and the economic competitiveness of United States    
   industry, including the Global Positioning System equipment and service 
   industry and user industries.                                           
     ``(2) In preparing the parts of each such report required under      
  subparagraphs (D), (E), (F), and (G) of paragraph (1), the Secretary of 
  Defense shall consult with the Secretary of State, the Secretary of     
  Commerce, and the Secretary of Transportation.                          
    ``(e)  Definitions.--In this section:                                 
       ``(1) The term `basic GPS services' means the following components  
   of the Global Positioning System that are operated and maintained by the
   Department of Defense:                                                  
     ``(A) The constellation of satellites.                                
       ``(B) The navigation payloads that produce the Global Positioning   
   System signals.                                                         
       ``(C) The ground stations, data links, and associated command and   
   control facilities.                                                     
       ``(2) The term `GPS Standard Positioning Service' means the civil   
   and commercial service provided by the basic Global Positioning System  
   as defined in the 1996 Federal Radionavigation Plan (published jointly  
   by the Secretary of Defense and the Secretary of Transportation in July 
   1997).''.                                                               
     (2) The tables of chapters at the beginning of subtitle A, and at the
  beginning of part IV of subtitle A, of such title are amended by        
  inserting after the item relating to chapter 134 the following new item:
         ``136. Provisions Relating to Specific Programs                        
        2281''.                                                                
                    SEC. 1075. PROTECTION OF SAFETY-RELATED INFORMATION           
          VOLUNTARILY PROVIDED BY AIR CARRIERS.                                   
     (a) Authority To Protect Information.--Section 2640 of title 10,     
  United States Code, is amended--                                        
       (1) by redesignating subsections (h) and (i) as subsections (i) and 
   (j), respectively; and                                                  
       (2) by inserting after subsection (g) the following new subsection  
   (h):                                                                    
     ``(h) Authority To Protect Safety-Related Information Voluntarily    
  Provided by an Air Carrier.--(1) Subject to paragraph (2), the Secretary
  of Defense may (notwithstanding any other provision of law) withhold    
  from public disclosure safety-related information that is provided to   
  the Secretary voluntarily by an air carrier for the purposes of this    
  section.                                                                
     ``(2) Information may be withheld under paragraph (1) from public    
  disclosure only if the Secretary determines that--                      
       ``(A) the disclosure of the information would inhibit an air carrier
   from voluntarily providing, in the future, safety-related information   
   for the purposes of this section or for other air safety purposes       
   involving the Department of Defense or another Federal agency; and      
       ``(B) the receipt of such information generally enhances the        
   fulfillment of responsibilities under this section or other air safety  
   responsibilities involving the Department of Defense or another Federal 
   agency.                                                                 
     ``(3) If the Secretary provides to the head of another agency        
  safety-related information described in paragraph (1) with respect to   
  which the Secretary has made a determination described in paragraph (2),
  the head of that agency shall (notwithstanding any other provision of   
  law) withhold the information from public disclosure unless the         
  disclosure is specifically authorized by the Secretary.''.              
     (b) Applicability.--Subsection (h) of section 2640 of title 10,      
  United States Code, as added by subsection (a), shall                   
                    apply with respect to requests for information made on or     
          after the date of the enactment of this Act.                            
                    SEC. 1076. NATIONAL GUARD CHALLENGE PROGRAM TO CREATE         
          OPPORTUNITIES FOR CIVILIAN YOUTH.                                       
     (a) Program Authority.--Chapter 5 of title 32, United States Code, is
  amended by adding at the end the following new section:                 
                    ``509. National Guard Challenge Program of opportunities for  
          civilian youth                                                          
     ``(a) Program Authority and Purpose.--The Secretary of Defense,      
  acting through the Chief of the National Guard Bureau, may conduct a    
  National Guard civilian youth opportunities program (to be known as the 
  `National Guard Challenge Program') to use the National Guard to provide
  military-based training, including supervised work experience in        
  community service and conservation projects, to civilian youth who cease
  to attend secondary school before graduating so as to improve the life  
  skills and employment potential of such youth.                          
     ``(b) Conduct of the Program.--The Secretary of Defense shall provide
  for the conduct of the National Guard Challenge Program in such States  
  as the Secretary considers to be appropriate, except that Federal       
  expenditures under the program may not exceed $50,000,000 for any fiscal
  year.                                                                   
     ``(c) Program Agreements.--(1) To carry out the National Guard       
  Challenge Program in a State, the Secretary of Defense shall enter into 
  an agreement with the Governor of the State or, in the case of the      
  District of Columbia, with the commanding general of the District of    
  Columbia National Guard, under which the Governor or the commanding     
  general will establish, organize, and administer the National Guard     
  Challenge Program in the State.                                         
     ``(2) The agreement may provide for the Secretary to provide funds to
  the State for civilian personnel costs attributable to the use of       
  civilian employees of the National Guard in the conduct of the National 
  Guard Challenge Program.                                                
     ``(d) Matching Funds Required.--The amount of assistance provided    
  under this section to a State program of the National Guard Challenge   
  Program may not exceed--                                                
       ``(1) for fiscal year 1998, 75 percent of the costs of operating the
   State program during that year;                                         
       ``(2) for fiscal year 1999, 70 percent of the costs of operating the
   State program during that year;                                         
       ``(3) for fiscal year 2000, 65 percent of the costs of operating the
   State program during that year; and                                     
       ``(4) for fiscal year 2001 and each subsequent fiscal year, 60      
   percent of the costs of operating the State program during that year.   
     ``(e) Persons Eligible to Participate in Program.--A school dropout  
  from secondary school shall be eligible to participate in the National  
  Guard Challenge Program. The Secretary of Defense shall prescribe the   
  standards and procedures for selecting participants from among school   
  dropouts.                                                               
     ``(f) Authorized Benefits for Participants.--(1) To the extent       
  provided in an agreement entered into in accordance with subsection (c) 
  and subject to the approval of the Secretary of Defense, a person       
  selected for training in the National Guard Challenge Program may       
  receive the following benefits in connection with that training:        
       ``(A) Allowances for travel expenses, personal expenses, and other  
   expenses.                                                               
     ``(B) Quarters.                                                       
     ``(C) Subsistence.                                                    
     ``(D) Transportation.                                                 
     ``(E) Equipment.                                                      
     ``(F) Clothing.                                                       
     ``(G) Recreational services and supplies.                             
     ``(H) Other services.                                                 
       ``(I) Subject to paragraph (2), a temporary stipend upon the        
   successful completion of the training, as characterized in accordance   
   with procedures provided in the agreement.                              
     ``(2) In the case of a person selected for training in the National  
  Guard Challenge Program who afterwards becomes a member of the Civilian 
  Community Corps under subtitle E of title I of the National and         
  Community Service Act of 1990 (42 U.S.C. 12611 et seq.), the person may 
  not receive a temporary stipend under paragraph (1)(I) while the person 
  is a member of that Corps. The person may receive the temporary stipend 
  after completing service in the Corps unless the person elects to       
  receive benefits provided under subsection (f) or (g) of section 158 of 
  such Act (42 U.S.C. 12618).                                             
     ``(g) Program Personnel.--(1) Personnel of the National Guard of a   
  State in which the National Guard Challenge Program is conducted may    
  serve on full-time National Guard duty for the purpose of providing     
  command, administrative, training, or supporting services for the       
  program. For the performance of those services, any such personnel may  
  be ordered to duty under section 502(f) of this title for not longer    
  than the period of the program.                                         
     ``(2) A Governor participating in the National Guard Challenge       
  Program and the commanding general of the District of Columbia National 
  Guard (if the District of Columbia National Guard is participating in   
  the program) may procure by contract the temporary full time services of
  such civilian personnel as may be necessary to augment National Guard   
  personnel in carrying out the National Guard Challenge Program in that  
  State.                                                                  
     ``(3) Civilian employees of the National Guard performing services   
  for the National Guard Challenge Program and contractor personnel       
  performing such services may be required, when appropriate to achieve   
  the purposes of the program, to be members of the National Guard and to 
  wear the military uniform.                                              
     ``(h) Equipment and Facilities.--(1) Equipment and facilities of the 
  National Guard, including military property of the United States issued 
  to the National Guard, may be used in carrying out the National Guard   
  Challenge Program.                                                      
     ``(2) Activities under the National Guard Challenge Program shall be 
  considered noncombat activities of the National Guard for purposes of   
  section 710 of this title.                                              
     ``(i) Status of Participants.--(1) A person receiving training under 
  the National Guard Challenge Program shall be considered an employee of 
  the United States for the purposes of the following provisions of law:  
       ``(A) Subchapter I of chapter 81 of title 5 (relating to            
   compensation of Federal employees for work injuries).                   
       ``(B) Section 1346(b) and chapter 171 of title 28 and any other     
   provision of law relating to the liability of the United States for     
   tortious conduct of employees of the United States.                     
     ``(2) In the application of the provisions of law referred to in     
  paragraph (1)(A) to a person referred to in paragraph (1)--             
       ``(A) the person shall not be considered to be in the performance of
   duty while the person is not at the assigned location of training or    
   other activity or duty authorized in accordance with a program agreement
   referred to in subsection (c), except when the person is traveling to or
   from that location or is on pass from that training or other activity or
   duty;                                                                   
       ``(B) the person's monthly rate of pay shall be deemed to be the    
   minimum rate of pay provided for grade GS 2 of the General Schedule     
   under section 5332 of title 5; and                                      
       ``(C) the entitlement of a person to receive compensation for a     
   disability shall begin on the day following the date on which the       
   person's participation in the National Guard Challenge Program is       
   terminated.                                                             
     ``(3) A person referred to in paragraph (1) may not be considered an 
  employee of the United States for any purpose other than a purpose set  
  forth in that paragraph.                                                
     ``(j) Supplemental Resources.--To carry out the National Guard       
  Challenge Program in a State, the Governor of the State or, in the case 
  of the District of Columbia, the commanding general of the District of  
  Columbia National Guard may supplement funds made available under the   
  program out of other resources (including gifts) available to the       
  Governor or the commanding general. The Governor or the commanding      
  general may accept, use, and dispose of gifts or donations of money,    
  other property, or services for the National Guard Challenge Program.   
     ``(k) Report.--Within 90 days after the end of each fiscal year, the 
  Secretary of Defense shall submit to Congress a report on the design,   
  conduct, and effectiveness of the National Guard Challenge Program      
  during the preceding fiscal year. In preparing the report, the Secretary
  shall coordinate with the Governor of each State in which the National  
  Guard Challenge Program is carried out and, if the program is carried   
  out in the District of Columbia, with the commanding general of the     
  District of Columbia National Guard.                                    
    ``(l)  Definitions.--In this section:                                 
       ``(1) The term `State' includes the Commonwealth of Puerto Rico, the
   territories, and the District of Columbia.                              
       ``(2) The term `school dropout' means an individual who is no longer
   attending any school and who has not received a secondary school diploma
   or a certificate from a program of equivalency for such a diploma.''.   
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
            ``509. National Guard Challenge Program of opportunities for      
      civilian youth.''.                                                      
                    SEC. 1077. DISQUALIFICATION FROM CERTAIN BURIAL-RELATED       
          BENEFITS FOR PERSONS CONVICTED OF CAPITAL CRIMES.                       
     (a) In General.--(1) Chapter 49 of title 10, United States Code, is  
  amended by adding at the end the following new section:                 
                    ``985. Persons convicted of capital crimes: denial of certain 
          burial-related benefits                                                 
     ``(a) Prohibition of Performance of Military Honors.--The Secretary  
  of a military department and the Secretary of Transportation, with      
  respect to the Coast Guard when                                         
                    it is not operating as a service in the Navy, may not provide 
          military honors at the funeral or burial of a person who has been       
          convicted of a capital offense under Federal or State law for which the 
          person was sentenced to death or life imprisonment without parole.      
     ``(b) Disqualification From Burial in Military Cemeteries.--A person 
  convicted of a capital offense under Federal law is not entitled to or  
  eligible for, and may not be provided, burial in--                      
     ``(1) Arlington National Cemetery;                                    
     ``(2) the Soldiers' and Airmen's National Cemetery; or                
       ``(3) any other cemetery administered by the Secretary of a military
   department or the Secretary of Defense.                                 
    ``(c)  Definitions.--In this section:                                 
       ``(1) The term `capital offense' means an offense for which the     
   death penalty may be imposed.                                           
     ``(2) The term `burial' includes inurnment.                           
       ``(3) The term `State' includes the District of Columbia and any    
   commonwealth or territory of the United States.''.                      
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
            ``985. Persons convicted of capital crimes: denial of certain     
      burial-related benefits.''.                                             
     (b) Applicability.--Section 985 of title 10, United States Code, as  
  added by subsection (a), applies with respect to persons dying after    
  January 1, 1997.                                                        
                    SEC. 1078. RESTRICTIONS ON THE USE OF HUMAN SUBJECTS FOR      
          TESTING OF CHEMICAL OR BIOLOGICAL AGENTS.                               
     (a) Prohibited Activities.--The Secretary of Defense may not conduct 
  (directly or by contract)--                                             
       (1) any test or experiment involving the use of a chemical agent or 
   biological agent on a civilian population; or                           
       (2) any other testing of a chemical agent or biological agent on    
   human subjects.                                                         
     (b) Exceptions.--Subject to subsections (c), (d), and (e), the       
  prohibition in subsection (a) does not apply to a test or experiment    
  carried out for any of the following purposes:                          
       (1) Any peaceful purpose that is related to a medical, therapeutic, 
   pharmaceutical, agricultural, industrial, or research activity.         
       (2) Any purpose that is directly related to protection against toxic
   chemicals or biological weapons and agents.                             
       (3) Any law enforcement purpose, including any purpose related to   
   riot control.                                                           
     (c) Informed Consent Required.--The Secretary of Defense may conduct 
  a test or experiment described in subsection (b) only if informed       
  consent to the testing was obtained from each human subject in advance  
  of the testing on that subject.                                         
     (d) Prior Notice to Congress.--Not later than 30 days after the date 
  of final approval within the Department of Defense of plans for any     
  experiment or study to be conducted by the Department of Defense        
  (whether directly or under contract) involving the use of human subjects
  for the testing of a chemical agent or a biological agent, the Secretary
  of Defense shall submit to the Committee on Armed Services of the Senate
  and the Committee on National Security of the House of Representatives a
  report setting forth a full accounting of those plans, and the          
  experiment or study may then be conducted only after the end of the     
  30-day period beginning on the date such report is received by those    
  committees.                                                             
     (e) Biological Agent Defined.--In this section, the term ``biological
  agent'' means any micro-organism (including bacteria, viruses, fungi,   
  rickettsiac, or protozoa), pathogen, or infectious substance, and any   
  naturally occurring, bioengineered, or synthesized component of any such
  micro-organism, pathogen, or infectious substance, whatever its origin  
  or method of production, that is capable of causing--                   
       (1) death, disease, or other biological malfunction in a human, an  
   animal, a plant, or another living organism;                            
       (2) deterioration of food, water, equipment, supplies, or materials 
   of any kind; or                                                         
     (3) deleterious alteration of the environment.                        
     (f) Report and Certification.--Section 1703(b) of the National       
  Defense Authorization Act for Fiscal Year 1994 (50 U.S.C. 1523(b)) is   
  amended by adding at the end the following new paragraph:               
       ``(9) A description of any program involving the testing of         
   biological or chemical agents on human subjects that was carried out by 
   the Department of Defense during the period covered by the report,      
   together with--                                                         
     ``(A) a detailed justification for the testing;                       
     ``(B) a detailed explanation of the purposes of the testing;          
     ``(C) a description of each chemical or biological agent tested; and  
       ``(D) the Secretary's certification that informed consent to the    
   testing was obtained from each human subject in advance of the testing  
   on that subject.''.                                                     
     (g) Repeal of Superseded Provision of Law.--Section 808 of the       
  Department of Defense Appropriation Authorization Act, 1978 (50 U.S.C.  
  1520), is repealed.                                                     
          SEC. 1079. TREATMENT OF MILITARY FLIGHT OPERATIONS.                     
     No military flight operation (including a military training flight), 
  or designation of airspace for such an operation, may be treated as a   
  transportation program or project for purposes of section 303(c) of     
  title 49, United States Code.                                           
                    SEC. 1080. NATURALIZATION OF CERTAIN FOREIGN NATIONALS WHO    
          SERVE HONORABLY IN THE ARMED FORCES DURING A PERIOD OF CONFLICT.        
     (a) In General.--Section 329(a)(1) of the Immigration and Nationality
  Act (8 U.S.C. 1440(a)(1)) is amended--                                  
       (1) by inserting ``, reenlistment, extension of enlistment,'' after 
   ``at the time of enlistment''; and                                      
       (2) by inserting ``or on board a public vessel owned or operated by 
   the United States for noncommercial service,'' after ``United States,   
   the Canal Zone, American Samoa, or Swains Island,''.                    
     (b) Effective Date.--The amendments made by subsection (a) shall     
  apply with respect to enlistments, reenlistments, extensions of         
  enlistment, and inductions of persons occurring on or after the date of 
  the enactment of this Act.                                              
                    SEC. 1081. APPLICABILITY OF CERTAIN PAY AUTHORITIES TO MEMBERS
          OF SPECIFIED INDEPENDENT STUDY ORGANIZATIONS.                           
     (a) Applicability of Certain Pay Authorities.--(1) An individual who 
  is a member of a commission or panel specified in subsection (b) and is 
  an annuitant otherwise covered by section 8344 or 8468 of title 5,      
  United States Code, by reason of membership on the commission or panel  
  is not subject to the provisions of that section with respect to such   
  membership.                                                             
     (2) An individual who is a member of a commission or panel specified 
  in subsection (b) and is a member or former member of a uniformed       
  service is not subject to the provisions of subsections (b) and (c) of  
  section 5532 of such title with respect to membership on the commission 
  or panel.                                                               
    (b)  Specified Entities.--Subsection (a) applies--                    
       (1) effective as of September 23, 1996, to members of the National  
   Defense Panel established by section 924 of the National Defense        
   Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 Stat.   
   2626); and                                                              
       (2) effective as of October 9, 1996, to members of the Commission on
   Servicemembers and Veterans Transition Assistance established by section
   701 of the Veterans' Benefits Improvements Act of 1996 (Public Law 104  
   275; 110 Stat. 3346; 38 U.S.C. 545 note).                               
          SEC. 1082. DISPLAY OF POW/MIA FLAG.                                     
     (a) Required Display.--The POW/MIA flag shall be displayed at the    
  locations specified in subsection (c) on POW/MIA flag display days. Such
  display shall serve (1) as the symbol of the Nation's concern and       
  commitment to achieving the fullest possible accounting of Americans    
  who, having been prisoners of war or missing in action, still remain    
  unaccounted for, and (2) as the symbol of the Nation's commitment to    
  achieving the fullest possible accounting for Americans who in the      
  future may become prisoners of war, missing in action, or otherwise     
  unaccounted for as a result of hostile action.                          
     (b) Days for Flag Display.--(1) For purposes of this section, POW/MIA
  flag display days are the following:                                    
     (A) Armed Forces Day, the third Saturday in May.                      
     (B) Memorial Day, the last Monday in May.                             
     (C) Flag Day, June 14.                                                
     (D) Independence Day, July 4.                                         
     (E) National POW/MIA Recognition Day.                                 
     (F) Veterans Day, November 11.                                        
     (2) In addition to the days specified in paragraph (1), POW/MIA flag 
  display days include--                                                  
       (A) in the case of display at medical centers of the Department of  
   Veterans Affairs (required by subsection (c)(7)), any day on which the  
   flag of the United States is displayed; and                             
       (B) in the case of display at United States Postal Service post     
   offices (required by subsection (c)(8)), the last business day before a 
   day specified in paragraph (1) that in any year is not itself a business
   day.                                                                    
     (c) Locations for Flag Display.--The locations for the display of the
  POW/MIA flag under subsection (a) are the following:                    
     (1) The Capitol.                                                      
     (2) The White House.                                                  
       (3) The Korean War Veterans Memorial and the Vietnam Veterans       
   Memorial.                                                               
     (4) Each national cemetery.                                           
     (5) The buildings containing the official office of--                 
     (A) the Secretary of State;                                           
     (B) the Secretary of Defense;                                         
     (C) the Secretary of Veterans Affairs; and                            
     (D) the Director of the Selective Service System.                     
       (6) Each major military installation, as designated by the Secretary
   of Defense.b                                                            
     (7) Each medical center of the Department of Veterans Affairs.        
     (8) Each United States Postal Service post office.                    
     (d) Coordination With Other Display Requirement.--Display of the POW 
  flag at the Capitol pursuant to paragraph (1) of subsection (c) is in   
  addition to the display of that flag in the Rotunda of the Capitol      
  pursuant to Senate Concurrent Resolution 5 of the 101st Congress, agreed
  to on February 22, 1989 (103 Stat. 2533).                               
     (e) Display To Be in a Manner Visible to the Public.--Display of the 
  POW/MIA flag pursuant to this section shall be in a manner designed to  
  ensure visibility to the public.                                        
     (f) Limitation.--This section may not be construed or applied so as  
  to require any employee to report to work solely for the purpose of     
  providing for the display of the POW/MIA flag.                          
     (g) POW/MIA Flag Defined.--As used in this section, the term         
  ``POW/MIA flag'' means the National League of Families POW/MIA flag     
  recognized officially and designated by section 2 of Public Law 101 355 
  (36 U.S.C. 189).                                                        
     (h) Regulations for Implementation.--Not later than 180 days after   
  the date of the enactment of this Act, the head of each department,     
  agency, or other establishment responsible for a location specified in  
  subsection (c) (other than the Capitol) shall prescribe such regulations
  as necessary to carry out this section.                                 
     (i) Procurement and Distribution of Flags.--Not later than 30 days   
  after the date of the enactment of this Act, the Administrator of       
  General Services shall procure POW/MIA flags and distribute them as     
  necessary to carry out this section.                                    
     (j) Repeal of Superseded Law.--Section 1084 of Public Law 102 190 (36
  U.S.C. 189 note) is repealed.                                           
                    SEC. 1083. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE     
          KOREAN CONFLICT.                                                        
     (a) Commemorative Program.--The Secretary of Defense may conduct a   
  program to commemorate the 50th anniversary of the Korean conflict. In  
  conducting the commemorative program, the Secretary may coordinate,     
  support, and facilitate other programs and activities of the Federal    
  Government, State and local governments, and other persons in           
  commemoration of the Korean conflict.                                   
     (b) Commemorative Activities.--The commemorative program may include 
  activities and ceremonies--                                             
       (1) to provide the people of the United States with a clear         
   understanding and appreciation of the lessons and history of the Korean 
   conflict;                                                               
       (2) to thank and honor veterans of the Korean conflict and their    
   families;                                                               
       (3) to pay tribute to the sacrifices and contributions made on the  
   home front by the people of the United States during the Korean         
   conflict;                                                               
       (4) to highlight advances in technology, science, and medicine      
   related to military research conducted during the Korean conflict;      
       (5) to recognize the contributions and sacrifices made by the allies
   of the United States in the Korean conflict; and                        
       (6) to highlight the role of the Armed Forces of the United States, 
   then and now, in maintaining world peace through strength.              
     (c) Names and Symbols.--The Secretary of Defense shall have the sole 
  and exclusive right to use the names ``The Department of Defense Korean 
  Conflict Commemoration'', and such seal, emblems, and badges            
  incorporating such name as the Secretary may lawfully adopt. Nothing in 
  this section may be construed to supersede rights that are established  
  or vested before the date of the enactment of this Act.                 
     (d) Commemorative Account.--(1) There is established in the Treasury 
  an account to be known as the ``Department of Defense Korean Conflict   
  Commemoration Account'', which shall be administered by the Secretary of
  Defense. There shall be deposited into the account all proceeds derived 
  from the Secretary's use of the exclusive rights described in subsection
  (c). The Secretary may use funds in the account only for the purpose of 
  conducting the commemorative program.                                   
     (2) Not later than 60 days after completion of all activities and    
  ceremonies conducted as part of the commemorative program, the Secretary
  shall submit to Congress a report containing an accounting of all of the
  funds deposited into and expended from the account or otherwise expended
  under this section, and of any funds remaining in the account.          
  Unobligated funds remaining in the account on that date shall be held in
  the account until transferred by law.                                   
     (e) Acceptance of Voluntary Services.--(1) Notwithstanding section   
  1342 of title 31, United States Code, the Secretary of Defense may      
  accept from any person voluntary services to be provided in furtherance 
  of the commemorative program.                                           
     (2) A person providing voluntary services under this subsection shall
  be considered to be a Federal employee for purposes of chapter 81 of    
  title 5, United States Code, relating to compensation for work-related  
  injuries. The person shall also be considered a special governmental    
  employee for purposes of standards of conduct and sections 202, 203,    
  205, 207, 208, and 209 of title 18, United States Code. A person who is 
  not otherwise employed by the Federal Government shall not be considered
  to be a Federal employee for any other purpose by reason of the         
  provision of voluntary services under this subsection.                  
     (3) The Secretary may provide for reimbursement of incidental        
  expenses incurred by a person providing voluntary services under this   
  subsection. The Secretary shall determine which expenses are eligible   
  for reimbursement under this paragraph.                                 
     (f) Limitation on Expenditures.--Total expenditures to carry out the 
  commemorative program may not exceed $100,000.                          
                    SEC. 1084. COMMENDATION OF MEMBERS OF THE ARMED FORCES AND    
          GOVERNMENT CIVILIAN PERSONNEL WHO SERVED DURING THE COLD WAR;           
          CERTIFICATE OF RECOGNITION.                                             
    (a)  Findings.--The Congress finds the following:                     
       (1) During the period of the Cold War, from the end of World War II 
   until the collapse of the Soviet Union in 1991, the United States and   
   the Soviet Union engaged in a global military rivalry.                  
       (2) This rivalry, potentially the most dangerous military           
   confrontation in the history of mankind, has come to a close without a  
   direct superpower military conflict.                                    
       (3) Military and civilian personnel of the Department of Defense,   
   personnel in the intelligence community, members of the foreign service,
   and other officers and employees of the United States faithfully        
   performed their duties during the Cold War.                             
       (4) Many such personnel performed their duties while isolated from  
   family and friends and served overseas under frequently arduous         
   conditions in order to protect the United States and achieve a lasting  
   peace.                                                                  
       (5) The discipline and dedication of those personnel were           
   fundamental to the prevention of a superpower military conflict.        
     (b) Congressional Commendation.--The Congress hereby commends the    
  members of the Armed Forces and civilian personnel of the Government who
  contributed to the historic victory in the Cold War and expresses its   
  gratitude and appreciation for their service and sacrifices of.         
     (c) Certificates of Recognition.--The Secretary of Defense shall     
  prepare a certificate recognizing the Cold War service of qualifying    
  members of the Armed Forces and civilian personnel of the Department of 
  Defense and other Government agencies contributing to national security,
  as determined by the Secretary, and shall provide the certificate to    
  such members and civilian personnel upon request.                       
          SEC. 1085. SENSE OF CONGRESS ON GRANTING OF STATUTORY FEDERAL CHARTERS. 
     (a) Findings.--Congress finds that the practice of providing by      
  statute Federal charters to certain nonprofit organizations--           
       (1) may be perceived as implying a Government imprimatur of approval
   of those organizations; and                                             
       (2) may mistakenly lead to public perception that the United States 
   ensures the integrity and worthiness of those organizations.            
    (b)  Sense of Congress.--It is the sense of Congress--                
       (1) that because of the perceived implicit Government imprimatur of 
   approval conveyed by enactment of a Federal charter for an organization,
   such a charter should be granted only in the rarest and most            
   extraordinary cases; and                                                
       (2) that no statutory Federal charter should be enacted after the   
   enactment of this Act unless the charter is approved by Congress upon   
   favorable report by the committees of jurisdiction of the respective    
   Houses.                                                                 
          SEC. 1086. SENSE OF CONGRESS REGARDING MILITARY VOTING RIGHTS.          
    (a)  Findings.--Congress finds that--                                 
       (1) members of the Armed Forces have a fundamental right to vote in 
   Federal, State, and local elections; and                                
       (2) an extended absense of a member of the Armed Forces from the    
   place of the member's residency or domicile due to military or naval    
   orders is not of itself grounds to consider the member's residency or   
   domicile as lost or changed.                                            
     (b) Sense of Congress.--It is the sense of Congress that the         
  Secretary of Defense, in consultation with the Attorney General, should 
  review how best to protect the right of members of the Armed Forces to  
  vote in Federal, State, and local elections while taking into account   
  the right of States to prescribe requirements for voter registration.   
  Such a review should include an assessment of challenges to military    
  voting rights and consideration of possible legislative remedies to     
  ensure that, for purposes of voting in Federal, State, and local        
  elections, a member of the Armed Forces who is absent from a State in   
  compliance with military or naval orders is not, solely by reason of    
  that absence, considered to have lost or changed residency or domicile. 
                    SEC. 1087. DESIGNATION OF BOB HOPE AS AN HONORARY VETERAN OF  
          THE ARMED FORCES OF THE UNITED STATES.                                  
    (a)  Findings.--Congress makes the following findings:                
       (1) In its more than 200 years of existence as a nation, the United 
   States has never conferred on any person the status of being an honorary
   veteran of the Armed Forces of the United States.                       
       (2) Status as an honorary veteran of the Armed Forces of the United 
   States is and should remain an extraordinary honor not lightly conferred
   nor frequently granted.                                                 
       (3) The lifetime of accomplishments and service of Leslie Townes    
   (Bob) Hope on behalf of members of the Armed Forces of the United States
   fully justifies the conferring of that status.                          
       (4) Bob Hope attempted to enlist in the Armed Forces to serve his   
   country during World War II but was informed that the greatest service  
   he could provide his country was as a civilian entertainer for the      
   troops.                                                                 
       (5) During World War II, the Korean Conflict, the Vietnam War, the  
   Persian Gulf War, and the Cold War, Bob Hope travelled to visit and     
   entertain millions of members of the Armed Forces in numerous countries,
   on ships at sea, and in combat zones ashore.                            
       (6) Bob Hope has been awarded the Congressional Gold Medal, the     
   Presidential Medal of Freedom, the Distinguished Service Medal of each  
   of the branches of the Armed Forces and more than 100 other citations   
   and awards from national veterans service organizations and civic and   
   humanitarian organizations.                                             
       (7) Bob Hope has given unselfishly of himself for over half a       
   century to be with American service members on foreign shores, working  
   tirelessly to bring a spirit of humor and cheer to millions of service  
   members during their loneliest moments, and has, thereby, extended to   
   them for the American people a touch of home away from home.            
    (b)  Designation of Bob Hope as Honorary Veteran.--Congress--         
       (1) extends its gratitude, on behalf of the American people, to     
   Leslie Townes (Bob) Hope, of the State of California, for his lifetime  
   of accomplishments and service on behalf of members of the Armed Forces 
   of the United States; and                                               
       (2) hereby confers upon him the status of being an honorary veteran 
   of the Armed Forces of the United States.                               
          SEC. 1088. FIVE-YEAR EXTENSION OF AVIATION INSURANCE PROGRAM.           
     (a) Extension.--Section 44310 of title 49, United States Code, is    
  amended by striking out ``September 30, 1997'' and inserting in lieu    
  thereof ``September 30, 2002''.                                         
     (b) Effective Date.--This section shall take effect as of September  
  30, 1997.                                                               
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL                      
            Sec. 1101. Use of prohibited constraints to manage Department of  
      Defense personnel.                                                      
            Sec. 1102. Veterans' preference status for certain veterans who   
      served on active duty during the Persian Gulf War.                      
            Sec. 1103. Repeal of deadline for placement consideration of      
      involuntarily separated military reserve technicians.                   
            Sec. 1104. Rate of pay of Department of Defense overseas teachers 
      upon transfer to General Schedule position.                             
      Sec. 1105. Garnishment and involuntary allotment.                       
            Sec. 1106. Extension and revision of voluntary separation         
      incentive pay authority.                                                
            Sec. 1107. Use of approved fire-safe accommodations by Government 
      employees on official business.                                         
            Sec. 1108. Navy higher education pilot program regarding          
      administration of business relationships between Government and private 
      sector.                                                                 
            Sec. 1109. Authority for Marine Corps University to employ        
      civilian faculty members.                                               
                    SEC. 1101. USE OF PROHIBITED CONSTRAINTS TO MANAGE DEPARTMENT 
          OF DEFENSE PERSONNEL.                                                   
     Section 129 of title 10, United States Code, is amended by adding at 
  the end the following new subsection:                                   
     ``(f)(1) Not later than February 1 of each year, the Secretary of    
  each military department and the head of each Defense Agency shall      
  submit to the Committee on Armed Services of the Senate and the         
  Committee on National Security of the House of Representatives a report 
  on the management of the civilian workforce under the jurisdiction of   
  that official.                                                          
     ``(2) Each report of an official under paragraph (1) shall contain   
  the following:                                                          
       ``(A) The official's certification (i) that the civilian workforce  
   under the jurisdiction of the official is not subject to any constraint 
   or limitation in terms of man years, end strength, full-time equivalent 
   positions, or maximum number of employees, and (ii) that, during the 12 
   months preceding the date on which the report is due, such workforce has
   not been subject to any such constraint or limitation.                  
     ``(B) A description of how the civilian workforce is managed.         
       ``(C) A detailed description of the analytical tools used to        
   determine civilian workforce requirements during the 12-month period    
   referred to in subparagraph (A).''.                                     
                    SEC. 1102. VETERANS' PREFERENCE STATUS FOR CERTAIN VETERANS   
          WHO SERVED ON ACTIVE DUTY DURING THE PERSIAN GULF WAR.                  
     (a) Definition of Veteran for Purposes of Preference Eligible        
  Status.--Section 2108 of title 5, United States Code, is amended--      
     (1) in paragraph (1)--                                                
     (A) by striking ``or'' at the end of subparagraph (A);                
     (B) by inserting ``or'' at the end of subparagraph (B); and           
       (C) by inserting after subparagraph (B) the following new           
   subparagraph:                                                           
       ``(C) served on active duty as defined by section 101(21) of title  
   38 in the armed forces during the period beginning on August 2, 1990,   
   and ending on January 2, 1992;''; and                                   
       (2) in paragraph (3)(B), by inserting ``or (C)'' after ``paragraph  
   (1)(B)''.                                                               
     (b) Additional Points.--Section 3309(2) of such title is amended by  
  striking ``2108(3)(A)'' and inserting ``2108(3)(A) (B)''.               
     (c) Technical Amendments.--Section 2108(1)(B) of such title is       
  further amended--                                                       
       (1) by striking ``the date of enactment of the Veterans' Education  
   and Employment Assistance Act of 1976,'' and inserting ``October 15,    
   1976,''; and                                                            
       (2) by striking ``511(d) of title 10'' and inserting ``12103(d) of  
   title 10''.                                                             
                    SEC. 1103. REPEAL OF DEADLINE FOR PLACEMENT CONSIDERATION OF  
          INVOLUNTARILY SEPARATED MILITARY RESERVE TECHNICIANS.                   
     (a) Repeal of Deadline.--Section 3329(b) of title 5, United States   
  Code, is amended by striking out ``not later than 6 months after the    
  date of the application''.                                              
     (b) Technical Correction.--Such section is further amended by        
  striking out ``a position described in subsection (c)'' the second place
  it appears.                                                             
                    SEC. 1104. RATE OF PAY OF DEPARTMENT OF DEFENSE OVERSEAS      
          TEACHERS UPON TRANSFER TO GENERAL SCHEDULE POSITION.                    
     (a) Prevention of Excessive Increases.--Section 5334(d) of title 5,  
  United States Code, is amended by striking out ``20 percent'' and all   
  that follows and inserting in lieu thereof ``an amount determined under 
  regulations which the Secretary of Defense shall prescribe for the      
  determination of the yearly rate of pay of the position. The amount by  
  which a rate of pay is increased under the regulations may not exceed   
  the amount equal to 20 percent of that rate of pay.''.                  
     (b) Effective Date and Savings Provision.--(1) The amendment made by 
  subsection (a) shall take effect 180 days after the date of the         
  enactment of this Act.                                                  
     (2) In the case of a person who is employed in a teaching position   
  referred to in section 5334(d) of title 5, United States Code, on the   
  day before the effective date under paragraph (1), the rate of pay of   
  that person determined under that section (as in effect on that day) may
  not be reduced by reason of the amendment made by subsection (a) for so 
  long as the person continues to serve in that position or another such  
  position without a break in service of more than three days on or after 
  that day.                                                               
          SEC. 1105. GARNISHMENT AND INVOLUNTARY ALLOTMENT.                       
    Section 5520a of title 5, United States Code, is amended--            
       (1) in subsection (j), by striking out paragraph (2) and inserting  
   in lieu thereof the following new paragraph:                            
     ``(2) Such regulations shall provide that an agency's administrative 
  costs in executing a garnishment action may be added to the garnishment,
  and that the agency may retain costs recovered as offsetting            
  collections.'';                                                         
     (2) in subsection (k)--                                               
     (A) by striking out paragraph (3); and                                
     (B) by redesignating paragraph (4) as paragraph (3); and              
     (3) by striking out subsection (l).                                   
                    SEC. 1106. EXTENSION AND REVISION OF VOLUNTARY SEPARATION     
          INCENTIVE PAY AUTHORITY.                                                
     (a) Remittance to CSRS Fund.--Section 5597 of title 5, United States 
  Code, is amended by adding at the end the following new subsection:     
     ``(h)(1)(A) In addition to any other payment that it is required to  
  make under subchapter III of chapter 83 or chapter 84, the Department of
  Defense shall remit to the Office of Personnel Management an amount     
  equal to 15 percent of the final basic pay of each covered employee.    
     ``(B) If the employee is one with respect to whom a remittance would 
  otherwise be required under section 4(a) of the Federal Workforce       
  Restructuring Act of 1994 based on the separation involved, the         
  remittance under this subsection shall be instead of the remittance     
  otherwise required under such section 4(a).                             
     ``(2) Amounts remitted under paragraph (1) shall be deposited in the 
  Treasury of the United States to the credit of the Civil Service        
  Retirement and Disability Fund.                                         
    ``(3) For the purposes of this subsection--                           
       ``(A) the term `covered employee' means an employee who is subject  
   to subchapter III of chapter 83 or chapter 84 and to whom a voluntary   
   separation incentive has been paid under this section on the basis of a 
   separation occurring on or after October 1, 1997; and                   
       ``(B) the term `final basic pay' has the meaning given such term in 
   section 4(a)(2) of the Federal Workforce Restructuring Act of 1994.''.  
     (b) Extension of Authority.--(1) Subsection (e) of section 5597 of   
  title 5, United States Code, is amended by striking out ``September 30, 
  1999'' and inserting in lieu thereof ``September 30, 2001''.            
     (2) Section 4436(d)(2) of the Defense Conversion, Reinvestment, and  
  Transition Assistance Act of 1992 (5 U.S.C. 8348 note) is amended by    
  striking out ``January 1, 2000'' and inserting in lieu thereof ``January
  1, 2002''.                                                              
                    SEC. 1107. USE OF APPROVED FIRE-SAFE ACCOMMODATIONS BY        
          GOVERNMENT EMPLOYEES ON OFFICIAL BUSINESS.                              
     (a) Percentage Use Requirement.--Section 5707a of title 5, United    
  States Code, is amended--                                               
       (1) by redesignating subsections (a) through (d) as subsections (b) 
   through (e), respectively; and                                          
       (2) by inserting after the section heading the following new        
   subsection:                                                             
     ``(a)(1) For the purpose of making payments under this chapter for   
  lodging expenses incurred in a State, each agency shall ensure that not 
  less than 90 percent of the commercial-lodging room nights for employees
  of that agency for a fiscal year are booked in approved places of public
  accommodation.                                                          
     ``(2) Each agency shall establish explicit procedures to satisfy the 
  percentage requirement of paragraph (1).                                
     ``(3) An agency shall be considered to be in compliance with the     
  percentage requirement of paragraph (1) until September 30, 2002, and   
  after that date if travel arrangements of the agency, whether made for  
  civilian employees, members of the uniformed services, or foreign       
  service personnel, are made through travel management processes designed
  to book commercial lodging in approved places of public accommodation,  
  whenever available.''.                                                  
     (b) Definitions.--Such section is further amended by adding at the   
  end the following new subsection:                                       
    ``(f) For purposes of this section:                                   
       ``(1) The term `agency' does not include the government of the      
   District of Columbia.                                                   
       ``(2) The term `approved places of public accommodation' means      
   hotels, motels, and other places of public accommodation that are listed
   by the Director of the Federal Emergency Management Agency as meeting   
   the requirements of the fire prevention and control guidelines described
   in section 29 of the Federal Fire Prevention and Control Act of 1974 (15
   U.S.C. 2225).                                                           
       ``(3) The term `State' means any State, the District of Columbia,   
   the Commonwealth of Puerto Rico, the Commonwealth of the Northern       
   Mariana Islands, the Trust Territory of the Pacific Islands, the Virgin 
   Islands, Guam, American Samoa, or any other territory or possession of  
   the United States.''.                                                   
    (c)  Conforming Amendments.--Such section is further amended--        
     (1) in subsection (b), as redesignated by subsection (a)(1)--         
       (A) by striking out ``places of public accommodation that meet the  
   requirements of the fire prevention and control guidelines described in 
   section 29 of the Federal Fire Prevention and Control Act of 1974'' and 
   inserting in lieu thereof ``approved places of public accommodation'';  
   and                                                                     
       (B) by striking out ``as defined in section 4 of the Federal Fire   
   Prevention and Control Act of 1974'';                                   
       (2) in subsection (c), as redesignated by subsection (a)(1), by     
   striking out ``does not meet the requirements of the fire prevention and
   control guidelines described in section 29 of the Federal Fire          
   Prevention and Control Act of 1974'' and inserting in lieu thereof ``is 
   not an approved place of public accommodation''; and                    
     (3) in subsection (e), as redesignated by subsection (a)(1)--         
       (A) by striking out ``encourage'' and inserting in lieu thereof     
   ``facilitate the ability of''; and                                      
       (B) by striking out ``places of public accommodation that meet the  
   requirements of the fire prevention and control guidelines described in 
   section 29 of the Federal Fire Prevention and Control Act of 1974'' and 
   inserting in lieu thereof ``approved places of public accommodation''.  
     (d) Report by Federal Emergency Management Agency.--Not later than   
  six months after the date of the enactment of this Act, the Director of 
  the Federal Emergency Management Agency shall submit to Congress a      
  report describing the procedures to be used to ensure that all approved 
  places of public accommodation (within the meaning of section           
  5707a(f)(2) of title 5, United States Code, as added by subsection (b)) 
  appear on the national master list maintained by the Director under     
  section 28(b) of the Federal Fire Prevention and Control Act of 1974 (15
  U.S.C. 2224(b)) of all of the places of public accommodation affecting  
  commerce located in each State that meet the requirements of the fire   
  prevention and control guidelines described in section 29 of such Act   
  (15 U.S.C. 2225).                                                       
     (e) Report on Implementation.--Not later than one year after the date
  of the enactment of this Act, the Administrator of General Services     
  shall submit to Congress a report describing the measures that have been
  taken and will be taken by Federal agencies to comply with the          
  requirement that not less than 90 percent of the commercial-lodging room
  nights for employees of each Federal agency for a fiscal year are booked
  in approved places of public accommodation, as specified in section     
  5707a(a) of title 5, United States Code, as added by subsection (a).    
  Measures to satisfy such requirement may include the use of contract    
  travel agents, automated booking systems, and data developed from travel
  payment systems. The Administrator shall prepare the report in          
  consultation with the heads of the Federal agencies subject to such     
  requirement.                                                            
                    SEC. 1108. NAVY HIGHER EDUCATION PILOT PROGRAM REGARDING      
          ADMINISTRATION OF BUSINESS RELATIONSHIPS BETWEEN GOVERNMENT AND PRIVATE 
          SECTOR.                                                                 
     (a) Pilot Project Authorized.--During fiscal years 1998 through 2002,
  the Secretary of the Navy may establish and conduct a pilot program of  
  graduate-level higher education regarding the administration of business
  relationships between the Government and the private sector.            
     (b) Purpose.--The purpose of the pilot program is to make available  
  to employees of the Naval Undersea Warfare Center, employees of the     
  Naval Sea Systems Command, and employees of the Acquisition Center for  
  Excellence of the Navy (upon establishment of such Acquisition Center), 
  a curriculum of graduate-level higher education leading to the award of 
  a graduate degree designed to prepare participants effectively to meet  
  the challenges of administering Government contracting and other        
  business relationships between the United States and private sector     
  businesses in the context of constantly changing or newly emerging      
  industries, technologies, governmental organizations, policies, and     
  procedures (including governmental organizations, policies, and         
  procedures recommended in the National Performance Review).             
     (c) Partnership With Institution of Higher Education.--(1) The       
  Secretary of the Navy may enter into an agreement with an institution of
  higher education to assist the Naval Undersea Warfare Center with the   
  development of the curriculum for the pilot program, to offer courses   
  and provide instruction and materials to participants to the extent     
  provided for in the agreement, to provide such other assistance in      
  support of the program as may be provided for in the agreement, and to  
  award a graduate degree under the program.                              
     (2) To be eligible to enter into an agreement under paragraph (1), an
  institution of higher education must have an established program of     
  graduate-level education that is relevant to the purpose of the pilot   
  program.                                                                
     (d) Curriculum.--The curriculum offered under the pilot program      
  shall--                                                                 
       (1) be designed specifically to achieve the purpose of the pilot    
   program; and                                                            
     (2) include courses that are--                                        
       (A) typically offered under curricula leading to award of the degree
   of Masters of Business Administration by institutions of higher         
   education; and                                                          
       (B) necessary for meeting educational qualification requirements for
   certification as an acquisition program manager.                        
     (e) Distance Learning Option.--The Secretary of the Navy may include 
  as part of the pilot program policies and procedures for offering       
  distance learning instruction by means of telecommunications,           
  correspondence, or other methods for off-site receipt of instruction.   
     (f) Report.--Not later than 90 days after the termination of the     
  pilot program, the Secretary of the Navy shall submit to Congress a     
  report containing--                                                     
       (1) an assessment by the Secretary of the value of the program for  
   meeting the purpose of the program and the desirability of permanently  
   establishing a similar program for other employees of the Department of 
   Defense; and                                                            
       (2) such other information and recommendations regarding the program
   as the Secretary considers appropriate.                                 
     (g) Limitation on Funding Source.--Any funds required for the pilot  
  program for a fiscal year shall be derived only from the appropriation  
  ``Operation and Maintenance, Navy'' for that fiscal year.               
                    SEC. 1109. AUTHORITY FOR MARINE CORPS UNIVERSITY TO EMPLOY    
          CIVILIAN FACULTY MEMBERS.                                               
     (a) Expanded Authority.--Subsections (a) and (c) of section 7478 of  
  title 10, United States Code, are amended by striking out ``at the      
  Marine Corps Command and Staff College'' and inserting in lieu thereof  
  ``of the Marine Corps University''.                                     
     (b) Clerical Amendments.--(1) The heading of such section is amended 
  to read as follows:                                                     
                    ``7478. Naval War College and Marine Corps University:        
          civilian faculty members''.                                             
     (2) The item relating to such section in the table of sections at the
  beginning of chapter 643 of such title is amended to read as follows:   
            ``7478. Naval War College and Marine Corps University: civilian   
      faculty members.''.                                                     
           TITLE XII--MATTERS RELATING TO OTHER NATIONS                            
              SUBTITLE A--UNITED STATES ARMED FORCES IN BOSNIA AND HERZEGOVINA    
      Sec. 1201. Findings.                                                    
      Sec. 1202. Sense of Congress.                                           
            Sec. 1203. Withdrawal of United States ground forces from Republic
      of Bosnia and Herzegovina.                                              
            Sec. 1204. Secretary of Defense reports on tasks carried out by   
      United States forces.                                                   
            Sec. 1205. Presidential report on situation in Republic of Bosnia 
      and Herzegovina.                                                        
      Sec. 1206. Definitions.                                                 
                  SUBTITLE B--EXPORT CONTROLS ON HIGH PERFORMANCE COMPUTERS       
      Sec. 1211. Export approvals for high performance computers.             
      Sec. 1212. Report on exports of high performance computers.             
            Sec. 1213. Post-shipment verification of export of high           
      performance computers.                                                  
            Sec. 1214. GAO study on certain computers; end user information   
      assistance.                                                             
      Sec. 1215. Congressional committees.                                    
                                  SUBTITLE C--OTHER MATTERS                       
      Sec. 1221. Defense burdensharing.                                       
            Sec. 1222. Temporary use of general purpose vehicles and nonlethal
      military equipment under acquisition and cross servicing agreements.    
            Sec. 1223. Sense of Congress and reports regarding financial costs
      of enlargement of the North Atlantic Treaty Organization.               
            Sec. 1224. Sense of Congress regarding enlargement of the North   
      Atlantic Treaty Organization.                                           
            Sec. 1225. Sense of the Congress relating to level of United      
      States military personnel in the East Asia and Pacific region.          
            Sec. 1226. Report on future military capabilities and strategy of 
      the People's Republic of China.                                         
            Sec. 1227. Sense of Congress on need for Russian openness on the  
      Yamantau Mountain project.                                              
            Sec. 1228. Assessment of the Cuban threat to United States        
      national security.                                                      
      Sec. 1229. Report on Helsinki Joint statement.                          
      Sec. 1230. Commendation of Mexico on free and fair elections.           
      Sec. 1231. Sense of Congress regarding Cambodia.                        
      Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.     
           Subtitle A--United States Armed Forces in Bosnia and Herzegovina        
          SEC. 1201. FINDINGS.                                                    
    The Congress finds the following:                                     
       (1) United States Armed Forces were deployed to the Republic of     
   Bosnia and Herzegovina as part of the North Atlantic Treaty Organization
   (NATO) Implementation Force (IFOR) to implement the military aspects of 
   the Dayton Peace Agreement.                                             
       (2) The military aspects of the Dayton Peace Agreement have been    
   successfully implemented to date with the military forces of the warring
   factions successfully separated and a cessation in the hostilities that 
   resulted in the deaths of hundreds of thousands of Bosnians.            
       (3) Implementation of the civil aspects of the Dayton Peace         
   Agreement has lagged far behind the schedule for such implementation    
   envisioned in the Agreement with the result that United States Armed    
   Forces have undertaken a prolonged engagement in the Republic of Bosnia 
   and Herzegovina.                                                        
       (4) On December 13, 1995, the President stated in a letter to       
   Congress, ``NATO and U.S. military commanders believe, and I expect,    
   that the military mission can be accomplished in about a year. Twelve   
   months will allow IFOR time to complete the military tasks assigned in  
   the Dayton agreement and to establish a secure environment, in which    
   political and economic reconstruction efforts by the parties and        
   international civilian agencies can take hold. Within one year, we      
   expect that the military provisions of the Dayton agreement will have   
   been carried out, implementation of the civilian aspects and economic   
   reconstruction will have been firmly launched, free elections will have 
   been held under international supervision and a stable military balance 
   will have been established.''                                           
       (5) Notwithstanding a number of assurances relating to the          
   accomplishment of the military mission in the Republic of Bosnia and    
   Herzegovina by December 1996, the President, on November 15, 1996,      
   announced his decision to extend the presence of United States forces in
   the Republic of Bosnia and Herzegovina to participate in the NATO       
   Stabilization Force (SFOR) until June 1998.                             
       (6) Despite initial projections by the Department of Defense that   
   the costs of United States operations in the Republic of Bosnia and     
   Herzegovina would total $1,500,000,000, the projected cost of United    
   States operations in the Republic of Bosnia and Herzegovina through June
   1998 is estimated to exceed $7,000,000,000.                             
       (7) The fiscal year 1998 estimate of the Department of Defense for  
   operations in the Republic of Bosnia and Herzegovina assumes that the   
   level of military forces participating in SFOR will be reduced soon     
   after the start of the fiscal year.                                     
       (8) The President and the Secretary of Defense have stated that     
   United States forces are to be withdrawn from the Republic of Bosnia and
   Herzegovina by the end of June 1998.                                    
          SEC. 1202. SENSE OF CONGRESS.                                           
    It is the sense of Congress that--                                    
       (1) United States ground combat forces should not participate in a  
   follow-on force in the Republic of Bosnia and Herzegovina after June    
   1998;                                                                   
       (2) the European Security and Defense Identity, which, as           
   facilitated by the Combined Joint Task Forces concept, enables the      
   Western European Union, with the consent of the North Atlantic Alliance,
   to assume political control and strategic direction of NATO assets made 
   available for the Alliance, may be an ideal instrument for a follow-on  
   force for the Republic of Bosnia and Herzegovina;                       
       (3) a NATO-led force without the participation of United States     
   ground combat forces in the Republic of Bosnia and Herzegovina may be   
   suitable for a follow-on force for the Republic of Bosnia and           
   Herzegovina if the European Security and Defense Identity is not        
   sufficiently developed or is otherwise considered inappropriate for such
   a mission;                                                              
       (4) the United States may decide to provide appropriate support to a
   Western European Union-led or NATO-led follow-on force, including       
   command and control, intelligence, logistics, and, if necessary, a ready
   reserve force in the region;                                            
       (5) the President should inform our European NATO allies of this    
   expression of the sense of Congress and should urge them strongly to    
   undertake preparations for a Western European Union-led or NATO-led     
   force as a follow-on force to the NATO-led SFOR if needed to maintain   
   peace and stability in the Republic of Bosnia and Herzegovina; and      
       (6) the President should consult with the Congress with respect to  
   any support to be provided to a Western European Union-led or NATO-led  
   follow-on force in the Republic of Bosnia and Herzegovina after June 30,
   1998.                                                                   
                    SEC. 1203. WITHDRAWAL OF UNITED STATES GROUND FORCES FROM     
          REPUBLIC OF BOSNIA AND HERZEGOVINA .                                    
     (a) Limitation.--No funds appropriated or otherwise made available   
  for the Department of Defense for fiscal year 1998 or any subsequent    
  fiscal year may be used for the deployment of any United States ground  
  combat forces in the Republic of Bosnia and Herzegovina after June 30,  
  1998, unless the President, not later than May 15, 1998, and after      
  consultation with the bipartisan leadership of the two Houses of        
  Congress, transmits to Congress a certification--                       
       (1) that the continued presence of United States ground combat      
   forces, after June 30, 1998, in the Republic of Bosnia and Herzegovina  
   is required in order to meet the national security interests of the     
   United States; and                                                      
       (2) that after June 30, 1998, it will remain United States policy   
   that United States ground forces will not serve as, or be used as, civil
   police in the Republic of Bosnia and Herzegovina.                       
     (b) Report.--The President shall submit with the certification under 
  subsection (a) a report that includes the following:                    
       (1) The reasons why that presence is in the national security       
   interest of the United States.                                          
       (2) The number of United States military personnel to be deployed in
   and around the Republic of Bosnia and Herzegovina and other areas of the
   former Yugoslavia after that date.                                      
     (3) The expected duration of any such deployment.                     
       (4) The mission and objectives of the United States Armed Forces to 
   be deployed in and around the Republic of Bosnia and Herzegovina and    
   other areas of the former Yugoslavia after June 30, 1998.               
     (5) The exit strategy of such forces.                                 
     (6) The incremental costs associated with any such deployment.        
       (7) The effect of such deployment on the morale, retention, and     
   effectiveness of United States armed forces.                            
       (8) A description of the forces from other nations involved in a    
   follow-on mission, shown on a nation-by-nation basis.                   
       (9) A description of the command and control arrangement established
   for United States forces involved in a follow-on mission.               
       (10) An assessment of the expected threats to United States forces  
   involved in a follow-on mission.                                        
       (11) The plan for rotating units and personnel to and from the      
   Republic of Bosnia and Herzegovina during a follow-on mission, including
   the level of participation by reserve component units and personnel.    
       (12) The mission statement and operational goals of the United      
   States forces involved in a follow-on mission.                          
     (c) Request for Supplemental Appropriations.--The President shall    
  transmit to Congress with a certification under subsection (a) a        
  supplemental appropriations request for the Department of Defense for   
  such amounts as are necessary for the costs of any continued deployment 
  beyond June 30, 1998.                                                   
     (d) Construction With President's Constitutional Authority.--Nothing 
  in this section shall be deemed to restrict the authority of the        
  President under the Constitution to protect the lives of United States  
  citizens.                                                               
     (e) Construction With Appropriations Provision.--The provisions of   
  this section are enacted, and shall be applied, as supplemental to (and 
  not in lieu of) the provisions of section 8132 of the Department of     
  Defense Appropriations Act, 1998 (Public Law 105 56).                   
                    SEC. 1204. SECRETARY OF DEFENSE REPORTS ON TASKS CARRIED OUT  
          BY UNITED STATES FORCES.                                                
     (a) Requirement for Two Reports.--The Secretary of Defense shall     
  submit to the congressional defense committees--                        
       (1) not later than December 15, 1997, a report identifying each     
   activity being carried out, as of December 1, 1997, by covered United   
   States forces in the Republic of Bosnia and Herzegovina; and            
       (2) not later than April 15, 1998, a report identifying each        
   activity being carried out, as of April 1, 1998, by covered United      
   States forces in the Republic of Bosnia and Herzegovina.                
     (b) Covered United States Forces.--For purposes of this section,     
  covered United States forces in the Republic of Bosnia and Herzegovina  
  are United States ground forces in the Republic of Bosnia and           
  Herzegovina that are assigned to the multinational peacekeeping force   
  known as the Stabilization Force (SFOR) or any other multinational      
  peacekeeping force that is the successor to the SFOR.                   
     (c) Matters To Be Included.--The Secretary shall include in each     
  report under subsection (a), for each activity identified under that    
  subsection, the following:                                              
       (1) The number of United States military personnel involved in the  
   performance of that activity.                                           
       (2) Whether forces assigned to the SFOR (or successor multinational 
   peacekeeping force) from other nations also participated in that        
   activity.                                                               
       (3) The justification for using military forces rather than civilian
   organizations to perform that activity.                                 
       (4) In the case of activities that (as determined by the Secretary) 
   are considered to be supporting tasks, as that term is used in paragraph
   3 of Article VI of Annex 1-A to the General Framework Agreement for     
   Peace in Bosnia and Herzegovina, the justification for using military   
   forces.                                                                 
       (5) The likelihood that each such activity will have to be carried  
   out by United States military forces after June 30, 1998.               
                    SEC. 1205. PRESIDENTIAL REPORT ON SITUATION IN REPUBLIC OF    
          BOSNIA AND HERZEGOVINA.                                                 
     (a) Requirement.--Not later than February 1, 1998, the President     
  shall submit to Congress a report on the political and military         
  conditions in the Republic of Bosnia and Herzegovina. The report shall  
  be submitted in both classified and unclassified form.                  
     (b) Matters To Be Included.--The report under subsection (a) shall   
  include a discussion of the following:                                  
       (1) An assessment of the progress made in implementing the civil,   
   economic, and political aspects of the Dayton Peace Agreement.          
       (2) An identification of the specific steps taken to transfer the   
   United States portion of the peacekeeping mission in the Republic of    
   Bosnia and Herzegovina to forces of the member-states of the Western    
   European Union or to a NATO-led force without the participation of      
   United States ground combat forces in the Republic of Bosnia and        
   Herzegovina.                                                            
       (3) A detailed discussion of the proposed role and involvement of   
   the United States in supporting peacekeeping activities in the Republic 
   of Bosnia and Herzegovina following the withdrawal of United States     
   ground combat forces from the Republic of Bosnia and Herzegovina.       
       (4) A detailed explanation and timetable for carrying out the       
   commitment to withdraw all United States ground forces from the Republic
   of Bosnia and Herzegovina by June 30, 1998, including the planned date  
   of commencement and completion of the withdrawal.                       
       (5) The military and political considerations that will affect the  
   decision to carry out such a transition.                                
       (6) Any plan to maintain or expand other Bosnia-related operations  
   (such as the operations designated as Operation Deliberate Guard) if    
   tensions in the Republic of Bosnia and Herzegovina remain sufficient to 
   delay reductions of United States military forces participating in the  
   Stabilization Force and the estimated cost associated with each such    
   operation.                                                              
          SEC. 1206. DEFINITIONS.                                                 
    As used in this subtitle:                                             
       (1) Dayton peace agreement.--The term ``Dayton Peace Agreement''    
   means the General Framework Agreement for Peace in Bosnia and           
   Herzegovina, initialed by the parties in Dayton, Ohio, on November 21,  
   1995, and signed in Paris on December 14, 1995.                         
       (2) Implementation force.--The term ``Implementation Force'' means  
   the NATO-led multinational military force in the Republic of Bosnia and 
   Herzegovina (commonly referred to as ``IFOR''), authorized under the    
   Dayton Peace Agreement.                                                 
       (3) Stabilization force.--The term ``Stabilization Force'' means the
   NATO-led follow-on force to the Implementation Force in the Republic of 
   Bosnia and Herzegovina and other countries in the region (commonly      
   referred to as ``SFOR''), authorized under United Nations Security      
   Council Resolution 1088 (December 12, 1996).                            
       (4) Follow-on mission.--The term ``follow-on mission'' means a      
   mission involving the deployment of ground elements of the United States
   Armed Forces in the Republic of Bosnia and Herzegovina after June 30,   
   1998 (other than as described in section 1203(b)).                      
       (5) NATO.--The term ``NATO'' means the North Atlantic Treaty        
   Organization.                                                           
           Subtitle B--Export Controls on High Performance Computers               
          SEC. 1211. EXPORT APPROVALS FOR HIGH PERFORMANCE COMPUTERS.             
     (a) Prior Approval of Exports and Reexports.--The President shall    
  require that no digital computer with a composite theoretical           
  performance level of more than 2,000 millions of theoretical operations 
  per second (MTOPS) or with such other composite theoretical performance 
  level as may be established subsequently by the President under         
  subsection (d), may be exported or reexported without a license to a    
  country specified in subsection (b) if the Secretary of Commerce, the   
  Secretary of Defense, the Secretary of Energy, the Secretary of State,  
  or the Director of the Arms Control and Disarmament Agency objects, in  
  writing, to such export or reexport. Any person proposing to export or  
  reexport such a digital computer shall so notify the Secretary of       
  Commerce, who, within 24 hours after receiving the notification, shall  
  transmit the notification to the Secretary of Defense, the Secretary of 
  Energy, the Secretary of State, and the Director of the Arms Control and
  Disarmament Agency.                                                     
     (b) Covered Countries.--For purposes of subsection (a), the countries
  specified in this subsection are the countries listed as ``Computer Tier
  3'' eligible countries in section 740.7(d) of title 15 of the Code of   
  Federal Regulations, as in effect on June 10, 1997, subject to          
  modification by the President under subsection (e).                     
     (c) Time Limit.--Written objections under subsection (a) to an export
  or reexport shall be raised within 10 days after the notification is    
  received under subsection (a). If such a written objection to the export
  or reexport of a computer is raised, the computer may be exported or    
  reexported only pursuant to a license issued by the Secretary of        
  Commerce under the Export Administration Regulations of the Department  
  of Commerce, without regard to the licensing exceptions otherwise       
  authorized under section 740.7 of title 15 of the Code of Federal       
  Regulations, as in effect on June 10, 1997. If no objection is raised   
  within the 10-day period, the export or reexport is authorized.         
     (d) Adjustment of Composite Theoretical Performance.--The President, 
  in consultation with the Secretary of Commerce, the Secretary of        
  Defense, the Secretary of Energy, the Secretary of State, and the       
  Director of the Arms Control and Disarmament Agency, may establish a new
  composite theoretical performance level for purposes of subsection (a). 
  Such new level shall not take effect until 180 days after the President 
  submits to the congressional committees designated in section 1215 a    
  report setting forth the new composite theoretical performance level and
  the justification for such new level. Each report shall, at a minimum-- 
       (1) address the extent to which high performance computers of a     
   composite theoretical level between the level established in subsection 
   (a) or such level as has been previously adjusted pursuant to this      
   section and the new level, are available from other countries;          
       (2) address all potential uses of military significance to which    
   high performance computers at the new level could be applied; and       
       (3) assess the impact of such uses on the national security         
   interests of the United States.                                         
    (e)  Adjustment of Covered Countries.--                               
       (1) In general.--The President, in consultation with the Secretary  
   of Commerce, the Secretary of Defense, the Secretary of Energy, the     
   Secretary of State, and the Director of the Arms Control and Disarmament
   Agency, may add a country to or remove a country from the list of       
   covered countries in subsection (b), except that a country may be       
   removed from the list only in accordance with paragraph (2).            
       (2) Deletions from list of covered countries.--The removal of a     
   country from the list of covered countries under subsection (b) shall   
   not take effect until 120 days after the President submits to the       
   congressional committees designated in section 1215 a report setting    
   forth the justification for the deletion.                               
       (3) Excluded countries.--A country may not be removed from the list 
   of covered countries under subsection (b) if--                          
       (A) the country is a ``nuclear-weapon state'' (as defined by Article
   IX of the Treaty on the Non-Proliferation of Nuclear Weapons) and the   
   country is not a member of the North Atlantic Treaty Organization; or   
       (B) the country is not a signatory of the Treaty on the             
   Non-Proliferation of Nuclear Weapons and the country is listed on Annex 
   2 to the Comprehensive Nuclear Test-Ban Treaty.                         
     (f) Classification.--Each report under subsections (d) and (e) shall 
  be submitted in an unclassified form and may, if necessary, have a      
  classified supplement.                                                  
          SEC. 1212. REPORT ON EXPORTS OF HIGH PERFORMANCE COMPUTERS.             
     (a) Report.--Not later than 60 days after the date of the enactment  
  of this Act, the President shall provide to the congressional committees
  specified in section 1215 a report identifying all exports of digital   
  computers with a composite theoretical performance of more than 2,000   
  millions of theoretical operations per second (MTOPS) to all countries  
  since January 25, 1996. For each export, the report shall identify--    
       (1) whether an export license was applied for and whether one was   
   granted;                                                                
     (2) the date of the transfer of the computer;                         
     (3) the United States manufacturer and exporter of the computer;      
     (4) the MTOPS level of the computer; and                              
     (5) the recipient country and end user.                               
     (b) Additional Information on Exports to Certain Countries.--In the  
  case of exports to countries specified in subsection (c), the report    
  under subsection (a) shall identify the intended end use for the        
  exported computer and the assessment                                    
                    by the executive branch of whether the end user is a military 
          end user or an end user involved in activities relating to nuclear,     
          chemical, or biological weapons or missile technology. Information      
          provided under this subsection may be submitted in classified form if   
          necessary.                                                              
     (c) Covered Countries.--For purposes of subsection (b), the countries
  specified in this subsection are--                                      
       (1) the countries listed as ``Computer Tier 3'' eligible countries  
   in section 740.7(d) of title 15 of the Code of Federal Regulations, as  
   in effect on June 10, 1997; and                                         
       (2) the countries listed in section 740.7(e) of title 15 of the Code
   of Federal Regulations, as in effect on June 10, 1997.                  
                    SEC. 1213. POST-SHIPMENT VERIFICATION OF EXPORT OF HIGH       
          PERFORMANCE COMPUTERS.                                                  
     (a) Required Post-Shipment Verification.--The Secretary of Commerce  
  shall conduct post-shipment verification of each digital computer with a
  composite theoretical performance of more than 2,000 millions of        
  theoretical operations per second (MTOPS) that is exported from the     
  United States, on or after the date of the enactment of this Act, to a  
  country specified in subsection (b).                                    
     (b) Covered Countries.--For purposes of subsection (a), the countries
  specified in this subsection are the countries listed as ``Computer Tier
  3'' eligible countries in section 740.7 of title 15 of the Code of      
  Federal Regulations, as in effect on June 10, 1997, subject to          
  modification by the President under section 1211(e).                    
     (c) Annual Report.--The Secretary of Commerce shall submit to the    
  congressional committees specified in section 1215 an annual report on  
  the results of post-shipment verifications conducted under this section 
  during the preceding year. Each such report shall include a list of all 
  such items exported from the United States to such countries during the 
  previous year and, with respect to each such export, the following:     
     (1) The destination country.                                          
     (2) The date of export.                                               
     (3) The intended end use and intended end user.                       
     (4) The results of the post-shipment verification.                    
     (d) Explanation When Verification Not Conducted.--If a post-shipment 
  verification has not been conducted in accordance with subsection (a)   
  with respect to any such export during the period covered by a report,  
  the Secretary shall include in the report for that period a detailed    
  explanation of the reasons why such a post-shipment verification was not
  conducted.                                                              
                    SEC. 1214. GAO STUDY ON CERTAIN COMPUTERS; END USER           
          INFORMATION ASSISTANCE.                                                 
     (a) In General.--The Comptroller General of the United States shall  
  submit to the congressional committees specified in section 1215 a study
  of the national security risks relating to the sale of computers with a 
  composite theoretical performance of between 2,000 and 7,000 millions of
  theoretical operations per second (MTOPS) to end users in countries     
  specified in subsection (c). The study shall also analyze any foreign   
  availability of computers described in the preceding sentence and the   
  impact of such sales on United States exporters.                        
     (b) End User Information Assistance to Exporters.--The Secretary of  
  Commerce shall establish a procedure by which exporters may seek        
  information on questionable end users in countries specified in         
  subsection (c) who are seeking to obtain computers described in         
  subsection (a).                                                         
     (c) Covered Countries.--For purposes of subsections (a) and (b), the 
  countries specified in this subsection are the countries listed as      
  ``Computer Tier 3'' eligible countries in section 740.7(d) of title 15  
  of the Code of Federal Regulations, as in effect on June 10, 1997.      
          SEC. 1215. CONGRESSIONAL COMMITTEES.                                    
     For purposes of sections 1211(d), 1212(a), 1213(c), and 1214(a) the  
  congressional committees specified in those sections are the following: 
       (1) The Committee on Banking, Housing, and Urban Affairs and the    
   Committee on Armed Services of the Senate.                              
       (2) The Committee on International Relations and the Committee on   
   National Security of the House of Representatives.                      
           Subtitle C--Other Matters                                               
          SEC. 1221. DEFENSE BURDENSHARING.                                       
     (a) Efforts To Increase Allied Burdensharing.--The President shall   
  seek to have each nation that has cooperative military relations with   
  the United States (including security agreements, basing arrangements,  
  or mutual participation in multinational military organizations or      
  operations) take one or more of the following actions:                  
       (1) For any nation in which United States military personnel are    
   assigned to permanent duty ashore, increase its financial contributions 
   to the payment of the nonpersonnel costs incurred by the United States  
   Government for stationing United States military personnel in that      
   nation, with a goal of achieving by September 30, 2000, 75 percent of   
   such costs. An increase in financial contributions by any nation under  
   this paragraph may include the elimination of taxes, fees, or other     
   charges levied on United States military personnel, equipment, or       
   facilities stationed in that nation.                                    
       (2) Increase its annual budgetary outlays for national defense as a 
   percentage of its gross domestic product by 10 percent or at least to a 
   level commensurate that of the United States by September 30, 1998.     
       (3) Increase its annual budgetary outlays for foreign assistance (to
   promote democratization, economic stabilization, transparency           
   arrangements, defense economic conversion, respect for the rule of law, 
   and internationally recognized human rights) by 10 percent or at least  
   to a level commensurate to that of the United States by September 30,   
   1998.                                                                   
       (4) Increase the amount of military assets (including personnel,    
   equipment, logistics, support and other resources) that it contributes, 
   or would be prepared to contribute, to multinational military activities
   worldwide.                                                              
     (b) Authorities To Encourage Actions by United States Allies.--In    
  seeking the actions described in subsection (a) with respect to any     
  nation, or in response to a failure by any nation to undertake one or   
  more of such actions, the President may take any of the following       
  measures to the extent otherwise authorized by law:                     
       (1) Reduce the end strength level of members of the Armed Forces    
   assigned to permanent duty ashore in that nation.                       
       (2) Impose on that nation fees or other charges similar to those    
   that such nation imposes on United States forces stationed in that      
   nation.                                                                 
       (3) Reduce (through rescission, impoundment, or other appropriate   
   procedures as authorized by law) the amount the United States           
   contributes to the NATO Civil Budget, Military Budget, or Security      
   Investment Program.                                                     
       (4) Suspend, modify, or terminate any bilateral security agreement  
   the United States has with that nation, consistent with the terms of    
   such agreement.                                                         
       (5) Reduce (through rescission, impoundment or other appropriate    
   procedures as authorized by law) any United States bilateral assistance 
   appropriated for that nation.                                           
       (6) Take any other action the President determines to be appropriate
   as authorized by law.                                                   
     (c) Report on Progress in Increasing Allied Burdensharing.--Not later
  than March 1, 1998, the Secretary of Defense shall submit to Congress a 
  report on--                                                             
       (1) steps taken by other nations to complete the actions described  
   in subsection (a);                                                      
       (2) all measures taken by the President, including those authorized 
   in subsection (b), to achieve the actions described in subsection (a);  
       (3) the difference between the amount allocated by other nations for
   each of the actions described in subsection (a) during the period       
   beginning on March 1, 1996,                                             
                    and ending on February 28, 1997, and during the period        
          beginning on March 1, 1997, and ending on February 28, 1998; and        
       (4) the budgetary savings to the United States that are expected to 
   accrue as a result of the steps described under paragraph (1).          
     (d) Report on National Security Bases for Forward Deployment and     
  Burdensharing Relationships.--(1) In order to ensure the best allocation
  of budgetary resources, the President shall undertake a review of the   
  status of elements of the United States Armed Forces that are           
  permanently stationed outside the United States. The review shall       
  include an assessment of the following:                                 
       (A) The alliance requirements that are to be found in agreements    
   between the United States and other countries.                          
       (B) The national security interests that support permanently        
   stationing elements of the United States Armed Forces outside the United
   States.                                                                 
       (C) The stationing costs associated with the forward deployment of  
   elements of the United States Armed Forces.                             
       (D) The alternatives available to forward deployment (such as       
   material prepositioning, enhanced airlift and sealift, or joint training
   operations) to meet such alliance requirements or national security     
   interests, with such alternatives identified and described in detail.   
       (E) The costs and force structure configurations associated with    
   such alternatives to forward deployment.                                
       (F) The financial contributions that allies of the United States    
   make to common defense efforts (to promote democratization, economic    
   stabilization, transparency arrangements, defense economic conversion,  
   respect for the rule of law, and internationally recognized human       
   rights).                                                                
       (G) The contributions that allies of the United States make to      
   meeting the stationing costs associated with the forward deployment of  
   elements of the United States Armed Forces.                             
       (H) The annual expenditures of the United States and its allies on  
   national defense, and the relative percentages of each nation's gross   
   domestic product constituted by those expenditures.                     
     (2) The President shall submit to Congress a report on the review    
  under paragraph (1). The report shall be submitted not later than March 
  1, 1998, in classified and unclassified form.                           
                    SEC. 1222. TEMPORARY USE OF GENERAL PURPOSE VEHICLES AND      
          NONLETHAL MILITARY EQUIPMENT UNDER ACQUISITION AND CROSS SERVICING      
          AGREEMENTS.                                                             
     Section 2350(1) of title 10, United States Code, is amended by       
  striking out ``other items'' in the second sentence and all that follows
  through ``United States Munitions List'' and inserting in lieu thereof  
  ``other nonlethal items of military equipment which are not designated  
  as significant military equipment on the United States Munitions List   
  promulgated''.                                                          
                    SEC. 1223. SENSE OF CONGRESS AND REPORTS REGARDING FINANCIAL  
          COSTS OF ENLARGEMENT OF THE NORTH ATLANTIC TREATY ORGANIZATION.         
    (a)  Findings.--Congress finds the following:                         
       (1) In a report to Congress in February 1997 on the rationale,      
   benefits, costs, and implications of North Atlantic Treaty Organization 
   enlargement the Secretary of Defense estimated that the financial cost  
   to the United States of such enlargement will be modest, totaling       
   between $2,000,000,000 and $2,600,000,000 for the period from 1997      
   through 2009.                                                           
       (2) A study by the RAND Corporation published in 1996 calculated    
   that the total financial cost to the United States of such enlargement  
   will be between $5,000,000,000 and $6,000,000,000 over the same period. 
       (3) A March 1996 report by the Congressional Budget Office on the   
   financial costs of enlarging the North Atlantic Treaty Organization     
   alliance estimated the United States share of alliance enlargement costs
   to be between                                                           
                    $4,800,000,000 and $18,900,000,000 through 2010, depending    
          upon political developments in Europe.                                  
       (4) An August 1997 report by the General Accounting Office reviewing
   the financial cost estimates of the Secretary of Defense concluded that 
   North Atlantic Treaty Organization enlargement could entail additional  
   costs beyond those included in the Secretary's estimate and questioned  
   the validity of the Secretary's estimate due to the lack of supporting  
   cost documentation and the inclusion of cost elements not related to    
   NATO enlargement.                                                       
       (5) The North Atlantic Alliance is scheduled to complete its        
   analysis of the military requirements for the integration of Poland, the
   Czech Republic, and Hungary into the Alliance in December 1997.         
       (6) The North Atlantic Alliance is also scheduled to complete in    
   December 1997 its financial cost estimate of the military requirements  
   related to the integration of those nations.                            
     (b) Sense of Congress.--It is the sense of Congress that the analysis
  of the North Atlantic Alliance of the military requirements relating to 
  NATO enlargement and of the financial costs to the Alliance of NATO     
  enlargement will be one of the major factors in the consideration by the
  Senate of the ratification of instruments to approve the admission of   
  new member nations to the Alliance and by Congress for the authorization
  and appropriation of the funding for the costs associated with such     
  enlargement.                                                            
     (c) Report Assessing NATO Cost Analysis.--Not later than March 31,   
  1998, the Secretary of Defense shall submit to Congress a report        
  providing--                                                             
       (1) an assessment of the analysis by the North Atlantic Alliance of 
   the military requirements related to NATO enlargement and of the        
   estimate of the financial costs to the NATO Alliance for the integration
   of Poland, the Czech Republic, and Hungary into the Alliance;           
       (2) a description of the analytical means used to determine such    
   requirements and costs; and                                             
       (3) a general assessment of the additional military requirements and
   costs that would result from a significantly increased threat.          
     (b) Report on Department of Defense Costs.--(1) The Secretary of     
  Defense shall submit to Congress, in conjunction with the submission of 
  the President's budget for fiscal year 1999, a report on Department of  
  Defense costs for NATO enlargement. The report shall include a detailed 
  estimate of such costs for fiscal year 1998 that identifies all         
  appropriations, by budget activity, for the military departments and    
  other elements of the Department of Defense to support NATO enlargement.
     (2) The Secretary of Defense shall include in the budget             
  justification materials submitted to Congress by the Secretary in       
  support of the budget of Department of Defense for fiscal year 1999     
  complete and detailed descriptions and estimates of the amounts provided
  in that budget for the costs of NATO enlargement.                       
                    SEC. 1224. SENSE OF CONGRESS REGARDING ENLARGEMENT OF THE     
          NORTH ATLANTIC TREATY ORGANIZATION.                                     
    (a)  Findings.--Congress makes the following findings:                
       (1) The North Atlantic Treaty Organization (NATO) met on July 8 and 
   9, 1997, in Madrid, Spain, and issued invitations to the Czech Republic,
   Hungary, and Poland to begin accession talks to join NATO.              
       (2) Congress has expressed its support for the process of NATO      
   enlargement by approving the NATO Enlargement Facilitation Act of 1996  
   (title VI of the matter enacted in section 101(c) of division A of      
   Public Law 104 208; 22 U.S.C. 1928 note).                               
       (3) The United States has supported the position that the process of
   enlarging NATO will continue after the first round of invitations in    
   July 1997.                                                              
       (4) Romania and Slovenia are to be commended for their progress     
   toward political and economic reform and                                
                    appear to be striving to meet the guidelines for prospective  
          membership in NATO.                                                     
       (5) In furthering the purpose and objective of NATO in promoting    
   stability and well-being in the North Atlantic area, NATO should invite 
   Romania and Slovenia to accession negotiations to become NATO members as
   expeditiously as possible upon the satisfaction of all relevant         
   membership criteria and consistent with NATO security objectives.       
     (b) Sense of Congress.--It is the sense of Congress that North       
  Atlantic Treaty Organization should be commended--                      
       (1) for having committed to review the process of enlarging the     
   Organization in 1999; and                                               
       (2) for singling out the positive developments toward democracy and 
   rule of law in Romania and Slovenia.                                    
                    SEC. 1225. SENSE OF CONGRESS RELATING TO LEVEL OF UNITED      
          STATES MILITARY PERSONNEL IN THE EAST ASIA AND PACIFIC REGION.          
    (a)  Findings.--Congress finds the following:                         
       (1) The stability of the Asia-Pacific region is a matter of vital   
   national interest affecting the well-being of all Americans.            
       (2) The nations of the Pacific Rim collectively represent the United
   States largest trading partner and are expected to account for almost   
   one-third of the world's economic activity by the start of the next     
   century.                                                                
       (3) The increased reliance by the United States on trade and Middle 
   East oil sources has reinforced United States security interests in the 
   Southeast Asia shipping lanes through the South China Sea and the key   
   straits of Malacca, Sunda, Lombok, and Makassar.                        
       (4) The South China Sea is an important area for United States Navy 
   ships passing from the Pacific to the Indian Ocean and the Persian Gulf.
       (5) Maintaining freedom of navigation in the South China Sea is an  
   important interest of the United States.                                
       (6) The threats of proliferation of weapons of mass destruction, the
   emerging nationalism amidst long-standing ethnic and national rivalries,
   and the unresolved territorial disputes combine to create a political   
   landscape of potential instability and conflict in this region that     
   could jeopardize the interests of the United States and the safety of   
   United States nationals.                                                
       (7) A critical component of the East Asia strategy of the United    
   States is maintaining forward deployed forces in Asia to ensure broad   
   regional stability, to help to deter aggression, to lessen the pressure 
   for arms races, and to contribute to the political and economic advances
   of the region from which the United States benefits.                    
       (8) The forward presence of the United States in Northeast Asia     
   enables the United States to respond to regional contingencies, to      
   protect sea lines of communication, to sustain influence, and to support
   operations as distant as operations in the Persian Gulf.                
       (9) The military forces of the United States serve to prevent the   
   political or economic control of the Asia-Pacific region by a rival,    
   hostile power or coalition of such powers, thus preventing any such     
   group from obtaining control over the vast resources, enormous wealth,  
   and advanced technology of the region.                                  
       (10) Allies of the United States in the region can base their       
   defense planning on a reliable American security commitment, a reduction
   of which could stimulate an arms buildup in the region.                 
       (11) The Joint Announcement of the United States-Japan Security     
   Consultative Committee of December 1996, acknowledged that ``the forward
   presence of U.S. forces continues to be an essential element for        
   pursuing our common security objectives''.                              
       (12) The United States and Japan signed the United States-Japan     
   Security Declaration in April 1996, in which the United States          
   reaffirmed its commitment to maintain                                   
          this level of 100,000 United States military personnel in the region.   
       (13) The United States military presence is recognized by the       
   nations of the region as serving stability and enabling United States   
   engagement.                                                             
       (14) The nations of East Asia and the Pacific consider the          
   commitment of the forces of the United States to be so vital to their   
   future that they scrutinize actions of the United States for any sign of
   weakened commitment to the security of the region.                      
       (15) The reduction of forward-based military forces could negatively
   affect the ability of the United States to contribute to the maintenance
   of peace and stability of the Asia and Pacific region.                  
       (16) Recognizing that while the United States must consider the     
   overall capabilities of its forces in its decisions to deploy troops,   
   nevertheless any reduction in the number of forward-based troops may    
   reduce the perception of American capability and commitment in the      
   region that cannot be completely offset by modernization of the         
   remaining forces.                                                       
       (17) During time of crisis, deployment of forces to East Asia, even 
   though such forces were previously removed from the area, might be      
   deemed to be an act of provocation that could be used as a pretext by a 
   hostile power for armed aggression within the region, and the existence 
   of that possibility might hinder such a deployment.                     
       (18) Proposals to reduce the forward presence of the United States  
   in the East Asia region or subordinate security interests to United     
   States domestic budgetary concerns can erode the perception of the      
   commitment of the United States to its alliances and interests in the   
   region.                                                                 
     (b) Sense of Congress.--It is the sense of Congress that the United  
  States should maintain at least approximately 100,000 United States     
  military personnel in the East Asia and Pacific region until such time  
  as there is a peaceful and permanent resolution to the major security   
  and political conflicts in the region.                                  
                    SEC. 1226. REPORT ON FUTURE MILITARY CAPABILITIES AND STRATEGY
          OF THE PEOPLE'S REPUBLIC OF CHINA.                                      
     (a) Report.--The Secretary of Defense shall prepare a report, in both
  classified and unclassified form, on the pattern of military            
  modernization of the People's Republic of China. The report shall       
  address the probable course of military-technological development in the
  People's Liberation Army and the development of Chinese security        
  strategy and military strategy, and of military organizations and       
  operational concepts, through 2015.                                     
     (b) Matters To Be Included.--The report shall include analyses and   
  forecasts of the following:                                             
     (1) The goals of Chinese security strategy and military strategy.     
       (2) Trends in Chinese strategy regarding the political goals of the 
   People's Republic of China in the Asia-Pacific region and its political 
   and military presence in other regions of the world, including Central  
   Asia, Southwest Asia, Europe, and Latin America.                        
       (3) Developments in Chinese military doctrine, focusing on (but not 
   limited to) efforts to exploit an emerging Revolution in Military       
   Affairs or to conduct preemptive strikes.                               
       (4) Efforts by the People's Republic of China to enhance its        
   capabilities in the area of nuclear weapons development.                
       (5) Efforts by the People's Republic of China to develop long-range 
   air-to-air or air defense missiles that would provide the capability to 
   target special support aircraft such as Airborne Warning and Control    
   System (AWACS) aircraft, Joint Surveillance and Target Attack Radar     
   System (JSTARS) aircraft, or other command and control, intelligence,   
   airborne early warning, or electronic warfare aircraft.                 
       (6) Efforts by the People's Republic of China to develop a          
   capability to conduct ``information warfare'' at the strategic,         
   operational, and tactical levels of war.                                
       (7) Development by the People's Republic of China of capabilities in
   the area of electronic warfare.                                         
       (8) Efforts by the People's Republic of China to develop a          
   capability to establish control of space or to deny access and use of   
   military and commercial space systems in times of crisis or war,        
   including programs to place weapons in space or to develop earth-based  
   weapons capable of attacking space-based systems.                       
       (9) Trends that would lead the People's Republic of China toward the
   development of advanced intelligence, surveillance, and reconnaissance  
   capabilities, including gaining access to commercial or third-party     
   systems with military significance.                                     
       (10) Efforts by the People's Republic of China to develop highly    
   accurate and stealthy ballistic and cruise missiles, including          
   sea-launched cruise missiles, particularly in numbers sufficient to     
   conduct attacks capable of overwhelming projected defense capabilities  
   in the Asia-Pacific region.                                             
       (11) Development by the People's Republic of China of command and   
   control networks, particularly those capable of battle management of    
   long-range precision strikes.                                           
       (12) Efforts by the People's Republic of China in the area of       
   telecommunications, including common channel signaling and synchronous  
   digital hierarchy technologies.                                         
       (13) Development by People's Republic of China of advanced aerospace
   technologies with military applications (including gas turbine ``hot    
   section'' technologies).                                                
       (14) Programs of the People's Republic of China involving unmanned  
   aerial vehicles, particularly those with extended ranges or loitering   
   times or potential strike capabilities.                                 
       (15) Exploitation by the People's Republic of China for military    
   purposes of the Global Positioning System or other similar systems      
   (including commercial land surveillance satellites), with such analysis 
   and forecasts focusing particularly on indications of an attempt to     
   increase the accuracy of weapons or situational awareness of operating  
   forces.                                                                 
       (16) Development by the People's Republic of China of capabilities  
   for denial of sea control, including such systems as advanced sea mines,
   improved submarine capabilities, or land-based sea-denial systems.      
       (17) Efforts by the People's Republic of China to develop its       
   anti-submarine warfare capabilities.                                    
       (18) Continued development by the People's Republic of China of     
   follow-on forces, particularly forces capable of rapid air or amphibious
   assault.                                                                
       (19) Efforts by the People's Republic of China to enhance its       
   capabilities in such additional areas of strategic concern as the       
   Secretary identifies.                                                   
     (c) Analysis of Implications of Sales of Products and Technologies to
  Entities in China.--The report under subsection (a) shall include, with 
  respect to each area for analyses and forecasts specified in subsection 
  (b)--                                                                   
       (1) an assessment of the military effects of sales of United States 
   and foreign products and technologies to entities in the People's       
   Republic of China; and                                                  
       (2) the potential threat of developments related to such effects to 
   United States strategic interests.                                      
     (d) Submission of Report.--The report shall be submitted to Congress 
  not later than March 15, 1998.                                          
                    SEC. 1227. SENSE OF CONGRESS ON NEED FOR RUSSIAN OPENNESS ON  
          THE YAMANTAU MOUNTAIN PROJECT.                                          
    (a)  Findings.--Congress finds as follows:                            
       (1) The United States and Russia have been working since the end of 
   the Cold War to achieve a strategic relationship based on cooperation   
   and openness between the two nations.                                   
       (2) This effort to establish a new strategic relationship between   
   the two nations has resulted in the conclusion or agreement in principle
   on a number of far-reaching agreements, including START I, II, and III, 
   a revision in the Conventional Forces in Europe Treaty, and a series of 
   other agreements (such as the Comprehensive Test Ban Treaty and the     
   Chemical Weapons Convention), designed to further reduce bilateral      
   threats and limit the proliferation of weapons of mass destruction.     
       (3) These far-reaching agreements were based on the understanding   
   between the United States and Russia that there would be a good faith   
   effort on both sides to comply with the letter and spirit of the        
   agreements.                                                             
       (4) Reports indicate that Russia has been pursuing construction of a
   massive underground facility of unknown purpose at Yamantau Mountain and
   the city of Mezhgorye (formerly the settlements of Beloretsk 15 and     
   Beloretsk 16) that is designed to survive a nuclear war and appears to  
   exceed reasonable defense requirements.                                 
       (5) The Yamantau Mountain project does not appear to be consistent  
   with the lowering of strategic threats, openness, and cooperation that  
   is the basis of the post-Cold War strategic partnership between the     
   United States and Russia.                                               
       (6) The United States has allowed senior Russian military and       
   government officials to have access to key strategic facilities of the  
   United States by providing tours of the North American Air Defense      
   (NORAD) command at Cheyenne Mountain and the United States Strategic    
   Command (STRATCOM) headquarters in Omaha, Nebraska, among other sites,  
   and by providing extensive briefings on the operations of those         
   facilities.                                                             
     (b) Sense of Congress.--It is the sense of Congress that the Russian 
  government--                                                            
       (1) should provide to the United States Government a written        
   explanation with sufficient detail (including drawings and diagrams) of 
   the purpose and operational concept of the completed and planned        
   facilities at Yamantau Mountain to support a high confidence judgment by
   the United States that the design of the Yamantau facility is consistent
   with official Russian government explanations; and                      
       (2) should allow a United States delegation, to include officials of
   the executive branch and Members of Congress, to have access to the     
   Yamantau Mountain project and buildings and facilities surrounding the  
   project.                                                                
                    SEC. 1228. ASSESSMENT OF THE CUBAN THREAT TO UNITED STATES    
          NATIONAL SECURITY.                                                      
    (a)  Findings.--Congress makes the following findings:                
       (1) Cuba has maintained a hostile policy in its relations with the  
   United States for over 35 years.                                        
       (2) The United States, as a sovereign nation, must be able to       
   respond to any Cuban provocation and defend the people and territory of 
   the United States against any attack.                                   
       (3) In 1994, the Government of Cuba callously encouraged a massive  
   exodus of Cubans, by boat and raft, toward the United States during     
   which countless numbers of those Cubans lost their lives on the high    
   seas.                                                                   
       (4) The humanitarian response of the United States to rescue,       
   shelter, and provide emergency care to those Cubans, together with the  
   actions taken to absorb some 30,000 of those Cubans into the United     
   States, required significant efforts and the expenditure of hundreds of 
   millions of dollars for the costs incurred by the United States and     
   State and local governments in connection with those efforts.           
       (5) On February 24, 1996, Cuban MiG aircraft attacked and destroyed,
   in international airspace, two unarmed civilian aircraft flying from the
   United States, and the four persons in those unarmed civilian aircraft  
   were killed.                                                            
       (6) Since that attack, the Cuban government has issued no apology   
   for the attack, nor has it indicated any intention to conform its       
   conduct to international law that is                                    
          applicable to civilian aircraft operating in international airspace.    
     (b) Review and Assessment.--The Secretary of Defense shall carry out 
  a comprehensive review and assessment of--                              
     (1) Cuban military capabilities; and                                  
       (2) the threats to the national security of the United States that  
   may be posed by Cuba, including--                                       
       (A) such unconventional threats as (i) encouragement of massive and 
   dangerous migration, and (ii) attacks on citizens and residents of the  
   United States while they are engaged in peaceful protest in             
   international waters or airspace;                                       
       (B) the potential for development and delivery of chemical or       
   biological weapons; and                                                 
       (C) the potential for internal strife in Cuba that could involve    
   citizens or residents of the United States or the Armed Forces of the   
   United States.                                                          
     (c) Report.--Not later than March 31, 1998, the Secretary of Defense 
  shall submit to the Committee on Armed Services of the Senate and the   
  Committee on National Security of the House of Representatives a report 
  on the review and assessment. The report shall include the following:   
       (1) The Secretary's assessment of the capabilities and threats      
   referred to in subsection (b), including each of the threats described  
   in paragraph (2) of that subsection.                                    
       (2) A discussion of the results of the review and assessment,       
   including an assessment of the contingency plans developed by the       
   Secretary to counter any threat posed by Cuba to the United States.     
     (d) Consultation on Review and Assessment.--In performing the review 
  and assessment and in preparing the report, the Secretary of Defense    
  shall consult with the Chairman of the Joint Chiefs of Staff, the       
  commander of the United States Southern Command, and the heads of other 
  appropriate departments and agencies of the United States.              
          SEC. 1229. REPORT ON HELSINKI JOINT STATEMENT.                          
     (a) Requirement.--Not later than March 31, 1998, the President shall 
  submit to the Committee on Armed Services of the Senate and the         
  Committee on National Security of the House of Representatives a report 
  on the Helsinki Joint Statement on future reductions in nuclear forces. 
  The report shall address the United States approach (including          
  verification implications) to implementing the Helsinki Joint Statement,
  in particular, as that Statement relates to the following:              
     (1) Lower aggregate levels of strategic nuclear warheads.             
       (2) Measures relating to the transparency of strategic nuclear      
   warhead inventories and the destruction of strategic nuclear warheads.  
     (3) Deactivation of strategic nuclear delivery vehicles.              
       (4) Measures relating to nuclear long-range sea-launched cruise     
   missiles and tactical nuclear systems.                                  
     (5) Issues related to transparency in nuclear materials.              
     (b) Definition.--For purposes of this section, the term ``Helsinki   
  Joint Statement'' means the agreements between the President of the     
  United States and the President of the Russian Federation as contained  
  in the Joint Statement on Parameters on Future Reductions in Nuclear    
  Forces issued at Helsinki in March 1997.                                
          SEC. 1230. COMMENDATION OF MEXICO ON FREE AND FAIR ELECTIONS.           
    (a)  Findings.--Congress makes the following findings:                
       (1) On July 6, 1997, elections were conducted in Mexico in order to 
   fill 500 seats in the Chamber of Deputies, 32 seats in the 128 seat     
   Senate, the office of the Mayor of Mexico City, and local elections in a
   number of Mexican States.                                               
       (2) For the first time, the federal elections were organized by the 
   Federal Electoral Institute, an autonomous and independent organization 
   established under the Mexican Constitution.                             
     (3) More than 52,000,000 Mexican citizens registered to vote.         
       (4) Eight political parties registered to participate in the those  
   elections, including the Institutional Revolutionary Party (PRI), the   
   National Action Party (PAN), and the Democratic Revolutionary Party     
   (PRD).                                                                  
       (5) Since 1993, Mexican citizens have had the exclusive right to    
   participate as observers in activities related to the preparation and   
   the conduct of elections.                                               
       (6) Since 1994, Mexican law has permitted international observers to
   be a part of the election process.                                      
       (7) With 84 percent of the ballots counted, PRI candidates received 
   38 percent of the vote for seats in the Chamber of Deputies, while PRD  
   and PAN candidates received 52 percent of the combined vote.            
       (8) PRD candidate Cuauhtemoc Cardenas Solorzano has become the first
   elected Mayor of Mexico City, a post previously appointed by the        
   President.                                                              
       (9) PAN members will now serve as governors in seven of Mexico's 31 
   States.                                                                 
    (b)  Sense of Congress.--It is the sense of Congress that--           
       (1) the recent elections in Mexico were conducted in a free, fair,  
   and impartial manner;                                                   
       (2) the will of the Mexican people, as expressed through the ballot 
   box, has been respected by President Ernesto Zedillo and officials      
   throughout his administration; and                                      
       (3) President Zedillo, the Mexican Government, the Federal Electoral
   Institute of Mexico, the political parties and candidates, and most     
   importantly the citizens of Mexico should all be congratulated for their
   support and participation in these very historic elections.             
          SEC. 1231. SENSE OF CONGRESS REGARDING CAMBODIA.                        
    (a)  Findings.--Congress makes the following findings:                
       (1) During the 1970s and 1980s, Cambodia was wracked by political   
   conflict, war, and violence, including genocide perpetrated by the Khmer
   Rouge from 1975 to 1979.                                                
       (2) The 1991 Paris Agreements on a Comprehensive Political          
   Settlement of the Cambodia Conflict set the stage for a process of      
   political accommodation and national reconciliation among Cambodia's    
   warring parties.                                                        
       (3) The international community engaged in a massive effort         
   involving more than $2,000,000,000 to ensure peace, democracy, and      
   prosperity in Cambodia following the Paris Accords.                     
       (4) The Cambodian people clearly demonstrated their support for     
   democracy when 90 percent of eligible Cambodian voters participated in  
   United Nations-sponsored elections in 1993.                             
       (5) Since the 1993 elections, Cambodia has made economic progress,  
   as shown by the recent decision of the Association of Southeast Asian   
   Nations (ASEAN) to extend membership in the Association to Cambodia.    
       (6) Tensions within the ruling Cambodian coalition have erupted into
   violence.                                                               
       (7) In March 1997, 19 Cambodians were killed and more than 100 were 
   wounded in a grenade attack on political demonstrators supportive of the
   Funcinpec and the Khmer Nation Party.                                   
       (8) During June 1997, fighting erupted in Phnom Penh between forces 
   loyal to First Prime Minister Prince Ranariddh and Second Prime Minister
   Hun Sen.                                                                
       (9) On July 5, 1997, Second Prime Minister Hun Sen deposed the First
   Prime Minister in a violent coup d'e AE1tat.                            
       (10) Forces loyal to Hun Sen have executed former Interior Minister 
   Ho Sok and approximately 40 other political opponents loyal to Prince   
   Ranariddh.                                                              
       (11) Democracy and stability in Cambodia are threatened by the      
   continued use of violence and other extralegal means to resolve         
   political tensions.                                                     
       (12) In response to the July 1997 coup in Cambodia referred to in   
   paragraph (9)--                                                         
       (A) the President has suspended all direct assistance to the        
   Cambodian Government; and                                               
       (B) the Association of Southeast Asian Nations (ASEAN) has decided  
   to delay indefinitely admission of Cambodia to membership in the        
   Association.                                                            
    (b)  Sense of Congress.--It is the sense of Congress that--           
       (1) the parties in Cambodia should immediately cease the use of     
   violence;                                                               
       (2) the United States should take all necessary steps to ensure the 
   safety of United States citizens in Cambodia;                           
       (3) the United States should call an emergency meeting of the United
   Nations Security Council to consider all options to restore peace and   
   democratic governance in Cambodia;                                      
       (4) the United States and the Association of Southeast Asian Nations
   should work together to take immediate steps to restore democracy and   
   the rule of law in Cambodia;                                            
       (5) United States assistance to the Government of Cambodia should   
   remain suspended until violence ends, the democratically elected        
   Government is restored to power, and the necessary steps have been taken
   to ensure that the elections scheduled for 1998 take place; and         
       (6) the United States should take all necessary steps to encourage  
   other donor nations to suspend assistance as part of a multilateral     
   effort.                                                                 
          SEC. 1232. CONGRATULATING GOVERNOR CHRISTOPHER PATTEN OF HONG KONG.     
    (a)  Findings.--Congress makes the following findings:                
       (1) His Excellency Christopher F. Patten, the former Governor of    
   Hong Kong, was the twenty-eighth and last British Governor of the       
   dependent territory of Hong Kong before that territory reverted back to 
   the People's Republic of China on July 1, 1997.                         
       (2) Christopher Patten was a superb administrator and an inspiration
   to the people whom he governed.                                         
       (3) During Christopher Patten's five years as Governor of Hong Kong,
   the economy flourished under his stewardship, growing by more than 30   
   percent in real terms.                                                  
       (4) Christopher Patten presided over a capable and honest civil     
   service.                                                                
       (5) During the tenure of Christopher Patten as Governor of Hong     
   Kong, common crime declined and the political climate was positive and  
   stable.                                                                 
       (6) The legacy of Christopher Patten to Hong Kong is the expansion  
   of democracy in Hong Kong's legislative council and a tireless devotion 
   to the rights, freedoms, and welfare of the people of Hong Kong.        
       (7) Christopher Patten fulfilled the commitment of the British      
   Government to ``put in place a solidly based democratic administration''
   in Hong Kong before July 1, 1997.                                       
     (b) Sense of Congress.--It is the sense of the Congress that         
  Christopher F. Patten, the last British Governor of the dependent       
  territory of Hong Kong--                                                
       (1) served his country with great honor and distinction in that     
   capacity; and                                                           
       (2) deserves special thanks and recognition from the United States  
   for his tireless efforts to develop and nurture democracy in Hong Kong. 
           TITLE XIII--ARMS CONTROL AND RELATED MATTERS                            
            Sec. 1301. Presidential report concerning detargeting of Russian  
      strategic missiles.                                                     
            Sec. 1302. Limitation on retirement or dismantlement of strategic 
      nuclear delivery systems.                                               
            Sec. 1303. Assistance for facilities subject to inspection under  
      the Chemical Weapons Convention.                                        
            Sec. 1304. Transfers of authorizations for high-priority          
      counterproliferation programs.                                          
            Sec. 1305. Advice to the President and Congress regarding the     
      safety, security, and reliability of United States nuclear weapons      
      stockpile.                                                              
            Sec. 1306. Reconstitution of commission to assess the ballistic   
      missile threat to the United States.                                    
            Sec. 1307. Sense of Congress regarding the relationship between   
      United States obligations under the Chemical Weapons Convention and     
      environmental laws.                                                     
            Sec. 1308. Extension of counterproliferation authorities for      
      support of United Nations Special Commission on Iraq.                   
            Sec. 1309. Annual report on moratorium on use by Armed Forces of  
      antipersonnel landmines.                                                
                    SEC. 1301. PRESIDENTIAL REPORT CONCERNING DETARGETING OF      
          RUSSIAN STRATEGIC MISSILES.                                             
     (a) Required Report.--Not later than January 1, 1998, the President  
  shall submit to Congress a report concerning detargeting of Russian     
  strategic missiles. The report shall address each of the following:     
       (1) Whether a Russian ICBM that was formerly, but is no longer,     
   targeted at a site in the United States would be automatically          
   retargeted at a site in the United States in the event of the accidental
   launch of the missile.                                                  
       (2) Whether missile detargeting would prevent or significantly      
   reduce the possibility of an unauthorized missile launch carried out by 
   the Russian General Staff and prevent or significantly reduce the       
   consequences to the United States of such a launch.                     
       (3) Whether missile detargeting would pose a significant obstacle to
   an unauthorized launch carried out by an operational level below the    
   Russian General Staff if missile operators at such an operational level 
   acquired missile launch codes or had the technical expertise to override
   missile launch codes.                                                   
       (4) The plausibility of an accidental launch of a Russian ICBM,     
   compared to the possibility of a deliberate missile launch, authorized  
   or unauthorized, resulting from Russian miscalculation, overreaction, or
   aggression.                                                             
       (5) The national security benefits derived from detargeting United  
   States and Russian ICBMs.                                               
       (6) The relative consequences to the United States of an            
   unauthorized or accidental launch of a Russian ICBM that has been       
   detargeted and one that has not been detargeted.                        
    (b)  Definitions.--For purposes of subsection (a):                    
       (1) The term ``Russian ICBM'' means an intercontinental ballistic   
   missile of the Russian Federation.                                      
       (2) The term ``accidental launch'' means a missile launch resulting 
   from mechanical failure.                                                
                    SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF       
          STRATEGIC NUCLEAR DELIVERY SYSTEMS.                                     
     (a) Funding Limitation.--Funds available to the Department of Defense
  may not be obligated or expended during fiscal year 1998 for retiring or
  dismantling, or for preparing to retire or dismantle, any of the        
  following strategic nuclear delivery systems below the specified levels:
     (1) 71 B 52H bomber aircraft.                                         
     (2) 18 Trident ballistic missile submarines.                          
     (3) 500 Minuteman III intercontinental ballistic missiles.            
     (4) 50 Peacekeeper intercontinental ballistic missiles.               
     (b) Waiver Authority.--If the START II Treaty enters into force      
  during fiscal year 1998, the Secretary of Defense may waive the         
  application of the limitation under subsection (a) to the extent that   
  the Secretary determines necessary in order to implement the treaty.    
     (c) Funding Limitation on Early Deactivation.--(1) If the limitation 
  under subsection (a) ceases to apply by reason of a waiver under        
  subsection (b), funds available to the Department of Defense may        
  nevertheless not be obligated or expended during fiscal year 1998 to    
  implement any agreement or understanding to undertake substantial early 
  deactivation of a strategic nuclear delivery system specified in        
  subsection (a) until 30 days after the date on which the President      
  submits to Congress a report concerning such actions.                   
     (2) For purposes of this subsection and subsection (d), a substantial
  early deactivation is an action during fiscal year 1998 to deactivate a 
  substantial number of strategic nuclear delivery systems specified in   
  subsection (a) by--                                                     
     (A) removing nuclear warheads from those systems; or                  
     (B) taking other steps to remove those systems from combat status.    
    (3) A report under this subsection shall include the following:       
       (A) The text of any understanding or agreement between the United   
   States and the Russian Federation concerning substantial early          
   deactivation of strategic nuclear delivery systems under the START II   
   Treaty.                                                                 
       (B) The plan of the Department of Defense for implementing the      
   agreement.                                                              
       (C) An assessment of the Secretary of Defense of the adequacy of the
   provisions contained in the agreement for monitoring and verifying      
   compliance of Russia with the terms of the agreement and, based upon    
   that assessment, the determination of the President specifically as to  
   whether the procedures for monitoring and verification of compliance by 
   Russia with the terms of the agreement are adequate or inadequate.      
       (D) A determination by the President as to whether the deactivations
   to occur under the agreement will be carried out in a symmetrical,      
   reciprocal, or equivalent manner and whether the agreement will require 
   early deactivations of strategic forces by the United States to be      
   carried out substantially more rapidly than deactivations of strategic  
   forces by Russia.                                                       
       (E) An assessment by the President of the effect of the proposed    
   early deactivation on the stability of the strategic balance and        
   relative strategic nuclear capabilities of the United States and the    
   Russian Federation at various stages during deactivation and upon       
   completion, including a determination by the President specifically as  
   to whether the proposed early deactivations will adversely affect       
   strategic stability.                                                    
     (d) Further Limitation on Strategic Force Reductions.--(1) Amounts   
  available to the Department of Defense for fiscal year 1998 to implement
  an agreement that results in a substantial early deactivation during    
  fiscal year 1998 of strategic forces may not be obligated for that      
  purpose if in the report under subsection (c)(3) the President          
  determines any of the following:                                        
       (A) That procedures for monitoring and verification of compliance by
   Russia with the terms of the agreement are inadequate.                  
       (B) That the agreement will require early deactivations of strategic
   forces by the United States to be carried out substantially more rapidly
   than deactivations of strategic forces by Russia.                       
       (C) That the proposed early deactivations will adversely affect     
   strategic stability.                                                    
     (2) The limitation in paragraph (1), if effective by reason of a     
  determination by the President described in paragraph (1)(B), shall     
  cease to apply 30 days after the date on which the President notifies   
  Congress that the early deactivations under the agreement are in the    
  national interest of the United States.                                 
     (e) Contingency Plan for Sustainment of Systems.--(1) Not later then 
  February 15, 1998, the Secretary of Defense shall submit to Congress a  
  plan for the sustainment beyond October 1, 1999, of United States       
  strategic nuclear delivery systems and alternative Strategic Arms       
  Reduction Treaty force structures in the event that a strategic arms    
  reduction agreement subsequent to the Strategic Arms Reduction Treaty   
  does not enter into force before 2004.                                  
    (2) The plan shall include a discussion of the following matters:     
       (A) The actions that are necessary to sustain the United States     
   strategic nuclear delivery systems, distinguishing between the actions  
   that are planned for and funded in the future-years defense program and 
   the actions that are not planned for and funded in the future-years     
   defense program.                                                        
       (B) The funding necessary to implement the plan, indicating the     
   extent to which the necessary funding is provided for in the            
   future-years defense program and the extent to which the necessary      
   funding is not provided for in the future-years defense program.        
    (f)  START Treaties Defined.--In this section:                        
       (1) The term ``Strategic Arms Reduction Treaty'' means the Treaty   
   Between the United States of America and the United Soviet Socialist    
   Republics on the Reduction and Limitation of Strategic Offensive Arms   
   (START), signed at Moscow on July 31, 1991, including related annexes on
   agreed statements and definitions, protocols, and memorandum of         
   understanding.                                                          
       (2) The term ``START II Treaty'' means the Treaty Between the United
   States of America and the Russian Federation on Further Reduction and   
   Limitation of Strategic Offensive Arms, signed at Moscow on January 3,  
   1993, including the following protocols and memorandum of understanding,
   all such documents being integral parts of and collectively referred to 
   as the ``START II Treaty'' (contained in Treaty Document 103 1):        
       (A) The Protocol on Procedures Governing Elimination of Heavy ICBMs 
   and on Procedures Governing Conversion of Silo Launchers of Heavy ICBMs 
   Relating to the Treaty Between the United States of America and the     
   Russian Federation on Further Reduction                                 
                    and Limitation of Strategic Offensive Arms (also known as the 
          ``Elimination and Conversion Protocol'').                               
       (B) The Protocol on Exhibitions and Inspections of Heavy Bombers    
   Relating to the Treaty Between the United States and the Russian        
   Federation on Further Reduction and Limitation of Strategic Offensive   
   Arms (also known as the ``Exhibitions and Inspections Protocol'').      
       (C) The Memorandum of Understanding on Warhead Attribution and Heavy
   Bomber Data Relating to the Treaty Between the United States of America 
   and the Russian Federation on Further Reduction and Limitation of       
   Strategic Offensive Arms (also known as the ``Memorandum on             
   Attribution'').                                                         
                    SEC. 1303. ASSISTANCE FOR FACILITIES SUBJECT TO INSPECTION    
          UNDER THE CHEMICAL WEAPONS CONVENTION.                                  
     (a) Assistance Authorized.--Upon the request of the owner or operator
  of a facility that is subject to a routine inspection or a challenge    
  inspection under the Chemical Weapons Convention, the Secretary of      
  Defense may provide technical assistance to that owner or operator      
  related to compliance of that facility with the Convention. Any such    
  assistance shall be provided through the On-Site Inspection Agency of   
  the Department of Defense.                                              
     (b) Reimbursement Requirement.--The Secretary may provide assistance 
  under subsection (a) only to the extent that the Secretary determines   
  that the Department of Defense will be reimbursed for costs incurred in 
  providing the assistance. The United States National Authority may      
  provide such reimbursement from amounts available to it. Any such       
  reimbursement shall be credited to amounts available for the On-Site    
  Inspection Agency.                                                      
    (c)  Definitions.--In this section:                                   
       (1) The terms ``Chemical Weapons Convention'' and ``Convention''    
   mean the Convention on the Prohibition of the Development, Production,  
   Stockpiling and Use of Chemical Weapons and on Their Destruction,       
   ratified by the United States on April 25, 1997, and entered into force 
   on April 29, 1997.                                                      
       (2) The term ``facility that is subject to a routine inspection''   
   means a declared facility, as defined in paragraph 15 of part X of the  
   Annex on Implementation and Verification of the Convention.             
       (3) The term ``challenge inspection'' means an inspection conducted 
   under Article IX of the Convention.                                     
       (4) The term ``United States National Authority'' means the United  
   States National Authority established or designated pursuant to Article 
   VII, paragraph 4, of the Convention.                                    
                    SEC. 1304. TRANSFERS OF AUTHORIZATIONS FOR HIGH-PRIORITY      
          COUNTERPROLIFERATION PROGRAMS.                                          
     (a) Authority.--(1) Subject to paragraph (2), the Secretary of       
  Defense may transfer amounts of authorizations made available to the    
  Department of Defense in this division for fiscal year 1998 to any      
  counterproliferation program, project, or activity described in         
  subsection (b).                                                         
     (2) A transfer of authorizations may be made under this section only 
  upon determination by the Secretary of Defense that such action is      
  necessary in the national interest.                                     
     (3) Amounts of authorizations so transferred shall be merged with and
  be available for the same purposes as the authorization to which        
  transferred.                                                            
     (b) Programs to Which Tranfers May Be Made.--The authority under     
  subsection (a) applies to any counterproliferation program, project, or 
  activity of the Department of Defense identified as an area for progress
  in the most recent annual report of the Counterproliferation Program    
  Review Committee established by section 1605 of the National Defense    
  Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note).           
     (c) Limitation on Total Amount.--The total amount of authorizations  
  transferred under the authority of this section may not exceed          
  $50,000,000.                                                            
     (d) Other Limitations and Requirements.--The provisions of subsection
  (b), (c), and (d) of section 1001 shall apply to a transfer under this  
  section in the same manner as they apply to a transfer under subsection 
  (a) of that section.                                                    
     (e) Construction With General Transfer Authority.--The authority     
  provided by this section is in addition to the transfer authority       
  provided in section 1001.                                               
                    SEC. 1305. ADVICE TO THE PRESIDENT AND CONGRESS REGARDING THE 
          SAFETY, SECURITY, AND RELIABILITY OF UNITED STATES NUCLEAR WEAPONS      
          STOCKPILE.                                                              
    (a)  Findings.--Congress makes the following findings:                
       (1) Nuclear weapons are the most destructive weapons on earth. The  
   United States and its allies continue to rely on nuclear weapons to     
   deter potential adversaries from using weapons of mass destruction. The 
   safety and reliability of the nuclear weapons stockpile are essential to
   ensure its credibility as a deterrent.                                  
       (2) On September 24, 1996, President Clinton signed the             
   Comprehensive Test Ban Treaty.                                          
       (3) Effective as of September 30, 1996, the United States is        
   prohibited by section 507 of the Energy and Water Development           
   Appropriations Act, 1993 (Public Law 102 377; 42 U.S.C. 2121 note) from 
   conducting underground nuclear tests ``unless a foreign state conducts a
   nuclear test after this date, at which time the prohibition on United   
   States nuclear testing is lifted''.                                     
       (4) Section 1436(b) of the National Defense Authorization Act,      
   Fiscal Year 1989 (Public Law 100 456; 42 U.S.C. 2121 note) requires the 
   Secretary of Energy to ``establish and support a program to assure that 
   the United States is in a position to maintain the reliability, safety, 
   and continued deterrent effect of its stockpile of existing nuclear     
   weapons designs in the event that a low-threshold or comprehensive test 
   ban on nuclear explosive testing is negotiated and ratified.''.         
       (5) Section 3138(d) of the National Defense Authorization Act for   
   Fiscal Year 1994 (Public Law 103 160; 42 U.S.C. 2121 note) required the 
   President to submit an annual report to Congress which sets forth ``any 
   concerns with respect to the safety, security, effectiveness, or        
   reliability of existing United States nuclear weapons raised by the     
   Stockpile Stewardship Program of the Department of Energy''.            
       (6) President Clinton declared in July 1993 that ``to assure that   
   our nuclear deterrent remains unquestioned under a test ban, we will    
   explore other means of maintaining our confidence in the safety,        
   reliability, and the performance of our weapons''. This decision was    
   incorporated in a Presidential Directive.                               
       (7) Section 3138 of the National Defense Authorization Act for      
   Fiscal Year 1994 (Public Law 103 160; 42 U.S.C. 2121 note) also requires
   that the Secretary of Energy establish a ``stewardship program to ensure
   the preservation of the core intellectual and technical competencies of 
   the United States in nuclear weapons''.                                 
       (8) The plan of the Department of Energy to maintain the safety and 
   reliability of the United States nuclear weapons stockpile is known as  
   the Stockpile Stewardship and Management Program. The ability of the    
   United States to maintain and certify the safety, security,             
   effectiveness, and reliability of the nuclear weapons stockpile without 
   testing will require utilization of new and sophisticated computational 
   capabilities and diagnostic technologies, methods, and procedures.      
   Current diagnostic technologies and laboratory testing techniques are   
   insufficient to certify the safety and reliability of the United States 
   nuclear weapons stockpile into the future. Whereas in the past          
   laboratory and diagnostic tools were used in conjunction with nuclear   
   testing, in the future they will provide, under the Department of       
   Energy's stockpile stewardship                                          
                    plan, the sole basis for assessing past test data and for     
          making judgments on phenomena observed in connection with the aging of  
          the stockpile.                                                          
       (9) Section 3159 of the National Defense Authorization Act for      
   Fiscal Year 1997 (Public Law 104 201; 42 U.S.C. 7274o) requires that the
   directors of the nuclear weapons laboratories and the nuclear weapons   
   production plants submit a report to the Assistant Secretary of Energy  
   for Defense Programs if they identify a problem that has significant    
   bearing on confidence in the safety or reliability of a nuclear weapon  
   or nuclear weapon type, that the Assistant Secretary must transmit that 
   report, along with any comments, to the congressional defense committees
   and to the Secretary of Energy and the Secretary of Defense, and that   
   the Joint Nuclear Weapons Council advise Congress regarding its analysis
   of any such problems.                                                   
       (10) On August 11, 1995, President Clinton directed ``the           
   establishment of a new annual reporting and certification requirement   
   [to] ensure that our nuclear weapons remain safe and reliable under a   
   comprehensive test ban''.                                               
       (11) On the same day, the President noted that the Secretary of     
   Defense and the Secretary of Energy have the responsibility, after being
   ``advised by the Nuclear Weapons Council, the Directors of DOE's nuclear
   weapons laboratories, and the Commander of United States Strategic      
   Command'', to provide the President with the information regarding the  
   certification referred to in paragraph (10).                            
       (12) The Joint Nuclear Weapons Council established by section 179 of
   title 10, United States Code, is responsible for providing advice to the
   Secretary of Energy and Secretary of Defense regarding nuclear weapons  
   issues, including ``considering safety, security, and control issues for
   existing weapons''. The Council plays a critical role in advising       
   Congress in matters relating to nuclear weapons.                        
       (13) It is essential that the President receive well-informed,      
   objective, and honest opinions, including dissenting views, from his    
   advisers and technical experts regarding the safety, security,          
   effectiveness, and reliability of the nuclear weapons stockpile.        
    (b)  Policy.--                                                        
     (1)  In general.--It is the policy of the United States--             
       (A) to maintain a safe, secure, effective, and reliable nuclear     
   weapons stockpile; and                                                  
       (B) as long as other nations control or actively seek to acquire    
   nuclear weapons, to retain a credible nuclear deterrent.                
       (2) Nuclear weapons stockpile.--It is in the security interest of   
   the United States to sustain the United States nuclear weapons stockpile
   through a program of stockpile stewardship, carried out at the nuclear  
   weapons laboratories and nuclear weapons production plants.             
     (3)  Sense of Congress.--It is the sense of Congress that--           
       (A) the United States should retain a triad of strategic nuclear    
   forces sufficient to deter any future hostile foreign leadership with   
   access to strategic nuclear forces from acting against the vital        
   interests of the United States;                                         
       (B) the United States should continue to maintain nuclear forces of 
   sufficient size and capability to implement an effective and robust     
   deterrent strategy; and                                                 
       (C) the advice of the persons required to provide the President and 
   Congress with assurances of the safety, security, effectiveness, and    
   reliability of the nuclear weapons force should be scientifically based,
   without regard for politics, and of the highest quality and integrity.  
     (c) Addition of President to Recipients of Reports by Heads of       
  Laboratories and Plants.--Section 3159(b) of the National Defense       
  Authorization Act for Fiscal Year 1997 (Public Law 104 201; 42 U.S.C.   
  7274o) is amended--                                                     
       (1) by striking out ``committees and'' and inserting in lieu thereof
   ``committees,''; and                                                    
       (2) by inserting before the period at the end the following: ``, and
   to the President''.                                                     
     (d) Ten-Day Time Limit for Transmittal of Report.--Section 3159(b) of
  the National Defense Authorization Act for Fiscal Year 1997 (Public Law 
  104 201; 42 U.S.C. 7274o) is amended by striking out ``As soon as       
  practicable'' and inserting in lieu thereof ``Not later than 10 days''. 
     (e) Advice and Opinions Regarding Nuclear Weapons Stockpile.--In     
  addition to a director of a nuclear weapons laboratory or a nuclear     
  weapons production plant (under section 3159 of the National Defense    
  Authorization Act for Fiscal Year 1997 (Public Law 104 201; 42 U.S.C.   
  7274o)), any member of the Joint Nuclear Weapons Council or the         
  commander of the United States Strategic Command may also submit to the 
  President, the Secretary of Defense, the Secretary of Energy, or the    
  congressional defense committees advice or opinion regarding the safety,
  security, effectiveness, and reliability of the nuclear weapons         
  stockpile.                                                              
     (f) Expression of Individual Views.--A representative of the         
  President may not take any action against, or otherwise constrain, a    
  director of a nuclear weapons laboratory or a nuclear weapons production
  plant, a member of the Joint Nuclear Weapons Council, or the Commander  
  of United States Strategic Command for presenting individual views to   
  the President, the National Security Council, or Congress regarding the 
  safety, security, effectiveness, and reliability of the nuclear weapons 
  stockpile.                                                              
    (g)  Definitions.--In this section:                                   
     (1) The term ``representative of the President'' means the following: 
       (A) Any official of the Department of Defense or the Department of  
   Energy who is appointed by the President and confirmed by the Senate.   
     (B) Any member of the National Security Council.                      
     (C) Any member of the Joint Chiefs of Staff.                          
     (D) Any official of the Office of Management and Budget.              
       (2) The term ``nuclear weapons laboratory'' means any of the        
   following:                                                              
     (A) Lawrence Livermore National Laboratory, California.               
     (B) Los Alamos National Laboratory, New Mexico.                       
     (C) Sandia National Laboratories.                                     
       (3) The term ``nuclear weapons production plant'' means any of the  
   following:                                                              
     (A) The Pantex Plant, Texas.                                          
     (B) The Savannah River Site, South Carolina.                          
     (C) The Kansas City Plant, Missouri.                                  
     (D) The Y 12 Plant, Oak Ridge, Tennessee.                             
                    SEC. 1306. RECONSTITUTION OF COMMISSION TO ASSESS THE         
          BALLISTIC MISSILE THREAT TO THE UNITED STATES.                          
     (a) Initial Organization Requirements.--Section 1321(g) of the       
  National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 
  201; 110 Stat. 2712) is amended--                                       
       (1) in paragraph (1), by striking out ``not later than 45 days after
   the date of the enactment of this Act'' and inserting in lieu thereof   
   ``not later than 30 days after the date of the enactment of the National
   Defense Authorization Act for Fiscal Year 1998''; and                   
     (2) in paragraph (2)--                                                
       (A) by striking out ``30 days'' and inserting in lieu thereof ``60  
   days''; and                                                             
     (B) by striking out ``, but not earlier than October 15, 1996''.      
     (b) Funding.--Section 1328 of such Act (110 Stat. 2714) is amended by
  inserting ``and fiscal year 1998'' after ``for fiscal year 1997''.      
                    SEC. 1307. SENSE OF CONGRESS REGARDING THE RELATIONSHIP       
          BETWEEN UNITED STATES OBLIGATIONS UNDER THE CHEMICAL WEAPONS CONVENTION 
          AND ENVIRONMENTAL LAWS.                                                 
    (a)  Findings.--Congress makes the following findings:                
       (1) The Chemical Weapons Convention requires the destruction of the 
   United States stockpile of lethal chemical agents and munitions by April
   29, 2007 (not later than 10 years after the Convention's entry into     
   force).                                                                 
       (2) The President has substantial authority under existing law to   
   ensure that--                                                           
     (A) the technologies necessary to destroy the stockpile are developed;
       (B) the facilities necessary to destroy the stockpile are           
   constructed; and                                                        
       (C) Federal, State, and local environmental laws and regulations do 
   not impair the ability of the United States to comply with its          
   obligations under the Convention.                                       
       (3) The Comptroller General has concluded (in GAO Report NSIAD 97018
   of February 1997) that--                                                
       (A) obtaining the necessary Federal and State permits that are      
   required under Federal environmental laws and regulations for building  
   and operating the chemical agents and munitions destruction facilities  
   is among the most unpredictable factors in the chemical demilitarization
   program; and                                                            
       (B) program cost and schedule are largely driven by the degree to   
   which States and local communities are in agreement with proposed       
   disposal methods and whether those methods meet environmental concerns. 
     (b) Sense of Congress.--It is the sense of Congress that the         
  President--                                                             
       (1) should use the authority of the President under existing law to 
   ensure that the United States is able to construct and operate the      
   facilities necessary to destroy the United States stockpile of lethal   
   chemical agents and munitions                                           
          within the time allowed by the Chemical Weapons Convention; and         
       (2) while carrying out the obligations of the United States under   
   the Convention, should encourage negotiations between appropriate       
   Federal officials and officials of the State and local governments      
   concerned to attempt to meet their concerns regarding compliance with   
   Federal and State environmental laws and regulations and other concerns 
   about the actions being taken to carry out those obligations.           
     (c) Chemical Weapons Convention Defined.--For the purposes of this   
  section, the terms ``Chemical Weapons Convention'' and ``Convention''   
  mean the Convention on the Prohibition of the Development, Production,  
  Stockpiling and Use of Chemical Weapons and on Their Destruction,       
  ratified by the United States on April 25, 1997, and entered into force 
  on April 29, 1997.                                                      
                    SEC. 1308. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR  
          SUPPORT OF UNITED NATIONS SPECIAL COMMISSION ON IRAQ.                   
     Section 1505 of the Weapons of Mass Destruction Control Act of 1992  
  (title XV of Public Law 102 484; 22 U.S.C. 5859a) is amended--          
       (1) in subsection (d)(3), by striking out ``or'' after ``fiscal year
   1996,'' and by inserting ``, or $15,000,000 for fiscal year 1998''      
   before the period at the end; and                                       
       (2) in subsection (f), by striking out ``1997'' and inserting in    
   lieu thereof ``1998''.                                                  
                    SEC. 1309. ANNUAL REPORT ON MORATORIUM ON USE BY ARMED FORCES 
          OF ANTIPERSONNEL LANDMINES.                                             
    (a)  Findings.--Congress makes the following findings:                
       (1) The United States has stated its support for a ban on           
   antipersonnel landmines that is global in scope and verifiable.         
       (2) On May 16, 1996, the President announced that the United States,
   as a matter of policy, would eliminate its stockpile of                 
   non-self-destructing antipersonnel landmines, except those used for     
   training purposes and in Korea, and that the United States would reserve
   the right to use self-destructing antipersonnel landmines in the event  
   of conflict.                                                            
       (3) On May 16, 1996, the President also announced that the United   
   States would lead an effort to negotiate an international treaty        
   permanently banning the use of all antipersonnel landmines.             
       (4) The United States is currently participating at the United      
   Nations Conference on Disarmament in negotiations aimed at achieving a  
   global ban on the use of antipersonnel landmines.                       
       (5) On August 18, 1997, the administration agreed to participate in 
   international negotiations sponsored by Canada (the so-called ``Ottawa  
   process'') designed to achieve a treaty that would outlaw the           
   production, use, and sale of antipersonnel landmines.                   
       (6) On September 17, 1997, the President announced that the United  
   States would not sign the antipersonnel landmine treaty concluded in    
   Oslo, Norway, by participants in the Ottawa process because the treaty  
   would not provide a geographic exception to allow the United States to  
   stockpile and use antipersonnel landmines in Korea or an exemption that 
   would preserve the ability of the United States to use mixed antitank   
   mine systems which could be used to deter an armored assault against    
   United States forces.                                                   
       (7) The President also announced a change in United States policy   
   whereby the United States--                                             
       (A) would no longer deploy antipersonnel landmines, including       
   self-destructing antipersonnel landmines, by 2003, except in Korea;     
       (B) would seek to field alternatives by that date, or by 2006 in the
   case of Korea;                                                          
       (C) would undertake a new initiative in the United Nations          
   Conference on Disarmament to establish a                                
          global ban on the transfer of antipersonnel landmines; and              
       (D) would increase its current humanitarian demining activities     
   around the world.                                                       
       (8) The President's decision would allow the continued use by United
   States forces of self-destructing antipersonnel landmines that are used 
   as part of a mixed antitank mine system.                                
       (9) Under existing law (as provided in section 580 of Public Law 104
   107; 110 Sat 751), on February 12, 1999, the United States will         
   implement a one-year moratorium on the use of antipersonnel landmines by
   United States forces except along internationally recognized national   
   borders or in demilitarized zones within a perimeter marked area that is
   monitored by military personnel and protected by adequate means to      
   ensure the exclusion of civilians.                                      
    (b)  Sense of Congress.--It is the sense of Congress that--           
       (1) the United States should not implement a moratorium on the use  
   of antipersonnel landmines by United States Armed Forces in a manner    
   that would endanger United States personnel or undermine the military   
   effectiveness of United States Armed Forces in executing their missions;
   and                                                                     
       (2) the United States should pursue the development of alternatives 
   to self-destructing antipersonnel landmines.                            
     (c) Annual Report.--Not later than December 31 each year, the        
  Secretary of Defense shall submit to the congressional defense          
  committees a report concerning antipersonnel landmines. Each such report
  shall include the Secretary's description of the following:             
       (1) The military utility of the continued deployment and use by the 
   United States of antipersonnel landmines.                               
       (2) The effect of a moratorium on the production, stockpiling, and  
   use of antipersonnel landmines on the ability of United States forces to
   deter and defend against attack on land by hostile forces, including on 
   the Korean peninsula.                                                   
       (3) Progress in developing and fielding systems that are effective  
   substitutes for antipersonnel landmines, including an identification and
   description of the types of systems that are being developed and        
   fielded, the costs associated with those systems, and the estimated     
   timetable for developing and fielding those systems.                    
       (4) The effect of a moratorium on the use of antipersonnel landmines
   on the military effectiveness of current antitank mine systems.         
       (5) The number and type of pure antipersonnel landmines that remain 
   in the United States inventory and that are subject to elimination under
   the President's September 17, 1997, declaration on United States        
   antipersonnel landmine policy.                                          
       (6) The number and type of mixed antitank mine systems that are in  
   the United States inventory, the locations where they are deployed, and 
   their effect on the deterrence and warfighting ability of United States 
   Armed Forces.                                                           
       (7) The effect of the elimination of pure antipersonnel landmines on
   the warfighting effectiveness of the United States Armed Forces.        
       (8) The costs already incurred and anticipated of eliminating       
   antipersonnel landmines from the United States inventory in accordance  
   with the policy enunciated by the President on September 17, 1997.      
       (9) The benefits that would result to United States military and    
   civilian personnel from an international treaty banning the production, 
   use, transfer, and stockpiling of antipersonnel landmines.              
                      TITLE XIV--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER
           SOVIET UNION                                                            
            Sec. 1401. Specification of Cooperative Threat Reduction programs 
      and funds.                                                              
      Sec. 1402. Funding allocations.                                         
      Sec. 1403. Prohibition on use of funds for specified purposes.          
            Sec. 1404. Limitation on use of funds for projects related to     
      START II Treaty until submission of certification.                      
            Sec. 1405. Limitation on use of funds for chemical weapons        
      destruction facility.                                                   
            Sec. 1406. Limitation on use of funds for destruction of chemical 
      weapons.                                                                
            Sec. 1407. Limitation on use of funds for storage facility for    
      Russian fissile material.                                               
      Sec. 1408. Limitation on use of funds for weapons storage security.     
            Sec. 1409. Report on issues regarding payment of taxes, duties,   
      and other assessments on assistance provided to Russia under Cooperative
      Threat Reduction programs.                                              
      Sec. 1410. Availability of funds.                                       
                    SEC. 1401. SPECIFICATION OF COOPERATIVE THREAT REDUCTION      
          PROGRAMS AND FUNDS.                                                     
     (a) Specification of CTR Programs.--For purposes of section 301 and  
  other provisions of this Act, Cooperative Threat Reduction programs are 
  the programs specified in section 1501(b) of the National Defense       
  Authorization Act for fiscal year 1997 (Public Law 104 201: 110 Stat.   
  2731; 50 U.S.C. 2362 note).                                             
     (b) Fiscal Year 1998 Cooperative Threat Reduction Funds Defined.--As 
  used in this title, the term ``fiscal year 1998 Cooperative Threat      
  Reduction funds'' means the funds appropriated pursuant to the          
  authorization of appropriations in section 301 for Cooperative Threat   
  Reduction programs.                                                     
          SEC. 1402. FUNDING ALLOCATIONS.                                         
     (a) In General.--Of the fiscal year 1998 Cooperative Threat Reduction
  funds, not more than the following amounts may be obligated for the     
  purposes specified:                                                     
     (1) For strategic offensive arms elimination in Russia, $77,900,000.  
     (2) For strategic nuclear arms elimination in Ukraine, $76,700,000.   
     (3) For fissile material containers in Russia, $7,000,000.            
       (4) For planning and design of a chemical weapons destruction       
   facility in Russia, $35,400,000.                                        
       (5) For dismantlement of biological and chemical weapons facilities 
   in the former Soviet Union, $20,000,000.                                
       (6) For planning, design, and construction of a storage facility for
   Russian fissile material, $57,700,000.                                  
     (7) For weapons storage security in Russia, $36,000,000.              
       (8) For development of a cooperative program with the Government of 
   Russia to eliminate the production of weapons grade plutonium at Russian
   reactors, $41,000,000.                                                  
       (9) For activities designated as Defense and Military-to-Military   
   Contacts in Russia, Ukraine, and Kazakhstan, $8,000,000.                
       (10) For military-to-military programs of the United States that    
   focus on countering the threat of proliferation of weapons of mass      
   destruction and that include the security forces of the independent     
   states of the former Soviet Union other than Russia, Ukraine, Belarus,  
   and Kazakstan, $2,000,000.                                              
       (11) For activities designated as Other Assessments/Administrative  
   Support $20,500,000.                                                    
     (b) Limited Authority To Vary Individual Amounts.--(1) If the        
  Secretary of Defense determines that it is necessary to do so in the    
  national interest, the Secretary may, subject to paragraphs (2) and (3),
  obligate amounts for the purposes stated in any of the paragraphs of    
  subsection (a) in excess of the amount specified for those purposes in  
  that paragraph. However, the total amount obligated for the purposes    
  stated in the paragraphs in subsection (a) may not by reason of the use 
  of the authority provided in the preceding sentence exceed the sum of   
  the amounts specified in those paragraphs.                              
     (2) An obligation for the purposes stated in any of the paragraphs in
  subsection (a) in excess of the amount specified                        
                    in that paragraph may be made using the authority provided in 
          paragraph (1) only after--                                              
       (A) the Secretary submits to Congress notification of the intent to 
   do so together with a complete discussion of the justification for doing
   so; and                                                                 
     (B) 15 days have elapsed following the date of the notification.      
     (3) The Secretary may not, under the authority provided in paragraph 
  (1), obligate amounts appropriated for the purposes stated in any of    
  paragraphs (3) through (11) of subsection (a) in excess of 115 percent  
  of the amount stated in those paragraphs.                               
     (c) Limited Waiver of 115 Percent Cap on Obligation in Excess of     
  Amounts Authorized for Fiscal Years 1996 and 1997.--(1) The limitation  
  in subsection (b)(1) of section 1202 of the National Defense            
  Authorization Act For Fiscal Year 1996 (Public Law 104 106; 110 Stat.   
  469), that provides that the authority provided in that sentence to     
  obligate amounts specified for Cooperative Threat Reduction purposes in 
  excess of the amount specified for each such purpose in subsection (a)  
  of that section may not exceed 115 percent of the amounts specified,    
  shall not apply with respect to subsection (a)(1) of such section for   
  purposes of strategic offensive weapons elimination in Russia or the    
  Ukraine.                                                                
     (2) The limitation in subsection (b)(1) of section 1502 of the       
  National Defense Authorization Act For Fiscal Year 1997 (Public Law 104 
  201; 110 Stat. 2732), that provides that the authority provided in that 
  sentence to obligate amounts specified for Cooperative Threat Reduction 
  purposes in excess of the amount specified for each such purpose in     
  subsection (a) of that section may not exceed 115 percent of the amounts
  specified, shall not apply with respect to subsections (a)(2) and (a)(3)
  of such section.                                                        
          SEC. 1403. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.          
     (a) In General.--No fiscal year 1998 Cooperative Threat Reduction    
  funds, and no funds appropriated for Cooperative Threat Reduction       
  programs for any prior fiscal year and remaining available for          
  obligation, may be obligated or expended for any of the following       
  purposes:                                                               
       (1) Conducting with Russia any peacekeeping exercise or other       
   peacekeeping-related activity.                                          
     (2) Provision of housing.                                             
     (3) Provision of assistance to promote environmental restoration.     
     (4) Provision of assistance to promote job retraining.                
     (b) Limitation With Respect to Defense Conversion Assistance.--None  
  of the funds appropriated pursuant to this Act may be obligated or      
  expended for the provision of assistance to Russia or any other state of
  the former Soviet Union to promote defense conversion.                  
                    SEC. 1404. LIMITATION ON USE OF FUNDS FOR PROJECTS RELATED TO 
          START II TREATY UNTIL SUBMISSION OF CERTIFICATION.                      
     No fiscal year 1998 Cooperative Threat Reduction funds may be        
  obligated or expended for strategic offensive arms elimination projects 
  in Russia related to the START II Treaty (as defined in section 1302(f))
  until 30 days after the date on which the Secretary of Defense submits  
  to Congress a certification in writing that--                           
       (1) implementation of the projects would benefit the national       
   security interest of the United States; and                             
       (2) Russia has agreed in an implementing agreement to share the cost
   for the projects.                                                       
                    SEC. 1405. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS    
          DESTRUCTION FACILITY.                                                   
     (a) Limitation on Use of Funds Until Submission of Notifications to  
  Congress.--No fiscal year 1998 Cooperative Threat Reduction funds may be
  obligated or expended for planning and design of a chemical weapons     
  destruction facility until 15 days after the date that is the later of  
  the following:                                                          
       (1) The date on which the Secretary of Defense submits to Congress  
   notification of an agreement between the United States and Russia with  
   respect to such chemical weapons destruction facility that includes--   
       (A) an agreement providing for a limitation on the financial        
   contribution by the United States for the facility;                     
       (B) an agreement that the United States will not pay the costs for  
   infrastructure determined by Russia to be necessary to support the      
   facility; and                                                           
     (C) an agreement on the location of the facility.                     
       (2) The date on which the Secretary of Defense submits to Congress  
   notification that the Government of Russia has formally approved a      
   plan--                                                                  
     (A) that allows for the destruction of chemical weapons in Russia; and
     (B) that commits Russia to pay a portion of the cost for the facility.
     (b) Prohibition on Use of Funds for Facility Construction.--No fiscal
  year 1998 Cooperative Threat Reduction funds authorized to be obligated 
  in section 1402(a)(4) for planning and design of a chemical weapons     
  destruction facility in Russia may be used for construction of such     
  facility.                                                               
                    SEC. 1406. LIMITATION ON USE OF FUNDS FOR DESTRUCTION OF      
          CHEMICAL WEAPONS.                                                       
     (a) Limitation.--No funds authorized to be appropriated under this or
  any other Act for fiscal year 1998 for Cooperative Threat Reduction     
  programs may be obligated or expended for chemical weapons destruction  
  activities (including activities for the planning, design, or           
  construction of a chemical weapons destruction facility or for the      
  dismantlement of an existing chemical weapons production facility) until
  the President submits to Congress a written certification under         
  subsection (b).                                                         
     (b) Presidential Certification.--A certification under this          
  subsection is either of the following certifications by the President:  
     (1) A certification that--                                            
       (A) Russia is making reasonable progress toward the implementation  
   of the Bilateral Destruction Agreement;                                 
       (B) the United States and Russia have made substantial progress     
   toward the resolution, to the satisfaction of the United States, of     
   outstanding compliance issues under the Wyoming Memorandum of           
   Understanding and the Bilateral Destruction Agreement; and              
       (C) Russia has fully and accurately declared all information        
   regarding its unitary and binary chemical weapons, chemical weapons     
   facilities, and other facilities associated with chemical weapons.      
       (2) A certification that the national security interests of the     
   United States could be undermined by a United States policy not to carry
   out chemical weapons destruction activities under the Cooperative Threat
   Reduction programs for which funds are authorized to be appropriated    
   under this or any other Act for fiscal year 1998.                       
    (c)  Definitions.--For the purposes of this section:                  
       (1) The term ``Bilateral Destruction Agreement'' means the Agreement
   Between the United States of America and the Union of Soviet Socialist  
   Republics on Destruction and Nonproduction of Chemical Weapons and on   
   Measures to Facilitate the Multilateral Convention on Banning Chemical  
   Weapons, signed on June 1, 1990.                                        
       (2) The term ``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.                                                     
                    SEC. 1407. LIMITATION ON USE OF FUNDS FOR STORAGE FACILITY FOR
          RUSSIAN FISSILE MATERIAL.                                               
     No fiscal year 1998 Cooperative Threat Reduction funds may be        
  obligated or expended for planning, design, or construction of a storage
  facility for Russian fissile material until 15 days after the date that 
  is the later of the following:                                          
       (1) The date on which the Secretary of Defense submits to Congress  
   notification that an implementing agreement between the United States   
   and Russia has been entered into that specifies the total cost to the   
   United States for the facility.                                         
       (2) The date on which the Secretary submits to Congress notification
   that an agreement has been entered into between the United States and   
   Russia incorporating the principle of transparency with respect to the  
   use of the facility.                                                    
          SEC. 1408. LIMITATION ON USE OF FUNDS FOR WEAPONS STORAGE SECURITY.     
     No fiscal year 1998 Cooperative Threat Reduction funds intended for  
  weapons storage security activities in Russia may be obligated or       
  expended until--                                                        
       (1) the Secretary of Defense submits to Congress a report on the    
   status of negotiations between the United States and Russia on audits   
   and examinations with respect to weapons storage security; and          
       (2) 15 days have elapsed following the date that the report is      
   submitted.                                                              
                    SEC. 1409. REPORT ON ISSUES REGARDING PAYMENT OF TAXES,       
          DUTIES, AND OTHER ASSESSMENTS ON ASSISTANCE PROVIDED TO RUSSIA UNDER    
          COOPERATIVE THREAT REDUCTION PROGRAMS.                                  
     Not later than 90 days after the date of the enactment of this Act,  
  the Secretary of Defense shall submit to Congress a report on issues    
  regarding payment of taxes, duties, and other assessments on assistance 
  provided to Russia under Cooperative Threat Reduction programs. The     
  report shall include the following:                                     
       (1) A description of any disputes between the United States and     
   Russia with respect to payment by the United States of taxes, duties and
   other assessments on assistance provided to Russia under a Cooperative  
   Threat Reduction                                                        
                    program, including a description of the nature of each        
          dispute, the amount of payment disputed, whether the dispute was        
          resolved, and if the dispute was resolved, the means by which the       
          dispute was resolved.                                                   
       (2) A description of the actions taken by the Secretary to prevent  
   disputes in the future between the United States and Russia with respect
   to payment by the United States of taxes, duties, and other assessments 
   on assistance provided to Russia under a Cooperative Threat Reduction   
   program.                                                                
       (3) A description of any agreement between the United States and    
   Russia with respect to payment by the United States of taxes, duties, or
   other assessments on assistance provided to Russia under a Cooperative  
   Threat Reduction program.                                               
       (4) Any proposals of the Secretary for actions that should be taken 
   to prevent disputes between the United States and Russia with respect to
   payment by the United States of taxes, duties, or other assessments on  
   assistance provided to Russia under a Cooperative Threat Reduction      
   program.                                                                
          SEC. 1410. AVAILABILITY OF FUNDS.                                       
     Funds appropriated pursuant to the authorization of appropriations in
  section 301 for Cooperative Threat Reduction programs shall be available
  for obligation for three fiscal years.                                  
           TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION       
      Sec. 1501. Recognition and grant of Federal charter.                    
      Sec. 1502. Powers.                                                      
      Sec. 1503. Purposes.                                                    
      Sec. 1504. Service of process.                                          
      Sec. 1505. Membership.                                                  
      Sec. 1506. Board of directors.                                          
      Sec. 1507. Officers.                                                    
      Sec. 1508. Restrictions.                                                
      Sec. 1509. Liability.                                                   
      Sec. 1510. Maintenance and inspection of books and records.             
      Sec. 1511. Audit of financial transactions.                             
      Sec. 1512. Annual report.                                               
      Sec. 1513. Reservation of right to alter, amend, or repeal charter.     
      Sec. 1514. Tax-exempt status required as condition of charter.          
      Sec. 1515. Termination.                                                 
      Sec. 1516. Definition of State.                                         
          SEC. 1501. RECOGNITION AND GRANT OF FEDERAL CHARTER.                    
     The Air Force Sergeants Association, a nonprofit corporation         
  organized under the laws of the District of Columbia, is recognized as  
  such and granted a Federal charter.                                     
          SEC. 1502. POWERS.                                                      
     The Air Force Sergeants Association (in this title referred to as the
  ``association'') shall have only those powers granted to it through its 
  bylaws and articles of incorporation filed in the District of Columbia  
  and subject to the laws of the District of Columbia.                    
          SEC. 1503. PURPOSES.                                                    
     The purposes of the association are those provided in its bylaws and 
  articles of incorporation and shall include the following:              
       (1) To help maintain a highly dedicated and professional corps of   
   enlisted personnel within the United States Air Force, including the    
   United States Air Force Reserve, and the Air National Guard.            
       (2) To support fair and equitable legislation and Department of the 
   Air Force policies and to influence by lawful means departmental plans, 
   programs, policies, and legislative proposals that affect enlisted      
   personnel of the Regular Air Force, the Air Force Reserve, and the Air  
   National Guard, its retirees, and other veterans of enlisted service in 
   the Air Force.                                                          
       (3) To actively publicize the roles of enlisted personnel in the    
   United States Air Force.                                                
       (4) To participate in civil and military activities, youth programs,
   and fundraising campaigns that benefit the United States Air Force.     
       (5) To provide for the mutual welfare of members of the association 
   and their families.                                                     
     (6) To assist in recruiting for the United States Air Force.          
     (7) To assemble together for social activities.                       
     (8) To maintain an adequate Air Force for our beloved country.        
       (9) To foster among the members of the association a devotion to    
   fellow airmen.                                                          
       (10) To serve the United States and the United States Air Force     
   loyally, and to do all else necessary to uphold and defend the          
   Constitution of the United States.                                      
          SEC. 1504. SERVICE OF PROCESS.                                          
     With respect to service of process, the association shall comply with
  the laws of the District of Columbia and those States in which it       
  carries on its activities in furtherance of its corporate purposes.     
          SEC. 1505. MEMBERSHIP.                                                  
     Except as provided in section 1508(g), eligibility for membership in 
  the association and the rights and privileges of members shall be as    
  provided in the bylaws and articles of incorporation of the association.
          SEC. 1506. BOARD OF DIRECTORS.                                          
     Except as provided in section 1508(g), the composition of the board  
  of directors of the association and the responsibilities of the board   
  shall be as provided in the bylaws and articles of incorporation of the 
  association and in conformity with the laws of the District of Columbia.
          SEC. 1507. OFFICERS.                                                    
     Except as provided in section 1508(g), the positions of officers of  
  the association and the election of members to such positions shall be  
  as provided in the bylaws and articles of incorporation of the          
  association and in conformity with the laws of the District of Columbia.
          SEC. 1508. RESTRICTIONS.                                                
     (a) Income and Compensation.--No part of the income or assets of the 
  association may inure to the benefit of any member, officer, or director
  of the association or be distributed to any such individual during the  
  life of this charter. Nothing in this subsection may be construed to    
  prevent the payment of reasonable compensation to the officers and      
  employees of the association or reimbursement for actual and necessary  
  expenses in amounts approved by the board of directors.                 
     (b) Loans.--The association may not make any loan to any member,     
  officer, director, or employee of the association.                      
     (c) Issuance of Stock and Payment of Dividends.--The association may 
  not issue any shares of stock or declare or pay any dividends.          
     (d) Disclaimer of Congressional or Federal Approval.--The association
  may not claim the approval of the Congress or the authorization of the  
  Federal Government for any of its activities by virtue of this title.   
     (e) Corporate Status.--The association shall maintain its status as a
  corporation organized and incorporated under the laws of the District of
  Columbia.                                                               
     (f) Corporate Function.--The association shall function as an        
  educational, patriotic, civic, historical, and research organization    
  under the laws of the District of Columbia.                             
     (g) Nondiscrimination.--In establishing the conditions of membership 
  in the association and in determining the requirements for serving on   
  the board of directors or as an officer of the association, the         
  association may not discriminate on the basis of race, color, religion, 
  sex, handicap, age, or national origin.                                 
          SEC. 1509. LIABILITY.                                                   
     The association shall be liable for the acts of its officers,        
  directors, employees, and agents whenever such individuals act within   
  the scope of their authority.                                           
          SEC. 1510. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.             
     (a) Books and Records of Account.--The association shall keep correct
  and complete books and records of account and minutes of any proceeding 
  of the association involving any of its members, the board of directors,
  or any committee having authority under the board of directors.         
     (b) Names and Addresses of Members.--The association shall keep at   
  its principal office a record of the names and addresses of all members 
  having the right to vote in any proceeding of the association.          
     (c) Right to Inspect Books and Records.--All books and records of the
  association may be inspected by any member having the right to vote in  
  any proceeding of the association, or by any agent or attorney of such  
  member, for any proper purpose at any reasonable time.                  
     (d) Application of State Law.--This section may not be construed to  
  contravene any applicable State law.                                    
          SEC. 1511. AUDIT OF FINANCIAL TRANSACTIONS.                             
     The first section of the Act entitled ``An Act to provide for audit  
  of accounts of private corporations established under Federal law'',    
  approved August 30, 1964 (36 U.S.C. 1101), is amended--                 
       (1) by redesignating the paragraph (77) added by section 1811 of    
   Public Law 104 201 (110 Stat. 2762) as paragraph (78); and              
     (2) by adding at the end the following:                               
     ``(79) Air Force Sergeants Association.''.                            
          SEC. 1512. ANNUAL REPORT.                                               
     The association shall annually submit to Congress a report concerning
  the activities of the association during the preceding fiscal year. The 
  annual report shall be submitted on the same date as the report of the  
  audit required by reason of the amendment made in section 1511. The     
  annual report shall not be printed as a public document.                
          SEC. 1513. RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL CHARTER.     
     The right to alter, amend, or repeal this title is expressly reserved
  to Congress.                                                            
          SEC. 1514. TAX-EXEMPT STATUS REQUIRED AS CONDITION OF CHARTER.          
     If the association fails to maintain its status as an organization   
  exempt from taxation as provided in the Internal Revenue Code of 1986   
  the charter granted in this title shall terminate.                      
          SEC. 1515. TERMINATION.                                                 
     The charter granted in this title shall expire if the association    
  fails to comply with any of the provisions of this title.               
          SEC. 1516. DEFINITION OF STATE.                                         
     For purposes of this title, the term ``State'' includes the District 
  of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the   
  Northern Mariana Islands, and the territories and possessions of the    
  United States.                                                          
           DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS                        
          SEC. 2001. SHORT TITLE.                                                 
     This division may be cited as the ``Military Construction            
  Authorization Act for Fiscal Year 1998''.                               
           TITLE XXI--ARMY                                                         
      Sec. 2101. Authorized Army construction and land acquisition projects.  
      Sec. 2102. Family housing.                                              
      Sec. 2103. Improvements to military family housing units.               
      Sec. 2104. Authorization of appropriations, Army.                       
            Sec. 2105. Correction in authorized uses of funds, Fort Irwin,    
      California.                                                             
          SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.  
     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2104(a)(1), the Secretary
  of the Army may acquire real property and carry out military            
  construction projects for the installations and locations inside the    
  United States, and in the amounts, set forth in the following table:    
                         Army: Inside the United States                        
State               Installation or Location                        Amount  
Alabama             Redstone Arsenal                           $27,000,000  
Arizona             Fort Huachuca                              $20,000,000  
California          lFort Irwin                                $11,150,000  
                    Naval Weapons Station, Concord             $23,000,000  
Colorado            Fort Carson                                $47,300,000  
Georgia             lFort Gordon                               $22,000,000  
                    lHunter Army Air Field, Fort Stewart       $54,000,000  
Hawaii              Schofield Barracks                         $44,000,000  
Indiana             Crane Army Ammunition Activity              $7,700,000  
Kansas              Fort Leavenworth                           $63,000,000  
                    Fort Riley                                 $25,800,000  
Kentucky            lFort Campbell                             $53,600,000  
                    Fort Knox                                   $7,200,000  
Missouri            Fort Leonard Wood                           $3,200,000  
New Jersey          Fort Monmouth                               $2,050,000  
New Mexico          White Sands Missile Range                   $6,900,000  
New York            Fort Drum                                  $24,400,000  
North Carolina      Fort Bragg                                 $17,700,000  
Oklahoma            Fort Sill                                  $25,000,000  
South Carolina      Naval Weapons Station, Charleston           $7,700,000  
Texas               lFort Bliss                                 $7,700,000  
                    Fort Hood                                  $27,200,000  
                    Fort Sam Houston                           $16,000,000  
Virginia            lFort A.P. Hill                             $5,400,000  
                    Fort Myer                                   $8,200,000  
                    Fort Story                                  $2,050,000  
Washington          Fort Lewis                                 $33,000,000  
CONUS Classified    Classified Location                         $6,500,000  
                                                            --------------  
                     Total                                    $598,750,000  
     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2104(a)(2), the       
  Secretary of the Army may acquire real property and carry out military  
  construction projects for the locations outside the United States, and  
  in the amounts, set forth in the following table:                       
                         Army: Outside the United States                       
Country                Installation or Location                           Amount  
Germany                Ansbach                                       $22,000,000  
                       Heidelberg                                     $8,800,000  
                       Mannheim                                       $6,200,000  
                       lMilitary Support Group, Kaiserslautern        $6,000,000  
Korea                  Camp Casey                                     $5,100,000  
                       Camp Castle                                    $8,400,000  
                       Camp Humphreys                                $32,000,000  
                       Camp Red Cloud                                $23,600,000  
                       Camp Stanley                                   $7,000,000  
Overseas Classified    Overseas Classified                           $37,000,000  
                                                                  --------------  
                        Total                                       $156,100,000  
          SEC. 2102. FAMILY HOUSING.                                              
     (a) Construction and Acquisition.--Using amounts appropriated        
  pursuant to authorization of appropriations in section 2104(a)(5)(A),   
  the Secretary of the Army may construct or acquire family housing units 
  (including land acquisition) at the installations, for the purposes, and
  in the amounts set forth in the following table:                        
                              Army: Family Housing                             
State             Installation or Location      Purpose              Amount  
Arizona           Fort Huachuca                 55 Units         $8,000,000  
Hawaii            Schofield Barracks            132 Units       $26,600,000  
Maryland          Fort Meade                    56 Units         $7,900,000  
New Jersey        Picatinny Arsenal             35 Units         $7,300,000  
North Carolina    Fort Bragg                    174 Units       $20,150,000  
Texas             Fort Bliss                    91 Units        $12,900,000  
                  Fort Hood                     130 Units       $18,800,000  
                                                             --------------  
                  xl                             Total         $101,650,000  
     (b) Planning and Design.--Using amounts appropriated pursuant to the 
  authorization of appropriations in section 2104(a)(5)(A), the Secretary 
  of the Army may carry out architectural and engineering services and    
  construction design activities with respect to the construction or      
  improvement of family housing units in an amount not to exceed          
  $9,550,000.                                                             
          SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.               
     Subject to section 2825 of title 10, United States Code, and using   
  amounts appropriated pursuant to the authorization of appropriations in 
  sections 2104(a)(5)(A), the Secretary of the Army may improve existing  
  military family housing units in an amount not to exceed $86,100,000.   
          SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.                       
     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 1997, for military           
  construction, land acquisition, and military family housing functions of
  the Department of the Army in the total amount of $2,010,466,000 as     
  follows:                                                                
       (1) For military construction projects inside the United States     
   authorized by section 2101(a), $435,350,000.                            
       (2) For the military construction projects outside the United States
   authorized by section 2101(b), $156,100,000.                            
       (3) For unspecified minor military construction projects authorized 
   by section 2805 of title 10, United States Code, $7,400,000.            
       (4) For architectural and engineering services and construction     
   design under section 2807 of title 10, United States Code, $65,577,000. 
     (5) For military family housing functions:                            
       (A) For construction and acquisition, planning and design, and      
   improvement of military family housing and facilities, $197,300,000.    
       (B) For support of military family housing (including the functions 
   described in section 2833 of title 10, United States Code),             
   $1,145,339,000.                                                         
       (6) For the construction of the National Range Control Center, White
   Sands Missile Range, New Mexico, authorized by section 2101(a) of the   
   Military Construction Authorization Act for Fiscal Year 1997 (division B
   of Public Law 104 201; 110 Stat. 2763), $18,000,000.                    
       (7) For the construction of the whole barracks complex renewal, Fort
   Knox, Kentucky, authorized by section 2101(a) of the Military           
   Construction Authorization Act for Fiscal Year 1997 (division B of      
   Public Law 104 201; 110 Stat. 2763), $22,000,000.                       
     (b) Limitation on Total Cost of Construction                         
  Projects.--Notwithstanding the cost variations authorized by section    
  2853 of title 10, United States Code, and any other cost variation      
  authorized by law, the total cost of all projects carried out under     
  section 2101 of this Act may not exceed--                               
       (1) the total amount authorized to be appropriated under paragraphs 
   (1) and (2) of subsection (a);                                          
       (2) $14,400,000 (the balance of the amount authorized under section 
   2101(a) for the construction of the Force XXI Soldier Development School
   at Fort Hood, Texas);                                                   
       (3) $24,000,000 (the balance of the amount authorized under section 
   2101(a) for rail yard expansion at Fort Carson, Colorado);              
       (4) $43,000,000 (the balance of the amount authorized under section 
   2101(a) for the construction of a disciplinary barracks at Fort         
   Leavenworth, Kansas);                                                   
       (5) $42,500,000 (the balance of the amount authorized under section 
   2101(a) for the construction of a barracks at Hunter Army Airfield, Fort
   Stewart, Georgia);                                                      
       (6) $17,000,000 (the balance of the amount authorized under section 
   2101(a) for the construction of a barracks at Fort Sill, Oklahoma);     
       (7) $14,000,000 (the balance of the amount authorized under section 
   2101(a) for the construction of a missile software engineering facility 
   at Redstone Arsenal, Alabama); and                                      
       (8) $8,500,000 (the balance of the amount authorized under section  
   2101(a) for the construction of an aerial gunnery range at Fort Drum,   
   New York).                                                              
     (c) Adjustment.--The total amount authorized to be appropriated      
  pursuant to paragraphs (1) through (7) of subsection (a) is the sum of  
  the amounts authorized in such paragraphs, reduced by $36,600,000, which
  represents the combination of savings resulting from adjustments to     
  foreign currency exchange rates for military construction projects and  
  the support of military family housing outside the United States.       
                    SEC. 2105. CORRECTION IN AUTHORIZED USES OF FUNDS, FORT IRWIN,
          CALIFORNIA.                                                             
     The Secretary of the Army may carry out a military construction      
  project at Fort Irwin, California, to construct a heliport for the      
  National Training Center at Barstow-Daggett, California, using the      
  following amounts:                                                      
       (1) Amounts appropriated pursuant to the authorization of           
   appropriations in section 2104(a)(1) of the Military Construction       
   Authorization Act for Fiscal Year 1995 (division B of Public Law 103    
   337; 108 Stat. 3029) for a military construction project involving the  
   construction of an air field at Fort Irwin, as authorized by section    
   2101(a) of such Act (108 Stat. 3027).                                   
       (2) Amounts appropriated pursuant to the authorization of           
   appropriations in section 2104(a)(1) of the Military Construction       
   Authorization Act for Fiscal Year 1996 (division B of Public Law 104    
   106; 110 Stat. 524) for a military construction project involving the   
   construction of an air field at Fort Irwin, as authorized by section    
   2101(a) of such Act (110 Stat. 523).                                    
           TITLE XXII--NAVY                                                        
      Sec. 2201. Authorized Navy construction and land acquisition projects.  
      Sec. 2202. Family housing.                                              
      Sec. 2203. Improvements to military family housing units.               
      Sec. 2204. Authorization of appropriations, Navy.                       
            Sec. 2205. Authorization of military construction project at Naval
      Station, Pascagoula, Mississippi, for which funds have been             
      appropriated.                                                           
            Sec. 2206. Increase in authorization for military construction    
      projects at Naval Station Roosevelt Roads, Puerto Rico.                 
          SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.  
     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2204(a)(1), the Secretary
  of the Navy may acquire real property and carry out military            
  construction projects for the installations and locations inside the    
  United States, and in the amounts, set forth in the following table:    
                                               Navy: Inside the United States                                              
State             Installation or Location                                                                              Amount  
Arizona           lMarine Corps Air Station, Yuma                                                                  $12,250,000  
                  lNavy Detachment, Camp Navajo                                                                    $11,426,000  
California        lMarine Corps Air Station, Camp Pendleton                                                        $14,020,000  
                  lMarine Corps Air Station, Miramar                                                                $8,700,000  
                  lMarine Corps Air-Ground Combat Center, Twentynine Palms                                          $3,810,000  
                  lMarine Corps Base, Camp Pendleton                                                               $60,069,000  
                  lNaval Air Facility, El Centro                                                                   $11,000,000  
                  lNaval Air Station, North Island                                                                 $19,600,000  
                  lNaval Amphibious Base, Coronado                                                                 $10,100,000  
                  lNaval Construction Battalion Center, Port Hueneme                                                $3,200,000  
Connecticut       lNaval Submarine Base, New London                                                                $21,960,000  
Florida           lNaval Air Station, Jacksonville                                                                  $3,480,000  
                  Naval Air Station, Whiting Field                                                                  $1,300,000  
                  Naval Station, Mayport                                                                           $17,940,000  
Hawaii            lFort DeRussey                                                                                    $9,500,000  
                  lMarine Corps Air Station, Kaneohe Bay                                                           $19,000,000  
                  lNaval Communications and Telecommunications Area Master Station Eastern Pacific, Honolulu        $3,900,000  
                  Naval Station, Pearl Harbor                                                                      $25,000,000  
Illinois          lNaval Training Center, Great Lakes                                                              $41,220,000  
Indiana           lNaval Surface Warfare Center, Crane                                                              $4,120,000  
Maryland          lNaval Electronics System Command, St. Ingoes                                                     $2,610,000  
Mississippi       lNaval Air Station, Meridian                                                                      $7,050,000  
North Carolina    lMarine Corps Air Station, Cherry Point                                                           $8,800,000  
                  lMarine Corps Air Station, New River                                                             $19,900,000  
Rhode Island      lNaval Undersea Warfare Center Division, Newport                                                  $8,900,000  
South Carolina    lMarine Corps Air Station, Beaufort                                                              $17,730,000  
                  lMarine Corps Reserve Detachment Parris Island                                                    $3,200,000  
Texas             lNaval Air Station, Corpus Christi                                                                  $800,000  
Virginia          AEGIS Training Center, Dahlgren                                                                   $6,600,000  
                  lFleet Combat Training Center, Dam Neck                                                           $7,000,000  
                  lNaval Air Station, Norfolk                                                                      $18,240,000  
                  Naval Air Station, Oceana                                                                        $28,000,000  
                  lNaval Amphibious Base, Little Creek                                                              $8,685,000  
                  lNaval Shipyard, Norfolk, Portsmouth                                                             $29,410,000  
                  Naval Station, Norfolk                                                                           $18,850,000  
                  lNaval Surface Warfare Center, Dahlgren                                                          $13,880,000  
                  lNaval Weapons Station, Yorktown                                                                 $14,547,000  
Washington        Naval Air Station, Whidbey Island                                                                 $1,100,000  
                  lPuget Sound Naval Shipyard, Bremerton                                                            $4,400,000  
                                                                                                                --------------  
                   Total                                                                                          $521,297,000  
     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2204(a)(2), the       
  Secretary of the Navy may acquire real property and carry out military  
  construction projects for the installations and locations outside the   
  United States, and in the amounts, set forth in the following table:    
                                            Navy: Outside the United States                                           
Country           Installation or Location                                                                         Amount  
Bahrain           lAdministrative Support Unit, Bahrain                                                       $30,100,000  
Guam              lNaval Communications and Telecommunications Area Master Station Western Pacific, Guam       $4,050,000  
Italy             Naval Air Station, Sigonella                                                                $21,440,000  
                  Naval Support Activity, Naples                                                               $8,200,000  
United Kingdom    lJoint Maritime Communications Center, St. Mawgan                                            $2,330,000  
                                                                                                            -------------  
                   Total                                                                                      $66,120,000  
          SEC. 2202. FAMILY HOUSING.                                              
     (a) Construction and Acquisition.--Using amounts appropriated        
  pursuant to the authorization of appropriations in section              
  2204(a)(5)(A), the Secretary of the Navy may construct or acquire family
  housing units (including land acquisition) at the installations, for the
  purposes, and in the amounts set forth in the following table:          
                                       Navy: Family Housing                                     
State         Installation or Location                                    Purpose              Amount  
California    lMarine Corps Air Station, Miramar                          166 Units       $28,881,000  
              lMarine Corps Air-Ground Combat Center, Twentynine Palms    132 Units       $23,891,000  
              lMarine Corps Base, Camp Pendleton                          171 Units       $22,518,000  
              lNaval Air Station, Lemoore                                 128 Units       $23,226,000  
              lNaval Complex, San Diego                                   94 Units        $13,500,000  
Hawaii        lNaval Complex, Pearl Harbor                                72 Units        $13,000,000  
Louisiana     lNaval Complex, New Orleans                                 100 Units       $11,930,000  
Texas         lNaval Complex, Kingsville and Corpus Christi               212 Units       $22,250,000  
Washington    lNaval Air Station, Whidbey Island                          102 Units       $16,000,000  
                                                                                       --------------  
              xl                                                           Total         $175,196,000  
     (b) Planning and Design.--Using amounts appropriated pursuant to the 
  authorization of appropriation in section 2204(a)(5)(A), the Secretary  
  of the Navy may carry out architectural and engineering services and    
  construction design activities with respect to the construction or      
  improvement of military family housing units in an amount not to exceed 
  $15,100,000.                                                            
          SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.               
     Subject to section 2825 of title 10, United States Code, and using   
  amounts appropriated pursuant to the authorization of appropriations in 
  section 2204(a)(5)(A), the Secretary of the Navy may improve existing   
  military family housing units in an amount not to exceed $203,536,000.  
          SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.                       
     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 1997, for military           
  construction, land acquisition, and military family housing functions of
  the Department of the Navy in the total amount of $2,027,339,000 as     
  follows:                                                                
       (1) For military construction projects inside the United States     
   authorized by section 2201(a), $521,297,000.                            
       (2) For military construction projects outside the United States    
   authorized by section 2201(b), $66,120,000.                             
       (3) For unspecified minor construction projects authorized by       
   section 2805 of title 10, United States Code, $11,460,000.              
       (4) For architectural and engineering services and construction     
   design under section 2807 of title 10, United States Code, $46,489,000. 
     (5) For military family housing functions:                            
       (A) For construction and acquisition, planning and design, and      
   improvement of military family housing and facilities, $393,832,000.    
       (B) For support of military housing (including functions described  
   in section 2833 of title 10, United States Code), $976,504,000.         
       (6) For construction of a bachelor enlisted quarters at Naval       
   Hospital, Great Lakes, Illinois, authorized by section 2201(a) of the   
   Military Construction Authorization Act for Fiscal Year 1997 (division B
   of Public Law 104 201; 110 Stat. 2766), $5,200,000.                     
       (7) For construction of a bachelor enlisted quarters at Naval       
   Station, Roosevelt Roads, Puerto Rico, authorized by section 2201(a) of 
   the Military Construction Authorization Act for Fiscal Year 1997        
   (division B of Public Law 104 201; 110 Stat. 2767), $14,600,000.        
       (8) For construction of a large anecohic chamber facility at        
   Patuxent River Naval Air Warfare Center, Maryland, authorized by section
   2201(a) of the Military Construction Authorization Act for Fiscal Year  
   1993 (division B of Public Law 102 484; 106 Stat. 2590), $9,000,000.    
     (b) Limitation on Total Cost of Construction                         
  Projects.--Notwithstanding the cost variations authorized by section    
  2853 of title 10, United States Code, and any other cost variation      
  authorized by law, the total cost of all projects carried out under     
  section 2201 of this Act may not exceed the total amount authorized to  
  be appropriated under paragraphs (1) and (2) of subsection (a).         
     (c) Adjustments.--The total amount authorized to be appropriated     
  pursuant to paragraphs (1) through (8) of subsection (a) is the sum of  
  the amounts authorized to be appropriated in such paragraphs, reduced   
  by--                                                                    
       (1) $8,463,000, which represents the combination of project savings 
   in military family housing construction resulting from favorable bids,  
   reduced overhead costs, and cancellations due to force structure        
   changes; and                                                            
       (2) $8,700,000, which represents the combination of savings         
   resulting from adjustments to foreign currency exchange rates for       
   military construction projects and the support of military family       
   housing outside the United States.                                      
                    SEC. 2205. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT  
          NAVAL STATION, PASCAGOULA, MISSISSIPPI, FOR WHICH FUNDS HAVE BEEN       
          APPROPRIATED.                                                           
     (a) Authorization.--The table in section 2201(a) of the Military     
  Construction Authorization Act for Fiscal Year 1997 (division B of      
  Public Law 104 201; 110 Stat. 2766) is amended--                        
       (1) by striking out the amount identified as the total and inserting
   in lieu thereof ``$594,982,000''; and                                   
       (2) by inserting after the item relating to Stennis Space Center,   
   Mississippi, the following new item:                                    
                                                       
 xl    ``Naval Station, Pascagoula      $4,990,000''.  
     (b) Conforming Amendments.--Section 2204(a) of such Act (110 Stat.   
  2769) is amended--                                                      
       (1) in the matter preceding the paragraphs, by striking out         
   ``$2,213,731,000'' and inserting in lieu thereof ``$2,218,721,000''; and
       (2) in paragraph (1), by striking out ``$579,312,000'' and inserting
   in lieu thereof ``$584,302,000''.                                       
                    SEC. 2206. INCREASE IN AUTHORIZATION FOR MILITARY CONSTRUCTION
          PROJECTS AT NAVAL STATION ROOSEVELT ROADS, PUERTO RICO.                 
     (a) Increase.--The table in section 2201(b) of the Military          
  Construction Authorization Act for Fiscal Year 1997 (division B of      
  Public Law 104 201; 110 Stat. 2767) is amended--                        
       (1) by striking out the amount identified as the total and inserting
   in lieu thereof ``$66,150,000''; and                                    
       (2) in the amount column of the item relating to Naval Station,     
   Roosevelt Roads, Puerto Rico, by striking out ``$23,600,000'' and       
   inserting in lieu thereof ``$24,100,000''.                              
     (b) Conforming Amendment.--Section 2204(b)(4) of such Act (110 Stat. 
  2770) is amended by striking out ``$14,100,000'' and inserting in lieu  
  thereof ``$14,600,000''.                                                
           TITLE XXIII--AIR FORCE                                                  
            Sec. 2301. Authorized Air Force construction and land acquisition 
      projects.                                                               
      Sec. 2302. Family housing.                                              
      Sec. 2303. Improvements to military family housing units.               
      Sec. 2304. Authorization of appropriations, Air Force.                  
            Sec. 2305. Authorization of military construction project at      
      McConnell Air Force Base, Kansas, for which funds have been             
      appropriated.                                                           
                    SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND         
          ACQUISITION PROJECTS.                                                   
     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2304(a)(1), the Secretary
  of the Air Force may acquire real property and carry out military       
  construction projects for the installations and locations inside the    
  United States, and in the amounts, set forth in the following table:    
                       Air Force: Inside the United States                     
State                Installation or Location                    Amount  
Alabama              Maxwell Air Force Base                 $14,874,000  
Alaska               Clear Air Station                      $67,069,000  
                     Eielson Air Force Base                 $13,764,000  
                     Elmendorf Air Force Base                $6,100,000  
                     Indian Mountain                         $1,991,000  
Arizona              Luke Air Force Base                    $10,000,000  
Arkansas             Little Rock Air Force Base              $3,400,000  
California           Edwards Air Force Base                  $2,887,000  
                     Vandenberg Air Force Base              $26,876,000  
Colorado             Buckley Air National Guard Base         $6,718,000  
                     Falcon Air Force Station               $10,551,000  
                     Peterson Air Force Base                 $4,081,000  
                     United States Air Force Academy        $15,229,000  
Florida              Eglin Auxiliary Field 9                 $6,470,000  
                     MacDill Air Force Base                  $9,643,000  
Georgia              Moody Air Force Base                    $6,800,000  
                     Robins Air Force Base                  $27,763,000  
Idaho                Mountain Home Air Force Base           $30,669,000  
Kansas               McConnell Air Force Base               $14,519,000  
Louisiana            Barksdale Air Force Base               $19,410,000  
Mississippi          Keesler Air Force Base                 $30,855,000  
Missouri             Whiteman Air Force Base                $17,419,000  
Montana              Malmstrom Air Force Base                $4,500,000  
Nevada               Nellis Air Force Base                   $1,950,000  
New Jersey           McGuire Air Force Base                 $18,754,000  
New Mexico           Kirtland Air Force Base                $20,300,000  
North Carolina       Pope Air Force Base                    $10,956,000  
North Dakota         Grand Forks Air Force Base              $8,560,000  
                     Minot Air Force Base                    $5,200,000  
Ohio                 Wright-Patterson Air Force Base        $19,350,000  
Oklahoma             Altus Air Force Base                   $11,000,000  
                     Tinker Air Force Base                   $9,655,000  
                     Vance Air Force Base                    $7,700,000  
South Carolina       Shaw Air Force Base                     $6,072,000  
South Dakota         Ellsworth Air Force Base                $6,600,000  
Tennessee            Arnold Air Force Base                  $20,650,000  
Texas                Dyess Air Force Base                   $10,000,000  
                     Laughlin Air Force Base                 $4,800,000  
                     Randolph Air Force Base                 $2,488,000  
Utah                 Hill Air Force Base                     $6,470,000  
Virginia             Langley Air Force Base                  $4,031,000  
Washington           Fairchild Air Force Base               $20,316,000  
                     McChord Air Force Base                  $6,470,000  
CONUS Classified     Classified Location                     $6,175,000  
                                                         --------------  
                      Total                                $559,085,000  
     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2304(a)(2), the       
  Secretary of the Air Force may acquire real property and carry out      
  military construction projects for the installations and locations      
  outside the United States, and in the amounts, set forth in the         
  following table:                                                        
                      Air Force: Outside the United States                     
Country                 Installation or Location               Amount  
Germany                 Spangdahlem Air Base              $18,500,000  
Italy                   Aviano Air Base                   $15,220,000  
Korea                   Kunsan Air Base                   $10,325,000  
Portugal                Lajes Field, Azores                $4,800,000  
United Kingdom          Royal Air Force, Lakenheath       $11,400,000  
Overseas Classified     Classified Location               $29,100,000  
                                                        -------------  
                         Total                            $89,345,000  
          SEC. 2302. FAMILY HOUSING.                                              
     (a) Construction and Acquisition.--Using amounts appropriated        
  pursuant to the authorization of appropriations in section              
  2304(a)(5)(A), the Secretary of the Air Force may construct or acquire  
  family housing units (including land acquisition) at the installations, 
  for the purposes, and in the amounts set forth in the following table:  
                                 Air Force: Family Housing                                
State                   Installation or Location         Purpose                         Amount  
California              lEdwards Air Force Base          51 Units                    $8,500,000  
                        lTravis Air Force Base           70 Units                    $9,714,000  
                        lVandenberg Air Force Base       108 Units                  $17,100,000  
Delaware                lDover Air Force Base            lAncillary Facility           $831,000  
District of Columbia    lBolling Air Force Base          46 Units                    $5,100,000  
Florida                 lMacDill Air Force Base          58 Units                   $10,000,000  
                        lTyndall Air Force Base          32 Units                    $4,200,000  
Georgia                 lRobins Air Force Base           60 Units                    $6,800,000  
Idaho                   lMountain Home Air Force Base    60 Units                   $11,032,000  
Kansas                  lMcConnell Air Force Base        19 Units                    $2,951,000  
                        lMcConnell Air Force Base        lAncillary Facility           $581,000  
Mississippi             lColumbus Air Force Base         50 Units                    $6,200,000  
                        lKeesler Air Force Base          40 Units                    $5,000,000  
Montana                 lMalmstrom Air Force Base        100 Units                  $17,842,000  
New Mexico              lKirtland Air Force Base         180 Units                  $20,900,000  
North Dakota            lGrand Forks Air Force Base      42 Units                    $7,936,000  
Texas                   lDyess Air Force Base            70 Units                   $10,503,000  
                        lGoodfellow Air Force Base       3 Units                       $500,000  
                        lLackland Air Force Base         50 Units                    $7,400,000  
Wyoming                 lF. E. Warren Air Force Base     52 Units                    $6,853,000  
                                                                                 --------------  
                        xl                                Total                    $159,943,000  
     (b) Planning and Design.--Using amounts appropriated pursuant to the 
  authorization of appropriations in section 2304(a)(5)(A), the Secretary 
  of the Air Force may carry out architectural and engineering services   
  and construction design activities with respect to the construction or  
  improvement of military family housing units in an amount not to exceed 
  $11,971,000.                                                            
          SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.               
     Subject to section 2825 of title 10, United States Code, and using   
  amounts appropriated pursuant to the authorization of appropriations in 
  section 2304(a)(5)(A), the Secretary of the Air Force may improve       
  existing military family housing units in an amount not to exceed       
  $123,795,000.                                                           
          SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.                  
     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 1997, for military           
  construction, land acquisition, and military family housing functions of
  the Department of the Air Force in the total amount of $1,791,640,000 as
  follows:                                                                
       (1) For military construction projects inside the United States     
   authorized by section 2301(a), $559,085,000.                            
       (2) For military construction projects outside the United States    
   authorized by section 2301(b), $89,345,000.                             
       (3) For unspecified minor construction projects authorized by       
   section 2805 of title 10, United States Code, $8,545,000.               
       (4) For architectural and engineering services and construction     
   design under section 2807 of title 10, United States Code, $44,880,000. 
     (5) For military housing functions:                                   
       (A) For construction and acquisition, planning and design, and      
   improvement of military family housing and facilities, $295,709,000.    
       (B) For support of military family housing (including the functions 
   described in section 2833 of title 10, United States Code),             
   $830,234,000.                                                           
     (b) Limitation on Total Cost of Construction                         
  Projects.--Notwithstanding the cost variations authorized by section    
  2853 of title 10, United States Code, and any other cost variation      
  authorized by law, the total cost of all projects carried out under     
  section 2301 of this Act may not exceed the total amount authorized to  
  be appropriated under paragraphs (1) and (2) of subsection (a).         
     (c) Adjustments.--The total amount authorized to be appropriated     
  pursuant to paragraphs (1) through (5) of subsection (a) is the sum of  
  the amounts authorized to be appropriated in such paragraphs, reduced   
  by--                                                                    
       (1) $23,858,000, which represents the combination of project savings
   in military construction resulting from favorable bids, reduced overhead
   costs, and cancellations due to force structure changes; and            
       (2) $12,300,000, which represents the combination of savings        
   resulting from adjustments to foreign currency exchange rates for       
   military construction projects and the support of military family       
   housing outside the United States.                                      
                    SEC. 2305. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT  
          MCCONNELL AIR FORCE BASE, KANSAS, FOR WHICH FUNDS HAVE BEEN             
          APPROPRIATED.                                                           
     (a) Authorization.--The table in section 2301(a) of the Military     
  Construction Authorization Act for Fiscal Year 1997 (division B of      
  Public Law 104 201; 110 Stat. 2771) is amended--                        
       (1) by striking out the amount identified as the total and inserting
   in lieu thereof ``$610,534,000''; and                                   
       (2) in the amount column of the item relating to McConnell Air Force
   Base, Kansas, by striking out ``$19,130,000'' and inserting in lieu     
   thereof ``$25,830,000''.                                                
     (b) Conforming Amendments.--Section 2304(a) of such Act (110 Stat.   
  2774) is amended--                                                      
       (1) in the matter preceding paragraph (1), by striking out          
   ``$1,894,594,000'' and inserting in lieu thereof ``$1,901,294,000'' and 
       (2) in paragraph (1), by striking out ``$603,834,000'' and inserting
   in lieu thereof ``$610,534,000''.                                       
           TITLE XXIV--DEFENSE AGENCIES                                            
            Sec. 2401. Authorized Defense Agencies construction and land      
      acquisition projects.                                                   
      Sec. 2402. Military housing planning and design.                        
      Sec. 2403. Improvements to military family housing units.               
      Sec. 2404. Energy conservation projects.                                
      Sec. 2405. Authorization of appropriations, Defense Agencies.           
            Sec. 2406. Clarification of authority relating to fiscal year 1997
      project at Naval Station, Pearl Harbor, Hawaii.                         
            Sec. 2407. Correction in authorized uses of funds, McClellan Air  
      Force Base, California.                                                 
            Sec. 2408. Modification of authority to carry out certain fiscal  
      year 1995 projects.                                                     
                    SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND  
          ACQUISITION PROJECTS.                                                   
     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2405(a)(1), the Secretary
  of Defense may acquire real property and carry out military construction
  projects for the installations and locations inside the United States,  
  and in the amounts, set forth in the following table:                   
                                        Defense Agencies: Inside the United States                                       
Agency                                       Installation or Location                                                 Amount  
Defense Commissary Agency                    Fort Lee, Virginia                                                   $9,300,000  
lDefense Finance and Accounting Service      Columbus Center, Ohio                                                $9,722,000  
                                             lNaval Air Station, Millington, Tennessee                            $6,906,000  
                                             lNaval Station, Norfolk, Virginia                                   $12,800,000  
                                             lNaval Station, Pearl Harbor, Hawaii                                $10,000,000  
Defense Intelligence Agency                  lBolling Air Force Base, District of Columbia                        $7,000,000  
                                             Redstone Arsenal, Alabama                                           $32,700,000  
Defense Logistics Agency                     lDefense Distribution Depot--DDNV, Virginia                         $16,656,000  
                                             lDefense Distribution New Cumberland--DDSP, Pennsylvania            $15,500,000  
                                             lDefense Fuel Support Point, Craney Island, Virginia                $22,100,000  
                                             lDefense General Supply Center, Richmond (DLA), Virginia             $5,200,000  
                                             lElmendorf Air Force Base, Alaska                                   $21,700,000  
                                             lNaval Air Station, Jacksonville, Florida                            $9,800,000  
                                             lTruax Field, Wisconsin                                              $4,500,000  
                                             lWestover Air Reserve Base, Massachusetts                            $4,700,000  
                                             lCONUS Various, CONUS Various                                       $11,275,000  
lDefense Medical Facilities Office           Fort Campbell, Kentucky                                             $13,600,000  
                                             Fort Detrick, Maryland                                               $4,650,000  
                                             Fort Lewis, Washington                                               $5,000,000  
                                             Hill Air Force Base, Utah                                            $3,100,000  
                                             lHolloman Air Force Base, New Mexico                                 $3,000,000  
                                             lLackland Air Force Base, Texas                                      $3,000,000  
                                             lMarine Corps Combat Development Command, Quantico, Virginia        $19,000,000  
                                             lMcGuire Air Force Base, New Jersey                                 $35,217,000  
                                             lNaval Air Station, Pensacola, Florida                               $2,750,000  
                                             lNaval Station, Everett, Washington                                  $7,500,000  
                                             lNaval Station, San Diego, California                                $2,100,000  
                                             lNaval Submarine Base, New London, Connecticut                       $2,300,000  
                                             lRobins Air Force Base, Georgia                                     $19,000,000  
                                             lWright-Patterson Air Force Base, Ohio                               $2,750,000  
National Security Agency                     Fort Meade, Maryland                                                $29,700,000  
Special Operations Command                   Eglin Auxiliary Field 9, Florida                                     $8,550,000  
                                             Fort Benning, Georgia                                               $12,314,000  
                                             Fort Bragg, North Carolina                                           $9,800,000  
                                             lMississippi Army Ammunition Plant, Mississippi                      $9,900,000  
                                             lNaval Station, Pearl Harbor, Hawaii                                 $7,400,000  
                                             lNaval Amphibious Base, Coronado, California                         $7,400,000  
                                                                                                              --------------  
                                              Total                                                             $407,890,000  
     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2405(a)(2), the       
  Secretary of Defense may acquire real property and carry out military   
  construction projects for the installation                              
                    and location outside the United States, and in the amount, set
          forth in the following table:                                           
                   Defense Agencies: Outside the United States                 
Agency                        Installation or Location                     Amount  
Defense Logistics Agency      lDefense Fuel Support Point, Guam       $16,000,000  
                                                                    -------------  
                               Total                                  $16,000,000  
          SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.                        
     Using amounts appropriated pursuant to the authorization of          
  appropriations in section 2405(a)(13)(A), the Secretary of Defense may  
  carry out architectural and engineering services and construction design
  activities with respect to the construction or improvement of military  
  family housing units in an amount not to exceed $50,000.                
          SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.               
     Subject to section 2825 of title 10, United States Code, and using   
  amounts appropriated pursuant to the authorization of appropriation in  
  section 2405(a)(13)(A), the Secretary of Defense may improve existing   
  military family housing units in an amount not to exceed $4,900,000.    
          SEC. 2404. ENERGY CONSERVATION PROJECTS.                                
     Using amounts appropriated pursuant to the authorization of          
  appropriations in section 2405(a)(11), the Secretary of Defense may     
  carry out energy conservation projects under section 2865 of title 10,  
  United States Code.                                                     
          SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.           
     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 1997, for military           
  construction, land acquisition, and military family housing functions of
  the Department of Defense (other than the military departments), in the 
  total amount of $2,743,670,000 as follows:                              
       (1) For military construction projects inside the United States     
   authorized by section 2401(a), $407,890,000.                            
       (2) For military construction projects outside the United States    
   authorized by section 2401(b), $16,000,000.                             
       (3) For military construction projects at Anniston Army Depot,      
   Alabama, ammunition demilitarization facility, authorized by section    
   2101(a) of the Military Construction Authorization Act for Fiscal Year  
   1993 (division B of the Public Law 102 484; 106 Stat. 2587), which was  
   originally authorized as an Army construction project, but which became 
   a Defense Agencies construction project by reason of the amendments made
   by section 142 of the National Defense Authorization Act for Fiscal Year
   1995 (Public Law 103 337; 108 Stat. 2689), $9,900,000.                  
       (4) For military construction projects at Walter Reed Army Institute
   of Research, Maryland, hospital replacement, authorized by section      
   2401(a) of the Military Construction Authorization Act for Fiscal Year  
   1993 (division B of Public Law 102 484; 106 Stat. 2599), $20,000,000.   
       (5) For military construction projects at Umatilla Army Depot,      
   Oregon, authorized by section 2401(a) of the Military Construction      
   Authorization Act for Fiscal Year 1995 (division B of the Public Law 103
   337; 108 Stat. 3040), as amended by section 2407 of the Military        
   Construction Authorization Act for Fiscal Year 1996 (division B of      
   Public Law 104 106; 110 Stat. 539) and section 2408(2) of this Act,     
   $57,427,000.                                                            
       (6) For military construction projects at Defense Finance and       
   Accounting Service, Columbus, Ohio, authorized by section 2401(a) of the
   Military Construction Authorization Act of Fiscal Year 1996 (division B 
   of Public Law 104 106; 110 Stat. 535), $14,200,000.                     
       (7) For military construction projects at Naval Hospital,           
   Portsmouth, Virginia, hospital replacement, authorized by section       
   2401(a) of the Military Construction Authorization Act for Fiscal Years 
   1990 and 1991 (division B of Public Law 101 189; 103 Stat. 1640),       
   $17,000,000.                                                            
       (8) For contingency construction projects of the Secretary of       
   Defense under section 2804 of title 10, United States Code, $4,000,000. 
       (9) For unspecified minor construction projects under section 2805  
   of title 10, United States Code, $26,075,000.                           
       (10) For architectural and engineering services and construction    
   design under section 2807 of title 10, United States Code, $48,850,000. 
       (11) For energy conservation projects authorized by section 2404,   
   $25,000,000.                                                            
       (12) For base closure and realignment activities as authorized by   
   the Defense Base Closure and Realignment Act of 1990 (part A of title   
   XXIX of Public Law 101 510; 10 U.S.C. 2687 note), $2,060,854,000.       
     (13) For military family housing functions:                           
       (A) For improvement and planning of military family housing and     
   facilities, $4,950,000.                                                 
       (B) For support of military housing (including functions described  
   in section 2833 of title 10, United States Code), $32,724,000 of which  
   not more than $27,673,000 may be obligated or expended for the leasing  
   of military family housing units worldwide.                             
     (b) Limitation of Total Cost of Construction                         
  Projects.--Notwithstanding the cost variation authorized by section 2853
  of title 10, United States Code, and any other cost variations          
  authorized by law, the total cost of all projects carried out under     
  section 2401 of this Act may not exceed the total amount authorized to  
  be appropriated under paragraphs (1) and (2) of subsection (a).         
     (c) Adjustment.--The total amount authorized to be appropriated      
  pursuant to paragraphs (1) through (13) of subsection (a) is the sum of 
  the amounts authorized to be appropriated in such paragraphs, reduced by
  $1,200,000, which represents the combination of savings resulting from  
  adjustments to foreign currency exchange rates for military construction
  projects and the support of military family housing outside the United  
  States.                                                                 
                    SEC. 2406. CLARIFICATION OF AUTHORITY RELATING TO FISCAL YEAR 
          1997 PROJECT AT NAVAL STATION, PEARL HARBOR, HAWAII.                    
     The table in section 2401(a) of the Military Construction            
  Authorization Act for Fiscal Year 1997 (division B of Public Law 104    
  201; 110 Stat. 2775) is amended in the item relating to Special         
  Operations Command, Naval Station, Ford Island, Pearl Harbor, Hawaii, in
  the installation or location column by striking out ``Naval Station,    
  Ford Island, Pearl Harbor, Hawaii'' and inserting in lieu thereof       
  ``Naval Station, Pearl Harbor, Hawaii''.                                
                    SEC. 2407. CORRECTION IN AUTHORIZED USES OF FUNDS, MCCLELLAN  
          AIR FORCE BASE, CALIFORNIA.                                             
     (a) Authority To Use Prior Year Funds.--The Secretary of Defense may 
  carry out the military construction projects referred to in subsection  
  (b), in the amounts specified in that subsection, using amounts         
  appropriated pursuant to the authorization of appropriations in section 
  2405(a)(1) of the Military Construction Authorization Act for Fiscal    
  Year 1995 (division B of Public Law 103 337; 108 Stat. 3042) for a      
  military construction project involving the upgrade of the hospital     
  facility at McClellan Air Force Base, California, as authorized by      
  section 2401 of such Act (108 Stat. 3040).                              
     (b) Covered Projects.--Funds available under subsection (a) may be   
  used for military construction projects as follows:                     
       (1) Construction of an addition to the Aeromedical Clinic at        
   Anderson Air Base, Guam, $3,700,000.                                    
       (2) Construction of an occupational health clinic facility at Tinker
   Air Force Base, Oklahoma, $6,500,000.                                   
                    SEC. 2408. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN     
          FISCAL YEAR 1995 PROJECTS.                                              
     The table in section 2401 of the Military Construction Authorization 
  Act for Fiscal Year 1995 (division B of Public Law 103 337; 108 Stat.   
  3040), as amended by section 2407 of the Military Construction          
  Authorization Act for Fiscal Year 1996 (division B of Public Law 104    
  106; 110 Stat. 539), under the agency heading relating to Chemical      
  Weapons and Munitions Destruction, is amended--                         
       (1) in the item relating to Pine Bluff Arsenal, Arkansas, by        
   striking out ``$115,000,000'' in the amount column and inserting in lieu
   thereof ``$134,000,000''; and                                           
       (2) in the item relating to Umatilla Army Depot, Oregon, by striking
   out ``$186,000,000'' in the amount column and inserting in lieu thereof 
   ``$187,000,000''.                                                       
                      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY       
           INVESTMENT PROGRAM                                                      
      Sec. 2501. Authorized NATO construction and land acquisition projects.  
      Sec. 2502. Authorization of appropriations, NATO.                       
          SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.  
     The Secretary of Defense may make contributions for the North        
  Atlantic Treaty Organization Security Investment program as provided in 
  section 2806 of title 10, United States Code, in an amount not to exceed
  the sum of the amount authorized to be appropriated for this purpose in 
  section 2502 and the amount collected from the North Atlantic Treaty    
  Organization as a result of construction previously financed by the     
  United States.                                                          
          SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.                       
     Funds are hereby authorized to be appropriated for fiscal years      
  beginning after September 30, 1997, for contributions by the Secretary  
  of Defense under section 2806 of title 10, United States Code, for the  
  share of the United States of the cost of projects for the North        
  Atlantic Treaty Organization Security Investment program authorized by  
  section 2501, in the amount of $152,600,000.                            
           TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES                         
            Sec. 2601. Authorized Guard and Reserve construction and land     
      acquisition projects.                                                   
            Sec. 2602. Authorization of military construction projects for    
      which funds have been appropriated.                                     
      Sec. 2603. Army Reserve construction project, Camp Williams, Utah.      
                    SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
          ACQUISITION PROJECTS.                                                   
     (a) In General.--There are authorized to be appropriated for fiscal  
  years beginning after September 30, 1997, for the costs of acquisition, 
  architectural and engineering services, and construction of facilities  
  for the Guard and Reserve Forces, and for contributions therefor, under 
  chapter 1803 of title 10, United States Code (including the cost of     
  acquisition of land for those facilities), the following amounts:       
     (1) For the Department of the Army--                                  
       (A) for the Army National Guard of the United States, $113,750,000; 
   and                                                                     
     (B) for the Army Reserve, $66,267,000.                                
       (2) For the Department of the Navy, for the Naval and Marine Corps  
   Reserve, $47,329,000.                                                   
     (3) For the Department of the Air Force--                             
     (A) for the Air National Guard of the United States, $190,444,000; and
     (B) for the Air Force Reserve, $30,243,000.                           
     (b) Adjustment.--The amount authorized to be appropriated pursuant to
  subsection (a)(1)(B) is reduced by $7,900,000, which represents the     
  combination of project savings in military construction resulting from  
  favorable bids, reduced overhead costs, and cancellations due to force  
  structure changes.                                                      
                    SEC. 2602. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECTS FOR
          WHICH FUNDS HAVE BEEN APPROPRIATED.                                     
     (a) Army National Guard, Hilo, Hawaii.--Paragraph (1)(A) of section  
  2601 of the Military Construction Authorization Act for Fiscal Year 1997
  (division B of Public Law 104 201; 110 Stat. 2780) is amended by        
  striking out ``$59,194,000'' and inserting in lieu thereof              
  ``$65,094,000'' to account for a project involving additions and        
  alterations to an Army aviation support facility in Hilo, Hawaii.       
     (b) Naval and Marine Corps Reserve, New Orleans.--Paragraph (2) of   
  such section is amended by striking out ``$32,779,000'' and inserting in
  lieu thereof ``$37,579,000'' to account for a project for the           
  construction of a bachelor enlisted quarters at Naval Air Station, New  
  Orleans, Louisiana.                                                     
          SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, CAMP WILLIAMS, UTAH.      
     With regard to the military construction project for the Army Reserve
  concerning construction of a reserve center and organizational          
  maintenance shop at Camp Williams, Utah, to be carried out using funds  
  appropriated pursuant to the authorization of appropriations in section 
  2601(a)(1)(B), the Secretary of the Army shall enter into an agreement  
  with the State of Utah under which the State agrees to provide financial
  or in-kind contributions toward land acquisition, site preparation, and 
  relocation costs in connection with the project.                        
           TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS                 
            Sec. 2701. Expiration of authorizations and amounts required to be
      specified by law.                                                       
            Sec. 2702. Extension of authorizations of certain fiscal year 1995
      projects.                                                               
            Sec. 2703. Extension of authorizations of certain fiscal year 1994
      projects.                                                               
            Sec. 2704. Extension of authorizations of certain fiscal year 1993
      projects.                                                               
            Sec. 2705. Extension of authorizations of certain fiscal year 1992
      projects.                                                               
            Sec. 2706. Extension of availability of funds for construction of 
      relocatable over-the-horizon radar, Naval Station Roosevelt Roads,      
      Puerto Rico.                                                            
      Sec. 2707. Effective date.                                              
                    SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED  
          TO BE SPECIFIED BY LAW.                                                 
     (a) Expiration of Authorizations After Three Years.--Except as       
  provided in subsection (b), all authorizations contained in titles XXI  
  through XXVI for military construction projects, land acquisition,      
  family housing projects and facilities, and contributions to the North  
  Atlantic Treaty Organization Security Investment program (and           
  authorizations of appropriations therefor) shall expire on the later    
  of--                                                                    
     (1) October 1, 2000; or                                               
       (2) the date of the enactment of an Act authorizing funds for       
   military construction for fiscal year 2001.                             
     (b) Exception.--Subsection (a) shall not apply to authorizations for 
  military construction projects, land acquisition, family housing        
  projects and facilities, and contributions to the North Atlantic Treaty 
  Organization Security Investment program (and authorizations of         
  appropriations therefor), for which appropriated funds have been        
  obligated before the later of--                                         
     (1) October 1, 2000; or                                               
       (2) the date of the enactment of an Act authorizing funds for fiscal
   year 2001 for military construction projects, land acquisition, family  
   housing projects and facilities, or contributions to the North Atlantic 
   Treaty Organization Security Investment program.                        
                    SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
          1995 PROJECTS.                                                          
     (a) Extension.--Notwithstanding section 2701 of the Military         
  Construction Authorization Act for Fiscal Year 1995 (division B of      
  Public Law 103 337; 108 Stat. 3046), authorizations for the projects set
  forth in the tables in subsection (b), as provided in section 2101,     
  2201, 2202, 2301, 2302, 2401, or 2601 of such Act, shall remain in      
  effect until October 1, 1998, or the date of the enactment of an Act    
  authorizing funds for military construction for fiscal year 1999,       
  whichever is later.                                                     
    (b)  Tables.--The tables referred to in subsection (a) are as follows:
                            Army: Extension of 1995 Project Authorization                          
 State          Installation or location     Project                                              Amount  
California     Fort Irwin                   lNational Training Center Airfield Phase I       $10,000,000  
                                                      Navy: Extension of 1995 Project Authorizations                                                     
 State                Installation or location                                    Project                                                               Amount  
Maryland             lIndian Head Naval Surface Warfare Center                   lUpgrade Power Plant                                               $4,000,000  
 xl                  lIndian Head Naval Surface Warfare Center                   lDenitrification/Acid Mixing Facility                              $6,400,000  
Virginia             lNorfolk Marine Corps Security Force Battalion Atlantic     lBachelor Enlisted Quarters                                        $6,480,000  
Washington           lNaval Station, Everett                                     lNew Construction (Housing Office)                                   $780,000  
CONUS Classified     lClassified Location                                        lAircraft Fire and Rescue and Vehicle Maintenance Facilities       $2,200,000  
                       Air Force: Extension of 1995 Project Authorizations                      
 State              Installation or location           Project                                 Amount  
California         lBeale Air Force Base              lConsolidated Support Center        $10,400,000  
 xl                lLos Angeles Air Force Station     lFamily Housing (50 units)           $8,962,000  
North Carolina     lPope Air Force Base               lCombat Control Team Facility        $2,450,000  
 xl                lPope Air Force Base               lFire Training Facility              $1,100,000  
                                 Defense Agencies: Extension of 1995 Project Authorizations                                
 State          Installation or location                                 Project                                          Amount  
Alabama        lAnniston Army Depot                                     lCarbon Filtration System                     $5,000,000  
Arkansas       lPine Bluff Arsenal                                      lAmmunition Demilitarization Facility       $115,000,000  
California     lDefense Contract Management Area Office, El Segundo     lAdministrative Building                      $5,100,000  
Oregon         lUmatilla Army Depot                                     lAmmunition Demilitarization Facility       $186,000,000  
                 Army National Guard: Extension of 1995 Project Authorizations                
 State            Installation or location     Project                                       Amount  
California       Camp Roberts                 lModify Record Fire/Maintenance Shop       $3,910,000  
 xl              Camp Roberts                 lCombat Pistol Range                         $952,000  
Pennsylvania     lFort Indiantown Gap         Barracks                                   $6,200,000  
             Naval Reserve: Extension of 1995 Project Authorization            
 State       Installation or location        Project                   Amount  
Georgia     lNaval Air Station Marietta     lTraining Center       $2,650,000  
                    SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
          1994 PROJECTS.                                                          
     (a) Extension.--Notwithstanding section 2701 of the Military         
  Construction Authorization Act for Fiscal Year 1994 (division B of      
  Public Law 103 160, 107 Stat. 1880), authorizations for the projects set
  forth in the tables in subsection (b), as provided in section 2201 or   
  2601 of such Act and extended by section 2702 of the Military           
  Construction Authorization Act for Fiscal Year 1997 (division B of      
  Public Law 104 201; 110 Stat. 2783), shall remain in effect until       
  October 1, 1998, or the date of the enactment of an Act authorizing     
  funds for military construction for fiscal year 1999, whichever is      
  later.                                                                  
    (b)  Tables.--The tables referred to in subsection (a) are as follows:
                            Navy: Extension of 1994 Project Authorizations                          
State           Installation or Location              Project                                      Amount  
California      lCamp Pendleton Marine Corps Base     lSewage Facility                         $7,930,000  
Connecticut     lNew London Naval Submarine Base      lHazardous Waste Transfer Facility       $1,450,000  
          Army National Guard: Extension of 1994 Project Authorization         
 State         Installation or Location      Project          Amount  
New Mexico    lWhite Sands Missile Range    MATES         $3,570,000  
                    SEC. 2704. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
          1993 PROJECTS.                                                          
     (a) Extension.--Notwithstanding section 2701 of the Military         
  Construction Authorization Act for Fiscal Year 1993 (division B of      
  Public Law 102 484; 106 Stat. 2602), the authorizations for the projects
  set forth in the tables in subsection (b), as provided in section 2101  
  or 2601 of such Act and extended by section 2702 of the Military        
  Construction Authorization Act for Fiscal Year 1996 (division B of      
  Public Law 104 106; 110 Stat. 541) and section 2703 of the Military     
  Construction Authorization Act for Fiscal Year 1997 (division B of      
  Public Law 104 201; 110 Stat. 2784), shall remain in effect until       
  October 1, 1998, or the date of the enactment of an Act authorizing     
  funds for military construction for fiscal year 1999, whichever is      
  later.                                                                  
    (b)  Tables.--The tables referred to in subsection (a) are as follows:
                            Army: Extension of 1993 Project Authorization                          
State        Installation or location    Project                                                  Amount  
Arkansas     Pine Bluff Arsenal          lAmmunition Demilitarization Support Facility       $15,000,000  
          Army National Guard: Extension of 1993 Project Authorization         
State      Installation or Location    Project        Amount  
Alabama    Union Springs               Armory       $813,000  
                    SEC. 2705. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
          1992 PROJECTS.                                                          
     (a) Extension.--Notwithstanding section 2701 of the Military         
  Construction Authorization Act for Fiscal Year 1992 (division B of      
  Public Law 102 190; 105 Stat. 1535), authorizations for the projects set
  forth in the table in subsection (b), as provided in section 2101 of    
  such Act and extended by section 2702 of the Military Construction      
  Authorization Act for Fiscal Year 1995 (division B of Public Law 103    
  337; 108 Stat. 3047), section 2703 of the Military Construction         
  Authorization Act for Fiscal Year 1996 (division B of Public Law 104    
  106; 110 Stat. 543), and section 2704 of the Military Construction      
  Authorization Act for Fiscal Year 1997 (division B of Public Law 104    
  201; 110 Stat. 2785), shall remain in effect until October 1, 1998, or  
  the date of the enactment of an Act authorizing funds for military      
  construction for fiscal year 1999, whichever is later.                  
    (b)  Table.--The table referred to in subsection (a) is as follows:   
                         Army: Extension of 1992 Project Authorizations                        
State      Installation or location    Project                                                Amount  
Oregon     Umatilla Army Depot         lAmmunition Demilitarization Support Facility      $3,600,000  
              Umatilla Army Depot         lAmmunition Demilitarization Utilities             $7,500,000  
                    SEC. 2706. EXTENSION OF AVAILABILITY OF FUNDS FOR CONSTRUCTION
          OF RELOCATABLE OVER-THE-HORIZON RADAR, NAVAL STATION ROOSEVELT ROADS,   
          PUERTO RICO.                                                            
     Amounts appropriated under the heading `` Drug Interdiction and      
  Counter-Drug Activities, Defense '' in title VI of the Department of    
  Defense Appropriations Act, 1995 (Public Law 103 335; 108 Stat. 2615),  
  and transferred to the ``Military Construction, Navy'' appropriation for
  construction of a relocatable over-the-horizon radar at Naval Station   
  Roosevelt Roads, Puerto Rico, shall remain available for that purpose   
  until the later of--                                                    
     (1) October 1, 1998; or                                               
       (2) the date of enactment of an Act authorizing funds for military  
   construction for fiscal year 1999.                                      
          SEC. 2707. EFFECTIVE DATE.                                              
     Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on the
  later of--                                                              
     (1) October 1, 1997; or                                               
     (2) the date of the enactment of this Act.                            
           TITLE XXVIII--GENERAL PROVISIONS                                        
           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  
                                     CHANGES                                      
            Sec. 2801. Use of mobility enhancement funds for unspecified minor
      construction.                                                           
            Sec. 2802. Limitation on use of operation and maintenance funds   
      for facility repair projects.                                           
            Sec. 2803. Leasing of military family housing, United States      
      Southern Command, Miami, Florida.                                       
            Sec. 2804. Use of financial incentives provided as part of energy 
      savings and water conservation activities.                              
            Sec. 2805. Congressional notification requirements regarding use  
      of Department of Defense housing funds for investments in               
      nongovernmental entities.                                               
                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        
      Sec. 2811. Increase in ceiling for minor land acquisition projects.     
      Sec. 2812. Permanent authority regarding conveyance of utility systems. 
            Sec. 2813. Administrative expenses for certain real property      
      transactions.                                                           
            Sec. 2814. Screening of real property to be conveyed by Department
      of Defense.                                                             
            Sec. 2815. Disposition of proceeds from sale of Air Force Plant   
      78, Brigham City, Utah.                                                 
            Sec. 2816. Fire protection and hazardous materials protection at  
      Fort Meade, Maryland.                                                   
                      SUBTITLE C--DEFENSE BASE CLOSURE AND REALIGNMENT            
            Sec. 2821. Consideration of military installations as sites for   
      new Federal facilities.                                                 
            Sec. 2822. Adjustment and diversification assistance to enhance   
      performance of military family support services by private sector       
      sources.                                                                
            Sec. 2823. Security, fire protection, and other services at       
      property formerly associated with Red River Army Depot, Texas.          
      Sec. 2824. Report on closure and realignment of military installations. 
            Sec. 2825. Sense of Senate regarding utilization of savings       
      derived from base closure process.                                      
            Sec. 2826. Prohibition against certain conveyances of property at 
      Naval Station, Long Beach, California.                                  
                                SUBTITLE D--LAND CONVEYANCES                      
                                  PART I--ARMY CONVEYANCES                        
            Sec. 2831. [S2820. Land conveyance, Army Reserve Center,          
      Greensboro, Alabama.                                                    
            Sec. 2832. [H2831. Land conveyance, James T. Coker Army Reserve   
      Center, Durant, Oklahoma.                                               
            Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago,  
      Illinois.                                                               
      Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.                  
      Sec. 2835. Land conveyances, Fort Dix, New Jersey.                      
      Sec. 2836. Land conveyances, Fort Bragg, North Carolina.                
            Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot,      
      Mineral County, Nevada.                                                 
            Sec. 2838. Expansion of land conveyance authority, Indiana Army   
      Ammunition Plant, Charlestown, Indiana.                                 
      Sec. 2839. Modification of land conveyance, Lompoc, California.         
            Sec. 2840. Modification of land conveyance, Rocky Mountain        
      Arsenal, Colorado.                                                      
            Sec. 2841. Correction of land conveyance authority, Army Reserve  
      Center, Anderson, South Carolina.                                       
                                 PART II--NAVY CONVEYANCES                        
            Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station,     
      Brunswick, Maine.                                                       
            Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant
      No. 464, Oyster Bay, New York.                                          
            Sec. 2853. Correction of lease authority, Naval Air Station,      
      Meridian, Mississippi.                                                  
                              PART III--AIR FORCE CONVEYANCES                     
      Sec. 2861. [H2861. Land transfer, Eglin Air Force Base, Florida.        
      Sec. 2862. [H2863. Land conveyance, March Air Force Base, California.   
            Sec. 2863. [H2864/S2818. Land conveyance, Ellsworth Air Force     
      Base, South Dakota.                                                     
      Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.          
            Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and 
      Havre Training Site, Montana.                                           
            Sec. 2866. Land conveyance, Charleston Family Housing Complex,    
      Bangor, Maine.                                                          
            Sec. 2867. Study of land exchange options, Shaw Air Force Base,   
      South Carolina.                                                         
                                  SUBTITLE E--OTHER MATTERS                       
      Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.   
      Sec. 2872. Long-term lease of property, Naples, Italy.                  
            Sec. 2873. [H2883. Designation of military family housing at      
      Lackland Air Force Base, Texas, in honor of Frank Tejeda, a former      
      Member of the House of Representatives.                                 
            Sec. 2874. Fiber-optics based telecommunications linkage of       
      military installations.                                                 
                      Subtitle A--Military Construction Program and Military Family
           Housing Changes                                                         
                    SEC. 2801. USE OF MOBILITY ENHANCEMENT FUNDS FOR UNSPECIFIED  
          MINOR CONSTRUCTION.                                                     
     (a) Congressional Notification.--Subsection (b)(1) of section 2805 of
  title 10, United States Code, is amended by adding at the end the       
  following new sentence: ``This paragraph shall apply even though the    
  project is to be carried out using funds made available to enhance the  
  deployment and mobility of military forces and supplies.''.             
     (b) Restriction on Use of Operation and Maintenance                  
  Funds.--Subsection (c) of such section is amended--                     
       (1) in paragraph (1), by striking out ``paragraph (2)'' and         
   inserting in lieu thereof ``paragraphs (2) and (3)''; and               
     (2) by adding at the end the following new paragraph:                 
     ``(3) The limitations specified in paragraph (1) shall not apply to  
  an unspecified minor military construction project if the project is to 
  be carried out using funds made available to enhance the deployment and 
  mobility of military forces and supplies.''.                            
    (c)  Technical Amendments.--Such section is further amended--         
     (1) in subsection (a)(1)--                                            
       (A) by striking out ``minor military construction projects'' in the 
   first sentence and inserting in lieu thereof ``unspecified minor        
   military construction projects'';                                       
       (B) by striking out ``A minor'' in the second sentence and inserting
   in lieu thereof ``An unspecified minor''; and                           
       (C) by striking out ``a minor'' in the last sentence and inserting  
   in lieu thereof ``an unspecified minor'';                               
       (2) in subsection (b)(1), by striking out ``A minor'' and inserting 
   in lieu thereof ``An unspecified minor'';                               
       (3) in subsection (b)(2), by striking out ``a minor'' and inserting 
   in lieu thereof ``an unspecified minor''; and                           
       (4) in subsection (c), by striking out ``unspecified military'' each
   place it appears and inserting in lieu thereof ``unspecified minor      
   military''.                                                             
                    SEC. 2802. LIMITATION ON USE OF OPERATION AND MAINTENANCE     
          FUNDS FOR FACILITY REPAIR PROJECTS.                                     
     Section 2811 of title 10, United States Code, is amended by adding at
  the end the following new subsections:                                  
     ``(d) Congressional Notification.--When a decision is made to carry  
  out a repair project under this section with an estimated cost in excess
  of $10,000,000, the Secretary concerned shall submit to the appropriate 
  committees of Congress a report containing--                            
       ``(1) the justification for the repair project and the current      
   estimate of the cost of the project; and                                
       ``(2) the justification for carrying out the project under this     
   section.                                                                
     ``(e) Repair Project Defined.--In this section, the term `repair     
  project' means a project to restore a real property facility, system, or
  component to such a condition that it may effectively be used for its   
  designated functional purpose.''.                                       
                    SEC. 2803. LEASING OF MILITARY FAMILY HOUSING, UNITED STATES  
          SOUTHERN COMMAND, MIAMI, FLORIDA.                                       
     (a) Leases to Exceed Maximum Rental.--Section 2828(b) of title 10,   
  United States Code, is amended--                                        
       (1) in paragraph (2), by striking out ``paragraph (3)'' and         
   inserting in lieu thereof ``paragraphs (3) and (4)'';                   
     (2) by redesignating paragraph (4) as paragraph (5); and              
     (3) by inserting after paragraph (3) the following new paragraph:     
     ``(4) The Secretary of the Army may lease not more than eight housing
  units in the vicinity of Miami, Florida, for key and essential          
  personnel, as designated by the Secretary, for the United States        
  Southern Command for which the expenditure for the rental of such units 
  (including the cost of utilities, maintenance, and operation, including 
  security enhancements) exceeds the expenditure limitations in paragraphs
  (2) and (3). The total amount for all leases under this paragraph may   
  not exceed $280,000 per year, and no lease on any individual housing    
  unit may exceed $60,000 per year.''.                                    
     (b) Conforming Amendment.--Paragraph (5) of such section, as         
  redesignated by subsection (a)(2), is amended by striking out           
  ``paragraphs (2) and (3)'' and inserting in lieu thereof ``paragraphs   
  (2), (3), and (4)''.                                                    
                    SEC. 2804. USE OF FINANCIAL INCENTIVES PROVIDED AS PART OF    
          ENERGY SAVINGS AND WATER CONSERVATION ACTIVITIES.                       
     (a) Energy Savings.--Section 2865 of title 10, United States Code, is
  amended--                                                               
     (1) in subsection (b)--                                               
       (A) in paragraph (1), by striking out ``and financial incentives    
   described in subsection (d)(2)'';                                       
       (B) in paragraph (2), by striking out ``section 2866(b)'' both      
   places it appears and inserting in lieu thereof ``section 2866(a)(3)''; 
   and                                                                     
     (C) by adding at the end the following new paragraph:                 
     ``(3) Financial incentives received from gas or electric utilities   
  under subsection (d)(2), and from utilities for management of water     
  demand or water conservation under section 2866(a)(2) of this title,    
  shall be credited to an appropriation designated by the Secretary of    
  Defense. Amounts so credited shall be merged with the appropriation to  
  which credited and shall be available for the same purposes and the same
  period as the appropriation with which merged.''; and                   
       (2) in subsection (f), by adding at the end the following new       
   sentence: ``The Secretary shall also include in each report the types   
   and amount of financial incentives received under subsection (d)(2) and 
   section 2866(a)(2) of this title during the period covered by the report
   and the appropriation account or accounts to which the incentives were  
   credited.''.                                                            
     (b) Water Conservation.--Section 2866(b) of such title is amended to 
  read as follows:                                                        
     ``(b) Use of Financial Incentives and Water Cost Savings.--(1)       
  Financial incentives received under subsection (a)(2) shall be used as  
  provided in section 2865(b)(3) of this title.                           
     ``(2) Water cost savings realized under subsection (a)(3) shall be   
  used as provided in section 2865(b)(2) of this title.''.                
                    SEC. 2805. CONGRESSIONAL NOTIFICATION REQUIREMENTS REGARDING  
          USE OF DEPARTMENT OF DEFENSE HOUSING FUNDS FOR INVESTMENTS IN           
          NONGOVERNMENTAL ENTITIES.                                               
     Section 2875 of title 10, United States Code, is amended by adding at
  the end the following new subsection:                                   
       ``(e) Congressional Notification Required.-- Amounts in the         
   Department of Defense Family Housing Improvement Fund or the Department 
   of Defense Military Unaccompanied Housing Improvement Fund may be used  
   to make a cash investment under this section in a nongovernmental entity
   only after the end of the 30-day period beginning on the date the       
   Secretary of Defense submits written notice of, and justification for,  
   the investment to the appropriate committees of Congress.''.            
           Subtitle B--Real Property And Facilities Administration                 
          SEC. 2811.  INCREASE IN CEILING FOR MINOR LAND ACQUISITION PROJECTS.    
     (a) Increase.--Section 2672 of title 10, United States Code, is      
  amended by striking out ``$200,000'' both places it appears in          
  subsection (a) and inserting in lieu thereof ``$500,000''.              
     (b) Clerical Amendments.--(1) The section heading for such section is
  amended to read as follows:                                             
                    ``2672. Acquisition: interests in land when cost is not more  
          than $500,000''.                                                        
     (2) The table of sections at the beginning of chapter 159 of such    
  title is amended by striking out the item relating to section 2672 and  
  inserting in lieu thereof the following new item:                       
            ``2672. Acquisition: interests in land when cost is not more than 
      $500,000.''.                                                            
          SEC. 2812.  PERMANENT AUTHORITY REGARDING CONVEYANCE OF UTILITY SYSTEMS.
     (a) In General.--Chapter 159 of title 10, United States Code, is     
  amended by inserting after section 2687 the following new section:      
          ``2688. Utility systems: conveyance authority                           
     ``(a) Conveyance Authority.--The Secretary of a military department  
  may convey a utility system, or part of a utility system, under the     
  jurisdiction of the Secretary to a municipal, private, regional,        
  district, or cooperative utility company or other entity. The conveyance
  may consist of all right, title, and interest of the United States in   
  the utility system or such lesser estate as the Secretary considers     
  appropriate to serve the interests of the United States.                
     ``(b) Selection of Conveyee.--If more than one utility or entity     
  referred to in subsection (a) notifies the Secretary concerned of an    
  interest in a conveyance under such subsection, the Secretary shall     
  carry out the conveyance through the use of competitive procedures.     
     ``(c) Consideration.--(1) The Secretary concerned shall require as   
  consideration for a conveyance under subsection (a) an amount equal to  
  the fair market value (as determined by the Secretary) of the right,    
  title, or interest of the United States conveyed. The consideration may 
  take the form of--                                                      
     ``(A) a lump sum payment; or                                          
       ``(B) a reduction in charges for utility services provided by the   
   utility or entity concerned to the military installation at which the   
   utility system is located.                                              
     ``(2) If the utility services proposed to be provided as             
  consideration under paragraph (1) are subject to regulation by a Federal
  or State agency, any reduction in the rate charged for the utility      
  services shall be subject to establishment or approval by that agency.  
     ``(d) Treatment of Payments.--(1) A lump sum payment received under  
  subsection (c) shall be credited, at the election of the Secretary      
  concerned--                                                             
       ``(A) to an appropriation of the military department concerned      
   available for the procurement of the same utility services as are       
   provided by the utility system conveyed under this section;             
       ``(B) to an appropriation of the military department available for  
   carrying out energy savings projects or water conservation projects; or 
       ``(C) to an appropriation of the military department available for  
   improvements to other utility systems.                                  
     ``(2) Amounts so credited shall be merged with funds in the          
  appropriation to which credited and shall be available for the same     
  purposes, and subject to the same conditions and limitations, as the    
  appropriation with which merged.                                        
     ``(e) Notice-and-Wait Requirement.--The Secretary concerned may not  
  make a conveyance under subsection (a) until--                          
       ``(1) the Secretary submits to the Committee on Armed Services and  
   the Committee on Appropriations of the Senate and the Committee on      
   National Security and the Committee on Appropriations of the House of   
   Representatives an economic analysis (based upon accepted life-cycle    
   costing procedures approved by the Secretary of Defense) demonstrating  
   that--                                                                  
       ``(A) the long-term economic benefit of the conveyance to the United
   States exceeds the long-term economic cost of the conveyance to the     
   United States; and                                                      
       ``(B) the conveyance will reduce the long-term costs of the United  
   States for utility services provided by the utility system concerned;   
   and                                                                     
       ``(2) a period of 21 days has elapsed after the date on which the   
   economic analysis is received by the committees.                        
     ``(f) Additional Terms and Conditions.--The Secretary concerned may  
  require such additional terms and conditions in connection with a       
  conveyance under subsection (a) as the Secretary considers appropriate  
  to protect the interests of the United States.                          
     ``(g) Utility System Defined.--(1) In this section, the term `utility
  system' means any of the following:                                     
     ``(A) A system for the generation and supply of electric power.       
     ``(B) A system for the treatment or supply of water.                  
     ``(C) A system for the collection or treatment of wastewater.         
       ``(D) A system for the generation or supply of steam, hot water, and
   chilled water.                                                          
     ``(E) A system for the supply of natural gas.                         
     ``(F) A system for the transmission of telecommunications.            
    ``(2) The term `utility system' includes the following:               
       ``(A) Equipment, fixtures, structures, and other improvements       
   utilized in connection with a system referred to in paragraph (1).      
       ``(B) Easements and rights-of-ways associated with a system referred
   to in that paragraph.                                                   
     ``(h) Limitation.--This section shall not apply to projects          
  constructed or operated by the Army Corps of Engineers under its civil  
  works authorities.''.                                                   
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by inserting after the item relating to section 
  2687 the following new item:                                            
      ``2688. Utility systems: conveyance authority.''.                       
                    SEC. 2813. ADMINISTRATIVE EXPENSES FOR CERTAIN REAL PROPERTY  
          TRANSACTIONS.                                                           
     (a) Acceptance Authorized.--Chapter 159 of title 10, United States   
  Code, is amended by adding at the end the following new section:        
                    ``2695. Acceptance of funds to cover administrative expenses  
          relating to certain real property transactions                          
     ``(a) Authority To Accept.--In connection with a real property       
  transaction referred to in subsection (b) with a non-Federal person or  
  entity, the Secretary of a military department may accept amounts       
  provided by the person or entity to cover administrative expenses       
  incurred by the Secretary in entering into the transaction.             
     ``(b) Covered Transactions.--Subsection (a) applies to the following 
  transactions:                                                           
     ``(1) The exchange of real property.                                  
       ``(2) The grant of an easement over, in, or upon real property of   
   the United States.                                                      
     ``(3) The lease or license of real property of the United States.     
     ``(c) Use of Amounts Collected.--Amounts collected under subsection  
  (a) for administrative expenses shall be credited to the appropriation, 
  fund, or account from which the expenses were paid. Amounts so credited 
  shall be merged with funds in such appropriation, fund, or account and  
  shall be available for the same purposes and subject to the same        
  limitations as the funds with which merged.''.                          
     (b) Clerical Amendment.--The table of sections at the beginning of   
  chapter 159 of such title is amended by adding at the end the following 
  new item:                                                               
            ``2695. Acceptance of funds to cover administrative expenses      
      relating to certain real property transactions.''.                      
                    SEC. 2814. SCREENING OF REAL PROPERTY TO BE CONVEYED BY       
          DEPARTMENT OF DEFENSE.                                                  
     (a) Requirement.--(1) Chapter 159 of title 10, United States Code, is
  amended by inserting after section 2695, as added by section 2813, the  
  following new section:                                                  
                    ``2696. Screening of real property for further Federal use    
          before conveyance                                                       
     ``(a) Screening Requirement.--The Secretary concerned may not convey 
  real property that is authorized or required to be conveyed, whether for
  or without consideration, by any provision of law unless the            
  Administrator of General Services has screened the property for further 
  Federal use in accordance with the Federal Property and Administrative  
  Services Act of 1949 (40 U.S.C. 471 et seq.).                           
     ``(b) Time for Screening.--(1) Before the end of the 30-day period   
  beginning on the date of the enactment of a provision of law authorizing
  or requiring the conveyance of a parcel of real property by the         
  Secretary concerned, the Administrator of General Services shall        
  complete the screening required by paragraph (1) with regard to the real
  property and notify the Secretary concerned of the results of the       
  screening. The notice shall include--                                   
       ``(A) the name of the Federal agency requesting transfer of the     
   property;                                                               
       ``(B) the proposed use to be made of the property by the Federal    
   agency; and                                                             
       ``(C) the fair market value of the property, including any          
   improvements thereon, as estimated by the Administrator.                
     ``(2) If the Administrator fails to complete the screening and notify
  the Secretary concerned within such period, the Secretary concerned     
  shall proceed with the conveyance of the real property as provided in   
  the provision of law authorizing or requiring the conveyance.           
     ``(c) Notice of Further Federal Use.--If the Administrator of General
  Services notifies the Secretary concerned under subsection (b) that     
  further Federal use of a parcel of real property authorized or required 
  to be conveyed by any provision of law is requested by a Federal agency,
  the Secretary concerned shall submit a copy of the notice to Congress.  
     ``(d) Congressional Disapproval .--If the Secretary concerned submits
  a notice under subsection (c) with regard to a parcel of real property, 
  the Secretary concerned may not proceed with the conveyance of the real 
  property as provided in the provision of law authorizing or requiring   
  the conveyance if Congress enacts a law rescinding the conveyance       
  authority or requirement before the end of the 180-day period beginning 
  on the date on which the Secretary concerned submits the notice.        
     ``(e) Excepted Conveyance Authorities.--The screening requirements of
  this section shall not apply to real property authorized or required to 
  be conveyed under any of the following provisions of law:               
     ``(1) Section 2687 of this title.                                     
       ``(2) Title II of the Defense Authorization Amendments and Base     
   Closure and Realignment Act (Public Law 100 526; 10 U.S.C. 2687 note).  
       ``(3) The Defense Base Closure and Realignment Act of 1990 (part A  
   of title XXIX of Public Law 101 510; 10 U.S.C. 2687 note).              
       ``(4) Any provision of law authorizing the closure or realignment of
   a military installation that is enacted after the date of enactment of  
   the National Defense Authorization Act for Fiscal Year 1998.            
       ``(5) Title II of the Federal Property and Administrative Services  
   Act of 1949 (40 U.S.C. 481 et seq.).                                    
       ``(6) Any specific provision of law authorizing or requiring the    
   transfer of administrative jurisdiction over a parcel of real property  
   between Federal agencies.''.                                            
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 2695, as added by       
  section 2813, the following new item:                                   
            ``2696. Screening of real property for further Federal use before 
      conveyance.''.                                                          
     (b) Applicability.--Section 2696 of title 10, United States Code, as 
  added by subsection (a) of this section, shall apply with respect to any
  real property authorized or required to be conveyed under a provision of
  law covered by such section that is enacted after December 31, 1997.    
                    SEC. 2815. DISPOSITION OF PROCEEDS OF SALE OF AIR FORCE PLANT 
          NO. 78, BRIGHAM CITY, UTAH.                                             
     Notwithstanding section 204(h)(2)(A) of the Federal Property and     
  Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)(A)), the entire
  amount deposited by the Administrator of General Services in the special
  account in the Treasury (established under section 204(h)(2) of such    
  Act) as a result of the sale of Air Force Plant No. 78, Brigham City,   
  Utah, shall be available, to the extent provided in appropriations Acts,
  to the Secretary of the Air Force for facility maintenance, facility    
  repair, and environmental restoration at other industrial plants of the 
  Air Force.                                                              
                    SEC. 2816. FIRE PROTECTION AND HAZARDOUS MATERIALS PROTECTION 
          AT FORT MEADE, MARYLAND.                                                
     (a) Plan.--Not later than 120 days after the date of the enactment of
  this Act, the Secretary of the Army shall submit to the congressional   
  defense committees a plan to address the requirements for fire          
  protection services and hazardous materials protection services at Fort 
  Meade, Maryland, including the National Security Agency at Fort Meade,  
  as identified in the preparedness evaluation report of the Army Corps of
  Engineers regarding Fort Meade.                                         
    (b)  Elements.--The plan shall include the following:                 
     (1) A schedule for the implementation of the plan.                    
       (2) A detailed list of funding options available to provide         
   centrally located, modern facilities and equipment to meet current      
   requirements for fire protection services and hazardous materials       
   protection services at Fort Meade.                                      
           Subtitle C--Defense Base Closure and Realignment                        
                    SEC. 2821. CONSIDERATION OF MILITARY INSTALLATIONS AS SITES   
          FOR NEW FEDERAL FACILITIES.                                             
     (a) 1988 Law.--Section 204(b)(5) of the Defense Authorization        
  Amendments and Base Closure and Realignment Act (Public Law 100 526; 10 
  U.S.C. 2687 note) is amended--                                          
       (1) in subparagraph (A), by striking out ``subparagraph (B)'' and   
   inserting in lieu thereof ``subparagraphs (B) and (C)''; and            
     (2) by adding at the end the following new subparagraph:              
     ``(C)(i) Before acquiring non-Federal real property as the location  
  for a new or replacement Federal facility of any type, the head of the  
  Federal agency acquiring the property shall consult with the Secretary  
  regarding the feasibility and cost advantages of using Federal property 
  or facilities at a military installation closed or realigned or to be   
  closed or realigned under this title as the location for the new or     
  replacement facility. In considering the availability and suitability of
  a specific military installation, the Secretary and the head of the     
  Federal agency involved shall obtain the concurrence of the             
  redevelopment authority with respect to the installation and comply with
  the redevelopment plan for the installation.                            
     ``(ii) Not later than 30 days after acquiring non-Federal real       
  property as the location for a new or replacement Federal facility, the 
  head of the Federal agency acquiring the property shall submit to       
  Congress a report containing the results of the                         
                    consultation under clause (i) and the reasons why military    
          installations referred to in such clause that are located within the    
          area to be served by the new or replacement Federal facility or within a
          200-mile radius of the new or replacement facility, whichever area is   
          greater, were considered to be unsuitable or unavailable for the site of
          the new or replacement facility.                                        
     ``(iii) This subparagraph shall apply during the period beginning on 
  the date of the enactment of the National Defense Authorization Act for 
  Fiscal Year 1998 and ending on July 31, 2001.''.                        
     (b) 1990 Law.--Section 2905(b)(5) of the Defense Base Closure and    
  Realignment Act of 1990 (Public Law 101 510; 10 U.S.C. 2687 note) is    
  amended--                                                               
       (1) in subparagraph (A), by striking out ``subparagraph (B)'' and   
   inserting in lieu thereof ``subparagraphs (B) and (C)''; and            
     (2) by adding at the end the following new subparagraph:              
     ``(C)(i) Before acquiring non-Federal real property as the location  
  for a new or replacement Federal facility of any type, the head of the  
  Federal agency acquiring the property shall consult with the Secretary  
  regarding the feasibility and cost advantages of using Federal property 
  or facilities at a military installation closed or realigned or to be   
  closed or realigned under this part as the location for the new or      
  replacement facility. In considering the availability and suitability of
  a specific military installation, the Secretary and the head of the     
  Federal agency involved shall obtain the concurrence of the             
  redevelopment authority with respect to the installation and comply with
  the redevelopment plan for the installation.                            
     ``(ii) Not later than 30 days after acquiring non-Federal real       
  property as the location for a new or replacement Federal facility, the 
  head of the Federal agency acquiring the property shall submit to       
  Congress a report containing the results of the consultation under      
  clause (i) and the reasons why military installations referred to in    
  such clause that are located within the area to be served by the new or 
  replacement Federal facility or within a 200-mile radius of the new or  
  replacement facility, whichever area is greater, were considered to be  
  unsuitable or unavailable for the site of the new or replacement        
  facility.                                                               
     ``(iii) This subparagraph shall apply during the period beginning on 
  the date of the enactment of the National Defense Authorization Act for 
  Fiscal Year 1998 and ending on July 31, 2001.''.                        
                    SEC. 2822. ADJUSTMENT AND DIVERSIFICATION ASSISTANCE TO       
          ENHANCE PERFORMANCE OF MILITARY FAMILY SUPPORT SERVICES BY PRIVATE      
          SECTOR SOURCES.                                                         
     Section 2391(b)(5) of title 10, United States Code, is amended by    
  adding at the end the following new subparagraph:                       
     ``(C) The Secretary of Defense may also make grants, conclude        
  cooperative agreements, and supplement other Federal funds in order to  
  assist a State or local government in enhancing the capabilities of the 
  government to support efforts of the Department of Defense to privatize,
  contract for, or diversify the performance of military family support   
  services in cases in which the capability of the Department to provide  
  such services is adversely affected by an action described in paragraph 
  (1).''.                                                                 
                    SEC. 2823. SECURITY, FIRE PROTECTION, AND OTHER SERVICES AT   
          PROPERTY FORMERLY ASSOCIATED WITH RED RIVER ARMY DEPOT, TEXAS.          
     (a) Authority To Enter into Agreement.--(1) The Secretary of the Army
  may enter into an agreement with the local redevelopment authority for  
  Red River Army Depot, Texas, under which agreement the Secretary        
  provides security services, fire protection services, or hazardous      
  material response services for the authority with respect to the        
  property at the depot that is under the jurisdiction of the authority as
  a result of the realignment of the depot under the base closure laws.   
     (2) The Secretary may not enter into the agreement unless the        
  Secretary determines that the provision of services under the agreement 
  is in the best interests of the United States.                          
     (b) Reimbursement.--The agreement under subsection (a) shall provide 
  for reimbursing the Secretary for the services provided by the Secretary
  under the agreement.                                                    
     (c) Treatment of Reimbursement.--Any amounts received by the         
  Secretary under subsection (b) as reimbursement for services provided   
  under the agreement entered into under subsection (a) shall be credited 
  to the appropriations providing funds for the services. Amounts so      
  credited shall be merged with the appropriations to which credited and  
  shall be available for the purposes, and subject to the conditions and  
  limitations, for which such appropriations are available.               
          SEC. 2824.  REPORT ON CLOSURE AND REALIGNMENT OF MILITARY INSTALLATIONS.
     (a) Report.--(1) The Secretary of Defense shall prepare and submit to
  the congressional defense committees a report on the costs and savings  
  attributable to the rounds of base closures and realignments conducted  
  under the base closure laws and on the need, if any, for additional     
  rounds of base closures and realignments.                               
     (2) For purposes of this section, the term ``base closure laws''     
  means--                                                                 
       (A) Title II of the Defense Authorization Amendments and Base       
   Closure and Realignment Act (Public Law 100 526; 10 U.S.C. 2687 note);  
   and                                                                     
       (B) the Defense Base Closure and Realignment Act of 1990 (part A of 
   title XXIX of Public Law 101 510; 10 U.S.C. 2687 note).                 
     (b) Elements.--The report under subsection (a) shall include the     
  following:                                                              
       (1) A statement, using data consistent with budget data, of the     
   actual costs and savings (to the extent available for prior fiscal      
   years) and the estimated costs and savings (in the case of future fiscal
   years) attributable to the closure and realignment of military          
   installations as a result of the base closure laws.                     
       (2) A comparison, set forth by base closure round, of the actual    
   costs and savings stated under paragraph (1) to the estimates of costs  
   and savings submitted to the Defense Base Closure and Realignment       
   Commission as part of the base closure process.                         
       (3) A comparison, set forth by base closure round, of the actual    
   costs and savings stated under paragraph (1) to the annual estimates of 
   costs and savings previously submitted to Congress.                     
       (4) A list of each military installation at which there is          
   authorized to be employed 300 or more civilian personnel, set forth by  
   Armed Force.                                                            
       (5) An estimate of current excess capacity at military              
   installations, set forth--                                              
       (A) as a percentage of the total capacity of the military           
   installations of the Armed Forces with respect to all military          
   installations of the Armed Forces;                                      
       (B) as a percentage of the total capacity of the military           
   installations of each Armed Force with respect to the military          
   installations of such Armed Force; and                                  
       (C) as a percentage of the total capacity of a type of military     
   installations with respect to military installations of such type.      
       (6) An assessment of the effect of the previous base closure rounds 
   on military capabilities and the ability of the Armed Forces to fulfill 
   the National Military Strategy.                                         
       (7) A description of the types of military installations that would 
   be recommended for closure or realignment in the event of one or more   
   additional base closure rounds, set forth by Armed Force.               
       (8) The criteria to be used by the Secretary in evaluating military 
   installations for closure or realignment in such event.                 
       (9) The methodologies to be used by the Secretary in identifying    
   military installations for closure or realignment in such event.        
       (10) An estimate of the costs and savings that the Secretary        
   believes will be achieved as a result of the closure                    
                    or realignment of military installations in such event, set   
          forth by Armed Force and by year.                                       
       (11) An assessment of whether the costs and estimated savings from  
   one or more future rounds of base closures and realignments, currently  
   unauthorized, are already contained in the current Future Years Defense 
   Plan, and, if not, whether the Secretary will recommend modifications in
   future defense spending in order to accommodate such costs and savings. 
     (c) Method of Presenting Information.--The statement and comparison  
  required by paragraphs (1) and (2) of subsection (b) shall be set forth 
  by Armed Force, type of facility, and fiscal year, and include the      
  following:                                                              
       (1) Operation and maintenance costs, including costs associated with
   expanded operations and support, maintenance of property, administrative
   support, and allowances for housing at military installations to which  
   functions are transferred as a result of the closure or realignment of  
   other installations.                                                    
       (2) Military construction costs, including costs associated with    
   rehabilitating, expanding, and constructing facilities to receive       
   personnel and equipment that are transferred to military installations  
   as a result of the closure or realignment of other installations.       
       (3) Environmental cleanup costs, including costs associated with    
   assessments and restoration.                                            
     (4) Economic assistance costs, including--                            
       (A) expenditures on Department of Defense demonstration projects    
   relating to economic assistance;                                        
     (B) expenditures by the Office of Economic Adjustment; and            
       (C) to the extent available, expenditures by the Economic           
   Development Administration, the Federal Aviation Administration, and the
   Department of Labor relating to economic assistance.                    
       (5) To the extent information is available, unemployment            
   compensation costs, early retirement benefits (including benefits paid  
   under section 5597 of title 5, United States Code), and worker          
   retraining expenses under the Priority Placement Program, the Job       
   Training Partnership Act, and any other Federally-funded job training   
   program.                                                                
     (6) Costs associated with military health care.                       
     (7) Savings attributable to changes in military force structure.      
       (8) Savings due to lower support costs with respect to military     
   installations that are closed or realigned.                             
     (d) Deadline.--The Secretary shall submit the report under subsection
  (a) not later than the date on which the President submits to Congress  
  the budget for fiscal year 2000 under section 1105(a) of title 31,      
  United States Code.                                                     
     (e) Review.--The Congressional Budget Office and the Comptroller     
  General shall conduct a review of the report prepared under subsection  
  (a).                                                                    
     (f) Prohibition on Use of Funds.--Except as necessary to prepare the 
  report required subsection (a), no funds authorized to be appropriated  
  or otherwise made available to the Department of Defense by this Act or 
  any other Act may be used for the purposes of planning for, or          
  collecting data in anticipation of, an authorization providing for      
  procedures under which the closure and realignment of military          
  installations may be accomplished, until the later of--                 
       (1) the date on which the Secretary submits the report required by  
   subsection (a); and                                                     
       (2) the date on which the Congressional Budget Office and the       
   Comptroller General complete a review of the report under subsection    
   (e).                                                                    
    (g)  Sense of Congress.--It is the sense of the Congress that--       
       (1) the Secretary should develop a system having the capacity to    
   quantify the actual costs and savings attributable to the closure and   
   realignment of military installations pursuant to the base closure      
   process; and                                                            
       (2) the Secretary should develop the system in expedient fashion, so
   that the system may be used to quantify                                 
          costs and savings attributable to the 1995 base closure round.          
                    SEC. 2825. SENSE OF SENATE REGARDING UTILIZATION OF SAVINGS   
          DERIVED FROM BASE CLOSURE PROCESS.                                      
    (a)  Findings.--The Senate makes the following findings:              
       (1) Since 1988, the Department of Defense has conducted four rounds 
   of closures and realignments of military installations in the United    
   States, resulting in the closure of 97 installations.                   
       (2) The cost of carrying out the closure or realignment of          
   installations covered by such rounds is estimated by the Secretary of   
   Defense to be $23,000,000,000.                                          
       (3) The savings expected as a result of the closure or realignment  
   of such installations are estimated by the Secretary to be              
   $10,300,000,000 through fiscal year 1996 and $36,600,000,000 through    
   2001.                                                                   
       (4) In addition to such savings, the Secretary has estimated        
   recurring savings as a result of the closure or realignment of such     
   installations of approximately $5,600,000,000 annually.                 
       (5) The fiscal year 1997 budget request for the Department assumed a
   savings of between $2,000,000,000 and $3,000,000,000 as a result of the 
   closure or realignment of such installations, which savings were to be  
   dedicated to the modernization of the Armed Forces. The savings assumed 
   in the budget request were not realized.                                
       (6) The fiscal year 1998 budget request for the Department assumes a
   savings of $5,000,000,000 as a result of the closure or realignment of  
   such installations, which savings are to be dedicated to the            
   modernization of the Armed Forces.                                      
     (b) Sense of Senate on Use of Savings Resulting from Base Closure    
  Process.--It is the sense of the Senate that the savings identified in  
  the report under section 2824 should be made available to the Department
  of Defense solely for purposes of the modernization of new weapon       
  systems (including research, development, test, and evaluation relating 
  to such modernization) and should be used by the Department solely for  
  such purposes.                                                          
                    SEC. 2826. PROHIBITION AGAINST CERTAIN CONVEYANCES OF PROPERTY
          AT NAVAL STATION, LONG BEACH, CALIFORNIA.                               
     (a) Prohibition Against Direct Conveyance.--In disposing of real     
  property in connection with the closure of Naval Station, Long Beach,   
  California, under the Defense Base Closure and Realignment Act of 1990  
  (part A of title XXIX of Public Law 101 510; 10 U.S.C. 2687 note), the  
  Secretary of the Navy may not convey any portion of the property (by    
  sale, lease, or other method) to the China Ocean Shipping Company or any
  legal successor or subsidiary of that Company (in this section referred 
  to as ``COSCO'').                                                       
     (b) Prohibition Against Indirect Conveyance.--The Secretary of the   
  Navy shall impose as a condition on each conveyance of real property    
  located at Naval Station, Long Beach, California, the requirement that  
  the property may not be subsequently conveyed (by sale, lease, or other 
  method) to COSCO.                                                       
     (c) Reversionary Interest.--If the Secretary of the Navy determines  
  at any time that real property located at Naval Station, Long Beach,    
  California, and conveyed under the Defense Base Closure and Realignment 
  Act of 1990 has been conveyed to COSCO in violation of subsection (b) or
  is otherwise being used by COSCO in violation of such subsection, all   
  right, title, and interest in and to the property shall revert to the   
  United States, and the United States shall have immediate right of entry
  thereon.                                                                
     (d) National Security Report and Determination.--Not later than 30   
  days after the date of the enactment of this Act, the Secretary of      
  Defense and the Director of the Federal Bureau of Investigation shall   
  separately submit to the President and the congressional defense        
  committees a report regarding the potential national security           
  implications of conveying property described in subsection (a) to COSCO.
  Each report shall specifically identify any increased risk of espionage,
                    arms smuggling, or other illegal activities that could result 
          from a conveyance to COSCO and recommend appropriate action to address  
          any such risk.                                                          
     (e) Waiver Authority.--(1) The President may waive the prohibitions  
  contained in this section with respect to a conveyance of property      
  described in subsection (a) to COSCO if the President determines that-- 
       (A) appropriate action has been taken to address any increased      
   national security risk identified in the reports required by subsection 
   (d); and                                                                
       (B) the conveyance would not adversely affect national security or  
   significantly increase the counter-intelligence burden on the           
   intelligence community.                                                 
     (2) Any waiver under paragraph (1) shall take effect 30 days after   
  the date on which the President notifies the Speaker of the House of    
  Representatives and the President of the Senate of the President's      
  determination to use the waiver authority provided under this           
  subsection.                                                             
           Subtitle D--Land Conveyances                                            
           PART I--ARMY CONVEYANCES                                               
          SEC. 2831.  LAND CONVEYANCE, ARMY RESERVE CENTER, GREENSBORO, ALABAMA.  
     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to Hale County, Alabama, all right, title, and   
  interest of the United States in and to a parcel of real property       
  consisting of approximately 5.17 acres and located at the Army Reserve  
  Center, Greensboro, Alabama, that was conveyed by Hale County, Alabama, 
  to the United States by warranty deed dated September 12, 1988.         
     (b) Description of Property.--The exact acreage and legal description
  of the property to be conveyed under subsection (a) shall be as         
  described in the deed referred to in that subsection.                   
     (c) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
                    SEC. 2832. LAND CONVEYANCE, JAMES T. COKER ARMY RESERVE       
          CENTER, DURANT, OKLAHOMA.                                               
     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to Big Five Community Services, Incorporated, a  
  nonprofit organization operating in Durant, Oklahoma, all right, title, 
  and interest of the United States in and to a parcel of real property   
  located at 1500 North First Street in Durant, Oklahoma, and containing  
  the James T. Coker Army Reserve Center, if the Secretary determines that
  the Reserve Center is excess to the needs of the Armed Forces.          
     (b) Condition of Conveyance.--The conveyance authorized under        
  subsection (a) shall be subject to the condition that Big Five Community
  Services, Incorporated, retain the conveyed property for educational    
  purposes.                                                               
     (c) Reversion.--If the Secretary determines at any time that the real
  property conveyed under subsection (a) is not being used for the purpose
  specified in subsection (b), all right, title, and interest in and to   
  the real property, including any improvements thereon, shall revert to  
  the United States, and the United States shall have the right of        
  immediate entry thereon.                                                
     (d) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by Big Five Community Services, Incorporated.     
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
                    SEC. 2833. LAND CONVEYANCE, GIBSON ARMY RESERVE CENTER,       
          CHICAGO, ILLINOIS.                                                      
     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to the Lawndale                                  
                    Business and Local Development Corporation (in this section   
          referred to as the ``Corporation''), a nonprofit organization organized 
          in the State of Illinois, all right, title, and interest of the United  
          States in and to a parcel of real property, including improvements      
          thereon, that is located at 4454 West Cermak Road in Chicago, Illinois, 
          and contains the Gibson Army Reserve Center.                            
     (b) Condition of Conveyance.--The conveyance under subsection (a)    
  shall be subject to the condition that the Corporation--                
       (1) use the conveyed property, directly or through an agreement with
   a public or private entity, for economic redevelopment purposes; or     
       (2) convey the property to an appropriate public or private entity  
   for use for such purposes.                                              
     (c) Reversion.--If the Secretary determines at any time that the real
  property conveyed under subsection (a) is not being used for economic   
  redevelopment purposes, as required by subsection (b), all right, title,
  and interest in and to the property, including any improvements thereon,
  shall revert to the United States, and the United States shall have the 
  right of immediate entry onto the property.                             
     (d) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the Corporation.                               
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
          SEC. 2834.  LAND CONVEYANCE, FORT A. P. HILL, VIRGINIA.                 
     (a) Conveyance Authorized.--The Secretary of the Army may convey to  
  Caroline County, Virginia (in this section referred to as the           
  ``County''), all right, title, and interest of the United States in and 
  to a parcel of unimproved real property consisting of approximately 10  
  acres located at Fort A. P. Hill, Virginia. The purpose of the          
  conveyance is to permit the County to establish a solid waste transfer  
  and recycling facility on the property.                                 
     (b) Consideration.--As consideration for the conveyance under        
  subsection (a), the County shall permit the Army, at no cost to the     
  Army, to dispose of not less than 1,800 tons of solid waste annually at 
  the facility established on the conveyed property. The obligation of the
  County to accept solid waste under this subsection shall not commerce   
  until after the solid waste transfer and recycling facility on the      
  conveyed property becomes operational, and the establishment of a solid 
  waste collection and transfer site on the .36-acre parcel described in  
  subsection (d)(2) shall not be construed to impose the obligation.      
     (c) Disclaimer.--The United States shall not be responsible for the  
  provision or cost of utilities or any other improvements necessary to   
  carry out the conveyance under subsection (a) or to establish or operate
  the solid waste transfer and recycling facility intended for the        
  property.                                                               
     (d) Reversion.--(1) Except as provided in paragraph (2), if the      
  Secretary determines that a solid waste transfer and recycling facility 
  is not operational, before December 31, 1999, on the real property      
  conveyed under subsection (a), all right, title, and interest in and to 
  such real property, including any improvements thereon, shall revert to 
  the United States, and the United States shall have the right of        
  immediate entry thereon.                                                
     (2) Paragraph (1) shall not apply with respect to a parcel of        
  approximately .36 acres of the approximately 10-acre parcel to be       
  conveyed under subsection (a), which is included in the larger          
  conveyance to permit the County to establish a solid waste collection   
  and transfer site for residential waste.                                
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
          SEC. 2835.  LAND CONVEYANCES, FORT DIX, NEW JERSEY.                     
     (a) Conveyances Authorized.--(1) The Secretary of the Army may       
  convey, without consideration, to the Borough of Wrightstown, New Jersey
  (in this section referred to as the ``Borough''), all right, title, and 
  interest of the United States in and to a parcel of real property       
  (including improvements thereon) consisting of approximately 39.69 acres
  located at Fort Dix, New Jersey, for the purpose of permitting the      
  Borough to develop the parcel for economic purposes.                    
     (2) The Secretary may convey, without consideration, to the New      
  Hanover Board of Education (in this section referred to as the          
  ``Board''), all right, title, and interest of the United States in and  
  to an additional parcel of real property (including improvements        
  thereon) at Fort Dix consisting of approximately five acres for the     
  purpose of permitting the Board to develop the parcel for educational   
  purposes.                                                               
     (b) Conditions of Conveyance.--(1) The conveyance under subsection   
  (a)(1) shall be subject to the condition that the Borough--             
       (A) use the conveyed property, directly or through an agreement with
   a public or private entity, for economic development purposes; or       
       (B) convey the property to an appropriate public or private entity  
   for use for such purposes.                                              
     (2) The conveyance under subsection (a)(2) shall be subject to the   
  condition that Board develop and use the conveyed property for          
  educational purposes.                                                   
     (c) Reversion.--(1) If the Secretary determines at any time that the 
  real property conveyed under subsection (a)(1) is not being used for    
  economic development purposes, as required by subsection (b)(1), all    
  right, title, and interest in and to the property conveyed under        
  subsection (a)(1), including any improvements thereon, shall revert to  
  the United States, and the United States shall have the right of        
  immediate entry thereon.                                                
     (2) If the Secretary determines at any time that the real property   
  conveyed under subsection (a)(2) is not being used for educational      
  purposes, as required by subsection (b)(2), all right, title, and       
  interest in and to the property conveyed under subsection (a)(2),       
  including any improvements thereon, shall revert to the United States,  
  and the United States shall have the right of immediate entry thereon.  
     (d) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by surveys satisfactory to the Secretary. The cost of the    
  survey in connection with the conveyance under subsection (a)(1) shall  
  be borne by the Borough, and the cost of the survey in connection with  
  the conveyance under subsection (a)(2) shall be borne by the Board.     
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyances under
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
          SEC. 2836.  LAND CONVEYANCES, FORT BRAGG, NORTH CAROLINA.               
     (a) Conveyances Authorized.--(1) The Secretary of the Army may       
  convey, without consideration, to the Town of Spring Lake, North        
  Carolina (in this section referred to as the ``Town''), all right,      
  title, and interest of the United States in and to a parcel of          
  unimproved real property consisting of approximately 50 acres located at
  Fort Bragg, North Carolina.                                             
     (2) The Secretary may convey, without consideration, to Harnett      
  County, North Carolina (in this section referred to as the ``County''), 
  all right, title, and interest of the United States in and to a parcel  
  of real property (including improvements thereon), known as Tract No.   
  404 2, consisting of approximately 157 acres located at Fort Bragg.     
     (3) The Secretary may convey, at fair market value, to the County all
  right, title, and interest of the United States in and to a parcel of   
  real property (including improvements thereon), known as Tract No. 404  
  1, consisting of approximately 137 acres located at Fort Bragg.         
     (b) Conditions of Conveyance.--(1) The conveyance under subsection   
  (a)(1) shall be subject to the condition that the Town use the conveyed 
  property for access to a waste treatment facility and for economic      
  development purposes.                                                   
     (2) The conveyance under subsection (a)(2) shall be subject to the   
  condition that County develop and use the conveyed property for         
  educational purposes.                                                   
     (c) Reversion.--(1) If the Secretary determines at any time that the 
  real property conveyed under subsection (a)(1) is not being used in     
  accordance with subsection (b)(1), all right, title, and interest in and
  to the property conveyed under subsection (a)(1), including any         
  improvements thereon, shall revert to the United States, and the United 
  States shall have the right of immediate entry thereon.                 
     (2) If the Secretary determines at any time that the real property   
  conveyed under subsection (a)(2) is not being used in accordance with   
  subsection (b)(2), all right, title, and interest in and to the property
  conveyed under subsection (a)(2), including any improvements thereon,   
  shall revert to the United States, and the United States shall have the 
  right of immediate entry thereon.                                       
     (d) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by surveys satisfactory to the Secretary. The cost of the    
  survey in connection with the conveyance under subsection (a)(1) shall  
  be borne by the Town, and the cost of the survey in connection with the 
  conveyances under paragraphs (2) and (3) of subsection (a) shall be     
  borne by the County.                                                    
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyances under
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
                    SEC. 2837. LAND CONVEYANCE, HAWTHORNE ARMY AMMUNITION DEPOT,  
          MINERAL COUNTY, NEVADA.                                                 
     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to Mineral County, Nevada (in this section       
  referred to as the ``County''), all right, title, and interest of the   
  United States in and to a parcel of excess real property, including     
  improvements thereon, consisting of approximately 33.1 acres located at 
  Hawthorne Army Ammunition Depot, Mineral County, Nevada, and commonly   
  referred to as the Schweer Drive Housing Area, for the purpose of       
  permitting the County to develop the parcel for economic purposes.      
     (b) Conditions of Conveyance.--The conveyance authorized by          
  subsection (a) shall be subject to the following conditions:            
       (1) That the County accept the conveyed property subject to such    
   easements and rights of way in favor of the United States as the        
   Secretary considers appropriate.                                        
       (2) That the County, if the County sells any portion of the property
   conveyed under subsection (a) before the end of the 10-year period      
   beginning on the date of enactment of this Act, pay to the United States
   an amount equal to the lesser of--                                      
     (A) the amount of sale of the property sold; or                       
       (B) the fair market value of the property sold as determined without
   taking into account any improvements to such property by the County.    
     (c) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a), and of any    
  easement or right of way granted under subsection (b)(1), shall be      
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the County.                                    
     (d) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a), and any easement or right of way granted under          
  subsection (b)(1), as the Secretary considers appropriate to protect the
  interests of the United States.                                         
                    SEC. 2838. EXPANSION OF LAND CONVEYANCE AUTHORITY, INDIANA    
          ARMY AMMUNITION PLANT, CHARLESTOWN, INDIANA.                            
     (a) Additional Conveyance.--Subsection (a) of section 2858 of the    
  National Defense Authorization Act for Fiscal Year 1996 (Public Law 104 
  106; 110 Stat. 571) is amended--                                        
     (1) by inserting ``(1)'' before ``The Secretary of the Army''; and    
     (2) by adding at the end the following new paragraph:                 
     ``(2) The Secretary may also convey to the State, without            
  consideration, an additional parcel of real property at the Indiana Army
  Ammunition Plant consisting of approximately 500 acres located along the
  Ohio River.''.                                                          
     (b) Conforming Amendments.--Such section is further amended by       
  striking out ``conveyance'' both places it appears in subsections (b)   
  and (d) and inserting in lieu thereof ``conveyances''.                  
          SEC. 2839.  MODIFICATION OF LAND CONVEYANCE, LOMPOC, CALIFORNIA.        
     (a) Change in Authorized Uses of Land.--Section 834(b)(1) of the     
  Military Construction Authorization Act, 1985 (Public Law 98 407; 98    
  Stat. 1526), is amended by striking out subparagraphs (A) and (B) and   
  inserting in lieu thereof the following new subparagraphs:              
     ``(A) for educational and recreational purposes;                      
     ``(B) for open space; or''.                                           
     (b) Conforming Deed Changes.--With respect to the land conveyance    
  made pursuant to section 834 of the Military Construction Authorization 
  Act, 1985, the Secretary of the Army shall execute and file in the      
  appropriate office or offices an amended deed or other appropriate      
  instrument effectuating the changes to the authorized uses of the       
  conveyed property resulting from the amendment made by subsection (a).  
                    SEC. 2840. MODIFICATION OF LAND CONVEYANCE, ROCKY MOUNTAIN    
          ARSENAL, COLORADO.                                                      
     Section 5(c)(1) of Public Law 102 402 (106 Stat. 1966; 16 U.S.C.     
  668dd note) is amended by striking out the second sentence and inserting
  in lieu thereof the following new sentence: ``The Administrator shall   
  convey the transferred property to Commerce City, Colorado, for         
  consideration in an amount equal to the fair market value of the        
  property (as determined jointly by the Administrator and the City).''.  
                    SEC. 2841. CORRECTION OF LAND CONVEYANCE AUTHORITY, ARMY      
          RESERVE CENTER, ANDERSON, SOUTH CAROLINA.                               
     (a) Correction of Conveyee.--Subsection (a) of section 2824 of the   
  Military Construction Authorization Act for Fiscal Year 1997 (division B
  of Public Law 104 201; 110 Stat. 2793) is amended by striking out       
  ``County of Anderson, South Carolina (in this section referred to as the
  `County')'' and inserting in lieu thereof ``Board of Education, Anderson
  County, South Carolina (in this section referred to as the `Board')''.  
     (b) Conforming Amendments.--Subsections (b) and (c) of such section  
  are each amended by striking out ``the County'' and inserting in lieu   
  thereof ``the Board''.                                                  
           PART II--NAVY CONVEYANCES                                              
                    SEC. 2851. LAND CONVEYANCE, TOPSHAM ANNEX, NAVAL AIR STATION, 
          BRUNSWICK, MAINE.                                                       
     (a) Conveyance Authorized.--The Secretary of the Navy may convey,    
  without consideration, to the Maine School Administrative District No.  
  75, Topsham, Maine (in this section referred to as the ``District''),   
  all right, title, and interest of the United States in and to a parcel  
  of real property, including improvements thereon, consisting of         
  approximately 40 acres located at the Topsham Annex, Naval Air Station, 
  Brunswick, Maine.                                                       
     (b) Condition of Conveyance.--The conveyance under subsection (a)    
  shall be subject to the condition that the District use the conveyed    
  property for educational purposes.                                      
     (c) Reversion.--If the Secretary determines at any time that the real
  property conveyed under subsection (a) is not being used for the purpose
  specified in subsection (b), all right, title, and interest in and to   
  the property, including any improvements thereon, shall revert to the   
  United States, and the United States shall have the right of immediate  
  entry thereon.                                                          
     (d) Interim Lease.--(1) Until such time as the real property         
  described in subsection (a) is conveyed by deed, the Secretary may lease
  the property, together with the improvements thereon, to the District.  
     (2) As consideration for the lease under this subsection, the        
  District shall provide such security services for the property covered  
  by the lease, and carry out such maintenance work with respect to the   
  property, as the Secretary shall specify in the lease.                  
     (e) Description of Property.--The exact acreage and legal description
  of the property to be conveyed under subsection (a) shall be determined 
  by a survey satisfactory to the Secretary. The cost of the survey shall 
  be borne by the District.                                               
     (f) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a), and the lease, if any, under subsection (d), as the     
  Secretary considers appropriate to protect the interests of the United  
  States.                                                                 
                    SEC. 2852. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE  
          PLANT NO. 464, OYSTER BAY, NEW YORK.                                    
     (a) Conveyance Authorized.--(1) The Secretary of the Navy may convey,
  without consideration, to the County of Nassau, New York (in this       
  section referred to as the ``County''), all right, title, and interest  
  of the United States in and to parcels of real property consisting of   
  approximately 110 acres and comprising the Naval Weapons Industrial     
  Reserve Plant No. 464, Oyster Bay, New York.                            
     (2)(A) As part of the conveyance authorized in paragraph (1), the    
  Secretary may convey to the County such improvements, equipment,        
  fixtures, and other personal property (including special tooling        
  equipment and special test equipment) located on the parcels as the     
  Secretary determines to be not required by the Navy for other purposes. 
     (B) The Secretary may permit the County to review and inspect the    
  improvements, equipment, fixtures, and other personal property located  
  on the parcels for purposes of the conveyance authorized by this        
  paragraph.                                                              
     (b) Condition of Conveyance.--The conveyance of the parcels          
  authorized in subsection (a) shall be subject to the condition that the 
  County--                                                                
       (1) use the parcels, directly or through an agreement with a public 
   or private entity, for economic redevelopment purposes or such other    
   public purposes as the County determines appropriate; or                
       (2) convey the parcels to an appropriate public or private entity   
   for use for such purposes.                                              
     (c) Reversion.--If, during the five-year period beginning on the date
  the Secretary makes the conveyance authorized under subsection (a), the 
  Secretary determines that the conveyed real property is not being used  
  for a purpose specified in subsection (b), all right, title, and        
  interest in and to the property, including any improvements thereon,    
  shall revert to the United States, and the United States shall have the 
  right of immediate entry onto the property.                             
     (d) Interim Lease.--(1) Until such time as the real property         
  described in subsection (a) is conveyed by deed, the Secretary may lease
  the property, together with improvements thereon, to the County.        
     (2) As consideration for the lease under this subsection, the County 
  shall provide such security services and fire protection services for   
  the property covered by the lease, and carry out such maintenance work  
  with respect to the property, as the Secretary shall specify in the     
  lease.                                                                  
     (e) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the County.                                    
     (f) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a), and the lease, if any, under subsection (d), as the     
  Secretary considers appropriate to protect the interests of the United  
  States.                                                                 
                    SEC. 2853. CORRECTION OF LEASE AUTHORITY, NAVAL AIR STATION,  
          MERIDIAN, MISSISSIPPI.                                                  
     (a) Correction of Lessee.--Subsection (a) of section 2837 of the     
  Military Construction Authorization Act for Fiscal Year 1997 (division B
  of Public Law 104 201; 110 Stat. 2798) is amended--                     
       (1) by striking out ``State of Mississippi (in this section referred
   to as the `State')'' and inserting in lieu thereof ``County of          
   Lauderdale, Mississippi (in this section referred to as the `County')'';
   and                                                                     
       (2) by striking out ``The State'' and inserting in lieu thereof     
   ``The County''.                                                         
     (b) Conforming Amendments.--Subsections (b) and (c) of such section  
  are amended by striking out ``State'' each place it appears and         
  inserting in lieu thereof ``County''.                                   
           PART III--AIR FORCE CONVEYANCES                                        
          SEC. 2861.  LAND TRANSFER, EGLIN AIR FORCE BASE, FLORIDA.               
     (a) Transfer.--The real property withdrawn by Executive Order 4525,  
  dated October 1, 1826, which consists of approximately 440 acres of land
  at Cape San Blas, Gulf County, Florida, and any improvements thereon, is
  transferred from the administrative jurisdiction of the Secretary of    
  Transportation to the administrative jurisdiction of the Secretary of   
  the Air Force, without reimbursement. Executive Order 4525 is revoked,  
  and the transferred real property shall be administered by the Secretary
  of the Air Force pursuant to the Federal Property and Administrative    
  Services Act of 1949 (40 U.S.C. 471 et seq.) and such other laws as may 
  be applicable to Federal real property.                                 
     (b) Use of Property.--The real property transferred under subsection 
  (a) may be used in conjunction with operations at Eglin Air Force Base, 
  Florida.                                                                
     (c) Legal Description.--The exact acreage and legal description of   
  the real property to be transferred under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary of the Air Force.  
  The cost of the survey shall be borne by the Secretary of the Air Force.
          SEC. 2862.  LAND CONVEYANCE, MARCH AIR FORCE BASE, CALIFORNIA.          
     (a) Conveyance Authorized.--(1) The Secretary of the Air Force may   
  convey to Air Force Village West, Incorporated (in this section referred
  to as the ``Corporation''), of Riverside, California, all right, title, 
  and interest of the United States in and to a parcel of real property   
  located at March Air Force Base, California, and consisting of          
  approximately 75 acres, as more fully described in subsection (c).      
     (2) If the Secretary does not make the conveyance authorized by      
  paragraph (1) to the Corporation on or before January 1, 2006, the      
  Secretary shall convey the real property instead to the March Joint     
  Powers Authority, the redevelopment authority established for March Air 
  Force Base.                                                             
     (b) Consideration.--As consideration for the conveyance under        
  subsection (a)(1), the Corporation shall pay to the United States an    
  amount equal to the fair market value of the real property, as          
  determined by the Secretary.                                            
     (c) Land Description.--The real property to be conveyed under        
  subsection (a) is contiguous to land conveyed to the Corporation        
  pursuant to section 835 of the Military Construction Authorization Act, 
  1985 (Public Law 98 407; 98 Stat. 1527), and lies within sections 27,   
  28, 33, and 34 of Township 3 South, Range 4 West, San Bernardino Base   
  and Meridian, County of Riverside, California. The exact acreage and    
  legal description of the real property shall be determined by a survey  
  satisfactory to the Secretary. The cost of the survey shall be borne by 
  the party receiving the property.                                       
     (d) Technical Corrections Regarding Previous Conveyance.--Section 835
  of the Military Construction Authorization Act, 1985 (Public Law 98 407;
  98 Stat. 1527), is amended--                                            
       (1) in subsection (b), by striking out ``subsection (b)'' and       
   inserting in lieu thereof ``subsection (a)''; and                       
       (2) in subsection (c), by striking out ``Clark Street,'' and all    
   that follows through the period and inserting in lieu thereof ``Village 
   West Drive, on the west by Allen Avenue, on the south by 8th Street, and
   the north is an extension of 11th Street between Allen Avenue and Clark 
   Street.''.                                                              
          SEC. 2863.  LAND CONVEYANCE, ELLSWORTH AIR FORCE BASE, SOUTH DAKOTA.    
     (a) Conveyance Authorized.--The Secretary of the Air Force may       
  convey, without consideration, to the Greater Box Elder Area Economic   
  Development Corporation, Box Elder, South Dakota (in this section       
  referred to as the ``Corporation''), all right, title, and interest of  
  the United States in and to the parcels of real property located at     
  Ellsworth Air Force Base, South Dakota, referred to in subsection (b).  
     (b) Covered Property.--(1) Subject to paragraph (2), the real        
  property referred to in subsection (a) is the following:                
       (A) A parcel of real property, together with any improvements       
   thereon, consisting of approximately 53.32 acres and comprising the     
   Skyway Military Family Housing Area.                                    
       (B) A parcel of real property, together with any improvements       
   thereon, consisting of approximately 137.56 acres and comprising the    
   Renal Heights Military Family Housing Area.                             
       (C) A parcel of real property, together with any improvements       
   thereon, consisting of approximately 14.92 acres and comprising the East
   Nike Military Family Housing Area.                                      
       (D) A parcel of real property, together with any improvements       
   thereon, consisting of approximately 14.69 acres and comprising the     
   South Nike Military Family Housing Area.                                
       (E) A parcel of real property, together with any improvements       
   thereon, consisting of approximately 14.85 acres and comprising the West
   Nike Military Family Housing Area.                                      
     (2) The real property referred to in subsection (a) does not include 
  the portion of real property referred to in paragraph (1)(B) that the   
  Secretary determines to be required for the construction of an access   
  road between the main gate of Ellsworth Air Force Base and an           
  interchange on Interstate Route 90 located in the vicinity of mile      
  marker 67 in South Dakota.                                              
     (c) Conditions of Conveyance.--The conveyance of the real property   
  referred to in subsection (b) shall be subject to the following         
  conditions:                                                             
       (1) That the Corporation, and any person or entity to which the     
   Corporation transfers the property, comply in the use of the property   
   with the applicable provisions of the Ellsworth Air Force Base Air      
   Installation Compatible Use Zone Study.                                 
       (2) That the Corporation convey a portion of the real property      
   referred to in subsection (b)(1)(A), together with any improvements     
   thereon, consisting of approximately 20 acres to the Douglas School     
   District, South Dakota, for use for education purposes.                 
     (d) Reversion.--If the Secretary determines that any portion of the  
  real property conveyed under subsection (a) is not being used in        
  accordance with the applicable provision of subsection (c), all right,  
  title, and interest in and to that portion of the real property         
  (including any improvements thereon, shall revert to the United States, 
  and the United States shall have the right of immediate entry thereon.  
     (e) Legal Description.--The exact acreage and legal description of   
  the property to be conveyed under subsection (a) shall be determined by 
  a survey satisfactory to the Secretary. The cost of the survey shall be 
  borne by the Corporation.                                               
     (f) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
          SEC. 2864.  LAND CONVEYANCE, HANCOCK FIELD, SYRACUSE, NEW YORK.         
     (a) Conveyance Authorized.--(1) The Secretary of the Air Force may   
  convey, without consideration, to Onondaga County, New York (in this    
  section referred to as the ``County''), all right, title, and interest  
  of the United States in and to a parcel of real property, including any 
  improvements thereon, consisting of approximately 14.9 acres and located
  at Hancock Field, Syracuse, New York, the site of facilities no longer  
  required for use by the 152nd Air Control Group of the New York Air     
  National Guard.                                                         
     (2) If, at the time of the conveyance authorized by paragraph (1),   
  the property to be conveyed is under the jurisdiction of the            
  Administrator of General Services rather than the Secretary, the        
  Administrator shall make the conveyance.                                
     (b) Condition of Conveyance.--The conveyance authorized by subsection
  (a) shall be subject to the condition that the County use the property  
  conveyed for economic development purposes.                             
     (c) Reversion.--If the Secretary (or the Administrator in the event  
  the conveyance is made by the Administrator) determines at any time that
  the property conveyed pursuant to this section is not being used for the
  purposes specified in subsection (b), all right, title, and interest in 
  and to the property, including any improvements thereon, shall revert to
  the United States, and the United States shall have the right of        
  immediate entry thereon.                                                
     (d) Description of Property.--The exact acreage and legal description
  of the property to be conveyed under subsection (a) shall be determined 
  by a survey satisfactory to the Secretary (or the Administrator in the  
  event the conveyance is made by the Administrator). The cost of the     
  survey shall be borne by the County.                                    
     (e) Additional Terms and Conditions.--The Secretary (or the          
  Administrator in the event the conveyance is made by the Administrator) 
  may require such additional terms and conditions in connection with the 
  conveyance under subsection (a) as the Secretary or the Administrator,  
  as the case may be, considers appropriate to protect the interests of   
  the United States.                                                      
                    SEC. 2865. LAND CONVEYANCE, HAVRE AIR FORCE STATION, MONTANA, 
          AND HAVRE TRAINING SITE, MONTANA.                                       
     (a) Conveyance Authorized.--(1) The Secretary of the Air Force may   
  convey, without consideration, to the Bear Paw Development Corporation, 
  Havre, Montana (in this section referred to as the ``Corporation''),    
  all, right, title, and interest of the United States in and to the real 
  property described in paragraph (2).                                    
     (2) The authority in paragraph (1) applies to the following real     
  property:                                                               
       (A) A parcel of real property, including any improvements thereon,  
   consisting of approximately 85 acres and comprising the Havre Air Force 
   Station, Montana.                                                       
       (B) A parcel of real property, including any improvements thereon,  
   consisting of approximately 9 acres and comprising the Havre Training   
   Site, Montana.                                                          
     (b) Conditions of Conveyance.--The conveyance authorized by          
  subsection (a) shall be subject to the following conditions:            
     (1) That the Corporation--                                            
       (A) convey to the Box Elder School District 13G, Montana, 10        
   single-family homes located on the property to be conveyed under that   
   subsection as jointly agreed upon by the Corporation and the school     
   district; and                                                           
       (B) grant the school district access to the property for purposes of
   removing the homes from the property.                                   
     (2) That the Corporation--                                            
     (A) convey to the Hays/Lodgepole School District 50, Montana--        
       (i) 27 single-family homes located on the property to be conveyed   
   under that subsection as jointly agreed upon by the Corporation and the 
   school district;                                                        
     (ii) one barracks housing unit located on the property;               
     (iii) two steel buildings (nos. 7 and 8) located on the property;     
     (iv) two tin buildings (nos. 37 and 44) located on the property; and  
       (v) miscellaneous personal property located on the property that is 
   associated with the buildings conveyed under this subparagraph; and     
       (B) grant the school district access to the property for purposes of
   removing such homes and buildings, the housing unit, and such personal  
   property from the property.                                             
     (3) That the Corporation--                                            
       (A) convey to the District 4 Human Resources Development Council,   
   Montana, eight single-family homes located on the property to be        
   conveyed under that subsection as jointly agreed upon by the Corporation
   and the council; and                                                    
       (B) grant the council access to the property for purposes of        
   removing such homes from the property.                                  
       (4) That any property conveyed under subsection (a) that is not     
   conveyed under this subsection be used for economic development purposes
   or housing purposes.                                                    
     (c) Reversion.--If the Secretary determines at any time that the     
  portion of the property conveyed under subsection (a) which is covered  
  by the condition specified in subsection (b)(4) is not being used for   
  the purposes specified in that subsection, all right, title, and        
  interest in and to such property, including any improvements thereon,   
  shall revert to the United States,                                      
          and the United States shall have the right of immediate entry thereon.  
     (d) Description of Property.--The exact acreages and legal           
  description of the parcels of property to be conveyed under subsection  
  (a) shall be determined by surveys satisfactory to the Secretary. The   
  cost of the surveys shall be borne by the Corporation.                  
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
                    SEC. 2866. LAND CONVEYANCE, CHARLESTON FAMILY HOUSING COMPLEX,
          BANGOR, MAINE.                                                          
     (a) Conveyance Authorized.--The Secretary of the Air Force may       
  convey, without consideration, to the City of Bangor, Maine (in this    
  section referred to as the ``City''), all right, title, and interest of 
  the United States in and to a parcel of real property consisting of     
  approximately 19.8 acres, including improvements thereon, located in    
  Bangor, Maine, and known as the Charleston Family Housing Complex.      
     (b) Purpose of Conveyance.--The purpose of the conveyance under      
  subsection (a) is to facilitate the reuse of the real property,         
  currently unoccupied, which the City proposes to use to provide housing 
  opportunities for first-time home buyers.                               
     (c) Condition of Conveyance.--The conveyance authorized by subsection
  (a) shall be subject to the condition that the City, if the City sells  
  any portion of the property conveyed under subsection (a) before the end
  of the 10-year period beginning on the date of enactment of this Act,   
  pay to the United States an amount equal to the lesser of--             
     (1) the amount of sale of the property sold; or                       
       (2) the fair market value of the property sold as determined without
   taking into account any improvements to such property by the City.      
     (d) Description of Property.--The exact acreage and legal description
  of the real property conveyed under subsection (a) shall be determined  
  by a survey satisfactory to the Secretary. The cost of the survey shall 
  be borne by the City.                                                   
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
                    SEC. 2867. STUDY OF LAND EXCHANGE OPTIONS, SHAW AIR FORCE     
          BASE, SOUTH CAROLINA.                                                   
     Section 2874 of the Military Construction Authorization Act for      
  Fiscal Year 1996 (division B of Public Law 104 106; 110 Stat. 583) is   
  amended by adding at the end the following new subsection:              
     ``(g) Study of Exchange Options.--To facilitate the use of a land    
  exchange to acquire the real property described in subsection (a), the  
  Secretary shall conduct a study to identify real property in the        
  possession of the Air Force (located in the State of South Carolina or  
  elsewhere) that satisfies the requirements of subsection (b)(2), is     
  acceptable to the party holding the property to be acquired, and is     
  otherwise suitable for exchange under this section. Not later than three
  months after the date of the enactment of the National Defense          
  Authorization Act for Fiscal Year 1998, the Secretary shall submit to   
  Congress a report containing the results of the study.''.               
           Subtitle E--Other Matters                                               
          SEC. 2871.  REPEAL OF REQUIREMENT TO OPERATE NAVAL ACADEMY DAIRY FARM.  
     (a) Operation.--(1) Chapter 603 of title 10, United States Code, is  
  amended by adding at the end the following new section:                 
          ``6976. Operation of Naval Academy dairy farm                           
     ``(a) Discretion Regarding Continued Operation.--(1) Subject to      
  paragraph (2), the Secretary of the Navy may terminate or reduce the    
  dairy or other operations conducted at the Naval Academy dairy farm     
  located in Gambrills, Maryland.                                         
     ``(2) Notwithstanding the termination or reduction of operations at  
  the Naval Academy dairy farm under paragraph                            
                    (1), the real property containing the dairy farm (consisting  
          of approximately 875 acres)--                                           
       ``(A) may not be declared to be excess real property to the needs of
   the Navy or transferred or otherwise disposed of by the Navy or any     
   Federal agency; and                                                     
     ``(B) shall be maintained in its rural and agricultural nature.       
     ``(b) Lease Authority.--(1) Subject to paragraph (2), to the extent  
  that the termination or reduction of operations at the Naval Academy    
  dairy farm permit, the Secretary of the Navy may lease the real property
  containing the dairy farm, and any improvements and personal property   
  thereon, to such persons and under such terms as the Secretary considers
  appropriate. In leasing any of the property, the Secretary may give a   
  preference to persons who will continue dairy operations on the         
  property.                                                               
     ``(2) Any lease of property at the Naval Academy dairy farm shall be 
  subject to a condition that the lessee maintain the rural and           
  agricultural nature of the leased property.                             
     ``(c) Effect of Other Laws.--Nothing in section 6971 of this title   
  shall be construed to require the Secretary of the Navy or the          
  Superintendent of the Naval Academy to operate a dairy farm for the     
  Naval Academy in Gambrills, Maryland, or any other location.''.         
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            
      ``6976. Operation of Naval Academy dairy farm.''.                       
     (b) Conforming Repeal of Existing Requirements.--Section 810 of the  
  Military Construction Authorization Act, 1968 (Public Law 90 110; 81    
  Stat. 309), is repealed.                                                
     (c) Other Conforming Amendments.--(1) Section 6971(b)(5) of title 10,
  United States Code, is amended by inserting ``(if any)'' before the     
  period at the end.                                                      
     (2) Section 2105(b) of title 5, United States Code, is amended by    
  inserting ``(if any)'' after ``Academy dairy''.                         
          SEC. 2872. LONG-TERM LEASE OF PROPERTY, NAPLES, ITALY.                  
     (a) Authority.--Subject to subsection (d), the Secretary of the Navy 
  may acquire by long-term lease structures and real property relating to 
  a regional hospital complex in Naples, Italy, that the Secretary        
  determines to be necessary for purposes of the Naples Improvement       
  Initiative.                                                             
     (b) Lease Term.--Notwithstanding section 2675 of title 10, United    
  States Code, the lease authorized by subsection (a) shall be for a term 
  of not more than 20 years.                                              
     (c) Expiration of Authority.--The authority of the Secretary to enter
  into a lease under subsection (a) shall expire on September 30, 2002.   
     (d) Authority Contingent on Appropriations Acts.--The authority of   
  the Secretary to enter into a lease under subsection (a) is available   
  only to the extent or in the amount provided in advance in              
  appropriations Acts.                                                    
                    SEC. 2873. DESIGNATION OF MILITARY FAMILY HOUSING AT LACKLAND 
          AIR FORCE BASE, TEXAS, IN HONOR OF FRANK TEJEDA, A FORMER MEMBER OF THE 
          HOUSE OF REPRESENTATIVES.                                               
     The military family housing developments to be constructed at two    
  locations on Government property at Lackland Air Force Base, Texas,     
  under the authority of subchapter IV of chapter 169 of title 10, United 
  States Code, shall be designated by the Secretary of the Air Force, at  
  an appropriate time, as follows:                                        
       (1) The eastern development shall be designated as ``Frank Tejeda   
   Estates East''.                                                         
       (2) The western development shall be designated as ``Frank Tejeda   
   Estates West''.                                                         
                    SEC. 2874. FIBER-OPTICS BASED TELECOMMUNICATIONS LINKAGE OF   
          MILITARY INSTALLATIONS.                                                 
     (a) Installation Required.--In at least one metropolitan area of the 
  United States containing multiple military installations of one or more 
  military departments or Defense Agencies, the Secretary of Defense shall
  provide for the installation of fiber-optics based telecommunications   
  technology to link as many of the installations in the area as          
  practicable in a telecommunications network. The Secretary shall use a  
  full and open competitive process, consistent with section 2304 of title
  10, United States Code, to provide for the installation of the          
  telecommunications network through one or more new contracts.           
     (b) Features of Network.--The telecommunications network shall       
  provide direct access to local and long distance telephone carriers,    
  allow for transmission of both classified and unclassified information, 
  and take advantage of the various capabilities of fiber-optics based    
  telecommunications technology.                                          
     (c) Time for Request for Bids or Proposals.--Not later than March 30,
  1998, the Secretary of Defense shall release a final request for bids or
  proposals to provide the telecommunications network or networks         
  described in subsection (a).                                            
     (d) Report on Implementation.--Not later than December 31, 1998, the 
  Secretary of Defense shall submit to the congressional defense          
  committees a report on the implementation of subsection (c), including  
  the metropolitan area or areas selected for the installation of a       
  fiber-optics based telecommunications network, the current              
  telecommunication costs for the Department of Defense in the selected   
  area or areas, the estimated cost of the fiber-optics based network, and
  potential areas for the future use of fiber-optics based networks.      
           TITLE XXIX--SIKES ACT IMPROVEMENT                                       
      Sec. 2901. Short title.                                                 
      Sec. 2902. Definition of Sikes Act for purposes of amendments.          
      Sec. 2903. Codification of short title of Act.                          
      Sec. 2904. Preparation of integrated natural resources management plans.
            Sec. 2905. Review for preparation of integrated natural resources 
      management plans.                                                       
            Sec. 2906. Transfer of wildlife conservation fees from closed     
      military installations.                                                 
      Sec. 2907. Annual reviews and reports.                                  
      Sec. 2908. Cooperative agreements.                                      
      Sec. 2909. Federal enforcement.                                         
      Sec. 2910. Natural resources management services.                       
      Sec. 2911. Definitions.                                                 
      Sec. 2912. Repeal of superseded provision.                              
      Sec. 2913. Technical amendments.                                        
      Sec. 2914. Authorizations of appropriations.                            
          SEC. 2901. SHORT TITLE.                                                 
    This title may be cited as the ``Sikes Act Improvement Act of 1997''. 
          SEC. 2902. DEFINITION OF SIKES ACT FOR PURPOSES OF AMENDMENTS.          
     In this title, the term ``Sikes Act'' means the Act entitled ``An Act
  to promote effectual planning, development, maintenance, and            
  coordination of wildlife, fish, and game conservation and rehabilitation
  in military reservations'', approved September 15, 1960 (16 U.S.C. 670a 
  et seq.), commonly referred to as the ``Sikes Act''.                    
          SEC. 2903. CODIFICATION OF SHORT TITLE OF ACT.                          
     The Sikes Act (16 U.S.C. 670a et seq.) is amended by inserting before
  title I the following new section:                                      
          ``SECTION 1. SHORT TITLE.                                               
    ``This Act may be cited as the `Sikes Act'.''.                        
          SEC. 2904. PREPARATION OF INTEGRATED NATURAL RESOURCES MANAGEMENT PLANS.
     (a) In General.--Section 101 of the Sikes Act (16 U.S.C. 670a(a)) is 
  amended by striking out subsection (a) and inserting in lieu thereof the
  following new subsection:                                               
    ``(a)  Authority of Secretary of Defense.--                           
     ``(1)  Program.--                                                     
       ``(A) In general.--The Secretary of Defense shall carry out a       
   program to provide for the conservation and rehabilitation of natural   
   resources on military installations.                                    
       ``(B) Integrated natural resources management plan.--To facilitate  
   the program, the Secretary of each military department shall prepare and
   implement an integrated natural resources management plan for each      
   military installation in the United States under the jurisdiction of the
   Secretary, unless the Secretary determines that the absence of          
   significant natural resources on a particular installation makes        
   preparation of such a plan inappropriate.                               
       ``(2) Cooperative preparation.--The Secretary of a military         
   department shall prepare each integrated natural resources management   
   plan for which the Secretary is responsible in cooperation with the     
   Secretary of the Interior, acting through the Director of the United    
   States Fish and Wildlife Service, and the head of each appropriate State
   fish and wildlife agency for the State in which the military            
   installation concerned is located. Consistent with paragraph (4), the   
   resulting plan for the military installation shall reflect the mutual   
   agreement of the parties concerning conservation, protection, and       
   management of fish and wildlife resources.                              
       ``(3) Purposes of program.--Consistent with the use of military     
   installations to ensure the preparedness of the Armed Forces, the       
   Secretaries of the military departments shall carry out the program     
   required by this subsection to provide for--                            
       ``(A) the conservation and rehabilitation of natural resources on   
   military installations;                                                 
       ``(B) the sustainable multipurpose use of the resources, which shall
   include hunting, fishing, trapping, and nonconsumptive uses; and        
       ``(C) subject to safety requirements and military security, public  
   access to military installations to facilitate the use.                 
     ``(4)  Effect on other law.--Nothing in this title--                  
       ``(A)(i) affects any provision of a Federal law governing the       
   conservation or protection of fish and wildlife resources; or           
       ``(ii) enlarges or diminishes the responsibility and authority of   
   any State for the protection and management of fish and resident        
   wildlife; or                                                            
       ``(B) except as specifically provided in the other provisions of    
   this section and in section 102, authorizes the Secretary of a military 
   department to require a Federal license or permit to hunt, fish, or trap
   on a military installation.''.                                          
    (b)  Conforming Amendments.--Title I of the Sikes Act is amended--    
       (1) in section 101(b)(4) (16 U.S.C. 670a(b)(4)), by striking out    
   ``cooperative plan'' each place it appears and inserting in lieu thereof
   ``integrated natural resources management plan'';                       
       (2) in section 101(c) (16 U.S.C. 670a(c)), in the matter preceding  
   paragraph (1), by striking out ``a cooperative plan'' and inserting in  
   lieu thereof ``an integrated natural resources management plan'';       
       (3) in section 101(d) (16 U.S.C. 670a(d)), in the matter preceding  
   paragraph (1), by striking out ``cooperative plans'' and inserting in   
   lieu thereof ``integrated natural resources management plans'';         
       (4) in section 101(e) (16 U.S.C. 670a(e)), by striking out          
   ``Cooperative plans'' and inserting in lieu thereof ``Integrated natural
   resources management plans'';                                           
       (5) in section 102 (16 U.S.C. 670b), by striking out ``a cooperative
   plan'' and inserting in lieu thereof ``an integrated natural resources  
   management plan'';                                                      
       (6) in section 103 (16 U.S.C. 670c), by striking out ``a cooperative
   plan'' and inserting in lieu thereof ``an integrated natural resources  
   management plan'';                                                      
       (7) in section 106(a) (16 U.S.C. 670f(a)), by striking out          
   ``cooperative plans'' and inserting in lieu thereof ``integrated natural
   resources management plans''; and                                       
       (8) in section 106(c) (16 U.S.C. 670f(c)), by striking out          
   ``cooperative plans'' and inserting in lieu thereof ``integrated natural
   resources management plans''.                                           
     (c) Required Elements of Plans.--Section 101(b) of the Sikes Act (16 
  U.S.C. 670a(b)) is amended--                                            
       (1) by striking out ``(b) Each cooperative'' and all that follows   
   through the end of paragraph (1) and inserting in lieu thereof the      
   following:                                                              
     ``(b) Required Elements of Plans.--Consistent with the use of        
  military installations to ensure the preparedness of the Armed Forces,  
  each integrated natural resources management plan prepared under        
  subsection (a)--                                                        
     ``(1) shall, to the extent appropriate and applicable, provide for--  
       ``(A) fish and wildlife management, land management, forest         
   management, and fish- and wildlife-oriented recreation;                 
     ``(B) fish and wildlife habitat enhancement or modifications;         
       ``(C) wetland protection, enhancement, and restoration, where       
   necessary for support of fish, wildlife, or plants;                     
       ``(D) integration of, and consistency among, the various activities 
   conducted under the plan;                                               
       ``(E) establishment of specific natural resource management goals   
   and objectives and time frames for proposed action;                     
       ``(F) sustainable use by the public of natural resources to the     
   extent that the use is not inconsistent with the needs of fish and      
   wildlife resources;                                                     
       ``(G) public access to the military installation that is necessary  
   or appropriate for the use described in subparagraph (F), subject to    
   requirements necessary to ensure safety and military security;          
       ``(H) enforcement of applicable natural resource laws (including    
   regulations);                                                           
       ``(I) no net loss in the capability of military installation lands  
   to support the military mission of the installation; and                
       ``(J) such other activities as the Secretary of the military        
   department determines appropriate;'';                                   
     (2) in paragraph (2), by adding ``and'' at the end;                   
     (3) by striking out paragraph (3);                                    
     (4) by redesignating paragraph (4) as paragraph (3); and              
       (5) in paragraph (3)(A) (as so redesignated), by striking out       
   ``collect the fees therefor,'' and inserting in lieu thereof ``collect, 
   spend, administer, and account for fees for the permits,''.             
                    SEC. 2905. REVIEW FOR PREPARATION OF INTEGRATED NATURAL       
          RESOURCES MANAGEMENT PLANS.                                             
     (a) Definitions.--In this section, the terms ``military              
  installation'' and ``United States'' have the meanings provided in      
  section 100 of the Sikes Act (as added by section 2911).                
    (b)  Review of Military Installations.--                              
       (1) Review.--Not later than 270 days after the date of enactment of 
   this Act, the Secretary of each military department shall--             
       (A) review each military installation in the United States that is  
   under the jurisdiction of that Secretary to determine the military      
   installations for which the preparation of an integrated natural        
   resources management plan under section 101 of the Sikes Act (as amended
   by this title) is appropriate; and                                      
     (B) submit to the Secretary of Defense a report on the determinations.
       (2) Report to congress.--Not later than one year after the date of  
   enactment of this Act, the Secretary of Defense shall submit to Congress
   a report on the reviews conducted under paragraph (1). The report shall 
   include--                                                               
       (A) a list of the military installations reviewed under paragraph   
   (1) for which the Secretary of the appropriate military department      
   determines that the preparation of an integrated natural resources      
   management plan is not appropriate; and                                 
       (B) for each of the military installations listed under subparagraph
   (A), an explanation of each reason such a plan is not appropriate.      
     (c) Deadline for Integrated Natural Resources Management Plans.--Not 
  later than three years after the date of the submission of the report   
  required under subsection (b)(2), the Secretary of each military        
  department shall, for each military installation with respect to which  
  the Secretary has not determined under subsection (b)(2)(A) that        
  preparation of an integrated natural resources management plan is not   
  appropriate--                                                           
       (1) prepare and begin implementing such a plan in accordance with   
   section 101(a) of the Sikes Act (as amended by this title); or          
       (2) in the case of a military installation for which there is in    
   effect a cooperative plan under section 101(a) of the Sikes Act on the  
   day before the date of enactment of this Act, complete negotiations with
   the Secretary of the Interior and the heads of the appropriate State    
   agencies regarding changes to the plan that are necessary for the plan  
   to constitute an integrated natural resources management plan that      
   complies with that section, as amended by this title.                   
     (d) Public Comment.--The Secretary of each military department shall 
  provide an opportunity for the submission of public comments on--       
       (1) integrated natural resources management plans proposed under    
   subsection (c)(1); and                                                  
     (2) changes to cooperative plans proposed under subsection (c)(2).    
                    SEC. 2906. TRANSFER OF WILDLIFE CONSERVATION FEES FROM CLOSED 
          MILITARY INSTALLATIONS.                                                 
     Section 101(b)(3)(B) of the Sikes Act (16 U.S.C. 670a(b)) (as        
  redesignated by section 2904(c)(4)) is amended by inserting before the  
  period at the end the following: ``, unless the military installation is
  subsequently closed, in which case the fees may be transferred to       
  another military installation to be used for the same purposes''.       
          SEC. 2907. ANNUAL REVIEWS AND REPORTS.                                  
     Section 101 of the Sikes Act (16 U.S.C. 670a) is amended by adding at
  the end the following new subsection:                                   
    ``(f)  Reviews and Reports.--                                         
       ``(1) Secretary of defense.--Not later than March 1 of each year,   
   the Secretary of Defense shall review the extent to which integrated    
   natural resources management plans were prepared or were in effect and  
   implemented in accordance with this title in the preceding year, and    
   submit a report on the findings of the review to the committees. Each   
   report shall include--                                                  
       ``(A) the number of integrated natural resources management plans in
   effect in the year covered by the report, including the date on which   
   each plan was issued in final form or most recently revised;            
       ``(B) the amounts expended on conservation activities conducted     
   pursuant to the plans in the year covered by the report; and            
       ``(C) an assessment of the extent to which the plans comply with    
   this title.                                                             
       ``(2) Secretary of the interior.--Not later than March 1 of each    
   year and in consultation with the heads of State fish and wildlife      
   agencies, the Secretary of the Interior shall submit a report to the    
   committees on the amounts expended by the Department of the Interior and
   the State fish and wildlife agencies in the year covered by the report  
   on conservation activities conducted pursuant to integrated natural     
   resources management plans.                                             
       ``(3) Definition of committees.--In this subsection, the term       
   `committees' means--                                                    
       ``(A) the Committee on Resources and the Committee on National      
   Security of the House of Representatives; and                           
       ``(B) the Committee on Armed Services and the Committee on          
   Environment and Public Works of the Senate.''.                          
          SEC. 2908 COOPERATIVE AGREEMENTS.                                       
    Section 103a of the Sikes Act (16 U.S.C. 670c 1) is amended--         
       (1) in subsection (a), by striking out ``Secretary of Defense'' and 
   inserting in lieu thereof ``Secretary of a military department'';       
       (2) by striking out subsection (b) and inserting in lieu thereof the
   following new subsection:                                               
     ``(b) Multiyear Agreements.--Funds appropriated to the Department of 
  Defense for a fiscal year may be obligated to cover the cost of goods   
  and services provided under a cooperative agreement entered into under  
  subsection (a) or through an agency agreement under section 1535 of     
  title 31, United States Code, during any 18-month period beginning in   
  that fiscal year, without regard to whether the agreement crosses fiscal
  years.''.                                                               
          SEC. 2909. FEDERAL ENFORCEMENT.                                         
    Title I of the Sikes Act is amended--                                 
     (1) by redesignating section 106 (16 U.S.C. 670f) as section 108; and 
       (2) by inserting after section 105 (16 U.S.C. 670e) the following   
   new section:                                                            
          ``SEC. 106. FEDERAL ENFORCEMENT OF OTHER LAWS.                          
     ``All Federal laws relating to the management of natural resources on
  Federal land may be enforced by the Secretary of Defense with respect to
  violations of the laws that occur on military installations within the  
  United States.''.                                                       
          SEC. 2910. NATURAL RESOURCES MANAGEMENT SERVICES.                       
     Title I of the Sikes Act is amended by inserting after section 106   
  (as added by section 2909) the following new section:                   
          ``SEC. 107. NATURAL RESOURCES MANAGEMENT SERVICES.                      
     ``To the extent practicable using available resources, the Secretary 
  of each military department shall ensure that sufficient numbers of     
  professionally trained natural resources management personnel and       
  natural resources law enforcement personnel are available and assigned  
  responsibility to perform tasks necessary to carry out this title,      
  including the preparation and implementation of integrated natural      
  resources management plans.''.                                          
          SEC. 2911. DEFINITIONS.                                                 
     Title I of the Sikes Act is amended by inserting before section 101  
  (16 U.S.C. 670a) the following new section:                             
          ``SEC. 100. DEFINITIONS.                                                
    ``In this title:                                                      
     ``(1)  Military installation.--The term `military installation'--     
       ``(A) means any land or interest in land owned by the United States 
   and administered by the Secretary of Defense or the Secretary of a      
   military department, except land under the jurisdiction of the Assistant
   Secretary of the Army having responsibility for civil works;            
       ``(B) includes all public lands withdrawn from all forms of         
   appropriation under public land laws and reserved for use by the        
   Secretary of Defense or the Secretary of a military department; and     
       ``(C) does not include any land described in subparagraph (A) or (B)
   that is subject to an approved recommendation for closure under the     
   Defense Base Closure and Realignment Act of 1990 (part A of title XXIX  
   of Public Law 101 510; 10 U.S.C. 2687 note).                            
       ``(2) State fish and wildlife agency.--The term `State fish and     
   wildlife agency' means the one or more agencies of State government that
   are responsible under State law for managing fish or wildlife resources.
       ``(3) United states.--The term `United States' means the States, the
   District of Columbia, and the territories and possessions of the United 
   States.''.                                                              
          SEC. 2912. REPEAL OF SUPERSEDED PROVISION.                              
     Section 2 of the Act of October 27, 1986 (Public Law 99 561; 16      
  U.S.C. 670a 1), is repealed.                                            
          SEC. 2913. TECHNICAL AMENDMENTS.                                        
    Title I of the Sikes Act, as amended by this title, is amended--      
       (1) in the heading for the title, by striking out ``MILITARY        
   RESERVATIONS'' and inserting in lieu thereof ``MILITARY INSTALLATIONS'';
       (2) in section 101(b)(3) (16 U.S.C. 670a(b)(3)), as redesignated by 
   section 2904(c)(4)--                                                    
       (A) in subparagraph (A), by striking out ``the reservation'' and    
   inserting in lieu thereof ``the installation''; and                     
       (B) in subparagraph (B), by striking out ``the military             
   reservation'' and inserting in lieu thereof ``the military              
   installation'';                                                         
     (3) in section 101(c) (16 U.S.C. 670a(c))--                           
       (A) in paragraph (1), by striking out ``a military reservation'' and
   inserting in lieu thereof ``a military installation''; and              
       (B) in paragraph (2), by striking out ``the reservation'' and       
   inserting in lieu thereof ``the installation'';                         
       (4) in section 101(e) (16 U.S.C. 670a(e)), by striking ``the Federal
   Grant and Cooperative Agreement Act of 1977 (41 U.S.C. 501 et seq.)''   
   and inserting ``chapter 63 of title 31, United States Code'';           
       (5) in section 102 (16 U.S.C. 670b), by striking out ``military     
   reservations'' and inserting in lieu thereof ``military installations'';
   and                                                                     
     (6) in section 103 (16 U.S.C. 670c)--                                 
       (A) by striking out ``military reservations'' and inserting in lieu 
   thereof ``military installations''; and                                 
       (B) by striking out ``such reservations'' and inserting in lieu     
   thereof ``the installations''.                                          
          SEC. 2914. AUTHORIZATIONS OF APPROPRIATIONS.                            
     (a) Conservation Programs on Military Installations.--Subsections (b)
  and (c) of section 108 of the Sikes Act (as redesignated by section     
  2909(1)) are each amended by striking out ``1983'' and all that follows 
  through ``1993,'' and inserting in lieu thereof ``1998 through 2003,''. 
     (b) Conservation Programs on Public Lands.--Section 209 of the Sikes 
  Act (16 U.S.C. 670o) is amended--                                       
       (1) in subsection (a), by striking out ``the sum of $10,000,000''   
   and all that follows through ``to enable the Secretary of the Interior''
   and inserting in lieu thereof ``$4,000,000 for each of fiscal years 1998
   through 2003, to enable the Secretary of the Interior''; and            
       (2) in subsection (b), by striking out ``the sum of $12,000,000''   
   and all that follows through ``to enable the Secretary of Agriculture'' 
   and inserting in lieu thereof ``$5,000,000 for each of fiscal years 1998
   through 2003, to enable the Secretary of Agriculture''.                 
                      DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY           
           AUTHORIZATIONS AND OTHER AUTHORIZATIONS                                 
           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS             
                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         
      Sec. 3101. Weapons activities.                                          
      Sec. 3102. Environmental restoration and waste management.              
      Sec. 3103. Other defense activities.                                    
      Sec. 3104. Defense nuclear waste disposal.                              
                          SUBTITLE B--RECURRING GENERAL PROVISIONS                
      Sec. 3121. Reprogramming.                                               
      Sec. 3122. Limits on general plant projects.                            
      Sec. 3123. Limits on construction projects.                             
      Sec. 3124. Fund transfer authority.                                     
      Sec. 3125. Authority for conceptual and construction design.            
            Sec. 3126. Authority for emergency planning, design, and          
      construction activities.                                                
            Sec. 3127. Funds available for all national security programs of  
      the Department of Energy.                                               
      Sec. 3128. Availability of funds.                                       
      Sec. 3129. Transfers of defense environmental management funds.         
              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   
            Sec. 3131. Memorandum of understanding for use of national        
      laboratories for ballistic missile defense programs.                    
      Sec. 3132. Defense environmental management privatization projects.     
      Sec. 3133. International cooperative stockpile stewardship.             
      Sec. 3134. Modernization of enduring nuclear weapons complex.           
      Sec. 3135. Tritium production.                                          
            Sec. 3136. Processing, treatment, and disposition of spent nuclear
      fuel rods and other legacy nuclear materials at the Savannah River Site.
            Sec. 3137. Limitations on use of funds for laboratory directed    
      research and development purposes.                                      
            Sec. 3138. Pilot program relating to use of proceeds of disposal  
      or utilization of certain Department of Energy assets.                  
            Sec. 3139. Modification and extension of authority relating to    
      appointment of certain scientific, engineering, and technical personnel.
            Sec. 3140. Limitation on use of funds for subcritical nuclear     
      weapons tests.                                                          
            Sec. 3141. Limitation on use of certain funds until future use    
      plans are submitted.                                                    
                                  SUBTITLE D--OTHER MATTERS                       
            Sec. 3151. Plan for stewardship, management, and certification of 
      warheads in the nuclear weapons stockpile.                              
      Sec. 3152. Repeal of obsolete reporting requirements.                   
            Sec. 3153. Study and funding relating to implementation of        
      workforce restructuring plans.                                          
            Sec. 3154. Report and plan for external oversight of national     
      laboratories.                                                           
      Sec. 3155. University-based research collaboration program.             
      Sec. 3156. Stockpile stewardship program.                               
            Sec. 3157. Reports on advanced supercomputer sales to certain     
      foreign nations.                                                        
            Sec. 3158. Transfers of real property at certain Department of    
      Energy facilities.                                                      
            Sec. 3159. Requirement to delegate certain authorities to site    
      manager of Hanford Reservation.                                         
      Sec. 3160. Submittal of biennial waste management reports.              
      Sec. 3161. Department of Energy Security Management Board.              
            Sec. 3162. Submittal of annual report on status of security       
      functions at nuclear weapons facilities.                                
            Sec. 3163. Modification of authority on Commission on Maintaining 
      United States Nuclear Weapons Expertise.                                
      Sec. 3164. Land transfer, Bandelier National Monument.                  
            Sec. 3165. Final settlement of Department of Energy community     
      assistance obligations with respect to Los Alamos National Laboratory,  
      New Mexico.                                                             
            Sec. 3166. Sense of Congress regarding the Y 12 Plant in Oak      
      Ridge, Tennessee.                                                       
            Sec. 3167. Support for public education in the vicinity of Los    
      Alamos National Laboratory, New Mexico.                                 
      Sec. 3168. Improvements to Greenville Road, Livermore, California.      
      Sec. 3169. Report on alternative system for availability of funds.      
            Sec. 3170. Report on remediation under the Formerly Utilized Sites
      Remedial Action Program.                                                
           Subtitle A--National Security Programs Authorizations                   
          SEC. 3101. WEAPONS ACTIVITIES.                                          
     (a) Stockpile Stewardship.--Funds are hereby authorized to be        
  appropriated to the Department of Energy for fiscal year 1998 for       
  stockpile stewardship in carrying out weapons activities necessary for  
  national security programs in the amount of $1,867,150,000, to be       
  allocated as follows:                                                   
       (1) For core stockpile stewardship, $1,387,100,000, to be allocated 
   as follows:                                                             
     (A) For operation and maintenance, $1,288,290,000.                    
       (B) For plant projects (including maintenance, restoration,         
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $98,810,000, to be allocated as follows:              
       Project 97 D 102, dual-axis radiographic hydrotest facility, Los    
   Alamos National Laboratory, Los Alamos, New Mexico, $46,300,000.        
       Project 96 D 102, stockpile stewardship facilities revitalization,  
   Phase VI, various locations, $19,810,000.                               
       Project 96 D 103, ATLAS, Los Alamos National Laboratory, Los Alamos,
   New Mexico, $13,400,000.                                                
       Project 96 D 105, contained firing facility addition, Lawrence      
   Livermore National Laboratory, Livermore, California, $19,300,000.      
     (2) For inertial fusion, $414,800,000, to be allocated as follows:    
     (A) For operation and maintenance, $217,000,000.                      
       (B) For the following plant project (including maintenance,         
   restoration, planning, construction, acquisition, and modification of   
   facilities, and land acquisition related thereto), $197,800,000, to be  
   allocated as follows:                                                   
       Project 96 D 111, national ignition facility, location to be        
   determined, $197,800,000.                                               
       (3) For technology transfer and education, $65,250,000, to be       
   allocated as follows:                                                   
     (A) For technology transfer, $56,250,000.                             
     (B) For education, $9,000,000.                                        
     (b) Stockpile Management.--Funds are hereby authorized to be         
  appropriated to the Department of Energy for fiscal year 1998 for       
  stockpile management in carrying out weapons activities necessary for   
  national security programs in the amount of $2,052,150,000, to be       
  allocated as follows:                                                   
     (1) For operation and maintenance, $1,891,265,000.                    
       (2) For plant projects (including maintenance, restoration,         
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $160,885,000, to be allocated as follows:             
       Project 98 D 123, stockpile management restructuring initiative,    
   tritium factory modernization and consolidation, Savannah River Site,   
   Aiken, South Carolina, $11,000,000.                                     
       Project 98 D 124, stockpile management restructuring initiative, Y  
   12 Plant consolidation, Oak Ridge, Tennessee, $6,450,000.               
       Project 98 D 125, tritium extraction facility, Savannah River Site, 
   Aiken, South Carolina, $9,650,000.                                      
       Project 98 D 126, accelerator production of tritium, various        
   locations, $67,865,000.                                                 
       Project 97 D 122, nuclear materials storage facility renovation, Los
   Alamos National Laboratory, Los Alamos, New Mexico, $9,200,000.         
       Project 97 D 124, steam plant wastewater treatment facility upgrade,
   Y 12 Plant, Oak Ridge, Tennessee, $1,900,000.                           
       Project 96 D 122, sewage treatment quality upgrade (STQU), Pantex   
   Plant, Amarillo, Texas, $6,900,000.                                     
       Project 96 D 123, retrofit heating, ventilation, and air            
   conditioning and chillers for ozone protection, Y 12 Plant, Oak Ridge,  
   Tennessee, $2,700,000.                                                  
       Project 95 D 102, chemistry and metallurgy research (CMR) upgrades  
   project, Los Alamos National Laboratory, Los Alamos, New Mexico,        
   $5,000,000.                                                             
       Project 95 D 122, sanitary sewer upgrade, Y 12 Plant, Oak Ridge,    
   Tennessee, $12,600,000.                                                 
       Project 94 D 124, hydrogen fluoride supply system, Y 12 Plant, Oak  
   Ridge, Tennessee, $1,400,000.                                           
       Project 94 D 125, upgrade life safety, Kansas City Plant, Kansas    
   City, Missouri, $2,000,000.                                             
       Project 93 D 122, life safety upgrades, Y 12 Plant, Oak Ridge,      
   Tennessee, $2,100,000.                                                  
       Project 92 D 126, replace emergency notification system, various    
   locations, $3,200,000.                                                  
       Project 88 D 122, facilities capability assurance program, various  
   locations, $18,920,000.                                                 
     (c) Program Direction.--Funds are hereby authorized to be            
  appropriated to the Department of Energy for fiscal year 1998 for       
  program direction in carrying out weapons activities necessary for      
  national security programs in the amount of $250,000,000.               
     (d) Adjustment.--The total amount authorized to be appropriated      
  pursuant to this section is the sum of the amounts authorized to be     
  appropriated in subsections (a) through (c) reduced by $22,608,000.     
          SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.              
     (a) Environmental Restoration.--Funds are hereby authorized to be    
  appropriated to the Department of Energy for fiscal year 1998 for       
  environmental restoration in carrying out environmental restoration and 
  waste management activities necessary for national security programs in 
  the amount of $1,010,973,000, of which $388,000,000 shall be allocated  
  to the uranium enrichment decontamination and decommissioning fund.     
     (b) Defense Environmental Management Closure Projects.--Funds are    
  hereby authorized to be appropriated to the Department of Energy for    
  fiscal year 1998 for closure projects in carrying out environmental     
  restoration and waste management activities necessary for national      
  security programs in the amount of $875,000,000, to be allocated as     
  follows:                                                                
       Project 98 CLR 1, Rocky Flats Closure Site, Denver, Colorado,       
   $648,400,000.                                                           
       Project 98 CLR 2, Fernald Environmental Management Project, Fernald,
   Ohio, $226,600,000.                                                     
     (c) Waste Management.--Funds are hereby authorized to be appropriated
  to the Department of Energy for fiscal year 1998 for waste management in
  carrying out environmental restoration and waste management activities  
  necessary for national security programs in the amount of               
  $1,571,644,000, to be allocated as follows:                             
     (1) For operation and maintenance, $1,490,876,000.                    
       (2) For plant projects (including maintenance, restoration,         
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $80,768,000, to be allocated as follows:              
       Project 98 D 401, H-tank farm storm water systems upgrade, Savannah 
   River Site, Aiken, South Carolina, $1,000,000.                          
       Project 97 D 402, tank farm restoration and safe operations,        
   Richland, Washington, $13,961,000.                                      
       Project 96 D 408, waste management upgrades, various locations,     
   $8,200,000.                                                             
       Project 95 D 402, install permanent electrical service, Waste       
   Isolation Pilot Plant, Carlsbad, New Mexico, $176,000.                  
       Project 95 D 405, industrial landfill V and construction/demolition 
   landfill VII, Y 12 Plant, Oak Ridge, Tennessee, $3,800,000.             
       Project 95 D 407, 219 S secondary containment upgrade, Richland,    
   Washington, $2,500,000.                                                 
       Project 94 D 404, Melton Valley storage tank capacity increase, Oak 
   Ridge National Laboratory, Oak Ridge, Tennessee, $1,219,000.            
       Project 94 D 407, initial tank retrieval systems, Richland,         
   Washington, $15,100,000.                                                
       Project 93 D 187, high-level waste removal from filled waste tanks, 
   Savannah River Site, Aiken, South Carolina, $17,520,000.                
       Project 92 D 172, hazardous waste treatment and processing facility,
   Pantex Plant, Amarillo, Texas, $5,000,000.                              
       Project 89 D 174, replacement high-level waste evaporator, Savannah 
   River Site, Aiken, South Carolina, $1,042,000.                          
       Project 86 D 103, decontamination and waste treatment facility,     
   Lawrence Livermore National Laboratory, Livermore, California,          
   $11,250,000.                                                            
     (d) Technology Development.--Funds are hereby authorized to be       
  appropriated to the Department of Energy for fiscal year 1998 for       
  technology development in carrying out environmental restoration and    
  waste management activities necessary for national security programs in 
  the amount of $220,000,000.                                             
     (e) Nuclear Materials and Facilities Stabilization.--Funds are hereby
  authorized to be appropriated to the Department of Energy for fiscal    
  year 1998 for nuclear materials and facilities stabilization in carrying
  out environmental restoration and waste management activities necessary 
  for national security programs in the amount of $1,256,821,000, to be   
  allocated as follows:                                                   
     (1) For operation and maintenance, $1,176,114,000.                    
       (2) For plant projects (including maintenance, restoration,         
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $80,707,000, to be allocated as follows:              
       Project 98 D 453, plutonium stabilization and handling system for   
   plutonium finishing plant, Richland, Washington, $8,136,000.            
       Project 98 D 700, road rehabilitation, Idaho National Engineering   
   Laboratory, Idaho, $500,000.                                            
       Project 97 D 450, actinide packaging and storage facility, Savannah 
   River Site, Aiken, South Carolina, $18,000,000.                         
       Project 97 D 451, B-Plant safety class ventilation upgrades,        
   Richland, Washington, $2,000,000.                                       
       Project 97 D 470, environmental monitoring laboratory/health physics
   site support facility, Savannah River Site, Aiken, South Carolina,      
   $5,600,000.                                                             
       Project 96 D 406, spent nuclear fuels canister storage and          
   stabilization facility, Richland, Washington, $16,744,000.              
       Project 96 D 461, electrical distribution upgrade, Idaho National   
   Engineering Laboratory, Idaho, $2,927,000.                              
       Project 96 D 464, electrical and utility systems upgrade, Idaho     
   Chemical Processing Plant, Idaho National Engineering Laboratory, Idaho,
   $14,985,000.                                                            
       Project 96 D 471, chlorofluorocarbon heating, ventilation, and air  
   conditioning and chiller retrofit, Savannah River Site, Aiken, South    
   Carolina, $8,500,000.                                                   
       Project 95 D 155, upgrade site road infrastructure, Savannah River  
   Site, South Carolina, $2,713,000.                                       
       Project 95 D 456, security facilities consolidation, Idaho Chemical 
   Processing Plant, Idaho National Engineering Laboratory, Idaho,         
   $602,000.                                                               
     (f) Program Direction.--Funds are hereby authorized to be            
  appropriated to the Department of Energy for fiscal year 1998 for       
  program direction in carrying out environmental restoration and waste   
  management activities necessary for national security programs in the   
  amount of $345,751,000.                                                 
     (g) Policy and Management.--Funds are hereby authorized to be        
  appropriated to the Department of Energy for fiscal year 1998 for policy
  and management in carrying out environmental restoration and waste      
  management activities necessary for national security programs in the   
  amount of $20,000,000.                                                  
     (h) Environmental Science Program.--Funds are hereby authorized to be
  appropriated to the Department of Energy for fiscal year 1998 for the   
  environmental science program in carrying out environmental restoration 
  and waste management activities necessary for national security programs
  in the amount of $55,000,000.                                           
     (i) Defense Environmental Management Privatization.--Funds are hereby
  authorized to be appropriated to the Department of Energy for fiscal    
  year 1998 for environmental management privatization projects in        
  carrying out environmental restoration and waste management activities  
  necessary for national security programs in the amount of $224,700,000, 
  to be allocated as follows:                                             
       Project 98 PVT 1, contact handled transuranic waste transportation, 
   Carlsbad, New Mexico, $21,000,000.                                      
       Project 98 PVT 2, spent nuclear fuel dry storage, Idaho Falls,      
   Idaho, $27,000,000.                                                     
       Project 98 PVT 3, waste pits remedial action, Fernald, Ohio,        
   $25,000,000.                                                            
       Project 98 PVT 4, spent nuclear fuel transfer and storage, Savannah 
   River, South Carolina, $25,000,000.                                     
     Project 98 PVT 5, waste disposal, Oak Ridge, Tennessee, $5,000,000.   
       Project 98 PVT 6, Ohio silo 3 waste treatment, Fernald, Ohio,       
   $6,700,000.                                                             
       Project 97 PVT 1, tank waste remediation system phase 1, Hanford,   
   Washington, $115,000,000.                                               
     (j) Adjustment.--The total amount authorized to be appropriated      
  pursuant to this section for subsections (a) through (h) is the sum of  
  the amounts authorized to be appropriated in those subsections reduced  
  by $50,000,000.                                                         
          SEC. 3103. OTHER DEFENSE ACTIVITIES.                                    
     (a) In General.--Funds are hereby authorized to be appropriated to   
  the Department of Energy for fiscal year 1998 for other defense         
  activities in carrying out programs necessary for national security in  
  the amount of $1,642,310,000, to be allocated as follows:               
       (1) For verification and control technology, $478,200,000, to be    
   allocated as follows:                                                   
       (A) For nonproliferation and verification research and development, 
   $210,000,000.                                                           
     (B) For arms control, $234,600,000.                                   
     (C) For intelligence, $33,600,000.                                    
     (2) For nuclear safeguards and security, $47,200,000.                 
     (3) For security investigations, $25,000,000.                         
     (4) For emergency management, $20,000,000.                            
     (5) For program direction, $78,900,000.                               
       (6) For worker and community transition assistance, $61,159,000, to 
   be allocated as follows:                                                
     (A) For worker and community transition, $57,659,000.                 
     (B) For program direction, $3,500,000.                                
       (7) For fissile materials control and disposition, $103,451,000, to 
   be allocated as follows:                                                
     (A) For operation and maintenance, $99,451,000.                       
     (B) For program direction, $4,000,000.                                
       (8) For environment, safety, and health, defense, $94,000,000, to be
   allocated as follows:                                                   
       (A) For the Office of Environment, Safety, and Health (Defense),    
   $74,000,000.                                                            
     (B) For program direction, $20,000,000.                               
     (9) For the Office of Hearings and Appeals, $1,900,000.               
     (10) For nuclear energy, $47,000,000, to be allocated as follows:     
       (A) For nuclear technology research and development                 
   (electrometallurgical), $12,000,000.                                    
       (B) For international nuclear safety (Soviet-designed reactors),    
   $35,000,000.                                                            
       (11) For naval reactors development, $670,500,000, to be allocated  
   as follows:                                                             
     (A) For operation and maintenance, $635,920,000.                      
     (B) For program direction, $20,080,000.                               
       (C) For plant projects (including maintenance, restoration,         
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $14,500,000, to be allocated as follows:              
       Project 98 D 200, site laboratory/facility upgrade, various         
   locations, $5,700,000.                                                  
       Project 97 D 201, advanced test reactor secondary coolant           
   refurbishment, Idaho National Engineering Laboratory, Idaho, $4,600,000.
       Project 95 D 200, laboratory systems and hot cell upgrades, various 
   locations, $1,100,000.                                                  
       Project 90 N 102, expended core facility dry cell project, Naval    
   Reactors Facility, Idaho, $3,100,000.                                   
       (12) For independent assessment of Department of Energy projects,   
   $15,000,000.                                                            
     (b) Adjustment.--The total amount authorized to be appropriated      
  pursuant to this section is the sum of the amounts authorized to be     
  appropriated in paragraphs (1) through (12) of subsection (a) reduced by
  $6,047,000.                                                             
          SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.                              
     Funds are hereby authorized to be appropriated to the Department of  
  Energy for fiscal year 1998 for payment to the Nuclear Waste Fund       
  established in section 302(c) of the Nuclear Waste Policy Act of 1982   
  (42 U.S.C. 10222(c)) in the amount of $190,000,000.                     
           Subtitle B--Recurring General Provisions                                
          SEC. 3121. REPROGRAMMING.                                               
     (a) In General.--Until the Secretary of Energy submits to the        
  congressional defense committees the report referred to in subsection   
  (b) and a period of 30 days has elapsed after the date on which such    
  committees receive the report, the Secretary may not use amounts        
  appropriated pursuant to this title for any program--                   
     (1) in amounts that exceed, in a fiscal year--                        
       (A) 110 percent of the amount authorized for that program by this   
   title; or                                                               
       (B) $1,000,000 more than the amount authorized for that program by  
   this title; or                                                          
     (2) which has not been presented to, or requested of, Congress.       
     (b) Report.--(1) The report referred to in subsection (a) is a report
  containing a full and complete statement of the action proposed to be   
  taken and the facts and circumstances relied upon in support of such    
  proposed action.                                                        
     (2) In the computation of the 30-day period under subsection (a),    
  there shall be excluded any day on which either House of Congress is not
  in session because of an adjournment of more than 3 days to a day       
  certain.                                                                
     (c) Limitations.--(1) In no event may the total amount of funds      
  obligated pursuant to this title exceed the total amount authorized to  
  be appropriated by this title.                                          
     (2) Funds appropriated pursuant to this title may not be used for an 
  item for which Congress has specifically denied funds.                  
          SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.                            
     (a) In General.--The Secretary of Energy may carry out any           
  construction project under the general plant projects authorized by this
  title if the total estimated cost of the construction project does not  
  exceed $5,000,000.                                                      
     (b) Report to Congress.--If, at any time during the construction of  
  any general plant project authorized by this title, the estimated cost  
  of the project is revised because of unforeseen cost variations and the 
  revised cost of the project exceeds $5,000,000, the Secretary shall     
  immediately furnish a complete report to the congressional defense      
  committees explaining the reasons for the cost variation.               
          SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.                             
     (a) In General.--(1) Except as provided in paragraph (2),            
  construction on a construction project may not be started or additional 
  obligations incurred in connection with the project above the total     
  estimated cost, whenever the current estimated cost of the construction 
  project, which is authorized by section 3101, 3102, or 3103, or which is
  in support of national security programs of the Department of Energy and
  was authorized by any previous Act, exceeds by more than 25 percent the 
  higher of--                                                             
     (A) the amount authorized for the project; or                         
       (B) the amount of the total estimated cost for the project as shown 
   in the most recent budget justification data submitted to Congress.     
    (2) An action described in paragraph (1) may be taken if--            
       (A) the Secretary of Energy has submitted to the congressional      
   defense committees a report on the actions and the circumstances making 
   such action necessary; and                                              
       (B) a period of 30 days has elapsed after the date on which the     
   report is received by the committees.                                   
     (3) In the computation of the 30-day period under paragraph (2),     
  there shall be excluded any day on which either House of Congress is not
  in session because of an adjournment of more than 3 days to a day       
  certain.                                                                
     (b) Exception.--Subsection (a) shall not apply to any construction   
  project which has a current estimated cost of less than $5,000,000.     
          SEC. 3124. FUND TRANSFER AUTHORITY.                                     
     (a) Transfer to Other Federal Agencies.--The Secretary of Energy may 
  transfer funds authorized to be appropriated to the Department of Energy
  pursuant to this title to other Federal agencies for the performance of 
  work for which the funds were authorized. Funds so transferred may be   
  merged with and be available for the same purposes and for the same     
  period as the authorizations of the Federal agency to which the amounts 
  are transferred.                                                        
     (b) Transfer Within Department of Energy.--(1) Subject to paragraph  
  (2), the Secretary of Energy may transfer funds authorized to be        
  appropriated to the Department of Energy pursuant to this title between 
  any such authorizations. Amounts of authorizations so transferred may be
  merged with and be available for the same purposes and for the same     
  period as the authorization to which the amounts are transferred.       
     (2) Not more than five percent of any such authorization may be      
  transferred between authorizations under paragraph (1). No such         
  authorization may be increased or decreased by more than five percent by
  a transfer under such paragraph.                                        
     (c) Limitation.--The authority provided by this section to transfer  
  authorizations--                                                        
       (1) may only be used to provide funds for items relating to         
   activities necessary for national security programs that have a higher  
   priority than the items from which the funds are transferred; and       
       (2) may not be used to provide funds for an item for which Congress 
   has specifically denied funds.                                          
     (d) Notice to Congress.--The Secretary of Energy shall promptly      
  notify the Committee on Armed Services of the Senate and the Committee  
  on National Security of the House of Representatives of any transfer of 
  funds to or from authorizations under this title.                       
          SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.            
     (a) Requirement for Conceptual Design.--(1) Subject to paragraph (2) 
  and except as provided in paragraph (3), before submitting to Congress a
  request for funds for a construction project that is in support of a    
  national security program of the Department of Energy, the Secretary of 
  Energy shall complete a conceptual design for that project.             
     (2) If the estimated cost of completing a conceptual design for a    
  construction project exceeds $3,000,000, the Secretary shall submit to  
  Congress a request for funds for the conceptual design before submitting
  a request for funds for the construction project.                       
     (3) The requirement in paragraph (1) does not apply to a request for 
  funds--                                                                 
       (A) for a construction project the total estimated cost of which is 
   less than $5,000,000; or                                                
       (B) for emergency planning, design, and construction activities     
   under section 3126.                                                     
     (b) Authority for Construction Design.--(1) Within the amounts       
  authorized by this title, the Secretary of Energy may carry out         
  construction design (including architectural and engineering services)  
  in connection with any proposed construction project if the total       
  estimated cost for such design does not exceed $600,000.                
     (2) If the total estimated cost for construction design in connection
  with any construction project exceeds $600,000, funds for such design   
  must be specifically authorized by law.                                 
                    SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND      
          CONSTRUCTION ACTIVITIES.                                                
     (a) Authority.--The Secretary of Energy may use any funds available  
  to the Department of Energy pursuant to an authorization in this title, 
  including those funds authorized to be appropriated for advance planning
  and construction design under sections 3101, 3102, and 3103, to perform 
  planning, design, and construction activities for any Department of     
  Energy national security program construction project that, as          
  determined by the Secretary, must proceed expeditiously in order to     
  protect public health and safety, to meet the needs of national defense,
  or to protect property.                                                 
     (b) Limitation.--The Secretary may not exercise the authority under  
  subsection (a) in the case of any construction project until the        
  Secretary has submitted to the congressional defense committees a report
  on the activities that the Secretary intends to carry out under this    
  section and the circumstances making such activities necessary.         
     (c) Specific Authority.--The requirement of section 3125(b)(2) does  
  not apply to emergency planning, design, and construction activities    
  conducted under this section.                                           
                    SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
          OF THE DEPARTMENT OF ENERGY.                                            
     Subject to the provisions of appropriations Acts and section 3121,   
  amounts appropriated pursuant to this title for management and support  
  activities and for general plant projects are available for use, when   
  necessary, in connection with all national security programs of the     
  Department of Energy.                                                   
          SEC. 3128. AVAILABILITY OF FUNDS.                                       
     (a) In General.--Except as provided in subsection (b), when so       
  specified in an appropriations Act, amounts appropriated for operation  
  and maintenance or for plant projects may remain available until        
  expended.                                                               
     (b) Exception for Program Direction Funds.--Amounts appropriated for 
  program direction pursuant to an authorization of appropriations in     
  subtitle A shall remain available to be expended only until the end of  
  fiscal year 2000.                                                       
          SEC. 3129. TRANSFERS OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.         
     (a) Transfer Authority for Defense Environmental Management          
  Funds.--The Secretary of Energy shall provide the manager of each field 
  office of the Department of Energy with the authority to transfer       
  defense environmental management funds from a program or project under  
  the jurisdiction of the office to another such program or project.      
     (b) Limitations.--(1) Only one transfer may be made to or from any   
  program or project under subsection (a) in a fiscal year.               
     (2) The amount transferred to or from a program or project under     
  subsection (a) may not exceed $5,000,000 in a fiscal year.              
     (3) A transfer may not be carried out by a manager of a field office 
  under subsection (a) unless the manager determines that the transfer is 
  necessary to address a risk to health, safety, or the environment or to 
  assure the most efficient use of defense environmental management funds 
  at the field office.                                                    
     (4) Funds transferred pursuant to subsection (a) may not be used for 
  an item for which Congress has specifically denied funds or for a new   
  program or project that has not been authorized by Congress.            
     (c) Exemption From Reprogramming Requirements.--The requirements of  
  section 3121 shall not apply to transfers of funds pursuant to          
  subsection (a).                                                         
     (d) Notification.--The Secretary, acting through the Assistant       
  Secretary of Energy for Environmental Management, shall notify Congress 
  of any transfer of funds pursuant to subsection (a) not later than 30   
  days after such transfer occurs.                                        
    (e)  Definitions.--In this section:                                   
       (1) The term ``program or project'' means, with respect to a field  
   office of the Department of Energy, any of the following:               
       (A) A project listed in subsection (c) or (e) of section 3102 being 
   carried out by the office.                                              
       (B) A program referred to in subsection (a), (c), (d), or (e) of    
   section 3102 being carried out by the office.                           
       (C) A project or program not described in subparagraph (A) or (B)   
   that is for environmental restoration or waste management activities    
   necessary for national security programs of the Department, that is     
   being carried out by the office, and for which defense environmental    
   management funds have been authorized and appropriated before the date  
   of enactment of this Act.                                               
       (2) The term ``defense environmental management funds'' means funds 
   appropriated to the Department of Energy pursuant to an authorization   
   for carrying out environmental restoration and waste management         
   activities necessary for national security programs.                    
     (f) Duration of Authority.--The managers of the field offices of the 
  Department may exercise the authority provided under subsection (a)     
  during the period beginning on October 1, 1997, and ending on September 
  30, 1998.                                                               
           Subtitle C--Program Authorizations, Restrictions, and Limitations       
                    SEC. 3131. MEMORANDUM OF UNDERSTANDING FOR USE OF NATIONAL    
          LABORATORIES FOR BALLISTIC MISSILE DEFENSE PROGRAMS.                    
     (a) Memorandum of Understanding.--The Secretary of Energy and the    
  Secretary of Defense shall enter into a memorandum of understanding for 
  the purpose of improving and facilitating the use by the Secretary of   
  Defense of the                                                          
                    expertise of the national laboratories for the ballistic      
          missile defense programs of the Department of Defense.                  
     (b) Assistance.--The memorandum of understanding shall provide that  
  the Secretary of Defense shall request such assistance with respect to  
  the ballistic missile defense programs of the Department of Defense as  
  the Secretary of Defense and the Secretary of Energy determine can be   
  provided through the technical skills and experience of the national    
  laboratories, using such financial arrangements as the Secretaries      
  determine are appropriate.                                              
     (c) Activities.--The memorandum of understanding shall provide that  
  the national laboratories shall carry out those activities necessary to 
  respond to requests for assistance from the Secretary of Defense        
  referred to in subsection (b). Such activities may include the          
  identification of technical modifications and test techniques, the      
  analysis of physics problems, the consolidation of range and test       
  activities, and the analysis and simulation of theater missile defense  
  deployment problems.                                                    
     (d) National Laboratories.--For purposes of this section, the        
  national laboratories are--                                             
     (1) the Lawrence Livermore National Laboratory, Livermore, California;
     (2) the Los Alamos National Laboratory, Los Alamos, New Mexico; and   
     (3) the Sandia National Laboratories, Albuquerque, New Mexico.        
          SEC. 3132. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION PROJECTS.     
     (a) Authority To Enter Into Contracts.--The Secretary of Energy may, 
  using funds authorized to be appropriated by section 3102(i) for a      
  project referred to in that section, enter into a contract that--       
     (1) is awarded on a competitive basis;                                
       (2) requires the contractor to construct or acquire any equipment or
   facilities required to carry out the contract;                          
       (3) requires the contractor to bear any of the costs of the         
   construction, acquisition, and operation of such equipment or facilities
   that arise before the commencement of the provision of goods or services
   under the contract; and                                                 
       (4) provides for payment to the contractor under the contract only  
   upon the meeting of performance specifications in the contract.         
     (b) Notice and Wait.--(1) The Secretary may not enter into a contract
  under subsection (a), exercise an authorization to proceed with such a  
  contract or extend any contract period for such a contract by more than 
  one year until 30 days after the date on which the Secretary submits to 
  the congressional defense committees a report with respect to the       
  contract.                                                               
     (2) Except as provided in paragraph (3), a report under paragraph (1)
  with respect to a contract shall set forth--                            
       (A) the anticipated costs and fees of the Department under the      
   contract, including the anticipated maximum amount of such costs and    
   fees;                                                                   
     (B) any performance specifications in the contract;                   
       (C) the anticipated dates of commencement and completion of the     
   provision of goods or services under the contract;                      
       (D) the allocation between the Department and the contractor of any 
   financial, regulatory, or environmental obligations under the contract; 
       (E) any activities planned or anticipated to be required with       
   respect to the project after completion of the contract;                
       (F) the site services or other support to be provided the contractor
   by the Department under the contract;                                   
       (G) the goods or services to be provided by the Department or       
   contractor under the contract, including any additional obligations to  
   be borne by the Department or contractor with respect to such goods or  
   services;                                                               
       (H) if the contract provides for financing of the project by an     
   entity or entities other than the United States, a detailed comparison  
   of the costs of financing the project through such entity or entities   
   with the costs of financing the project by the United States;           
     (I) the schedule for the contract;                                    
       (J) the costs the Department would otherwise have incurred in       
   obtaining the goods or services covered by the contract if the          
   Department had not proposed to obtain the goods or services under this  
   section;                                                                
       (K) an estimate and justification of the cost savings, if any, to be
   realized through the contract, including the assumptions underlying the 
   estimate;                                                               
       (L) the effect of the contract on any ancillary schedules applicable
   to the facility concerned, including milestones in site compliance      
   agreements; and                                                         
       (M) the plans for maintaining financial and programmatic            
   accountability for activities under the contract.                       
     (3) In the case of a contract under subsection (a) at the Hanford    
  Reservation, the report under paragraph (1) shall set forth--           
     (A) the matters specified in paragraph (2); and                       
     (B) if the contract contemplates two pilot vitrification plants--     
       (i) an analysis of the basis for the selection of each of the plants
   in lieu of a single pilot vitrification plant; and                      
       (ii) a detailed comparison of the costs to the United States of two 
   pilot plants with the costs to the United States of a single pilot      
   plant.                                                                  
     (c) Cost Variations.--(1)(A) The Secretary may not enter into a      
  contract for a project referred to in subparagraph (B), or obligate     
  funds attributable to the capital portion of the cost of such a         
  contract, whenever the current estimated cost of the project exceeds the
  amount of the estimated cost of the project as shown in the most recent 
  budget justification data submitted to Congress.                        
    (B) Subparagraph (A) applies to the following:                        
     (i) A project authorized by section 3102(i).                          
       (ii) A project authorized by section 3103 of the National Defense   
   Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 Stat.   
   2824) for which a contract has not been entered into as of the date of  
   enactment of this Act.                                                  
     (2) The Secretary may not obligate funds attributable to the capital 
  portion of the cost of a contract entered into before such date for a   
  project authorized by such section 3103 whenever the current estimated  
  cost of the project equals or exceeds 110 percent of the amount of the  
  estimated cost of the project as shown in the most recent budget        
  justification data submitted to Congress.                               
     (d) Use of Funds for Termination of Contract.--Not later than 15 days
  before the Secretary obligates funds available for a project authorized 
  by section 3102(i) to terminate the contract for the project under      
  subsection (a), the Secretary shall notify the congressional defense    
  committees of the Secretary's intent to obligate the funds for that     
  purpose.                                                                
     (e) Annual Report on Contracts.--(1) Not later than February 28 of   
  each year, the Secretary shall submit to the congressional defense      
  committees a report on the activities, if any, carried out under each   
  contract referred to in paragraph (2) during the preceding year. The    
  report shall include an update with respect to each such contract of the
  matters specified under subsection (b)(1) as of the date of the report. 
    (2) A contract referred to in paragraph (1) is the following:         
       (A) A contract under subsection (a) for a project referred to in    
   that subsection.                                                        
       (B) A contract under section 3103 of the National Defense           
   Authorization Act for Fiscal Year 1997.                                 
     (f) Assessment of Contracting Without Sufficient Appropriations.--Not
  later than 90 days after the date of enactment of this Act, the         
  Secretary shall submit to the congressional defense committees a report 
  assessing whether, and under what circumstances, the Secretary could    
  enter into contracts for defense environmental management privatization 
  projects in the absence of sufficient appropriations to meet obligations
  under such contracts without thereby violating the provisions of section
  1341 of title 31, United States Code.                                   
          SEC. 3133. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP.             
     (a) Funding Prohibition.--No funds authorized to be appropriated or  
  otherwise available to the Department of Energy for fiscal year 1998 may
  be obligated or expended to conduct any activities associated with      
  international cooperative stockpile stewardship.                        
    (b)  Exceptions.--Subsection (a) does not apply to the following:     
       (1) Activities conducted between the United States and the United   
   Kingdom.                                                                
     (2) Activities conducted between the United States and France.        
       (3) Activities carried out under title III of this Act relating to  
   cooperative threat reduction with states of the former Soviet Union.    
          SEC. 3134. MODERNIZATION OF ENDURING NUCLEAR WEAPONS COMPLEX.           
     (a) Funding.--Subject to subsection (b), of the funds authorized to  
  be appropriated to the Department of Energy pursuant to section 3101,   
  $85,000,000 shall be available for carrying out the program described in
  section 3137(a) of the National Defense Authorization Act for Fiscal    
  Year 1996 (42 U.S.C. 2121 note).                                        
     (b) Limitation on Availability.--None of the funds available under   
  subsection (a) for carrying out the program referred to in that         
  subsection may be obligated or expended until 30 days after the date of 
  the receipt by Congress of the report required under subsection (c).    
     (c) Report on Allocation of Funds.--Not later than 30 days after the 
  date of enactment of this Act, the Secretary of Energy shall submit to  
  the congressional defense committees a report setting forth the proposed
  allocation among specific Department of Energy sites of the funds       
  available under subsection (a) for the program referred to in that      
  subsection.                                                             
          SEC. 3135. TRITIUM PRODUCTION.                                          
     (a) Tritium Production Decision.--(1) Not later than December 31,    
  1998, the Secretary of Energy shall make a final decision on the        
  technologies to be utilized, and the schedule to be adopted, for tritium
  production in order to meet the requirements in the Nuclear Weapons     
  Stockpile Memorandum relating to tritium production, including the      
  tritium production date of 2005 specified in the Nuclear Weapons        
  Stockpile Memorandum.                                                   
     (2) In making the final decision, the Secretary shall take into      
  account the following:                                                  
       (A) The requirements for tritium production specified in the Nuclear
   Weapons Stockpile Memorandum, including, in particular, the requirements
   for the so-called ``upload hedge'' component of the nuclear weapons     
   stockpile.                                                              
       (B) The activities of the Department of Energy relating to the      
   evaluation and demonstration of technologies under the accelerator      
   program and the commercial light water reactor program.                 
       (C) The potential liabilities and benefits of each potential        
   technology for tritium production, including--                          
       (i) regulatory and other barriers that might prevent the production 
   of tritium using the technology by the production date referred to in   
   paragraph (1);                                                          
     (ii) potential difficulties, if any, in licensing the technology;     
       (iii) the variability, if any, in tritium production rates using the
   technology; and                                                         
       (iv) any other benefits (including scientific or research benefits  
   or the generation of revenue) associated with the technology.           
     (b) Reports on Decision.--(1) Upon making a final decision under     
  paragraph (1) of subsection (a), the Secretary shall submit to the      
  congressional defense committees a report on the final decision. The    
  report shall include an assessment of how the selected technology       
  addresses the items taken into account under paragraph (2) of that      
  subsection.                                                             
     (2) If the Secretary determines that it is not possible to make the  
  final decision by the date specified in paragraph (1) of subsection (a),
  the Secretary shall submit to the congressional defense committees on   
  that date a report that explains in detail why the final decision cannot
  be made by that date.                                                   
     (c) Limitation on Availability of Funds.--The Secretary may not      
  obligate or expend any funds authorized to be appropriated or otherwise 
  made available for the Department of Energy by this Act for the purpose 
  of evaluating or utilizing any technology for the production of tritium 
  other than a commercial light water reactor or an accelerator until the 
  later of--                                                              
     (1) January 31, 1999; or                                              
       (2) the date that is 30 days after the date on which the Secretary  
   makes a final decision under subsection (a).                            
                    SEC. 3136. PROCESSING, TREATMENT, AND DISPOSITION OF SPENT    
          NUCLEAR FUEL RODS AND OTHER LEGACY NUCLEAR MATERIALS AT THE SAVANNAH    
          RIVER SITE.                                                             
     (a) Funding.--Of the funds authorized to be appropriated pursuant to 
  section 3102(e), not more than $47,000,000 shall be available for the   
  implementation of a program to accelerate the receipt, processing       
  (including the H-canyon restart operations), reprocessing, separation,  
  reduction, deactivation, stabilization, isolation, and interim storage  
  of high level nuclear waste associated with Department of Energy spent  
  fuel rods, foreign spent fuel rods, and other nuclear materials that are
  located at the Savannah River Site.                                     
     (b) Requirement for Continuing Operations at Savannah River          
  Site.--The Secretary of Energy shall continue operations and maintain a 
  high state of readiness at the F-canyon and H-canyon facilities at the  
  Savannah River Site and shall provide technical staff necessary to      
  operate and maintain such facilities at that state of readiness.        
                    SEC. 3137. LIMITATIONS ON USE OF FUNDS FOR LABORATORY DIRECTED
          RESEARCH AND DEVELOPMENT PURPOSES.                                      
     (a) General Limitations.--(1) No funds authorized to be appropriated 
  or otherwise made available to the Department of Energy in any fiscal   
  year after fiscal year 1997 for weapons activities may be obligated or  
  expended for activities under the Department of Energy Laboratory       
  Directed Research and Development Program, or under any Department of   
  Energy technology transfer program or cooperative research and          
  development agreement, unless such activities support the national      
  security mission of the Department of Energy.                           
     (2) No funds authorized to be appropriated or otherwise made         
  available to the Department of Energy in any fiscal year after fiscal   
  year 1997 for environmental restoration, waste management, or nuclear   
  materials and facilities stabilization may be obligated or expended for 
  activities under the Department of Energy Laboratory Directed Research  
  and Development Program, or under any Department of Energy technology   
  transfer program or cooperative research and development agreement,     
  unless such activities support the environmental restoration mission,   
  waste management mission, or materials stabilization mission, as the    
  case may be, of the Department of Energy.                               
     (b) Limitation in Fiscal Year 1998 Pending Submittal of Annual       
  Report.--Not more than 30 percent of the funds authorized to be         
  appropriated or otherwise made available to the Department of Energy in 
  fiscal year 1998 for laboratory directed research and development may be
  obligated or expended for such research and development until the       
  Secretary of Energy submits to the congressional defense committees the 
  report required by section 3136(b) of the National Defense Authorization
  Act for Fiscal Year 1997 (Public Law 104 201; 110 Stat. 2831; 42 U.S.C. 
  7257b) in 1998.                                                         
     (c) Submittal Date for Annual Report on Laboratory Directed Research 
  and Development Program.--Paragraph (1) of section 3136(b) of the       
  National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 
  201; 110 Stat. 2831; 42 U.S.C. 7257b) is amended by striking out ``The  
  Secretary of Energy shall annually submit'' and inserting in lieu       
  thereof ``Not later than February 1 each year, the Secretary of Energy  
  shall submit''.                                                         
     (d) Assessment of Funding Level for Laboratory Directed Research and 
  Development.--The Secretary shall include in the report submitted under 
  such section 3136(b)(1) in 1998 an assessment of the funding required to
  carry out laboratory directed research and development, including a     
  recommendation for the percentage of the funds provided to              
  Government-owned, contractor-operated laboratories for national security
  activities that should be made available for such research and          
  development under section 3132(c) of the National Defense Authorization 
  Act for Fiscal Year 1991 (42 U.S.C. 7257a(c)).                          
     (e) Definition.--In this section, the term ``laboratory directed     
  research and development'' has the meaning given that term in section   
  3132(d) of the National Defense Authorization Act for Fiscal Year 1991  
  (42 U.S.C. 7257a(d)).                                                   
                    SEC. 3138. PILOT PROGRAM RELATING TO USE OF PROCEEDS OF       
          DISPOSAL OR UTILIZATION OF CERTAIN DEPARTMENT OF ENERGY ASSETS.         
     (a) Purpose.--The purpose of this section is to encourage the        
  Secretary of Energy to dispose of or otherwise utilize certain assets of
  the Department of Energy by making available to the Secretary the       
  proceeds of such disposal or utilization for purposes of defraying the  
  costs of such disposal or utilization.                                  
     (b) Use of Proceeds To Defray Costs.--(1) Notwithstanding section    
  3302 of title 31, United States Code, the Secretary may retain from the 
  proceeds of the sale, lease, or disposal of an asset under subsection   
  (c) an amount equal to the cost of the sale, lease, or disposal of the  
  asset. The Secretary shall utilize amounts retained under this paragraph
  to defray the cost of the sale, lease, or disposal.                     
     (2) For purposes of paragraph (1), the cost of a sale, lease, or     
  disposal shall include--                                                
     (A) the cost of administering the sale, lease, or disposal;           
       (B) the cost of recovering or preparing the asset concerned for the 
   sale, lease, or disposal; and                                           
     (C) any other cost associated with the sale, lease, or disposal.      
     (c) Covered Transactions.--Subsection (b) applies to the following   
  transactions:                                                           
       (1) The sale of heavy water at the Savannah River Site, South       
   Carolina, that is under the jurisdiction of the Defense Environmental   
   Management Program.                                                     
       (2) The sale of precious metals that are under the jurisdiction of  
   the Defense Environmental Management Program.                           
       (3) The lease of buildings and other facilities located at the      
   Hanford Reservation, Washington, that are under the jurisdiction of the 
   Defense Environmental Management Program.                               
       (4) The lease of buildings and other facilities located at the      
   Savannah River Site that are under the jurisdiction of the Defense      
   Environmental Management Program.                                       
       (5) The disposal of equipment and other personal property located at
   the Rocky Flats Defense Environmental Technology Site, Colorado, that is
   under the jurisdiction of the Defense Environmental Management Program. 
       (6) The disposal of materials at the National Electronics Recycling 
   Center, Oak Ridge, Tennessee, that are under the jurisdiction of the    
   Defense Environmental Management Program.                               
     (d) Applicability of Disposal Authority.--Nothing in this section    
  shall be construed to limit the application of sections 202 and 203(j)  
  of the Federal Property and Administrative Services Act of 1949 (40     
  U.S.C. 483 and 484(j)) to the disposal of equipment and other personal  
  property covered by this section.                                       
     (e) Report.--Not later than January 31, 1999, the Secretary shall    
  submit to the congressional defense committees a report on amounts      
  retained by the Secretary under subsection (b) during fiscal year 1998. 
                    SEC. 3139. MODIFICATION AND EXTENSION OF AUTHORITY RELATING TO
          APPOINTMENT OF CERTAIN SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL.
     (a) Repeal of Requirement for EPA Study.--Section 3161 of the        
  National Defense Authorization Act for Fiscal Year 1995 (Public Law 103 
  337; 108 Stat. 3095; 42 U.S.C. 7231 note) is amended--                  
     (1) by striking out subsection (c); and                               
     (2) by redesignating subsection (d) as subsection (c).                
     (b) Extension of Authority.--Paragraph (1) of subsection (c) of such 
  section, as so redesignated, is amended by striking out ``September 30, 
  1997'' and inserting in lieu thereof ``September 30, 1999''.            
                    SEC. 3140. LIMITATION ON USE OF FUNDS FOR SUBCRITICAL NUCLEAR 
          WEAPONS TESTS.                                                          
     (a) Limitation.--The Secretary of Energy may not conduct any         
  subcritical nuclear weapons tests using funds appropriated or otherwise 
  available to the Secretary for fiscal year 1998 until the Secretary     
  submits to the Committee on Armed Services of the Senate and the        
  Committee on National Security of the House of Representatives a        
  detailed report on the use of the funds available to the Secretary for  
  fiscal years 1996 and 1997 to conduct such tests.                       
     (b) Exception.--Subsection (a) shall not apply to the use of funds   
  covered by that subsection for subcritical nuclear weapons tests if the 
  Secretary--                                                             
       (1) determines that the use of such funds for such tests is urgently
   required to meet national security interests; and                       
       (2) notifies Congress of that determination before using such funds 
   for such tests.                                                         
                    SEC. 3141. LIMITATION ON USE OF CERTAIN FUNDS UNTIL FUTURE USE
          PLANS ARE SUBMITTED.                                                    
     (a) Limitation.--(1) Subject to paragraph (2), the Secretary of      
  Energy may not use more than 80 percent of the funds available to the   
  Secretary pursuant to the authorization of appropriations in section    
  3102(g) until the Secretary submits the plans described in subsection   
  (b).                                                                    
     (2) The limitation in paragraph (1) shall cease to be in effect if   
  the Secretary submits, by March 15, 1998, the report described in       
  subsection (c).                                                         
     (b) Plans.--The plans referred to in subsection (a)(1) are the draft 
  future use plan and the final future use plan required under section    
  3153(f) of the National Defense Authorization Act for Fiscal Year 1997  
  (Public Law 104 201; 110 Stat. 2840; 42 U.S.C. 7274k note).             
     (c) Report.--If the Secretary is unable to submit all of the plans   
  described in subsection (b) by the deadlines set forth in such section  
  3153(f), the Secretary shall submit to Congress a report containing, for
  each plan that will not be submitted by the applicable deadline--       
     (1) the status of the plan;                                           
       (2) the reasons why the plan cannot be submitted by the applicable  
   deadline; and                                                           
     (3) the date by which the plan will be submitted.                     
           Subtitle D--Other Matters                                               
                    SEC. 3151. PLAN FOR STEWARDSHIP, MANAGEMENT, AND CERTIFICATION
          OF WARHEADS IN THE NUCLEAR WEAPONS STOCKPILE.                           
     (a) Plan Requirement.--The Secretary of Energy shall develop and     
  annually update a plan for maintaining the nuclear weapons stockpile.   
  The plan shall cover, at a minimum, stockpile stewardship, stockpile    
  management, and program direction and shall be consistent with the      
  programmatic and technical requirements of the most recent annual       
  Nuclear Weapons Stockpile Memorandum.                                   
     (b) Plan Elements.--The plan and each update of the plan shall set   
  forth the following:                                                    
       (1) The number of warheads (including active and inactive warheads) 
   for each warhead type in the nuclear weapons stockpile.                 
       (2) The current age of each warhead type, and any plans for         
   stockpile lifetime extensions and modifications or replacement of each  
   warhead type.                                                           
       (3) The process by which the Secretary of Energy is assessing the   
   lifetime, and requirements for lifetime extension or replacement, of the
   nuclear and nonnuclear components of the warheads (including active and 
   inactive warheads) in the nuclear weapons stockpile.                    
       (4) The process used in recertifying the safety, security, and      
   reliability of each warhead type in the nuclear weapons stockpile.      
       (5) Any concerns which would affect the ability of the Secretary of 
   Energy to recertify the safety, security, or reliability of warheads in 
   the nuclear weapons stockpile (including active and inactive warheads). 
     (c) Annual Submission of Plan to Congress.--The Secretary of Energy  
  shall submit to Congress the plan developed under subsection (a) not    
  later than March 15, 1998, and shall submit an updated version of the   
  plan not later than March 15 of each year thereafter. The plan shall be 
  submitted in both classified and unclassified form.                     
          SEC. 3152. REPEAL OF OBSOLETE REPORTING REQUIREMENTS.                   
     (a) Annual Report on Activities of the Atomic Energy Commission.--(1)
  Section 251 of the Atomic Energy Act of 1954 (42 U.S.C. 2016) is        
  repealed.                                                               
     (2) The table of sections at the beginning of that Act is amended by 
  striking out the item relating to section 251.                          
     (b) Annual Report on Weapons Activities Budgets.--Section 3156 of the
  National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 
  201; 110 Stat. 2841; 42 U.S.C. 7271c) is repealed.                      
     (c) Annual Update of Master Plan for Nuclear Weapons                 
  Stockpile.--Section 3153 of the National Defense Authorization Act for  
  Fiscal Year 1996 (Public Law 104 106; 110 Stat. 624; 42 U.S.C. 2121     
  note) is repealed.                                                      
     (d) Annual Report on Weapons Activities Budgets.--Section 3159 of the
  National Defense Authorization Act for Fiscal Year 1996 (Public Law 104 
  106; 110 Stat. 626; 42 U.S.C. 7271b note) is repealed.                  
     (e) Annual Report on Stockpile Stewardship Program.--Section 3138 of 
  the National Defense Authorization Act for Fiscal Year 1994 (Public Law 
  103 160; 107 Stat. 1946; 42 U.S.C. 2121 note) is amended--              
     (1) by striking out subsections (d) and (e);                          
       (2) by redesignating subsections (f), (g), and (h) as subsections   
   (d), (e), and (f), respectively; and                                    
       (3) in subsection (e), as so redesignated, by striking out ``and the
   60-day period referred to in subsection (e)(2)(A)(ii)''.                
     (f) Annual Report on Development of Tritium Production               
  Capacity.--Section 3134 of the National Defense Authorization Act for   
  Fiscal Year 1993 (Public Law 102 484; 106 Stat. 2639) is repealed.      
     (g) Annual Report on Research Relating to Defense Waste Cleanup      
  Technology Program.--Section 3141 of the National Defense Authorization 
  Act for Fiscal Years 1990 and 1991 (Public Law 101 189; 103 Stat. 1679; 
  42 U.S.C. 7274a) is amended--                                           
     (1) by striking out subsection (c); and                               
     (2) by redesignating subsection (d) as subsection (c).                
     (h) Quarterly Report on Major DoE National Security                  
  Programs.--Section 3143 of the National Defense Authorization Act for   
  Fiscal Years 1990 and 1991 (Public Law 101 189; 103 Stat. 1681; 42      
  U.S.C. 7271a) is repealed.                                              
     (i) Annual Report on Nuclear Test Ban Readiness Program.--Section    
  1436 of the National Defense Authorization Act, Fiscal Year 1989 (Public
  Law 100 456; 102 Stat. 2075; 42 U.S.C. 2121 note) is amended by striking
  out subsection (e).                                                     
                    SEC. 3153. STUDY AND FUNDING RELATING TO IMPLEMENTATION OF    
          WORKFORCE RESTRUCTURING PLANS.                                          
     (a) Study Requirement.--The Secretary of Energy shall conduct a study
  on the effects of workforce restructuring plans for defense nuclear     
  facilities developed pursuant to section 3161 of the National Defense   
  Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h).               
     (b) Matters Covered by Study.-- The study shall cover the four-year  
  period preceding the date of the enactment of this Act and shall include
  the following:                                                          
       (1) An analysis of the number of jobs created by any employee       
   retraining, education, and reemployment assistance and any community    
   impact assistance provided in each workforce restructuring plan         
   developed pursuant to section 3161 of the National Defense Authorization
   Act for Fiscal Year 1993.                                               
       (2) An analysis of other benefits provided pursuant to such plans,  
   including any assistance provided to community reuse organizations.     
       (3) A description of the funds expended, and the funds obligated but
   not expended, pursuant to such plans as of the date of the report.      
       (4) A description of the criteria used since October 23, 1992, in   
   providing assistance pursuant to such plans.                            
     (5) A comparison of any similar benefits provided--                   
       (A) pursuant to such a plan to employees whose employment at the    
   defense nuclear facility covered by the plan is terminated; and         
       (B) to employees whose employment at a facility where more than 50  
   percent of the revenues are derived from contracts with the Department  
   of Defense has been terminated as a result of cancellation, termination,
   or completion of contracts with the Department of Defense and the       
   employees whose employment is terminated constitute more than 15 percent
   of the employees at that facility.                                      
     (c) Conduct of Study.--(1) The study shall be conducted through a    
  contract with an independent private auditing firm.                     
     (2) The Secretary of Energy may not enter into any contract for the  
  conduct of the study until the Secretary submits a notification of the  
  proposed contract award to the congressional defense committees.        
     (3) The Secretary of Energy and the Secretary of Defense shall each  
  ensure that any firm conducting the study is provided access to all     
  documents in the possession of the Department of Energy or the          
  Department of Defense, as the case may be, that are relevant to the     
  study, including documents in the possession of the Inspector General of
  the Department of Energy or the Inspector General of the Department of  
  Defense.                                                                
     (d) Report on Study.--The Secretary of Energy shall submit a report  
  to Congress on the results of the study not later than March 31, 1998.  
     (e) Limitation on Use of Funds for Local Impact Assistance.--(1) None
  of the funds authorized to be appropriated to the Department of Energy  
  pursuant to section 3103(6) may be used for local impact assistance     
  pursuant to a plan under section 3161(c)(6) of the National Defense     
  Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h(c)(6)) until--  
       (A) with respect to assistance referred to in section 3161(c)(6)(A) 
   of such Act, the Secretary of Energy coordinates with, provides a copy  
   of the plan to, and obtains the approval of the Secretary of Labor; and 
       (B) with respect to assistance referred to in section 3161(c)(6)(C) 
   of such Act, the Secretary of Energy coordinates with, provides a copy  
   of the plan to, and obtains the approval of the Secretary of Commerce.  
     (2) For purposes of paragraph (1), if the Secretary of Labor or the  
  Secretary of Commerce does not disapprove a plan within 60 days after   
  receiving a copy of the plan, the plan is deemed to be approved.        
     (f) Semiannual Report to Congress of Local Impact Assistance.--The   
  Secretary of Energy shall submit to Congress every six months a report  
  setting forth a description of, and the amount or value of, all local   
  impact assistance provided during the preceding six months under section
  3161(c)(6) of the National Defense Authorization Act of 1993 (42 U.S.C. 
  7274h(c)(6)).                                                           
     (g) Effect on USEC Privatization Act.--Nothing in this section shall 
  be construed as diminishing or affecting the obligations of the         
  Secretary of Energy under section 3110(a)(5) of the USEC Privatization  
  Act (Public Law 104 134; 110 Stat. 1321 341; 42 U.S.C. 2297h 8(a)(5)).  
     (h) Definition.--In this section, the term ``defense nuclear         
  facility'' has the meaning provided the term ``Department of Energy     
  defense nuclear facility'' in section 3163 of the National Defense      
  Authorization Act for Fiscal Year 1993 ( Public Law 102 484; 42 U.S.C.  
  7274j).                                                                 
                    SEC. 3154. REPORT AND PLAN FOR EXTERNAL OVERSIGHT OF NATIONAL 
          LABORATORIES.                                                           
     (a) Report.--Not later than July 1, 1999, the Secretary of Energy    
  shall submit to Congress a report on the external oversight of the      
  national laboratories.                                                  
    (b)  Matters Covered.--The report shall contain the following:        
       (1) A description of the external oversight practices at the        
   national laboratories and an analysis of the effectiveness of such      
   practices, including the effect of such practices on the productivity of
   the laboratories and the research conducted by the laboratories.        
       (2) Recommendations regarding the continuation, consolidation, or   
   discontinuation of the external oversight practices described in        
   paragraph (1), and the rationale for the recommendations.               
       (3) Recommendations for any new external oversight practices that   
   should be implemented, and the rationale for the recommendations.       
     (4) A plan for carrying out the recommendations.                      
     (c) National Laboratories Covered.--For purposes of this section, the
  national laboratories are--                                             
     (1) the Lawrence Livermore National Laboratory, Livermore, California;
     (2) the Los Alamos National Laboratory, Los Alamos, New Mexico; and   
     (3) the Sandia National Laboratories, Albuquerque, New Mexico.        
          SEC. 3155. UNIVERSITY-BASED RESEARCH COLLABORATION PROGRAM.             
    (a)  Findings.--Congress makes the following findings:                
       (1) The maintenance of scientific and engineering competence in the 
   United States is vital to long-term national security and the defense   
   and national security missions of the Department of Energy.             
       (2) Engaging the universities and colleges of the Nation in research
   on long-range problems of vital national security interest will be      
   critical to solving the technology challenges faced within the defense  
   and national security programs of the Department of Energy in the next  
   century.                                                                
       (3) Enhancing collaboration among the national laboratories,        
   universities and colleges, and industry will contribute significantly to
   the performance of these Department of Energy missions.                 
     (b) Program.--The Secretary of Energy shall establish a university   
  program at a location that can develop the most effective collaboration 
  among national laboratories, universities and colleges, and industry in 
  support of scientific and engineering advancement in key Department of  
  Energy defense and national security program areas.                     
     (c) Funding.--Of the funds authorized to be appropriated in this     
  title to the Department of Energy for fiscal year 1998, the Secretary   
  shall make $5,000,000 available for the establishment and operation of  
  the program under subsection (b).                                       
          SEC. 3156. STOCKPILE STEWARDSHIP PROGRAM.                               
    (a)  Findings.--Congress makes the following findings:                
       (1) Eliminating the threat posed by nuclear weapons to the United   
   States is an important national security goal.                          
       (2) As long as nuclear threats remain, the nuclear deterrent of the 
   United States must be effective and reliable.                           
       (3) A safe, secure, effective, and reliable United States nuclear   
   stockpile is central to the current nuclear deterrence strategy of the  
   United States.                                                          
       (4) The Secretary of Energy has undertaken a stockpile stewardship  
   and management program to ensure the safety, security, effectiveness,   
   and reliability of the nuclear weapons stockpile of the United States,  
   consistent with all United States treaty requirements and the           
   requirements of the nuclear deterrence strategy of the United States.   
       (5) It is the policy of the current administration that new nuclear 
   warhead designs are not required to effectively implement the nuclear   
   deterrence strategy of the United States.                               
    (b)  Policy.--It is the policy of the United States that--            
       (1) activities of the stockpile stewardship program shall be        
   directed toward ensuring that the United States possesses a safe,       
   secure, effective, and reliable nuclear stockpile, consistent with the  
   national security requirements of the United States; and                
       (2) stockpile stewardship activities of the United States shall be  
   conducted in conformity with the terms of the Treaty on the             
   Non-Proliferation of Nuclear Weapons and the Comprehensive Test Ban     
   Treaty signed by the President on September 24, 1996, when and if that  
   treaty enters into force.                                               
                    SEC. 3157. REPORTS ON ADVANCED SUPERCOMPUTER SALES TO CERTAIN 
          FOREIGN NATIONS.                                                        
     (a) Reports.--The Secretary of Energy shall require that any company 
  that is a participant in the Accelerated Strategic Computing Initiative 
  (ASCI) program of the Department of Energy report to the Secretary and  
  to the Secretary of Defense each sale by that company to a country      
  designated as a Tier III country of a computer capable of operating at a
  speed in excess of 2,000 millions theoretical operations per second     
  (MTOPS). The report shall include a description of the following with   
  respect to each such sale:                                              
     (1) The anticipated end-use of the computer sold.                     
     (2) The software included with the computer.                          
     (3) Any arrangement under the terms of the sale regarding--           
     (A) upgrading the computer;                                           
     (B) servicing the computer; or                                        
     (C) furnishing spare parts for the computer.                          
     (b) Covered Countries.--For purposes of this section, the countries  
  designated as Tier III countries are the countries listed as ``computer 
  tier 3'' eligible countries in part 740.7 of title 15 of the Code of    
  Federal Regulations, as in effect on June 10, 1997 (or any successor    
  list).                                                                  
     (c) Quarterly Submission of Reports.--The Secretary of Energy shall  
  require that reports under subsection (a) be submitted quarterly.       
     (d) Annual Report.--The Secretary of Energy shall submit to Congress 
  an annual report containing all information received under subsection   
  (a) during the preceding year. The first annual report shall be         
  submitted not later than July 1, 1998.                                  
                    SEC. 3158. TRANSFERS OF REAL PROPERTY AT CERTAIN DEPARTMENT OF
          ENERGY FACILITIES.                                                      
     (a) Transfer Regulations.--(1) The Secretary of Energy shall         
  prescribe regulations for the transfer by sale or lease of real property
  at Department of Energy defense nuclear facilities for the purpose of   
  permitting the economic development of the property.                    
     (2) The Secretary of Energy may not transfer real property under the 
  regulations prescribed under paragraph (1) until--                      
       (A) the Secretary submits a notification of the proposed transfer to
   the congressional defense committees; and                               
       (B) a period of 30 days has elapsed following the date on which the 
   notification is submitted.                                              
     (b) Indemnification.--(1) Except as provided in paragraph (3) and    
  subject to subsection (c), in the sale or lease of real property        
  pursuant to the regulations prescribed under subsection (a), the        
  Secretary of Energy may hold harmless and indemnify a person or entity  
  described in paragraph (2) against any claim for injury to person or    
  property that results from the release or threatened release of a       
  hazardous substance or pollutant or contaminant as a result of          
  Department of Energy activities at the defense nuclear facility on which
  the real property is located. Before entering into any agreement for    
  such a sale or lease, the Secretary shall notify the person or entity   
  that the Secretary has authority to provide indemnification to the      
  person or entity under this subsection. The Secretary shall include in  
  any agreement for such a sale or lease a provision stating whether      
  indemnification is or is not provided.                                  
    (2) Paragraph (1) applies to the following persons and entities:      
       (A) Any State that acquires ownership or control of real property of
   a defense nuclear facility.                                             
       (B) Any political subdivision of a State that acquires such         
   ownership or control.                                                   
       (C) Any other person or entity that acquires such ownership or      
   control.                                                                
     (3) To the extent the persons and entities described in paragraph (2)
  contributed to any such release or threatened release, paragraph (1)    
  shall not apply.                                                        
     (c) Conditions.--(1) No indemnification on a claim for injury may be 
  provided under this section unless the person or entity making a request
  for the indemnification--                                               
       (A) notifies the Secretary of Energy in writing within two years    
   after such claim accrues;                                               
       (B) furnishes to the Secretary copies of pertinent papers received  
   by the person or entity;                                                
     (C) furnishes evidence or proof of the claim;                         
       (D) provides, upon request by the Secretary, access to the records  
   and personnel of the person or entity for purposes of defending or      
   settling the claim; and                                                 
       (E) begins action within six months after the date of mailing, by   
   certified or registered mail, of notice of final denial of the claim by 
   the Secretary.                                                          
     (2) For purposes of paragraph (1)(A), the date on which a claim      
  accrues is the date on which the person asserting the claim knew (or    
  reasonably should have known) that the injury to person or property     
  referred to in subsection (b)(1) was caused or contributed to by the    
  release or threatened release of a hazardous substance, pollutant, or   
  contaminant as a result of Department of Energy activities at the       
  defense nuclear facility on which the real property is located.         
     (d) Authority of Secretary of Energy.--(1) In any case in which the  
  Secretary of Energy determines that the Secretary may be required to    
  indemnify a person or entity under this section for any claim for injury
  to person or property referred to in subsection (b)(1), the Secretary   
  may settle or defend the claim on behalf of that person or entity.      
     (2) In any case described in paragraph (1), if the person or entity  
  that the Secretary may be required to indemnify does not allow the      
  Secretary to settle or defend the claim, the person or entity may not be
  indemnified with respect to that claim under this section.              
     (e) Relationship to Other Law.--Nothing in this section shall be     
  construed as affecting or modifying in any way section 120(h) of the    
  Comprehensive Environmental Response, Compensation, and Liability Act of
  1980 (42 U.S.C. 9620(h)).                                               
    (f)  Definitions.--In this section:                                   
       (1) The term ``defense nuclear facility'' has the meaning provided  
   by the term ``Department of Energy defense nuclear facility'' in section
   318 of the Atomic Energy Act of 1954 (42 U.S.C. 2286g).                 
       (2) The terms ``hazardous substance'', ``release'', and ``pollutant 
   or contaminant'' have the meanings provided by section 101 of the       
   Comprehensive Environmental Response, Compensation, and Liability Act of
   1980 (42 U.S.C. 9601).                                                  
                    SEC. 3159. REQUIREMENT TO DELEGATE CERTAIN AUTHORITIES TO SITE
          MANAGER OF HANFORD RESERVATION.                                         
     Section 3173(b) of the National Defense Authorization Act for Fiscal 
  Year 1997 (Public Law 104 201; 110 Stat. 2848; 42 U.S.C. 7274k) is      
  amended--                                                               
     (1) in paragraph (1)--                                                
       (A) by striking out ``In addition'' and inserting in lieu thereof   
   ``Except as provided in paragraph (5), in addition''; and               
       (B) by striking out ``Act,'' and inserting in lieu thereof          
   ``subtitle,''; and                                                      
     (2) by adding at the end the following new paragraph:                 
     ``(5) In the case of the Hanford Reservation, Richland, Washington,  
  the Secretary shall delegate to the Site Manager the authority described
  in paragraph (1) for fiscal year 1998. The Secretary may withdraw the   
  delegated authority if the Secretary--                                  
       ``(A) determines that the Site Manager of the Hanford Reservation   
   has misused or misapplied that authority; and                           
       ``(B) the Secretary submits to Congress a notification of the       
   Secretary's intent to withdraw the authority.''.                        
          SEC. 3160. SUBMITTAL OF BIENNIAL WASTE MANAGEMENT REPORTS.              
     Section 3153(b)(2)(B) of the National Defense Authorization Act for  
  Fiscal Year 1994 (42 U.S.C. 7274k(b)(2)(B)) is amended by striking out  
  ``odd-numbered year after 1995'' and inserting in lieu thereof          
  ``odd-numbered year after 1997''.                                       
          SEC. 3161. DEPARTMENT OF ENERGY SECURITY MANAGEMENT BOARD.              
     (a) Establishment.--(1) The Secretary of Energy shall establish a    
  board to be known as the ``Department of Energy Security Management     
  Board'' (in this section referred to as the ``Board'').                 
     (2) The Board shall advise the Secretary on policy matters,          
  operational concerns, strategic planning, personnel, budget,            
  procurement, and development of priorities relating to the security     
  functions of the Department of Energy.                                  
    (b)  Members.--The Board shall be comprised of--                      
     (1) the Secretary of Energy, who shall serve as chairman;             
       (2) the Director of the Office of Nonproliferation and National     
   Security of the Department of Energy;                                   
     (3) the Assistant Secretary of Energy for Environmental Management;   
     (4) the Assistant Secretary of Energy for Defense Programs;           
       (5) the Assistant Secretary of Energy for Environment, Safety, and  
   Health;                                                                 
     (6) the Associate Deputy Secretary of Energy for Field Management;    
       (7) three individuals selected by the Secretary of Defense and      
   appointed by the Secretary of Energy;                                   
       (8) an individual selected by the Director of the Federal Bureau of 
   Investigation and appointed by the Secretary of Energy; and             
       (9) an individual selected by the Director of Central Intelligence  
   and appointed by the Secretary of Energy.                               
     (c) Appointments.--(1) The Secretary of Defense, the Director of the 
  Federal Bureau of Investigation, and the Director of Central            
  Intelligence shall consult with the Secretary of Energy in selecting    
  individuals for appointment under paragraphs (7), (8), and (9),         
  respectively, of subsection (b).                                        
     (2) The Secretary of Energy may not appoint as a member of the Board 
  under paragraph (7), (8), or (9) of subsection (b) an officer or        
  employee of the Department of Energy, an employee of a contractor or    
  subcontractor of the Department, or an individual under contract with   
  the Department.                                                         
     (3) The Secretary of Energy shall appoint members of the Board under 
  paragraphs (7), (8), and (9) of subsection (b) not later than January   
  15, 1998.                                                               
     (d) Vacancies.--Any vacancy in the Board shall be filled in the same 
  manner as the original appointment.                                     
     (e) Personnel Matters.--(1)(A) Each member of the Board who is not an
  officer or employee of the Federal Government shall be compensated at a 
  rate equal to the daily equivalent of the annual rate of basic pay      
  prescribed for level V of the Executive Schedule under section 5316 of  
  title 5, United States Code, for each day (including travel time) during
  which such member is engaged in the performance of the duties of the    
  Board.                                                                  
     (B) All members of the Board who are officers or employees of the    
  United States shall serve without compensation in addition to that      
  received for their services as officers or employees of the United      
  States.                                                                 
     (2) The members of the Board shall be allowed travel expenses,       
  including per diem in lieu of subsistence, at rates authorized for      
  employees of agencies under subchapter I of chapter 57 of title 5,      
  United States Code, while away from their homes or regular places of    
  business in the performance of services for the Board.                  
     (f) Applicability of FACA.--The provisions of the Federal Advisory   
  Committee Act (5 U.S.C. App.) shall not apply to the activities of the  
  Board under this section.                                               
    (g)  Termination.--The Board shall terminate on October 31, 2000.     
     (h) Security Functions Defined.--In this section, the term ``security
  functions'' means all Department of Energy activities related to the    
  safeguarding and security of nuclear weapons and materials, protection  
  of classified and unclassified controlled nuclear information, and      
  physical and personnel security.                                        
                    SEC. 3162. SUBMITTAL OF ANNUAL REPORT ON STATUS OF SECURITY   
          FUNCTIONS AT NUCLEAR WEAPONS FACILITIES.                                
     (a) In General.--Not later than September 1 each year, the Secretary 
  of Energy shall submit to the congressional defense committees the      
  report entitled ``Annual Report to the President on the Status of       
  Safeguards and Security of Domestic Nuclear Weapons Facilities'', or any
  successor report to such report.                                        
     (b) Requirement Relating to Reports Through Fiscal Year 2000.--The   
  Secretary shall include with each report submitted under subsection (a) 
  in fiscal years 1998 through 2000 any comments on such report by the    
  members of the Department of Energy Security Management Board           
  established under section 3161 that such members consider appropriate.  
                    SEC. 3163. MODIFICATION OF AUTHORITY ON COMMISSION ON         
          MAINTAINING UNITED STATES NUCLEAR WEAPONS EXPERTISE.                    
     (a) Commencement of Activities.--Subsection (b)(1) of section 3162 of
  the National Defense Authorization Act for Fiscal Year 1997 (Public Law 
  104 201; 110 Stat. 2844; 42 U.S.C. 2121 note) is amended, effective     
  January 1, 1998--                                                       
       (1) in subparagraph (C), by adding at the end the following new     
   sentence: ``The chairman may be designated once five members of the     
   Commission have been appointed under subparagraph (A).''; and           
     (2) by adding at the end the following:                               
     ``(E) The Commission may commence its activities under this section  
  upon the designation of the chairman of the Commission under            
  subparagraph (C).''.                                                    
     (b) Deadline for Report.--Subsection (d) of that section is amended  
  by striking out ``March 15, 1998,'' and inserting in lieu thereof       
  ``March 15, 1999,''.                                                    
          SEC. 3164. LAND TRANSFER, BANDELIER NATIONAL MONUMENT.                  
     (a) Transfer of Administrative Jurisdiction.--The Secretary of Energy
  shall transfer to the Secretary of the Interior administrative          
  jurisdiction over a parcel of real property consisting of approximately 
  4.47 acres as depicted on the map entitled ``Boundary Map, Bandelier    
  National Monument'', No. 315/80,051, dated March 1995.                  
     (b) Boundary Modification.--The boundary of the Bandelier National   
  Monument established by Proclamation No. 1322 (16 U.S.C. 431 note) is   
  modified to include the real property transferred under subsection (a). 
     (c) Public Availability of Map.--The map described in subsection (a) 
  shall be on file and available for public inspection in the Lands Office
  at the Southwest System Support Office of the National Park Service,    
  Santa Fe, New Mexico, and in the office of the Superintendent of        
  Bandelier National Monument.                                            
     (d) Administration.--The real property and interests in real property
  transferred under subsection (a) shall be--                             
     (1) administered as part of Bandelier National Monument; and          
       (2) subject to all laws applicable to the Bandelier National        
   Monument and all laws generally applicable to units of the National Park
   System.                                                                 
                    SEC. 3165. FINAL SETTLEMENT OF DEPARTMENT OF ENERGY COMMUNITY 
          ASSISTANCE OBLIGATIONS WITH RESPECT TO LOS ALAMOS NATIONAL LABORATORY,  
          NEW MEXICO.                                                             
    (a)  In General.--The Secretary of Energy shall--                     
       (1) convey, without consideration, to the Incorporated County of Los
   Alamos, New Mexico (in this section referred to as the ``County''), or  
   to the designee of the County, fee title to the parcels of land that are
   allocated for conveyance to the County in the agreement under subsection
   (e); and                                                                
       (2) transfer to the Secretary of the Interior, in trust for the     
   Pueblo of San Ildefonso (in this section referred to as the ``Pueblo''),
   administrative jurisdiction over the parcels that are allocated for     
   transfer to the Secretary of the Interior in such agreement.            
     (b) Preliminary Identification of Parcels of Land for Conveyance or  
  Transfer.--(1) Not later than 90 days after the date of enactment of    
  this Act, the Secretary of Energy shall submit to the congressional     
  defense committees a report identifying the parcels of land under the   
  jurisdiction of the Secretary at the Los Alamos National Laboratory that
  are suitable for conveyance or transfer under this section.             
     (2) A parcel is suitable for conveyance or transfer for purposes of  
  paragraph (1) if the parcel--                                           
       (A) is not required to meet the national security mission of the    
   Department of Energy or will not be required for that purpose before the
   end of the 10-year period beginning on the date of enactment of this    
   Act;                                                                    
       (B) is likely to be conveyable or transferable, as the case may be, 
   under this section not later than the end of such period; and           
     (C) is suitable for use for a purpose specified in subsection (h).    
     (c) Review of Title.--(1) Not later than one year after the date of  
  enactment of this Act, the Secretary shall submit to the congressional  
  defense committees a report setting forth the results of a title search 
  on each parcel of land identified as suitable for conveyance or transfer
  under subsection (b), including an analysis of any claims against or    
  other impairments to the fee title to each such parcel.                 
     (2) In the period beginning on the date of the completion of the     
  title search with respect to a parcel under paragraph (1) and ending on 
  the date of the submittal of the report under that paragraph, the       
  Secretary shall take appropriate actions to resolve the claims against  
  or other impairments, if any, to fee title that are identified with     
  respect to the parcel in the title search.                              
     (d) Environmental Restoration.--(1) Not later than 21 months after   
  the date of enactment of this Act, the Secretary shall--                
       (A) identify the environmental restoration or remediation, if any,  
   that is required with respect to each parcel of land identified under   
   subsection (b) to which the United States has fee title;                
       (B) carry out any review of the environmental impact of the         
   conveyance or transfer of each such parcel that is required under the   
   provisions of the National Environmental Policy Act of 1969 (42 U.S.C.  
   4321 et seq.); and                                                      
       (C) submit to Congress a report setting forth the results of the    
   activities under subparagraphs (A) and (B).                             
     (2) If the Secretary determines under paragraph (1) that a parcel    
  described in paragraph (1)(A) requires environmental restoration or     
  remediation, the Secretary shall, to the maximum extent practicable,    
  complete the environmental restoration or remediation of the parcel not 
  later than 10 years after the date of enactment of this Act.            
     (e) Agreement for Allocation of Parcels.--As soon as practicable     
  after completing the review of titles to parcels of land under          
  subsection (c), the Secretary of the Interior, on behalf of the Pueblo  
  and for the County, shall submit to the Secretary of Energy an agreement
  between the Secretary of the Interior and the County that allocates     
  between the Secretary of the Interior and the County the parcels to     
  which the United States has fee title.                                  
     (f) Plan for Conveyance and Transfer.--(1) Not later than 90 days    
  after the date of the submittal to the Secretary of Energy of the       
  agreement under subsection (e), the Secretary shall submit to the       
  congressional defense committees a plan for conveying or transferring   
  parcels of land under this section in accordance with the allocation    
  specified in the agreement.                                             
     (2) The plan under paragraph (1) shall provide for the completion of 
  the conveyance or transfer of parcels under this section not later than 
  9 months after the date of the submittal of the plan under that         
  paragraph.                                                              
     (g) Conveyance or Transfer.--(1) Subject to paragraphs (2) and (3),  
  the Secretary shall convey or transfer parcels of land in accordance    
  with the allocation specified in the agreement submitted to the         
  Secretary under subsection (e).                                         
     (2) In the case of a parcel allocated under the agreement that is not
  available for conveyance or transfer in accordance with the requirement 
  in subsection (f)(2) by reason of its requirement to meet the national  
  security mission of the Department, the Secretary shall convey or       
  transfer the parcel, as the                                             
          case may be, when the parcel is no longer required for that purpose.    
     (3)(A) In the case of a parcel allocated under the agreement that is 
  not available for conveyance or transfer in accordance with such        
  requirement by reason of requirements for environmental restoration or  
  remediation, the Secretary shall convey or transfer the parcel, as the  
  case may be, upon the completion of the environmental restoration or    
  remediation that is required with respect to the parcel.                
     (B) If the Secretary determines that environmental restoration or    
  remediation cannot reasonably be expected to be completed with respect  
  to a parcel by the end of the 10-year period beginning on the date of   
  enactment of this Act, the Secretary shall not convey or transfer the   
  parcel under this section.                                              
     (h) Use of Conveyed or Transferred Land.--The parcels of land        
  conveyed or transferred under this section shall be used for historic,  
  cultural, or environmental preservation purposes, economic              
  diversification purposes, or community self-sufficiency purposes.       
     (i) Treatment of Conveyances and Transfers.--(1) The purpose of the  
  conveyances and transfers under this section is to fulfill the          
  obligations of the United States with respect to Los Alamos National    
  Laboratory, New Mexico, under sections 91 and 94 of the Atomic Energy   
  Community Act of 1955 (42 U.S.C. 2391, 2394).                           
     (2) Upon the completion of the conveyance or transfer of the parcels 
  of land available for conveyance or transfer under this section, the    
  Secretary shall make no further payments with respect to Los Alamos     
  National Laboratory under section 91 or section 94 of the Atomic Energy 
  Community Act of 1955.                                                  
                    SEC. 3166. SENSE OF CONGRESS REGARDING THE Y 12 PLANT IN OAK  
          RIDGE, TENNESSEE.                                                       
     It is the sense of Congress that the Y 12 Plant in Oak Ridge,        
  Tennessee, should be used as a national prototype center and that other 
  executive agencies should utilize this center, where appropriate, to    
  maximize their efficiency and cost effectiveness.                       
                    SEC. 3167. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS
          ALAMOS NATIONAL LABORATORY, NEW MEXICO.                                 
     (a) Availability of Funds.--Of the funds authorized to be            
  appropriated or otherwise made available to the Department of Energy by 
  this title, $5,000,000 shall be available for payment by the Secretary  
  of Energy to a nonprofit or not-for-profit educational foundation       
  chartered to enhance educational activities in the public schools in the
  vicinity of Los Alamos National Laboratory, New Mexico (in this section 
  referred to as the ``Foundation'').                                     
     (b) Use of Funds.--(1) The Foundation shall utilize funds provided   
  under subsection (a) the basis of, or as a contribution to, an endowment
  fund for the Foundation.                                                
     (2) The Foundation shall use the income generated from investments in
  the endowment fund that are attributable to the payment made under      
  subsection (a) to fund programs to support the educational needs of     
  children in public schools in the vicinity of Los Alamos National       
  Laboratory.                                                             
     (c) Report.--Not later than March 1, 1998, the Secretary shall submit
  to the congressional defense committees a report setting forth the      
  following:                                                              
       (1) The amount of, and a schedule for, payments to the Foundation by
   the Secretary that are in addition to the payment provided under        
   subsection (a).                                                         
       (2) A plan to ensure that the Secretary makes no other payments to  
   support the educational activities referred to in subsection (b)(2)     
   after September 30, 2002.                                               
          SEC. 3168. IMPROVEMENTS TO GREENVILLE ROAD, LIVERMORE, CALIFORNIA.      
     From amounts authorized to be appropriated or otherwise made         
  available to the Department of Energy by this title, funds shall be     
  available for improvements to Greenville Road, Livermore, California, as
  follows:                                                                
     (1) $3,500,000 in fiscal year 1998.                                   
     (2) $3,300,000 in fiscal year 1999.                                   
          SEC. 3169. REPORT ON ALTERNATIVE SYSTEM FOR AVAILABILITY OF FUNDS.      
     (a) Report.--Not later than October 1, 1998, the Secretary of Energy 
  shall submit to Congress a report assessing how the Department of Energy
  could carry out a transition from a no-year funding system to a         
  limited-period funding system.                                          
    (b)  Matters Covered.--The report shall cover the following matters:  
       (1) A conceptual proposal on how the no-year funding system could be
   phased out.                                                             
       (2) An estimate of the cost of making the transition to a           
   limited-period funding system.                                          
       (3) A description of the programmatic effects that could occur if   
   the no-year funding system is eliminated.                               
       (4) A delineation of activities for which the no-year funding system
   should be retained.                                                     
    (c)  Definitions.--In this section:                                   
       (1) The term ``no-year funding system'' means a funding system in   
   which funds are available to the Department of Energy until expended.   
       (2) The term ``limited-period funding system'' means a funding      
   system in which funds are available to the Department of Energy for a   
   limited period of time.                                                 
                    SEC. 3170. REPORT ON REMEDIATION UNDER THE FORMERLY UTILIZED  
          SITES REMEDIAL ACTION PROGRAM.                                          
     Not later than March 1, 1998, the Secretary of Energy shall submit to
  Congress a report containing information responding to the following    
  questions regarding the Formerly Utilized Sites Remedial Action Program:
       (1) How many Formerly Utilized Sites remain to be remediated, what  
   portions of these remaining sites have completed remediation (including 
   any offsite contamination), what portions of the sites remain to be     
   remediated (including any offsite contamination), what types of         
   contaminants are present at each site, and what are the projected       
   timeframes for completing remediation at each site?                     
       (2) What is the cost of the remaining response actions necessary to 
   address actual or threatened releases of hazardous substances at each   
   Formerly Utilized Site, including any contamination that is present     
   beyond the perimeter of the facilities?                                 
       (3) For each site, how much will it cost to remediate the           
   radioactive contamination, and how much will it cost to remediate the   
   non-radioactive contamination?                                          
       (4) How many sites potentially involve private parties that could be
   held responsible for remediation costs, including remediation costs     
   related to offsite contamination?                                       
       (5) What type of agreements under the Formerly Utilized Sites       
   Remedial Action Program have been entered into with private parties to  
   resolve the level of liability for remediation costs at these           
   facilities, and to what extent have these agreements been tied to a     
   distinction between radioactive and non-radioactive contamination       
   present at these sites?                                                 
       (6) What efforts have been undertaken by the Department to ensure   
   that the settlement agreements entered into with private parties to     
   resolve liability for remediation costs at these facilities have been   
   consistent on a program wide basis?                                     
           TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD                    
      Sec. 3201. Authorization.                                               
      Sec. 3202. Report on external regulation of defense nuclear facilities. 
          SEC. 3201. AUTHORIZATION.                                               
     There are authorized to be appropriated for fiscal year 1998,        
  $17,500,000 for the operation of the Defense Nuclear Facilities Safety  
  Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 
  et seq.).                                                               
          SEC. 3202. REPORT ON EXTERNAL REGULATION OF DEFENSE NUCLEAR FACILITIES. 
     (a) Reporting Requirement.--The Defense Nuclear Facilities Safety    
  Board (in this section referred to as the ``Board'') shall prepare a    
  report and make recommendations on its role in the Department of        
  Energy's decision to establish external regulation of defense nuclear   
  facilities. The report shall include the following:                     
       (1) An assessment of the value of and the need for the Board to     
   continue to perform the functions specified under chapter 21 of the     
   Atomic Energy Act of 1954 (42 U.S.C. 2286 et seq.).                     
       (2) An assessment of the relationship between the functions of the  
   Board and a proposal by the Department of Energy to place Department of 
   Energy defense nuclear facilities under the jurisdiction of external    
   regulatory agencies.                                                    
       (3) An assessment of the functions of the Board and whether there is
   a need to modify or amend such functions.                               
       (4) An assessment of the relative advantages and disadvantages to   
   the Department and the public of continuing the functions of the Board  
   with respect to Department of Energy defense nuclear facilities and     
   replacing the activities of the Board with external regulation of such  
   facilities.                                                             
       (5) A list of all existing or planned Department of Energy defense  
   nuclear facilities that are similar to facilities under the regulatory  
   jurisdiction of the Nuclear Regulatory Commission.                      
       (6) A list of all Department of Energy defense nuclear facilities   
   that are in compliance with all applicable Department of Energy orders, 
   regulations, and requirements relating to the design, construction,     
   operation, and decommissioning of defense nuclear facilities.           
       (7) A list of all Department of Energy defense nuclear facilities   
   that have implemented, pursuant to an implementation plan,              
   recommendations made by the Board and accepted by the Secretary of      
   Energy.                                                                 
       (8) A list of Department of Energy defense nuclear facilities that  
   have a function related to Department weapons activities.               
       (9)(A) A list of each existing defense nuclear facility that the    
   Board determines--                                                      
       (i) should continue to stay within the jurisdiction of the Board for
   a period of time or indefinitely; and                                   
       (ii) should come under the jurisdiction of an outside regulatory    
   authority.                                                              
     (B) An explanation of the determinations made under subparagraph (A). 
       (10) For any existing facilities that should, in the opinion of the 
   Board, come under the jurisdiction of an outside regulatory authority,  
   the date when this move would occur and the period of time necessary for
   the transition.                                                         
       (11) A list of any proposed Department of Energy defense nuclear    
   facilities that should come under the Board's jurisdiction.             
       (12) An assessment of regulatory and other issues associated with   
   the design, construction, operation, and decommissioning of facilities  
   that are not owned by the Department of Energy but which would provide  
   services to the Department of Energy.                                   
       (13) An assessment of the role of the Board, if any, in             
   privatization projects undertaken by the Department.                    
       (14) An assessment of the role of the Board, if any, in any tritium 
   production facilities.                                                  
       (15) An assessment of the comparative advantages and disadvantages  
   to the Department of Energy in the event some or all Department of      
   Energy defense nuclear facilities were no longer included in the        
   functions of the Board and were regulated by the Nuclear Regulatory     
   Commission.                                                             
       (16) A comparison of the cost, as identified by the Nuclear         
   Regulatory Commission, that would be incurred at a gaseous diffusion    
   plant to comply with regulations issued by the Nuclear Regulatory       
   Commission, with the cost that would be incurred by a gaseous diffusion 
   plant if such a plant was considered to be a Department of Energy       
   defense nuclear facility as defined by chapter 21 of the Atomic Energy  
   Act of 1954 (42 U.S.C 2286 et seq.).                                    
     (b) Comments on Report.--Before submission of the report to Congress 
  under subsection (c), the Board shall transmit the report to the        
  Secretary of Energy and the Nuclear Regulatory Commission. The Secretary
  and the Commission shall provide their comments on the report to both   
  the Board and to Congress.                                              
     (c) Submission to Congress.--Not later than six months after the date
  of the enactment of this Act, the Board shall provide to Congress an    
  interim report on the status of the implementation of this section. Not 
  later than one year after the date of the enactment of this Act, and not
  earlier than 30 days after receipt of comments from the Secretary of    
  Energy and the Nuclear Regulatory Commission under subsection (b), the  
  Board shall submit to Congress the report required under subsection (a).
     (d) Definition.--In this section, the term ``Department of Energy    
  defense nuclear facility'' has the meaning provided by section 318 of   
  the Atomic Energy Act of 1954 (42 U.S.C. 2286g).                        
           TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                                
      Sec. 3301. Definitions.                                                 
      Sec. 3302. Authorized uses of stockpile funds.                          
            Sec. 3303. Disposal of beryllium copper master alloy in National  
      Defense Stockpile.                                                      
      Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.   
      Sec. 3305. Disposal of cobalt in National Defense Stockpile.            
            Sec. 3306. Required procedures for disposal of strategic and      
      critical materials.                                                     
            Sec. 3307. Return of surplus platinum from the Department of the  
      Treasury.                                                               
          SEC. 3301. DEFINITIONS.                                                 
    In this title:                                                        
       (1) The term ``National Defense Stockpile'' means the stockpile     
   provided for in section 4 of the Strategic and Critical Materials Stock 
   Piling Act (50 U.S.C. 98c).                                             
       (2) The term ``National Defense Stockpile Transaction Fund'' means  
   the fund in the Treasury of the United States established under section 
   9(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C.
   98h(a)).                                                                
       (3) The term ``Market Impact Committee'' means the Market Impact    
   Committee established under section 10(c) of the Strategic and Critical 
   Materials Stock Piling Act (50 U.S.C. 98h 1(c)).                        
          SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.                          
     (a) Obligation of Stockpile Funds.--During fiscal year 1998, the     
  National Defense Stockpile Manager may obligate up to $73,000,000 of the
  funds in the National Defense Stockpile Transaction Fund for the        
  authorized uses of such funds under section 9(b)(2) of the Strategic and
  Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)).              
     (b) Additional Obligations.--The National Defense Stockpile Manager  
  may obligate amounts in excess of the amount specified in subsection (a)
  if the National Defense Stockpile Manager notifies Congress that        
  extraordinary or emergency conditions necessitate the additional        
  obligations. The National Defense Stockpile Manager may make the        
  additional                                                              
                    obligations described in the notification after the end of the
          45-day period beginning on the date Congress receives the notification. 
     (c) Limitations.--The authorities provided by this section shall be  
  subject to such limitations as may be provided in appropriations Acts.  
                    SEC. 3303. DISPOSAL OF BERYLLIUM COPPER MASTER ALLOY IN       
          NATIONAL DEFENSE STOCKPILE.                                             
     (a) Disposal Authorization.--Pursuant to section 5(b) of the         
  Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98d(b)),   
  the National Defense Stockpile Manager may dispose of all beryllium     
  copper master alloy from the National Defense Stockpile as part of      
  continued efforts to modernize the Stockpile.                           
     (b) Precondition for Disposal.--Before beginning the disposal of     
  beryllium copper master alloy under subsection (a), the National Defense
  Stockpile Manager shall certify to Congress that the disposal of        
  beryllium copper master alloy will not adversely affect the capability  
  of the National Defense Stockpile to supply the strategic and critical  
  material needs of the United States.                                    
     (c) Consultation With Market Impact Committee.--In disposing of      
  beryllium copper master alloy under subsection (a), the National Defense
  Stockpile Manager shall consult with the Market Impact Committee to     
  ensure that the disposal of beryllium copper master alloy does not      
  disrupt the domestic beryllium industry.                                
     (d) Extended Sales Contracts.--The National Defense Stockpile Manager
  shall provide for the use of long-term sales contracts for the disposal 
  of beryllium copper master alloy under subsection (a) so that the       
  domestic beryllium industry can re-absorb this material into the market 
  in a gradual and nondisruptive manner. However, no such contract shall  
  provide for the disposal of beryllium copper master alloy over a period 
  longer than eight years, beginning on the date of the commencement of   
  the first contract under this section.                                  
     (e) Relationship to Other Disposal Authority.--The disposal authority
  provided in subsection (a) is new disposal authority and is in addition 
  to, and shall not affect, any other disposal authority provided by law  
  regarding materials in the National Defense Stockpile.                  
     (f) Beryllium Copper Master Alloy Defined.--For purposes of this     
  section, the term ``beryllium copper master alloy'' means an alloy of   
  nominally four percent beryllium in copper.                             
          SEC. 3304. DISPOSAL OF TITANIUM SPONGE IN NATIONAL DEFENSE STOCKPILE.   
     (a) Disposal Required.--Subject to subsection (b), the National      
  Defense Stockpile Manager shall dispose of 34,800 short tons of titanium
  sponge contained in the National Defense Stockpile provided for in      
  section 4 of the Strategic and Critical Materials Stock Piling Act (50  
  U.S.C. 98c) and excess to stockpile requirements.                       
     (b) Consultation With Market Impact Committee.--In disposing of      
  titanium sponge under subsection (a), the National Defense Stockpile    
  Manager shall consult with the Market Impact Committee to ensure that   
  the disposal of titanium sponge does not disrupt the domestic titanium  
  industry.                                                               
     (c) Relationship to Other Disposal Authority.--The disposal authority
  provided in subsection (a) is new disposal authority and is in addition 
  to, and shall not affect, any other disposal authority provided by law  
  regarding materials in the National Defense Stockpile.                  
          SEC. 3305. DISPOSAL OF COBALT IN NATIONAL DEFENSE STOCKPILE.            
     (a) Disposal Required.--Subject to subsections (b) and (c), the      
  President shall dispose of cobalt contained in the National Defense     
  Stockpile so as to result in receipts to the United States in amounts   
  equal to--                                                              
     (1) $20,000,000 during fiscal year 2003;                              
     (2) $30,000,000 during fiscal year 2004;                              
     (3) $34,000,000 during fiscal year 2005;                              
     (4) $34,000,000 during fiscal year 2006; and                          
     (5) $34,000,000 during fiscal year 2007.                              
     (b) Limitation on Disposal Quantity.--The total quantity of cobalt   
  authorized for disposal by the President under subsection (a) may not   
  exceed 14,058,014 pounds.                                               
     (c) Minimization of Disruption and Loss.--The President may not      
  dispose of cobalt under subsection (a) to the extent that the disposal  
  will result in--                                                        
       (1) undue disruption of the usual markets of producers, processors, 
   and consumers of cobalt; or                                             
     (2) avoidable loss to the United States.                              
     (d) Treatment of Receipts.--Notwithstanding section 9 of the         
  Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), funds
  received as result of the disposal of cobalt under subsection (a) shall 
  be deposited into the general fund of the Treasury.                     
     (e) Relationship to Other Disposal Authority.--The disposal authority
  provided in subsection (a) is new disposal authority and is in addition 
  to, and shall not affect, any other disposal authority provided by law  
  regarding materials in the National Defense Stockpile.                  
                    SEC. 3306. REQUIRED PROCEDURES FOR DISPOSAL OF STRATEGIC AND  
          CRITICAL MATERIALS.                                                     
     Section 6(b) of the Strategic and Critical Materials Stock Piling Act
  (50 U.S.C. 98e(b)) is amended in the first sentence by striking out     
  ``materials from the stockpile shall be made by formal advertising or   
  competitive negotiation procedures.'' and inserting in lieu thereof     
  ``strategic and critical materials from the stockpile shall be made in  
  accordance with the next sentence.''.                                   
                    SEC. 3307. RETURN OF SURPLUS PLATINUM FROM THE DEPARTMENT OF  
          THE TREASURY.                                                           
     (a) Return of Platinum to Stockpile.--Subject to subsection (b), the 
  Secretary of the Treasury, upon the request of the Secretary of Defense,
  shall return to the Secretary of Defense for sale or other disposition  
  platinum of the National Defense Stockpile that has been loaned to the  
  Department of the Treasury by the Secretary of Defense, acting as the   
  stockpile manager. The quantity requested and required to be returned   
  shall be any quantity that the Secretary of Defense determines          
  appropriate for sale or other disposition.                              
     (b) Alternative Transfer of Funds.--The Secretary of the Treasury,   
  with the concurrence of the Secretary of Defense, may transfer to the   
  Secretary of Defense funds in a total amount that is equal to the fair  
  market value of any platinum requested under subsection (a) and not     
  returned. A transfer of funds under this subsection shall be a          
  substitute for a return of platinum under subsection (a). Upon a        
  transfer of funds as a substitute for a return of platinum, the platinum
  shall cease to be part of the National Defense Stockpile. A transfer of 
  funds under this subsection shall be charged to any appropriation for   
  the Department of the Treasury and shall be credited to the National    
  Defense Stockpile Transaction Fund.                                     
     (c) Responsibility for Costs.--The return of platinum under          
  subsection (a) by the Secretary of the Treasury shall be made without   
  the expenditure of any funds available to the Department of Defense. The
  Secretary of the Treasury shall be responsible for all costs incurred in
  connection with the return, such as transportation, storage, testing,   
  refining, or casting costs.                                             
           TITLE XXXIV--NAVAL PETROLEUM RESERVES                                   
      Sec. 3401. Authorization of appropriations.                             
            Sec. 3402. Price requirement on sale of certain petroleum during  
      fiscal year 1998.                                                       
            Sec. 3403. Repeal of requirement to assign Navy officers to Office
      of Naval Petroleum and Oil Shale Reserves.                              
            Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves     
      Numbered 1 and 3.                                                       
          SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.                             
     There is hereby authorized to be appropriated to the Secretary of    
  Energy $117,000,000 for fiscal year 1998 for the purpose of carrying out
  activities under chapter 641 of title 10, United States Code, relating  
  to the naval petroleum reserves (as defined in section 7420(2) of such  
  title). Funds appropriated pursuant to such authorization shall remain  
  available until expended.                                               
                    SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM     
          DURING FISCAL YEAR 1998.                                                
     Notwithstanding section 7430(b)(2) of title 10, United States Code,  
  during fiscal year 1998, any sale of any part of the United States share
  of petroleum produced from Naval Petroleum Reserves Numbered 1, 2, and 3
  shall be made at a price not less than 90 percent of the current sales  
  price, as estimated by the Secretary of Energy, of comparable petroleum 
  in the same area.                                                       
                    SEC. 3403. REPEAL OF REQUIREMENT TO ASSIGN NAVY OFFICERS TO   
          OFFICE OF NAVAL PETROLEUM AND OIL SHALE RESERVES.                       
    Section 2 of Public Law 96 137 (42 U.S.C. 7156a) is repealed.         
                    SEC. 3404. TRANSFER OF JURISDICTION, NAVAL OIL SHALE RESERVES 
          NUMBERED 1 AND 3.                                                       
     (a) Transfer Required.--Chapter 641 of title 10, United States Code, 
  is amended by adding at the end the following new section:              
                    ``7439. Certain oil shale reserves: transfer of jurisdiction  
          and petroleum exploration, development, and production                  
     ``(a) Transfer Required.--(1) Upon the enactment of this section, the
  Secretary of Energy shall transfer to the Secretary of the Interior     
  administrative jurisdiction over all public domain lands included within
  Oil Shale Reserve Numbered 1 and those public domain lands included     
  within the undeveloped tracts of Oil Shale Reserve Numbered 3.          
     ``(2) Not later than one year after the date of the enactment of this
  section, the Secretary of Energy shall transfer to the Secretary of the 
  Interior administrative jurisdiction over those public domain lands     
  included within the developed tract of Oil Shale Reserve Numbered 3,    
  which consists of approximately 6,000 acres and 24 natural gas wells,   
  together with pipelines and associated facilities.                      
     ``(3) Notwithstanding the transfer of jurisdiction, the Secretary of 
  Energy shall continue to be responsible for all environmental           
  restoration, waste management, and environmental compliance activities  
  that are required under Federal and State laws with respect to          
  conditions existing on the lands at the time of the transfer.           
     ``(4) Upon the transfer to the Secretary of the Interior of          
  jurisdiction over public domain lands under this subsection, the other  
  provisions of this chapter shall cease to apply with respect to the     
  transferred lands.                                                      
     ``(b) Authority To Lease.--(1) Beginning on the date of the enactment
  of this section, or as soon thereafter as practicable, the Secretary of 
  the Interior shall enter into leases with one or more private entities  
  for the purpose of exploration for, and development and production of,  
  petroleum (other than in the form of oil shale) located on or in public 
  domain lands in Oil Shale Reserves Numbered 1 and 3 (including the      
  developed tract of Oil Shale Reserve Numbered 3). Any such lease shall  
  be made in accordance with the requirements of the Mineral Leasing Act  
  (30 U.S.C. 181 et seq.) regarding the lease of oil and gas lands and    
  shall be subject to valid existing rights.                              
     ``(2) Notwithstanding the delayed transfer of the developed tract of 
  Oil Shale Reserve Numbered 3 under subsection (a)(2), the Secretary of  
  the Interior shall enter into a lease under paragraph (1) with respect  
  to the developed tract before the end of the one-year period beginning  
  on the date of the enactment of this section.                           
     ``(c) Management.--The Secretary of the Interior, acting through the 
  Director of the Bureau of Land Management, shall manage the lands       
  transferred under subsection (a) in accordance with the Federal Land    
  Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) and other    
  laws applicable to the public lands.                                    
     ``(d) Transfer of Existing Equipment.--The lease of lands by the     
  Secretary of the Interior under this section may include the transfer,  
  at fair market value, of any well, gathering line, or related equipment 
  owned by the United States on the lands transferred under subsection (a)
  and suitable for use in the exploration, development, or production of  
  petroleum on the lands.                                                 
     ``(e) Cost Minimization.--The cost of any environmental assessment   
  required pursuant to the National Environmental Policy Act of 1969 (42  
  U.S.C. 4321 et seq.) in connection with a proposed lease under this     
  section shall be paid out of unobligated amounts available for          
  administrative expenses of the Bureau of Land Management.               
     ``(f) Treatment of Receipts.--(1) Notwithstanding section 35 of the  
  Mineral Leasing Act (30 U.S.C. 191), all moneys received during the     
  period specified in paragraph (2) from a lease under this section       
  (including moneys in the form of sales, bonuses, royalties (including   
  interest charges collected under the Federal Oil and Gas Royalty        
  Management Act of 1982 (30 U.S.C. 1701 et seq.)), and rentals) shall be 
  covered into the Treasury of the United States and shall not be subject 
  to distribution to the States pursuant to subsection (a) of such section
  35. Subject to a specific authorization and appropriation for this      
  purpose, such moneys may be used for reimbursement of environmental     
  restoration, waste management, and environmental compliance costs       
  incurred by the United States with respect to the lands transferred     
  under subsection (a).                                                   
     ``(2) The period referred to in this subsection is the period        
  beginning on the date of the enactment of this section and ending on the
  date on which the Secretary of Energy and the Secretary of the Interior 
  jointly certify to Congress that the sum of the moneys deposited in the 
  Treasury under paragraph (1) is equal to the total of the following:    
       ``(A) The cost of all environmental restoration, waste management,  
   and environmental compliance activities incurred by the United States   
   with respect to the lands transferred under subsection (a).             
       ``(B) The cost to the United States to originally install wells,    
   gathering lines, and related equipment on the transferred lands and any 
   other cost incurred by the United States with respect to the lands.''.  
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    
            ``7439. Certain oil shale reserves: transfer of jurisdiction and  
      petroleum exploration, development, and production.''.                  
           TITLE XXXV--PANAMA CANAL COMMISSION                                     
                SUBTITLE A--AUTHORIZATION OF EXPENDITURES FROM REVOLVING FUND     
      Sec. 3501. Short title.                                                 
      Sec. 3502. Authorization of expenditures.                               
      Sec. 3503. Purchase of vehicles.                                        
      Sec. 3504. Expenditures only in accordance with treaties.               
                     SUBTITLE B--FACILITATION OF PANAMA CANAL TRANSITION          
      Sec. 3511. Short title; references.                                     
      Sec. 3512. Definitions relating to canal transition.                    
          PART I--TRANSITION MATTERS RELATING TO COMMISSION OFFICERS AND EMPLOYEES
            Sec. 3521. Authority for the Administrator of the Commission to   
      accept appointment as the Administrator of the Panama Canal Authority.  
      Sec. 3522. Post-Canal transfer personnel authorities.                   
            Sec. 3523. Enhanced authority of Commission to establish          
      compensation of Commission officers and employees.                      
            Sec. 3524. Travel, transportation, and subsistence expenses for   
      Commission personnel no longer subject to Federal travel regulation.    
      Sec. 3525. Enhanced recruitment and retention authorities.              
      Sec. 3526. Transition separation incentive payments.                    
      Sec. 3527. Labor-management relations.                                  
            Sec. 3528. Availability of Panama Canal Revolving Fund for        
      severance pay for certain employees separated by Panama Canal Authority 
      after Canal Transfer Date.                                              
          PART II--TRANSITION MATTERS RELATING TO OPERATION AND ADMINISTRATION OF 
                                      CANAL                                       
            Sec. 3541. Establishment of procurement system and Board of       
      Contract Appeals.                                                       
      Sec. 3542. Transactions with the Panama Canal Authority.                
      Sec. 3543. Time limitations on filing of claims for damages.            
      Sec. 3544. Tolls for small vessels.                                     
      Sec. 3545. Date of actuarial evaluation of FECA liability.              
      Sec. 3546. Appointment of notaries public.                              
      Sec. 3547. Commercial services.                                         
            Sec. 3548. Transfer from President to Commission of certain       
      regulatory functions relating to employment classification appeals.     
      Sec. 3549. Enhanced printing authority.                                 
      Sec. 3550. Technical and conforming amendments.                         
           Subtitle A--Authorization of Expenditures From Revolving Fund           
          SEC. 3501. SHORT TITLE.                                                 
     This subtitle may be cited as the ``Panama Canal Commission          
  Authorization Act for Fiscal Year 1998''.                               
          SEC. 3502. AUTHORIZATION OF EXPENDITURES.                               
     (a) In General.--Subject to subsection (b), the Panama Canal         
  Commission is authorized to use amounts in the Panama Canal Revolving   
  Fund to make such expenditures within the limits of funds and borrowing 
  authority available to it in accordance with law, and to make such      
  contracts and commitments, as may be necessary under the Panama Canal   
  Act of 1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance,    
  improvement, and administration of the Panama Canal for fiscal year     
  1998.                                                                   
     (b) Limitations.--For fiscal year 1998, the Panama Canal Commission  
  may expend from funds in the Panama Canal Revolving Fund not more than  
  $85,000 for official reception and representation expenses, of which--  
       (1) not more than $23,000 may be used for official reception and    
   representation expenses of the Supervisory Board of the Commission;     
       (2) not more than $12,000 may be used for official reception and    
   representation expenses of the Secretary of the Commission; and         
       (3) not more than $50,000 may be used for official reception and    
   representation expenses of the Administrator of the Commission.         
          SEC. 3503. PURCHASE OF VEHICLES.                                        
     Notwithstanding any other provision of law, the funds available to   
  the Commission shall be available for the purchase and transportation to
  the Republic of Panama of passenger motor vehicles, the purchase price  
  of which shall not exceed $22,000 per vehicle.                          
          SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.               
     Expenditures authorized under this subtitle may be made only in      
  accordance with the Panama Canal Treaties of 1977 and any law of the    
  United States implementing those treaties.                              
           Subtitle B--Facilitation of Panama Canal Transition                     
          SEC. 3511. SHORT TITLE; REFERENCES.                                     
     (a) Short Title.--This subtitle may be cited as the ``Panama Canal   
  Transition Facilitation Act of 1997''.                                  
     (b) References.--Except as otherwise expressly provided, whenever in 
  this subtitle an amendment or repeal is expressed in terms of an        
  amendment to, or repeal of, a section or other provision, the reference 
  shall be considered to be made to a section or other provision of the   
  Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.).                      
          SEC. 3512. DEFINITIONS RELATING TO CANAL TRANSITION.                    
     Section 3 (22 U.S.C. 3602) is amended by adding at the end the       
  following new subsection:                                               
    ``(d) For purposes of this Act:                                       
       ``(1) The term `Canal Transfer Date' means December 31, 1999, such  
   date being the date specified in the Panama Canal Treaty of 1977 for the
   transfer of the Panama Canal from the United States of America to the   
   Republic of Panama.                                                     
       ``(2) The term `Panama Canal Authority' means the entity created by 
   the Republic of Panama to succeed the Panama Canal Commission as of the 
   Canal Transfer Date.''.                                                 
                     PART I--TRANSITION MATTERS RELATING TO COMMISSION OFFICERS   
          AND EMPLOYEES                                                           
                    SEC. 3521. AUTHORITY FOR THE ADMINISTRATOR OF THE COMMISSION  
          TO ACCEPT APPOINTMENT AS THE ADMINISTRATOR OF THE PANAMA CANAL          
          AUTHORITY.                                                              
     (a) Authority for Dual Role.--Section 1103 (22 U.S.C. 3613) is       
  amended by adding at the end the following new subsection:              
     ``(c) The Congress consents, for purposes of the 8th clause of       
  article I, section 9 of the Constitution of the United States, to the   
  acceptance by the individual serving as Administrator of                
                    the Commission of appointment by the Republic of Panama to the
          position of Administrator of the Panama Canal Authority. Such consent is
          effective only if that individual, while serving in both such positions,
          serves as Administrator of the Panama Canal Authority without           
          compensation, except for payments by the Republic of Panama of travel   
          and entertainment expenses, including per diem payments.''.             
     (b) Waiver of Ethics and Reporting Requirements.--Such section is    
  further amended by adding at the end the following new subsection:      
     ``(d) If before the Canal Transfer Date the Republic of Panama       
  appoints as the Administrator of the Panama Canal Authority the         
  individual serving as the Administrator of the Commission and if that   
  individual accepts the appointment--                                    
       ``(1) during any period during which that individual serves as both 
   Administrator of the Commission and the Administrator of the Panama     
   Canal Authority--                                                       
       ``(A) the Foreign Agents Registration Act of 1938, as amended (22   
   U.S.C. 611 et seq.), shall not apply to that individual with respect to 
   service as the Administrator of the Panama Canal Authority;             
       ``(B) that individual, with respect to participation in any         
   particular matter as the Administrator of the Panama Canal Commission,  
   is not subject to section 208(a) of title 18, United States Code,       
   insofar as that section would otherwise apply to that matter only       
   because the matter will have a direct and predictable effect on the     
   financial interest of the Panama Canal Authority;                       
       ``(C) that individual is not subject to sections 203 and 205 of     
   title 18, United States Code, with respect to official acts performed as
   an agent or attorney for or otherwise representing the Panama Canal     
   Authority; and                                                          
       ``(D) that individual is not subject to sections 501(a) and         
   502(a)(4) of the Ethics in Government Act of 1978 (5 U.S.C. App.), with 
   respect to compensation received for, and service in, the position of   
   Administrator of the Panama Canal Authority; and                        
       ``(2) effective upon termination of the individual's appointment as 
   Administrator of the Panama Canal Commission at noon on the Canal       
   Transfer Date, that individual is not subject to section 207 of title   
   18, United States Code, with respect to acts done in carrying out       
   official duties as Administrator of the Panama Canal Authority.''.      
          SEC. 3522. POST-CANAL TRANSFER PERSONNEL AUTHORITIES.                   
     (a) Waiver of Certain Post-employment Restrictions for Commission    
  Personnel Becoming Employees of the Panama Canal Authority.--Section    
  1112 (22 U.S.C. 3622) is amended by adding at the end the following new 
  subsection:                                                             
     ``(e)(1) Section 207 of title 18, United States Code, does not apply 
  to a covered individual with respect to acts done in carrying out       
  official duties as an officer or employee of the Panama Canal Authority.
     ``(2) For purposes of paragraph (1), a covered individual is an      
  officer or employee of the Panama Canal Authority who was an officer or 
  employee of the Commission (other than the Administrator) and whose     
  employment with the Commission terminated at noon on the Canal Transfer 
  Date.                                                                   
    ``(3) This subsection is effective as of the Canal Transfer Date.''.  
     (b) Consent of Congress for Acceptance by Reserve and Retired Members
  of the Uniformed Services of Employment by Panama Canal Authority.--Such
  section is further amended by adding after subsection (e), as added by  
  subsection (a), the following new subsection:                           
     ``(f)(1) The Congress consents to the following persons accepting    
  civil employment (and compensation for that employment) with the Panama 
  Canal Authority for which the consent of the Congress is required by the
  last paragraph of section 9 of article I of the Constitution of the     
  United States, relating                                                 
                    to acceptance of emoluments, offices, or titles from a foreign
          government:                                                             
     ``(A) Retired members of the uniformed services.                      
     ``(B) Members of a reserve component of the armed forces.             
       ``(C) Members of the Commissioned Reserve Corps of the Public Health
   Service.                                                                
     ``(2) The consent of the Congress under paragraph (1) is effective   
  without regard to subsection (b) of section 908 of title 37, United     
  States Code (relating to approval required for employment of Reserve and
  retired members by foreign governments).''.                             
                    SEC. 3523. ENHANCED AUTHORITY OF COMMISSION TO ESTABLISH      
          COMPENSATION OF COMMISSION OFFICERS AND EMPLOYEES.                      
     (a) Repeal of Limitations on Commission Authority.--The following    
  provisions are repealed:                                                
     (1) Section 1215 (22 U.S.C. 3655), relating to basic pay.             
       (2) Section 1219 (22 U.S.C. 3659), relating to salary protection    
   upon conversion of pay rate.                                            
       (3) Section 1225 (22 U.S.C. 3665), relating to minimum level of pay 
   and minimum annual increases.                                           
     (b) Savings Provision.--Section 1202 (22 U.S.C. 3642) is amended by  
  adding at the end the following new subsection:                         
     ``(c) In the case of an individual who is an officer or employee of  
  the Commission on the day before the date of the enactment of the Panama
  Canal Transition Facilitation Act of 1997 and who has not had a break in
  service with the Commission since that date, the rate of basic pay for  
  that officer or employee on or after that date may not be less than the 
  rate in effect for that officer or employee on the day before that date 
  of enactment except--                                                   
     ``(1) as provided in a collective bargaining agreement;               
       ``(2) as a result of an adverse action against the officer or       
   employee; or                                                            
     ``(3) pursuant to a voluntary demotion.''.                            
     (c) Cross-Reference Amendments.--(1) Section 1216 (22 U.S.C. 3656) is
  amended by striking out ``1215'' and inserting in lieu thereof ``1202''.
     (2) Section 1218 (22 U.S.C. 3658) is amended by striking out ``1215''
  and ``1217'' and inserting in lieu thereof ``1202'' and ``1217(a)'',    
  respectively.                                                           
     (d) Nonapplicability to Agencies in Panama Other Than Panama Canal   
  Commission.--Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by    
  striking out ``or the Panama Canal Act Amendments of 1996'' and         
  inserting in lieu thereof ``, the Panama Canal Act Amendments of 1996   
  (subtitle B of title XXXV of Public Law 104 201; 110 Stat. 2860), or the
  Panama Canal Transition Facilitation Act of 1997''.                     
                    SEC. 3524. TRAVEL, TRANSPORTATION, AND SUBSISTENCE EXPENSES   
          FOR COMMISSION PERSONNEL NO LONGER SUBJECT TO FEDERAL TRAVEL REGULATION.
     (a) Repeal of Applicability of Title 5 Provisions.--(1) Section 1210 
  (22 U.S.C. 3650) is amended by striking out subsections (a), (b), and   
  (c).                                                                    
    (2) Section 1224 (22 U.S.C. 3664) is amended--                        
     (A) by striking out paragraph (10); and                               
       (B) by redesignating paragraphs (11) through (20) as paragraphs (10)
   through (19), respectively.                                             
    (b)  Conforming Amendments.--(1) Section 1210 is further amended--    
       (A) by redesignating subsection (d)(1) as subsection (a) and in that
   subsection striking out ``paragraph (2)'' and inserting in lieu thereof 
   ``subsection (b)''; and                                                 
       (B) by redesignating subsection (d)(2) as subsection (b) and in that
   subsection--                                                            
       (i) striking out ``Notwithstanding paragraph (1), an'' and inserting
   in lieu thereof ``An''; and                                             
       (ii) striking out ``referred to in paragraph (1)'' and inserting in 
   lieu thereof ``who is a citizen of the Republic of Panama''.            
    (2) The heading of such section is amended to read as follows:        
                                  ``AIR TRANSPORTATION''.                         
     (c) Effective Date.--The amendments made by this section shall take  
  effect on January 1, 1999.                                              
          SEC. 3525. ENHANCED RECRUITMENT AND RETENTION AUTHORITIES.              
     (a) Recruitment, Relocation, and Retention Bonuses.--Section 1217 (22
  U.S.C. 3657) is amended--                                               
     (1) by redesignating subsection (c) as subsection (e);                
       (2) in subsection (e) (as so redesignated), by striking out ``for   
   the same or similar work performed in the United States by individuals  
   employed by the Government of the United States'' and inserting in lieu 
   thereof ``of the individual to whom the compensation is paid''; and     
     (3) by inserting after subsection (b) the following new subsections:  
     ``(c)(1) The Commission may pay a recruitment bonus to an individual 
  who is newly appointed to a position with the Commission, or a          
  relocation bonus to an employee of the Commission who must relocate to  
  accept a position, if the Commission determines that the Commission     
  would be likely, in the absence of such a bonus, to have difficulty in  
  filling the position.                                                   
     ``(2) A recruitment or relocation bonus may be paid to an employee   
  under this subsection only if the employee enters into an agreement with
  the Commission to complete a period of employment established in the    
  agreement. If the employee voluntarily fails to complete such period of 
  employment or is separated from service in such employment as a result  
  of an adverse action before the completion of such period, the employee 
  shall repay the entire amount of the bonus.                             
     ``(3) A recruitment or relocation bonus under this subsection may be 
  paid as a lump sum. A bonus under this subsection may not be considered 
  to be part of the basic pay of an employee.                             
     ``(d)(1) The Commission may pay a retention bonus to an employee of  
  the Commission if the Commission determines that--                      
       ``(A) the employee has unusually high or unique qualifications and  
   those qualifications make it essential for the Commission to retain the 
   employee for a period specified by the Commission ending not later than 
   the Canal Transfer Date, or the Commission otherwise has a special need 
   for the services of the employee making it essential for the Commission 
   to retain the employee for a period specified by the Commission ending  
   not later than the Canal Transfer Date; and                             
       ``(B) the employee would be likely to leave employment with the     
   Commission before the end of that period if the retention bonus is not  
   paid.                                                                   
    ``(2) A retention bonus under this subsection--                       
     ``(A) shall be in a fixed amount;                                     
       ``(B) shall be paid on a pro rata basis (over the period specified  
   by the Commission as essential for the retention of the employee), with 
   such payments to be made at the same time and in the same manner as     
   basic pay; and                                                          
       ``(C) may not be considered to be part of the basic pay of an       
   employee.                                                               
     ``(3) A decision by the Commission to exercise or to not exercise the
  authority to pay a bonus under this subsection shall not be subject to  
  review under any statutory procedure or any agency or negotiated        
  grievance procedure except under any of the laws referred to in section 
  2302(d) of title 5, United States Code.''.                              
     (b) Educational Services.--Section 1321(e)(2) (22 U.S.C. 3731(e)(2)) 
  is amended by striking out ``and persons'' and inserting in lieu thereof
  ``, to other Commission employees when determined by the Commission to  
  be necessary for their recruitment or retention, and to other persons''.
          SEC. 3526. TRANSITION SEPARATION INCENTIVE PAYMENTS.                    
     Chapter 2 of title I (22 U.S.C. 3641 et seq.) is amended by adding at
  the end of subchapter III the following new section:                    
                         ``TRANSITION SEPARATION INCENTIVE PAYMENTS               
     `` Sec. 1233. (a) In applying to the Commission and employees of the 
  Commission the provisions of section 663 of the Treasury, Postal        
  Service, and General Government Appropriations Act, 1997 (as contained  
  in section 101(f) of division A of Public Law 104 208; 110 Stat. 3009   
  383), relating to voluntary separation incentives for employees of      
  certain Federal agencies (in this section referred to as `section       
  663')--                                                                 
       ``(1) the term `employee' shall mean an employee of the Commission  
   who has served in the Republic of Panama in a position with the         
   Commission for a continuous period of at least three years immediately  
   before the employee's separation under an appointment without time      
   limitation and who is covered under the Civil Service Retirement System 
   or the Federal Employees' Retirement System under subchapter III of     
   chapter 83 or chapter 84, respectively, of title 5, United States Code, 
   other than--                                                            
       ``(A) an employee described in any of subparagraphs (A) through (F) 
   of subsection (a)(2) of section 663; or                                 
       ``(B) an employee of the Commission who, during the 24-month period 
   preceding the date of separation, has received a recruitment or         
   relocation bonus under section 1217(c) of this Act or who, within the   
   12-month period preceding the date of separation, received a retention  
   bonus under section 1217(d) of this Act;                                
       ``(2) the strategic plan under subsection (b) of section 663 shall  
   include (in lieu of the matter specified in subsection (b)(2) of that   
   section)--                                                              
       ``(A) the positions to be affected, identified by occupational      
   category and grade level;                                               
       ``(B) the number and amounts of separation incentive payments to be 
   offered; and                                                            
       ``(C) a description of how such incentive payments will facilitate  
   the successful transfer of the Panama Canal to the Republic of Panama;  
       ``(3) a separation incentive payment under section 663 may be paid  
   to a Commission employee only to the extent necessary to facilitate the 
   successful transfer of the Panama Canal by the United States of America 
   to the Republic of Panama as required by the Panama Canal Treaty of     
   1977;                                                                   
     ``(4) such a payment--                                                
       ``(A) may be in an amount determined by the Commission not to exceed
   $25,000; and                                                            
       ``(B) may be made (notwithstanding the limitation specified in      
   subsection (c)(2)(D) of section 663) in the case of an eligible employee
   who voluntarily separates (whether by retirement or resignation) during 
   the 90-day period beginning on the date of the enactment of this section
   or during the period beginning on October 1, 1998, and ending on        
   December 31, 1998;                                                      
       ``(5) in the case of not more than 15 employees who (as determined  
   by the Commission) are unwilling to work for the Panama Canal Authority 
   after the Canal Transfer Date and who occupy critical positions for     
   which (as determined by the Commission) at least two years of experience
   is necessary to ensure that seasoned managers are in place on and after 
   the Canal Transfer Date, such a payment (notwithstanding paragraph      
   (4))--                                                                  
       ``(A) may be in an amount determined by the Commission not to exceed
   50 percent of the basic pay of the employee; and                        
       ``(B) may be made (notwithstanding the limitation specified in      
   subsection (c)(2)(D) of section 663) in the case of such an employee who
   voluntarily separates (whether by retirement or resignation) during the 
   90-day period beginning on the date of the enactment of this section;   
   and                                                                     
     ``(6) the provisions of subsection (f) of section 663 shall not apply.
     ``(b) A decision by the Commission to exercise or to not exercise the
  authority to pay a transition separation incentive under this section   
  shall not be subject to review under any statutory procedure or any     
  agency or negotiated grievance procedure except under any of the laws   
  referred to in section 2302(d) of title 5, United States Code.''.       
          SEC. 3527. LABOR-MANAGEMENT RELATIONS.                                  
     Section 1271 (22 U.S.C. 3701) is amended by adding at the end the    
  following new subsection:                                               
     ``(c)(1) This subsection applies to any matter that becomes the      
  subject of collective bargaining between the Commission and the         
  exclusive representative for any bargaining unit of employees of the    
  Commission during the period beginning on the date of the enactment of  
  this subsection and ending on the Canal Transfer Date.                  
     ``(2)(A) The resolution of impasses resulting from collective        
  bargaining between the Commission and any such exclusive representative 
  during that period shall be conducted in accordance with such procedures
  as may be mutually agreed upon between the Commission and the exclusive 
  representative (without regard to any otherwise applicable provisions of
  chapter 71 of title 5, United States Code). Such mutually agreed upon   
  procedures shall become effective upon transmittal by the Chairman of   
  the Supervisory Board of the Commission to the Congress of notice of the
  agreement to use those procedures and a description of those procedures.
     ``(B) The Federal Services Impasses Panel shall not have jurisdiction
  to resolve any impasse between the Commission and any such exclusive    
  representative in negotiations over a procedure for resolving impasses. 
     ``(3) If the Commission and such an exclusive representative do not  
  reach an agreement concerning a procedure for resolving impasses with   
  respect to a bargaining unit and transmit                               
                    notice of the agreement under paragraph (2) on or before July 
          1, 1998, the following shall be the procedure by which collective       
          bargaining impasses between the Commission and the exclusive            
          representative for that bargaining unit shall be resolved:              
       ``(A) If bargaining efforts do not result in an agreement, either   
   party may timely request the Federal Mediation and Conciliation Service 
   to assist in achieving an agreement.                                    
       ``(B) If an agreement is not reached within 45 days after the date  
   on which either party requests the assistance of the Federal Mediation  
   and Conciliation Service in writing (or within such shorter period as   
   may be mutually agreed upon by the parties), the parties shall be       
   considered to be at an impasse and the Federal Mediation and            
   Conciliation Service shall immediately notify the Federal Services      
   Impasses Panel of the Federal Labor Relations Authority, which shall    
   decide the impasse.                                                     
       ``(C) If the Federal Services Impasses Panel fails to issue a       
   decision within 90 days after the date on which notice under            
   subparagraph (B) is received by the Panel (or within such shorter period
   as may be mutually agreed upon by the parties), the efforts of the Panel
   shall be terminated.                                                    
       ``(D) In such a case, the Chairman of the Panel (or another member  
   in the absence of the Chairman) shall immediately determine the matter  
   by a drawing (conducted in such manner as the Chairman (or, in the      
   absence of the Chairman, such other member) determines appropriate)     
   between the last offer of the Commission and the last offer of the      
   exclusive representative, with the offer chosen through such drawing    
   becoming the binding resolution of the matter.                          
     ``(4) In the case of a notice of agreement described in paragraph    
  (2)(A) that is transmitted to the Congress as described in the second   
  sentence of that paragraph after July 1, 1998, the impasse resolution   
  procedures covered by that notice shall apply to any impasse between the
  Commission and the other party to the agreement that is unresolved on   
  the date on which that notice is transmitted to the Congress.''.        
                    SEC. 3528. AVAILABILITY OF PANAMA CANAL REVOLVING FUND FOR    
          SEVERANCE PAY FOR CERTAIN EMPLOYEES SEPARATED BY PANAMA CANAL AUTHORITY 
          AFTER CANAL TRANSFER DATE.                                              
     (a) Availability of Revolving Fund.--Section 1302(a) (22 U.S.C.      
  3712(a)) is amended by adding at the end the following new paragraph:   
       ``(10) Payment to the Panama Canal Authority, not later than the    
   Canal Transfer Date, of such amount as is computed by the Commission to 
   be the future amount of severance pay to be paid by the Panama Canal    
   Authority to employees whose employment with the Authority is           
   terminated, to the extent that such severance pay is attributable to    
   periods of service performed with the Commission before the Canal       
   Transfer Date (and assuming for purposes of such computation that the   
   Panama Canal Authority, in paying severance pay to terminated employees,
   will provide for crediting of periods of service with the               
   Commission).''.                                                         
    (b)  Stylistic Amendments.--Such section is further amended--         
       (1) by striking out ``for--'' in the matter preceding paragraph (1) 
   and inserting in lieu thereof ``for the following purposes:'';          
       (2) by capitalizing the initial letter of the first word in each of 
   paragraphs (1) through (9);                                             
       (3) by striking out the semicolon at the end of each of paragraphs  
   (1) through (7) and inserting in lieu thereof a period; and             
       (4) by striking out ``; and'' at the end of paragraph (8) and       
   inserting in lieu thereof a period.                                     
                     PART II--TRANSITION MATTERS RELATING TO OPERATION AND        
          ADMINISTRATION OF CANAL                                                 
                    SEC. 3541. ESTABLISHMENT OF PROCUREMENT SYSTEM AND BOARD OF   
          CONTRACT APPEALS.                                                       
     Title III of the Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.) is
  amended by inserting after the title heading the following new chapter: 
                                 ``CHAPTER  1-- PROCUREMENT                       
                           ``procurement system                          
     ``Sec. 3101. (a) Panama Canal Acquisition Regulation.--(1) The       
  Commission shall establish by regulation a comprehensive procurement    
  system. The regulation shall be known as the `Panama Canal Acquisition  
  Regulation' (in this section referred to as the `Regulation') and shall 
  provide for the procurement of goods and services by the Commission in a
  manner that--                                                           
       ``(A) applies the fundamental operating principles and procedures in
   the Federal Acquisition Regulation;                                     
     ``(B) uses efficient commercial standards of practice; and            
       ``(C) is suitable for adoption and uninterrupted use by the Republic
   of Panama after the Canal Transfer Date.                                
     ``(2) The Regulation shall contain provisions regarding the          
  establishment of the Panama Canal Board of Contract Appeals described in
  section 3102.                                                           
     ``(b) Supplement to Regulation.--The Commission shall develop a      
  Supplement to the Regulation (in this section referred to as the        
  `Supplement') that identifies both the provisions of Federal law        
  applicable to procurement of goods and services by the Commission and   
  the provisions of Federal law waived by the Commission under subsection 
  (c).                                                                    
     ``(c) Waiver Authority.--(1) Subject to paragraph (2), the Commission
  shall determine which provisions of Federal law should not apply to     
  procurement by the Commission and may waive those laws for purposes of  
  the Regulation and Supplement.                                          
    ``(2) For purposes of paragraph (1), the Commission may not waive--   
       ``(A) section 27 of the Office of Federal Procurement Policy Act (41
   U.S.C. 423);                                                            
       ``(B) the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.),    
   other than section 10(a) of such Act (41 U.S.C. 609(a)); or             
     ``(C) civil rights, environmental, or labor laws.                     
     ``(d) Consultation With Administrator for Federal Procurement        
  Policy.--In establishing the Regulation and developing the Supplement,  
  the Commission shall consult with the Administrator for Federal         
  Procurement Policy.                                                     
     ``(e) Effective Date.--The Regulation and the Supplement shall take  
  effect on the date of publication in the Federal Register, or January 1,
  1999, whichever is earlier.                                             
                 ``panama canal board of contract appeals                
     ``Sec. 3102. (a) Establishment.--(1) The Secretary of Defense, in    
  consultation with the Commission, shall establish a board of contract   
  appeals, to be known as the Panama Canal Board of Contract Appeals, in  
  accordance with section 8 of the Contract Disputes Act of 1978 (41      
  U.S.C. 607). Except as otherwise provided by this section, the Panama   
  Canal Board of Contract Appeals (in this section referred to as the     
  `Board') shall be subject to the Contract Disputes Act of 1978 (41      
  U.S.C. 601 et seq.) in the same manner as any other agency board of     
  contract appeals established under that Act.                            
     ``(2) The Board shall consist of three members. At least one member  
  of the Board shall be licensed to practice law in the Republic of       
  Panama. Individuals appointed to the Board shall take an oath of office,
  the form of which shall be prescribed by the Secretary of Defense.      
     ``(b) Exclusive Jurisdiction To Decide Appeals.--Notwithstanding     
  section 10(a)(1) of the Contract Disputes Act of 1978 (41 U.S.C.        
  609(a)(1)) or any other provision of law, the Board shall have exclusive
  jurisdiction to decide an appeal from a decision of a contracting       
  officer under section 8(d) of such Act (41 U.S.C. 607(d)).              
     ``(c) Exclusive Jurisdiction To Decide Protests.--The Board shall    
  decide protests submitted to it under this subsection by interested     
  parties in accordance with subchapter V of title 31, United States Code.
  Notwithstanding section 3556 of that title, section 1491(b) of title 28,
  United States Code, and any other provision of law, the Board shall have
  exclusive jurisdiction to decide such protests. For purposes of this    
  subsection--                                                            
       ``(1) except as provided in paragraph (2), each reference to the    
   Comptroller General in sections 3551 through 3555 of title 31, United   
   States Code, is deemed to be a reference to the Board;                  
       ``(2) the reference to the Comptroller General in section           
   3553(d)(3)(C)(ii) of such title is deemed to be a reference to both the 
   Board and the Comptroller General;                                      
       ``(3) the report required by paragraph (1) of section 3554(e) of    
   such title shall be submitted to the Comptroller General as well as the 
   committees listed in such paragraph;                                    
       ``(4) the report required by paragraph (2) of such section shall be 
   submitted to the Comptroller General as well as Congress; and           
       ``(5) section 3556 of such title shall not apply to the Board, but  
   nothing in this subsection shall affect the right of an interested party
   to file a protest with the appropriate contracting officer.             
     ``(d) Procedures.--The Board shall prescribe such procedures as may  
  be necessary for the expeditious decision of appeals and protests under 
  subsections (b) and (c).                                                
     ``(e) Commencement.--The Board shall begin to function as soon as it 
  has been established and has prescribed procedures under subsection (d),
  but not later than January 1, 1999.                                     
     ``(f) Transition.--The Board shall have jurisdiction under subsection
  (b) and (c) over any appeals and protests filed on or after the date on 
  which the Board begins to function. Any appeals and protests filed      
  before such date shall remain before the forum in which they were filed.
     ``(g) Other Functions.--The Board may perform functions similar to   
  those described in this section for such other matters or activities of 
  the Commission as the Commission may determine and in accordance with   
  regulations prescribed by the Commission.''.                            
          SEC. 3542. TRANSACTIONS WITH THE PANAMA CANAL AUTHORITY.                
    Section 1342 (22 U.S.C. 3752) is amended--                            
     (1) by designating the text of the section as subsection (a); and     
     (2) by adding at the end the following new subsections:               
     ``(b) The Commission may provide office space, equipment, supplies,  
  personnel, and other in-kind services to the Panama Canal Authority on a
  nonreimbursable basis.                                                  
     ``(c) Any executive department or agency of the United States may, on
  a reimbursable basis, provide to the Panama Canal Authority materials,  
  supplies, equipment, work, or services requested by the Panama Canal    
  Authority, at such rates as may be agreed upon by that department or    
  agency and the Panama Canal Authority.''.                               
          SEC. 3543. TIME LIMITATIONS ON FILING OF CLAIMS FOR DAMAGES.            
     (a) Filing of Administrative Claims With Commission.--Sections       
  1411(a) (22 U.S.C. 3771(a)) and 1412 (22 U.S.C. 3772) are each amended  
  in the last sentence by striking out ``within 2 years after'' and all   
  that follows through ``of 1985,'' and inserting in lieu thereof ``within
  one year after the date of the injury or the date of the enactment of   
  the Panama Canal Transition Facilitation Act of 1997,''.                
     (b) Filing of Judicial Actions.--The penultimate sentence of section 
  1416 (22 U.S.C. 3776) is amended--                                      
       (1) by striking out ``one year'' the first place it appears and     
   inserting in lieu thereof ``180 days''; and                             
       (2) by striking out ``claim, or'' and all that follows through ``of 
   1985,'' and inserting in lieu thereof ``claim or the date of the        
   enactment of the Panama Canal Transition Facilitation Act of 1997,''.   
          SEC. 3544. TOLLS FOR SMALL VESSELS.                                     
    Section 1602(a) (22 U.S.C. 3792(a)) is amended--                      
       (1) in the first sentence, by striking out ``supply ships, and      
   yachts'' and inserting in lieu thereof ``and supply ships''; and        
       (2) by adding at the end the following new sentence: ``Tolls for    
   small vessels (including yachts), as defined by the Commission, may be  
   set at rates determined by the Commission without regard to the         
   preceding provisions of this subsection.''.                             
          SEC. 3545. DATE OF ACTUARIAL EVALUATION OF FECA LIABILITY.              
     Section 5(a) of the Panama Canal Commission Compensation Fund Act of 
  1988 (22 U.S.C. 3715c(a)) is amended by striking out ``Upon the         
  termination of the Panama Canal Commission'' and inserting in lieu      
  thereof ``By March 31, 1998''.                                          
          SEC. 3546. APPOINTMENT OF NOTARIES PUBLIC.                              
    Section 1102a (22 U.S.C. 3612a) is amended--                          
     (1) by redesignating subsection (g) as subsection (h); and            
     (2) by inserting after subsection (f) the following new subsection:   
     ``(g)(1) The Commission may appoint any United States citizen to have
  the general powers of a notary public to perform, on behalf of          
  Commission employees and their dependents outside the United States, any
  notarial act that a notary public is required or authorized to perform  
  within the United States. Unless an earlier expiration is provided by   
  the terms of the appointment, any such appointment shall expire three   
  months after the Canal Transfer Date.                                   
     ``(2) Every notarial act performed by a person acting as a notary    
  under paragraph (1) shall be as valid, and of like force and effect     
  within the United States, as if executed by or before a duly authorized 
  and competent notary public in the United States.                       
     ``(3) The signature of any person acting as a notary under paragraph 
  (1), when it appears with the title of that person's office, is prima   
  facie evidence that the signature is genuine, that the person holds the 
  designated title, and that the person is authorized to perform a        
  notarial act.''.                                                        
          SEC. 3547. COMMERCIAL SERVICES.                                         
     Section 1102b (22 U.S.C. 3612b) is amended by adding at the end the  
  following new subsection:                                               
     ``(e) The Commission may conduct and promote commercial activities   
  related to the management, operation, or maintenance of the Panama      
  Canal. Any such commercial activity shall be carried out consistent with
  the Panama Canal Treaty of 1977 and related agreements.''.              
                    SEC. 3548. TRANSFER FROM PRESIDENT TO COMMISSION OF CERTAIN   
          REGULATORY FUNCTIONS RELATING TO EMPLOYMENT CLASSIFICATION APPEALS.     
     Sections 1221(a) and 1222(a) (22 U.S.C. 3661(a), 3662(a)) are amended
  by striking out ``President'' and inserting in lieu thereof             
  ``Commission''.                                                         
          SEC. 3549. ENHANCED PRINTING AUTHORITY.                                 
     Section 1306(a) (22 U.S.C. 3714b(a)) is amended by striking out      
  ``Section 501'' and inserting in lieu thereof ``Sections 501 through 517
  and 1101 through 1123''.                                                
          SEC. 3550. TECHNICAL AND CONFORMING AMENDMENTS.                         
     (a) Clerical Amendments.--The table of contents in section 1 is      
  amended--                                                               
       (1) by striking out the item relating to section 1210 and inserting 
   in lieu thereof the following:                                          
      ``Sec. 1210. Air transportation.'';                                     
       (2) by striking out the items relating to sections 1215, 1219, and  
   1225;                                                                   
       (3) by inserting after the item relating to section 1232 the        
   following new item:                                                     
      ``Sec. 1233. Transition separation incentive payments.'';               
   and                                                                     
       (4) by inserting after the item relating to the heading of title III
   the following:                                                          
                                 ``CHAPTER  1-- PROCUREMENT                       
      ``Sec. 3101. Procurement system.                                        
      ``Sec. 3102. Panama Canal Board of Contract Appeals.''.                 
     (b) Amendment To Reflect Prior Change in Compensation of             
  Administrator.--Section 5315 of title 5, United States Code, is amended 
  by striking out the following:                                          
     ``Administrator of the Panama Canal Commission.''.                    
     (c) Amendments To Reflect Change in Travel and Transportation        
  Expenses Authority.--(1) Section 5724(a)(3) of title 5, United States   
  Code, is amended by striking out ``, the Commonwealth of Puerto Rico,'' 
  and all that follows through ``Panama Canal Act of 1979'' and inserting 
  in lieu thereof ``or the Commonwealth of Puerto Rico''.                 
    (2) Section 5724a(j) of such title is amended--                       
     (A) by inserting ``and'' after ``Northern Mariana Islands,''; and     
       (B) by striking out ``United States, and'' and all that follows     
   through the period at the end and inserting in lieu thereof ``United    
   States.''.                                                              
     (3) The amendments made by this subsection shall take effect on      
  January 1, 1999.                                                        
    (d)  Miscellaneous Technical Amendments.--                            
       (1) Section 3(b) (22 U.S.C. 3602(b)) is amended by striking out     
   ``the Canal Zone Code'' and all that follows through ``other laws'' the 
   second place it appears and inserting in lieu thereof ``laws of the     
   United States and regulations issued pursuant to such laws''.           
       (2)(A) The following provisions are each amended by striking out    
   ``the effective date of this Act'' and inserting in lieu thereof        
   ``October 1, 1979'': sections 3(b), 3(c), 1112(b), and 1321(c)(1).      
       (B) Section 1321(c)(2) is amended by striking out ``such effective  
   date'' and inserting in lieu thereof ``October 1, 1979''.               
       (C) Section 1231(c)(3)(A) (22 U.S.C. 3671(c)(3)(A)) is amended by   
   striking out ``the day before the effective date of this Act'' and      
   inserting in lieu thereof ``September 30, 1979''.                       
       (3) Section 1102a(h), as redesignated by section 3546(1), is amended
   by striking out ``section 1102B'' and inserting in lieu thereof         
   ``section 1102b''.                                                      
       (4) Section 1110(b)(2) (22 U.S.C. 3620(b)(2)) is amended by striking
   out ``section 16 of the Act of August 1, 1956 (22 U.S.C. 2680a),'' and  
   inserting in lieu thereof ``section 207 of the Foreign Service Act of   
   1980 (22 U.S.C. 3927)''.                                                
       (5) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by striking
   out ``as last in effect before the effective date of section 3530 of the
   Panama Canal Act Amendments of 1996'' and inserting in lieu thereof ``as
   in effect on September 22, 1996''.                                      
       (6) Section 1243(c)(2) (22 U.S.C. 3681(c)(2)) is amended by striking
   out ``retroactivity'' and inserting in lieu thereof ``retroactively''.  
       (7) Section 1341(f) (22 U.S.C. 3751(f)) is amended by striking out  
   ``sections 1302(c)'' and inserting in lieu thereof ``sections 1302(b)''.
           TITLE XXXVI--MARITIME ADMINISTRATION                                    
      Sec. 3601. Authorization of appropriations for fiscal year 1998.        
            Sec. 3602. Repeal of obsolete annual report requirement concerning
      relative cost of shipbuilding in the various coastal districts of the   
      United States.                                                          
      Sec. 3603. Provisions relating to maritime security fleet program.      
      Sec. 3604. Authority to utilize replacement vessels and capacity.       
      Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.   
            Sec. 3606. Determination of gross tonnage for purposes of tank    
      vessel double hull requirements.                                        
          SEC. 3601. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1998.        
     Funds are hereby authorized to be appropriated for fiscal year 1998, 
  to be available without fiscal year limitation if so provided in        
  appropriations Act, for the use of the Department of Transportation for 
  the Maritime Administration as follows:                                 
       (1) For expenses necessary for operations and training activities,  
   $70,000,000.                                                            
       (2) For expenses under the loan guarantee program authorized by     
   title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.),
   $39,000,000 of which--                                                  
       (A) $35,000,000 is for the cost (as defined in section 502(5) of the
   Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan guarantees
   under the program; and                                                  
       (B) $4,000,000 is for administrative expenses related to loan       
   guarantee commitments under the program.                                
                    SEC. 3602. REPEAL OF OBSOLETE ANNUAL REPORT REQUIREMENT       
          CONCERNING RELATIVE COST OF SHIPBUILDING IN THE VARIOUS COASTAL         
          DISTRICTS OF THE UNITED STATES.                                         
     (a) Repeal.--Section 213 of the Merchant Marine Act, 1936 (46 U.S.C. 
  App. 1123), is amended by striking out paragraph (c).                   
    (b)  Conforming Amendments.--Such section is further amended--        
       (1) by striking out ``on--'' in the matter preceding paragraph (a)  
   and inserting in lieu thereof ``on the following:'';                    
       (2) by redesignating paragraphs (a) and (b) as paragraphs (1) and   
   (2), respectively;                                                      
       (3) by striking out the semicolon at the end of each of those       
   paragraphs and inserting in lieu thereof a period; and                  
       (4) by realigning those paragraphs so as to be indented 2 ems from  
   the left margin.                                                        
          SEC. 3603. PROVISIONS RELATING TO MARITIME SECURITY FLEET PROGRAM.      
     (a) Authority of Contractors To Operate Self-Propelled Tank Vessels  
  in Noncontiguous Domestic Trades.--Section 656(b) of the Merchant Marine
  Act, 1936 (46 U.S.C. App. 1187e(b)) is amended by inserting ``(1)''     
  after ``(b)'', and by adding at the end the following new paragraph:    
     ``(2) Subsection (a) shall not apply to operation by a contractor of 
  a self-propelled tank vessel in a noncontiguous domestic trade, or to   
  ownership by a contractor of an interest in a self-propelled tank vessel
  that operates in a noncontiguous domestic trade.''.                     
     (b) Relief From Delay in Certain Operations Following                
  Documentation.--Section 652(c) of the Merchant Marine Act, 1936 (46     
  U.S.C. 1187a(c)) is amended by adding at the end the following: ``The   
  restrictions of section 901(b)(1) of this Act concerning the building,  
  rebuilding, or documentation of a vessel in a foreign country shall not 
  apply to a vessel for any day the operator of that vessel is receiving  
  payments under an operating agreement under this subtitle.''.           
          SEC. 3604. AUTHORITY TO UTILIZE REPLACEMENT VESSELS AND CAPACITY.       
     Section 653(d)(1) of the Merchant Marine Act, 1936 (46 U.S.C. App.   
  1187b(d)(1)) is amended to read as follows:                             
       ``(1) a contractor or other person that commits to make available a 
   vessel or vessel capacity under the Emergency Preparedness Program or   
   another primary sealift readiness program approved by the Secretary of  
   Defense may, during the activation of that vessel or capacity under that
   program, operate or employ in foreign commerce a foreign-flag vessel or 
   foreign-flag vessel capacity as a temporary replacement for the         
   activated vessel or capacity; and''.                                    
          SEC. 3605. AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET VESSEL.   
     (a) Authority To Convey.--The Secretary of Transportation may convey 
  all right, title, and interest of the United States Government in and to
  the vessel GOLDEN BEAR (United States official number 239932) to the    
  Artship Foundation, located in Oakland, California (in this section     
  referred to as the ``recipient''), for use as a multi-cultural center   
  for the arts.                                                           
    (b)  Terms of Conveyance.--                                           
       (1) Delivery of vessel.--In carrying out subsection (a), the        
   Secretary shall deliver the vessel--                                    
       (A) at the place where the vessel is located on the date of         
   conveyance;                                                             
     (B) in its condition on that date; and                                
     (C) at no cost to the United States Government.                       
       (2) Required conditions.--The Secretary may not convey a vessel     
   under this section unless--                                             
       (A) the recipient agrees to hold the Government harmless for any    
   claims arising from exposure to hazardous material, including asbestos  
   and polychlorinated biphenyls, after conveyance of the vessel, except   
   for claims arising before the date of the conveyance or from use of the 
   vessel by the Government after that date; and                           
       (B) the recipient has available, for use to restore the vessel, in  
   the form of cash, liquid assets, or a written loan commitment, financial
   resources of at least $100,000.                                         
       (3) Additional terms.--The Secretary may require such additional    
   terms in connection with the conveyance                                 
          authorized by this section as the Secretary considers appropriate.      
     (c) Other Unneeded Equipment.--The Secretary may convey to the       
  recipient of the vessel conveyed under this section any unneeded        
  equipment from other vessels in the National Defense Reserve Fleet, for 
  use to restore the vessel conveyed under this section to museum quality.
                    SEC. 3606. DETERMINATION OF GROSS TONNAGE FOR PURPOSES OF TANK
          VESSEL DOUBLE HULL REQUIREMENTS.                                        
     Section 3703a of title 46, United States Code, is amended by adding  
  at the end the following:                                               
     ``(e)(1) For the purposes of this section and except as otherwise    
  provided in paragraphs (2) and (3) of this subsection, the gross tonnage
  of a vessel shall be the gross tonnage that would have been recognized  
  by the Secretary on July 1, 1997, as the tonnage measured under section 
  14502 of this title, or as an alternate tonnage measured under section  
  14302 of this title as prescribed by the Secretary under section 14104  
  of this title.                                                          
     ``(2)(A) The Secretary may waive the application of paragraph (1) to 
  a tank vessel if--                                                      
       ``(i) the owner of the tank vessel applies to the Secretary for the 
   waiver before January 1, 1998;                                          
     ``(ii) the Secretary determines that--                                
       ``(I) the owner of the tank vessel has entered into a binding       
   agreement to alter the tank vessel in a shipyard in the United States to
   reduce the gross tonnage of the tank vessel by converting a portion of  
   the cargo tanks of the tank vessel into protectively located segregated 
   ballast tanks; and                                                      
       ``(II) that conversion will result in a significant reduction in the
   risk of a discharge of oil;                                             
       ``(iii) at least 60 days before the date of the issuance of the     
   waiver, the Secretary--                                                 
       ``(I) publishes notice that the Secretary has received the          
   application and made the determinations required by clause (ii),        
   including a description of the agreement entered into pursuant to clause
   (ii)(I); and                                                            
       ``(II) provides an opportunity for submission of comments regarding 
   the application; and                                                    
       ``(iv) the alterations referred to in clause (ii)(I) are completed  
   before the later of--                                                   
       ``(I) the date by which the first special survey of the tank vessel 
   is required to be completed after the date of the enactment of the      
   National Defense Authorization Act for Fiscal Year 1998; or             
     ``(II) July 1, 1999.                                                  
     ``(B) A waiver under subparagraph (A) shall not be effective after   
  the expiration of the 3-year period beginning on the first date on which
  the tank vessel would have been prohibited by subsection (c) from       
  operating if the alterations referred to in subparagraph (A)(ii)(I) were
  not made.                                                               
     ``(3) This subsection does not apply to a tank vessel that, before   
  July 1, 1997, had undergone, or was the subject of a contract for,      
  alterations that reduce the gross tonnage of the tank vessel, as shown  
  by reliable evidence acceptable to the Secretary.''.                    
    And the Senate agree to the same.                                     
    That the Senate recede from its amendment to the title of the bill.   
      From the Committee on National Security, for consideration of the    
   House bill and the Senate amendment, and modifications committed to     
   conference:                                                             
    Floyd Spence,                                                           
    Bob Stump,                                                              
    Duncan Hunter,                                                          
    John R. Kasich,                                                         
    Herbert H. Bateman,                                                     
    James V. Hansen,                                                        
    Curt Weldon,                                                            
    Joel Hefley,                                                            
    Jim Saxton,                                                             
    Steve Buyer,                                                            
    Tillie K. Fowler,                                                       
    John M. McHugh,                                                         
    James M. Talent,                                                        
    Terry Everett,                                                          
     (except for sections 355, 356, and 358 367),                            
    Roscoe G. Bartlett,                                                     
    Howard ``Buck'' McKeon,                                                 
    Ron Lewis,                                                              
    J.C. Watts,  Jr.,                                                       
    Saxby Chambliss,                                                        
    Bob Riley,                                                              
    Ike Skelton,                                                            
    Norman Sisisky,                                                         
    John M. Spratt,  Jr.,                                                   
          (except for the increase over the President's request for research 
     and development of a space-based laser and the statement of managers on 
     this program),                                                          
    Solomon P. Ortiz,                                                       
    Owen Pickett,                                                           
    Gene Taylor,                                                            
    Neil Abercrombie,                                                       
    Martin T. Meehan,                                                       
    Jane Harman,                                                            
    Paul McHale,                                                            
    Patrick J. Kennedy,                                                     
    Rod Blagojevich,                                                        
    Vic Snyder,                                                             
      As additional conferees from the Permanent Select Committee on       
   Intelligence, for consideration of matters within the jurisdiction of   
   that committee under clause 2 of rule XLVIII:                           
    Porter J. Goss,                                                         
    Jerry Lewis,                                                            
    Norm Dicks,                                                             
      As additional conferees from the Committee on Commerce for           
   consideration of sections 344, 601, 654, 735, 1021, 3143, 3144, 3201,   
   3202, 3402, and 3404 of the House bill, and sections 338, 601, 663, 706,
   1064, 2823, 3136, 3140, 3151, 3160, 3201, and 3402 of the Senate        
   amendment, and modifications committed to conference:                   
    Tom Bliley,                                                             
    Dan Schaefer,                                                           
      Provided that Mr. Oxley is appointed in lieu of Mr. Dan Schaefer of  
   Colorado for consideration of sections 344 and 1021 of the House bill   
   and section 2823 of the Senate amendment:                               
    Michael G. Oxley,                                                       
      Provided that Mr. Bilirakis is appointed in lieu of Mr. Dan Schaefer 
   of Colorado for consideration of sections 601, 654, and 735 of the House
   bill, and sections 338, 601, 663, and 706 of the Senate amendment:      
    Mike Bilirakis,                                                         
      Provided that Mr. Tauzin is appointed in lieu of Mr. Dan Schaefer of 
   Colorado for consideration of section 1064 of the Senate amendment.     
    Billy Tauzin,                                                           
      As additional conferees from the Committee on Education and the      
   Workforce, for consideration of sections 374, 658, and 3143 of the House
   bill, and sections 664 of the Senate amendment, and modifications       
   committed to conference:                                                
    Bill Goodling,                                                          
    Harris W. Fawell,                                                       
    Loretta Sanchez,                                                        
      Provided that Mr. Riggs is appointed in lieu of Mr. Fawell for       
   consideration of section 658 of the House bill and section 664 of the   
   Senate amendment:                                                       
    Frank Riggs,                                                            
      As additional conferees from the Committee on Government Reform and  
   Oversight, for consideration of section 322 and 3527 of the House bill, 
   and sections 1068, 1107, 2811, and 3527 of the Senate amendment, and    
   modifications committed to conference:                                  
    Dan Burton,                                                             
    Stephen Horn,                                                           
      As additional conferees from the Committee on House Oversight, for   
   consideration of section 543 of the Senate amendment, and modifications 
   committed to conference:                                                
    William M. Thomas,                                                      
    Bob Ney,                                                                
      As additional conferees from the Committee on the Judiciary, for     
   consideration of sections 374, 1057, 3521, 3522, and 3541 of the House  
   bill, and sections 831, 1073, 1075, 1106, and 1201 1216 of the Senate   
   amendment, and modifications committed to conference:                   
    Henry J. Hyde,                                                          
    Lamar Smith,                                                            
      As additional conferees from the Committee on Resources, for         
   consideration of sections 214, 601, 653, 1021, 2835, 2901 2914 and 3404 
   of the House bill, and sections 234, 381 392, 601, 706, 2819, and 3158  
   of the Senate amendment, and modifications committed to conference:     
    Don Young,                                                              
    Billy Tauzin,                                                           
      Provided that Mr. Delahunt is appointed in lieu of Mr. Miller of     
   California for consideration of sections 2901 2914 of the House bill and
   sections 381 392 of the Senate amendment.                               
    William Delahunt,                                                       
      As additional conferees from the Committee on Science, for           
   consideration of sections 214 and 3148 of the House bill, and sections  
   234 and 1064 of the Senate amendment, and modifications committed to    
   conference:                                                             
    F. James Sensenbrenner,  Jr.,                                           
    Ken Calvert,                                                            
    George E. Brown,  Jr.,                                                  
      Provided that Mr. Rohrabacher is appointed in lieu of Mr. Calvert for
   consideration of section 1064 of the Senate amendment:                  
    Dana Rohrabacher,                                                       
      As additional conferees from the Committee on Transportation and     
   Infrastructure for consideration of sections 345, 563, 601, 1021, 2861, 
   and 3606 of the House bill, and section 601 of the Senate amendment, and
   modifications committed to conference:                                  
    Bud Shuster,                                                            
    Wayne T. Gilchrest,                                                     
    Robert A. Borski,                                                       
      As additional conferees from the Committee on Veterans' Affairs for  
   consideration of sections 751, 752, and 759 of the House bill, and      
   sections 220, 542, 751, 752, 758, 1069, 1074, and 1076 of the Senate    
   amendment, and modifications committed to conference:                   
    Christopher H. Smith,                                                   
    Mike Bilirakis,                                                         
    Joseph P. Kennedy,                                                      
        Managers on the Part of the House.                                      
     Strom Thurmond,                                                        
     John Warner,                                                           
     John McCain,                                                           
     Dan Coats,                                                             
     Bob Smith,                                                             
     Dirk Kempthorne,                                                       
     Jim Inhofe,                                                            
     Rick Santorum,                                                         
     Olympia Snowe,                                                         
     Pat Roberts,                                                           
     Carl Levin,                                                            
     Ted Kennedy,                                                           
     Jeff Bingaman,                                                         
     John Glenn,                                                            
     Robert C. Byrd,                                                        
     Chuck Robb,                                                            
     Joe Lieberman,                                                         
     Max Cleland,                                                           
        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         
   conference on the disagreeing votes of the two Houses on the amendment  
   of the Senate to the bill (H.R. 1119) to authorize appropriations for   
   fiscal year 1998 for defense activities of the Department of Defense,   
   for military construction, and for defense programs of the Department of
   Energy, to prescribe personnel strengths for such fiscal year for the   
   Armed Forces, 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 Senate amendment struck out all of the House bill after the     
   enacting clause and inserted a substitute text.                         
       The House recedes from its disagreement to the amendment of the     
   Senate with an amendment which is a substitute for the House bill and   
   the Senate amendment. The differences between the House bill, the Senate
   amendment, and the substitute agreed to in conference are noted below,  
   except for clerical corrections, conforming changes made necessary by   
   agreements reached by the conferees, and minor drafting and clarifying  
   changes.                                                                
                           SUMMARY STATEMENT OF CONFERENCE ACTION                 
       The conferees recommend authorizations for the Department of Defense
   for procurement, research and development, test and evaluation,         
   operation and maintenance, working capital funds, military construction 
   and family housing, weapons programs of the Department of Energy, and   
   the civil defense that have budget authority implications of $268.2     
   billion.                                                                
                              SUMMARY TABLE OF AUTHORIZATIONS                     
       The defense authorization act provides authorizations for           
   appropriations but does not generally provide budget authority. Budget  
   authority is provided in appropriations acts.                           
       In order to relate the conference recommendations to the Budget     
   Resolution, matter in addition to the dollar authorizations contained in
   this bill must be taken into account. A number of programs in the       
   defense function are authorized permanently or, in certain instances,   
   authorized in other annual legislation. In addition, this authorization 
   bill would establish personnel levels and include a number of           
   legislative provisions affecting military compensation.                 
       The following table summarizes authorizations included in the bill  
   for fiscal year 1998 and, in addition, summarizes the implications of   
   the conference action for the budget totals for national defense (budget
   function 050).                                                          
   Offset Folios 1002 to 1006 insert here                                  
           Congressional defense committees                                        
       The term ``congressional defense committees'' is often used in this 
   statement of the managers. It means the Defense Authorization and       
   Appropriations Committees of the Senate and House of Representatives.   
                      DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS            
                                    TITLE I--PROCUREMENT                          
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $42,883.0 million for Procurement in the Department of Defense. The  
   House bill would authorize $46,595.9 million. The Senate amendment would
   authorize $47,028.1 million. The conferees recommended an authorization 
   of $45,773.8 million. Unless noted explicitly in the statement of       
   managers, all changes are made without prejudice.                       
   Offset Folios 1009 to 1010 insert here                                  
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $1,162.5 million for Aircraft Procurement, Army in the Department of 
   Defense. The House bill would authorize $1,535.3 million. The Senate    
   amendment would authorize $1,394.5 million. The conferees recommended an
   authorization of $1,316.2 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1012 to 1013 insert here                                  
                           FUNDING EXPLANATIONS                          
           UH 60 blackhawk                                                         
       The budget request included $246.1 million to procure 18 UH 60      
   Blackhawk helicopters.                                                  
       The House bill would authorize an increase of $96.0 million for an  
   additional 12 aircraft.                                                 
       The Senate amendment would authorize an increase of $127.3 million  
   for 18 additional aircraft.                                             
       The conferees agree to authorize an increase of $89.0 million for 10
   additional aircraft, of which $6.0 million would be used to procure kits
   to configure UH 60Q medical evacuation aircraft.                        
           Kiowa warrior                                                           
       The budget request included $38.8 million for Kiowa Warrior         
   helicopter modifications.                                               
       The House bill would authorize an increase of $175.0 million to     
   procure 21 aircraft.                                                    
       The Senate amendment would authorize an additional $15.0 million for
   safety modifications to existing aircraft.                              
    The House recedes.                                                     
           Aircraft survivability equipment modifications                          
       The budget request included $4.6 million to support aircraft        
   survivability equipment modifications.                                  
       The House bill would authorize an increase of $15.0 million for     
   laser detection sets for Army aircraft.                                 
       The Senate amendment would authorize an additional $8.1 million for 
   testing and integration of the suite of integrated radio frequency      
   countermeasures and the suite of integrated infrared countermeasures    
   systems.                                                                
       The conferees agree to authorize a total of $19.1 million for       
   aircraft survivability equipment modifications, of which $7.0 million   
   would be for laser detection sets and $7.5 million for advanced threat  
   infrared countermeasures.                                               
           Aircraft survivability equipment                                        
       The budget request included $0.9 million to procure aircraft        
   survivability equipment.                                                
       The House bill would authorize an increase of $14.8 million to      
   procure upgrades to the aircraft survivability equipment trainer (ASET) 
   IV system.                                                              
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $7.4 million for    
   ASET IV upgrades.                                                       
           Training devices                                                        
    The budget request included no funds for aircraft training devices.    
       The House bill and the Senate amendment would authorize an increase 
   of $18.6 million to procure upgrades to flight simulators used in the   
   Korean theater.                                                         
       The conferees agree to authorize an increase of $13.3 million for   
   these critical simulator upgrades.                                      
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $1,178.2 million for Missile Procurement, Army in the Department of  
   Defense. The House bill would authorize $1,176.5 million. The Senate    
   amendment would authorize $1,223.9 million. The conferees recommended an
   authorization of $742.6 million. Unless noted explicitly in the         
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1017 to 1018 Insert here                                  
           Avenger                                                                 
       The budget request included no funds for procurement of Avenger     
   missile systems.                                                        
       The House bill would authorize an increase of $13.3 million for     
   Avenger slew-to-cue modifications.                                      
       The Senate amendment would authorize an increase of $15.0 million to
   the budget request: $13.0 million for Avenger slew-to-cue modifications;
   and $2.0 million for Avenger table top trainers for the Army National   
   Guard.                                                                  
       The conferees agree to authorize $7.4 million for Avenger           
   slew-to-cue modifications.                                              
           Hellfire                                                                
       The budget request included $279.7 million for procurement of       
   Hellfire missile systems.                                               
    The House bill would support the budget request.                       
    The Senate amendment would reduce the budget request by $10.7 million. 
       The conferees agree to reduce the Hellfire missile program by $30.7 
   million.                                                                
           Multiple launch rocket system rocket                                    
       The budget request included $2.9 million for procurement of Multiple
   Launch Rocket System (MLRS) rockets.                                    
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $12.0 million   
   for procurement of extended range MLRS rockets.                         
    The House recedes.                                                     
           Multiple launch rocket system launcher                                  
       The budget request included $102.6 million to support procurement of
   Multiple Launch Rocket System (MLRS) launchers.                         
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $25.1 million   
   for MLRS launchers necessary to accelerate Army plans to convert MLRS   
   force structure to a new 2 9 configuration.                             
       The conferees agree to authorize $115.7 million for this program.   
   This total includes $25.1 million for additional launchers and a        
   transfer of $12.0 million to MLRS extended range rockets.               
           Brilliant anti-armor submunition                                        
       The budget request included $85.2 million for procurement of        
   Brilliant Anti-Armor Submunition (BAT) submunitions.                    
    The House bill and Senate amendment would authorize the budget request.
       The conferees are concerned about the Army's procurement of basic   
   BAT munitions prior to production and fielding of the objective         
   preplanned product improvement (P3I) BAT system. While the conferees    
   understand that the Army plans to use the basic BAT as a bridge to the  
   P3I system for development and fielding of the Block II Army Tactical   
   Missile System, it is clear that the basic BAT system is solely an      
   interim solution and cannot meet the entire range of system             
   requirements. The conferees agree to eliminate funding for the basic BAT
   munition. The conferees, in support of an alternative to procuring basic
   BAT munitions, agree to authorize a transfer of $35.0 million to PE     
   64768A in order to accelerate development and production of the P3I BAT.
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $1,065.7 million for Weapons and Tracked Combat Vehicles Procurement,
   Army in the Department of Defense. The House bill would authorize       
   $1,519.5 million. The Senate amendment would authorize $1,179.1 million.
   The conferees recommended an authorization of $1,297.6 million. Unless  
   noted explicitly in the statement of managers, all changes are made     
   without prejudice.                                                      
   Offset Folios 1022 to 1023 Insert here                                  
           Bradley base sustainment                                                
       The budget request included $125.6 million to upgrade Bradley       
   Fighting Vehicles (BFV).                                                
       The House bill would authorize the budget request but would also    
   authorize $120.0 million for A0 to A2 Operation Desert Storm (ODS)      
   upgrades for the Army National Guard (ARNG) in the BFV funding line.    
       The Senate amendment would authorize an increase of $62.4 million to
   maintain low-rate production rates for A3 upgrades necessary prior to   
   full scale production in 1999.                                          
       The conferees agree to authorize an increase of $95.0 million for   
   BFV ODS upgrades for the ARNG.                                          
           Field artillery ammunition support vehicle                              
       The budget request included no funds for Field Artillery Ammunition 
   Support Vehicles (FAASV).                                               
       The House bill would authorize an increase of $81.1 million to      
   procure 72 FAASV systems.                                               
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize $40.0 million for the FAASV systems
   necessary to support Army National Guard artillery modernization.       
           M109A6 paladin howitzer                                                 
       The budget request included $18.7 million for Paladin howitzer      
   artillery system support.                                               
       The House bill would authorize an increase of $111.0 million to     
   procure 72 Paladin howitzer systems.                                    
    The Senate amendment would authorize the budget request.               
       The Senate recedes with an amendment that would authorize an        
   increase of $56.0 million for no less than 36 Paladin systems.          
       The conferees agree to authorize $74.7 million for the M109A6       
   Paladin in support of Army National Guard artillery modernization.      
           Improved recovery vehicle                                               
       The budget request included $28.6 million for Improved Recovery     
   Vehicle (IRV) program support.                                          
       The House bill would authorize an increase of $27.8 million to      
   procure an additional 12 vehicles.                                      
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize $32.6 million for IRV system       
   requirements.                                                           
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $336.8 million for Ammunition Procurement, Navy and Marine Corps in  
   the Department of Defense. The House bill would authorize $470.4        
   million. The Senate amendment would authorize $369.8 million. The       
   conferees recommended an authorization of $364.7 million. Unless noted  
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              
   Offset Folios 1027 to 1028 Insert here                                  
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $7,438.2 million for Shipbuilding and Conversion Procurement, Navy in
   the Department of Defense. The House bill would authorize $7,655.0      
   million. The Senate amendment would authorize $8,593.4 million. The     
   conferees recommended an authorization of $8,195.3 million. Unless noted
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              
   Offset Folios 1030 to 1031 Insert here                                  
           LPD 18                                                                  
    The budget request included no funds for the LPD 18.                   
       The House bill would authorize $185.0 million for advance           
   procurement of this type ship.                                          
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize $100.0 million for the advance     
   procurement of one LPD 17 class ship.                                   
           Oceanographic survey ship                                               
       The budget request included no funds for an additional oceanographic
   survey ship.                                                            
       The House bill and Senate amendment would authorize $75.2 million   
   for one TAGS 65 oceanographic survey ship.                              
       The conferees agree to authorize $16.0 million advance procurement  
   for one TAGS 65 oceanographic survey ship.                              
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $2,825.5 million for Other Procurement, Navy in the Department of    
   Defense. The House bill would authorize $3,073.4 million. The Senate    
   amendment would authorize $3,137.7 million. The conferees recommended an
   authorization of $2,970.9 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1034 to 1041 Insert here                                  
           AN/WSN 7 inertial navigation system                                     
       The budget request included $31.6 million for navigation equipment, 
   including $12.3 million for the procurement of nine AN/WSN 7 ring laser 
   gyros (RLGs).                                                           
       The House bill and the Senate amendment would authorize an increase 
   of $18.0 million for procurement and installation of 18 additional WSN 7
   RLGs.                                                                   
       The conferees agree to authorize an increase of $10.5 million for   
   procurement and installation of additional WSN 7 RLGs.                  
           Self-contained breathing apparatus                                      
       The budget request included $14.1 million for fire fighting         
   equipment, but did not include funding for procurement of oxygen        
   breathing apparatuses used for shipboard firefighting.                  
       The House bill would authorize an increase of $23.0 million to begin
   outfitting the fleet with self-contained breathing apparatuses (SCBAs), 
   a non-developmental, commercial off-the-shelf more user-friendly and    
   efficient shipboard firefighting system to replace the antiquated       
   oxygen-breathing apparatus (OBA).                                       
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $5.0 million for    
   procurement of SCBAs.                                                   
           Pollution control equipment                                             
       The budget request included $156.8 million for pollution control    
   equipment.                                                              
       The House bill would authorize a decrease of $6.3 million because an
   equivalent amount of excess fiscal year 1997 funds is available to meet 
   fiscal year 1998 program requirements.                                  
       The Senate amendment would authorize a decrease of $8.8 million due 
   to reduced requirements resulting from ship deactivations.              
       The conferees agree to authorize $135.8 million, a decrease of $21.0
   million, for pollution control equipment.                               
           AN/BPS 16 submarine navigation radar                                    
       The budget request included no funds for the procurement of AN/BPS  
   16 or AN/BPS 15H submarine navigation radar.                            
       The House bill would authorize $9.0 million for the AN/BPS 16       
   submarine navigation radar to initiate the backfit of the radar on the  
   Trident submarine fleet.                                                
       The Senate amendment would authorize $9.0 million for the           
   procurement of additional AN/BPS 15H radar sets for installation into   
   Trident class submarines and for use as training and refit facility     
   assets.                                                                 
       The conferees agree to authorize $9.0 million for AN/BPS 15H radar  
   navigation sets.                                                        
           Cooperative engagement capability                                       
       The budget request included no funds for procurement of cooperative 
   engagement capability (CEC) equipment.                                  
       The House bill would authorize $114.8 million to restore the Navy's 
   CEC fielding plan by procuring and installing CEC shipsets for two      
   aircraft carrier battle groups.                                         
       The Senate amendment would authorize $74.8 million to procure and   
   install CEC battle group equipment.                                     
       The conferees agree to authorize an increase of $75.0 million for   
   procurement and installation of CEC battle group equipment.             
           Information Technology 21                                               
       The budget request included no funds for Information Technology 21  
   (IT 21).                                                                
       The Senate amendment would authorize an increase of $157.2 million  
   for IT 21. Of this amount $147.9 would be for procurement and           
   installation of IT 21 related equipment and $9.3 million would be for   
   related operations and maintenance funding. These funds would provide an
   initial impetus to the IT 21 initiative and assist the Navy to achieve  
   its goal of a fully outfitted fleet by the year 2000.                   
    The House bill would authorize the budget request.                     
       The conferees agree to authorize a total IT 21 procurement increase 
   of $58.0 million as follows:                                            
    (1) JMCIS Afloat $6.0 million;                                         
    (2) Naval Tactical Command Support System $31.0 million;               
    (3) Ship Communications Automation $4.0 million;                       
    (4) SATCOM Ship Terminals (Space) $2.0 million;                        
    (5) Naval Shore Communications $12.0 million; and                      
    (6) Information Systems Security Program $3.0 million                  
           Sonobuoy procurement                                                    
       The budget request included $54.8 million for the procurement of    
   AN/SSQ 36, AN/SSQ 53E, and AN/SSQ 62E sonobuoys and Signal, Underwater  
   Sound (SUS) Systems. The budget request included no funds for the AN/SSQ
   57 or the AN/SSQ 110 sonobuoys.                                         
       The House bill would authorize an increase of $45.8 million to be   
   distributed as follows: $1.5 million for AN/SSQ 36; $23.7 million for   
   AN/SSQ 53; $4.5 million for AN/SSQ 57 retrofits; $8.6 million for SSQ   
   62; $5.0 million for AN/SSQ 110 shallow-water upgrades; and $2.5 million
   for Signal, Underwater Sound (SUS).                                     
       The Senate amendment would authorize increases of $19.0 million for 
   AN/SSQ 53E and $7.0 million for AN/SSQ 62E sonobuoys.                   
      The conferees agree to authorize the following increases to the      
   budget request: $0.3 million for AN/SSQ 36; $19.0 million for AN/SSQ 53;
   $7.0 million for SSQ 62; and $0.5 million for AN/SSQ 57.                
           Mobile remote emitter simulator                                         
       The budget request included $4.9 million for weapons range support, 
   but did not include any funding to procure Mobile Remote Emitter        
   Simulator (MRES) system.                                                
       The House bill would authorize an increase of $9.5 million to       
   procure two MRES systems for the Atlantic test range component of the   
   Naval Air Warfare Center.                                               
    The Senate amendment would authorize the budget request.               
    The conferees agree to authorize an increase of $6.0 million for MRES. 
           NATO sea sparrow missile system low light level television              
       The budget request included no funds for the NATO Sea Sparrow       
   missile system low light level television (LLTV) charged coupled device 
   (CCD) ordnance alternation (ORDALT).                                    
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $8.0 million    
   above the budget request for the procurement of additional CCD ORDALT   
   kits.                                                                   
       The conferees agree to an increase of $6.0 million for the          
   procurement of additional CCD ORDALT kits.                              
           AEGIS support equipment                                                 
    The budget request included $26.8 million for AEGIS support equipment. 
       The House bill would authorize an increase of $8.0 million to       
   backfit the computer-aided submode training lesson authorizing system   
   (CLASS) on AEGIS cruisers and destroyers and to expand CLASS to other   
   systems such as cooperative engagement capability, joint maritime       
   command information system, and global command and control system.      
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize a $21.1 million for AEGIS support  
   equipment.                                                              
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $374.3 million for Marine Corps Procurement, Navy in the Department  
   of Defense. The House bill would authorize $442.8 million. The Senate   
   amendment would authorize $554.8 million. The conferees recommended an  
   authorization of $460.1 million. Unless noted explicitly in the         
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1047 to 1049 Insert here                                  
           Light tactical wheeled vehicle replacement                              
       The budget request included $0.7 million to support the Marine Corps
   High Mobility Multipurpose Wheeled Vehicle (HMMWV) program.             
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $55.0 million to
   accelerate a planned replacement program for a deteriorating HMMWV      
   fleet.                                                                  
    The conferees agree to authorize an increase of $30.0 million.         
           Chemical/biological incident response force equipment                   
       The budget request included $1.1 million for field medical equipment
   and no funding for chemical/biological incident response force (CBIRF)  
   equipment.                                                              
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $15.0 million   
   for procurement of CBIRF equipment.                                     
       The conferees agree to authorize an increase of $10.0 million for   
   CBIRF requirements for a total of $11.1 million for Marine Corps field  
   medical equipment procurement.                                          
           MK 19 grenade launcher                                                  
    The budget request included no funds for the MK 19 grenade launcher.   
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $13.0 million to
   maintain production of the MK 19 grenade launchers.                     
       The conferees agree to authorize a total of $8.0 million for the MK 
   19 grenade launcher.                                                    
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $890.9 million for Ammunition Procurement, Army in the Department of 
   Defense. The House bill would authorize $1,093.8 million. The Senate    
   amendment would authorize $1,043.2 million. The conferees recommended an
   authorization of $1,011.2 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1053 to 1054 Insert here                                  
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $2,455.0 million for Other Procurement, Army in the Department of    
   Defense. The House bill would authorize $2,640.3 million. The Senate    
   amendment would authorize $2,875.7 million. The conferees recommended an
   authorization of $2,566.2 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1056 to 1062 Insert here                                  
           Semitrailers                                                            
       The budget request included funds for a variety of semitrailer      
   requirements.                                                           
       The conferees note program delays for several semitrailer           
   procurements. In consideration of these delays, the conferees agree to  
   funding reductions of $7.4 million for 22.5 ton semitrailer/container   
   transporters; $4.6 million for 5,000 gallon tank semitrailers; and $7.4 
   million for 7,500 gallon bulkhaul semitrailers. In addition, the        
   conferees agree to authorize $2.0 million for 22.5 ton                  
   semitrailer/container transporters; $3.0 million for 5,000 gallon tank  
   semitrailers; and $3.0 million for 7,500 gallon bulkhaul semitrailers.  
           High mobility multi-purpose wheeled vehicle                             
       The budget request included $66.2 million for High Mobility         
   Multi-Purpose Wheeled Vehicle (HMMWV) production.                       
       The House bill would authorize an increase of $38.7 million for 360 
   up-armored HMMWVs.                                                      
       The Senate amendment would authorize an increase of $75.0 million to
   maintain minimum production levels of HMMWVs.                           
       The conferees agree to authorize an increase of $65.0 million for   
   HMMWV production.                                                       
           Family of heavy tactical vehicles                                       
       The budget request included $9.1 million for Family of Heavy        
   Tactical Vehicles (FHTV) production support.                            
       The House bill would authorize an increase of $45.0 million to      
   procure 96 Heavy Equipment Transporters (HETS) for the Army National    
   Guard.                                                                  
       The Senate amendment would authorize an increase of $128.0 million  
   to maintain minimum production levels of FHTVs. This funding would      
   include $50.0 million for the Palletized Load System (PLS); $45.0       
   million for HETS; and $33.0 million for Heavy Expanded Mobility Tactical
   Truck (HEMTT) wreckers.                                                 
       The conferees agree to authorize an increase of $105.0 million for  
   FHTV. Of this amount, $45.0 million is for HETS and the remaining $60.0 
   million is for HEMTT wreckers and PLS.                                  
           Truck, tractor, line haul, M915/M916                                    
       The budget request included $36.1 million to procure M915/916 line  
   haul tractors.                                                          
       The House bill would reduce the request by $18.0 million to achieve 
   a more moderate rate of production.                                     
    The Senate amendment would authorize the budget request.               
       The conferees understand that there has been a delay in the 7,500   
   gallon bulkhaul semitrailer program, which is the type of trailer towed 
   by the M915/916 line haul tractor series. Accordingly the conferees     
   believe that revised Army requirements can be met at lower average      
   procurement rates than previously planned and therefore agree to        
   eliminate funding for these tractors in fiscal year 1998. Further, the  
   Secretary of the Army is directed to review requirements for this       
   equipment and restructure the program to achieve an annual procurement  
   rate consistent with revised requirements beginning in fiscal year 1999.
           Defense satellite communications system                                 
       The budget request included $87.6 million for defense satellite     
   communications system requirements.                                     
    The House bill and Senate amendment would authorize the budget request.
       The conferees note the budget request included funding for          
   acceleration of the production of a universal modem system. The         
   conferees understand that required testing for this system will not be  
   complete until late 1999. Therefore, the conferees agree to reduce      
   program funding by $2.0 million.                                        
           Satellite terminals                                                     
       The budget request included $7.3 million for satellite communication
   terminals.                                                              
    The House bill and Senate amendment would authorize the budget request.
       The conferees note the savings achieved from a joint Army/Air Force 
   procurement in 1997. The conferees believe that these savings should be 
   used to offset funding requirements for fiscal year 1998. Therefore, the
   conferees agree to reduce program funding by $1.2 million.              
           NAVSTAR global positioning system                                       
       The budget request included $6.8 million for NAVSTAR Global         
   Positioning System (GPS) equipment.                                     
    The House bill and Senate amendment would authorize the budget request.
       The conferees have been informed that both price and quantities     
   budgeted for NAVSTAR GPS equipment were reduced in 1997. Additionally,  
   the conferees understand that program                                   
                    management reductions have also yielded savings. The conferees
          believe these savings should be used to offset funding requirements for 
          fiscal year 1998. Therefore, the conferees agree to reduce funding for  
          this program by $1.2 million.                                           
           Army data distribution system                                           
       The budget request included $57.2 million to procure data           
   distribution systems, including $7.0 million for joint tactical         
   information distribution system (JTIDS) terminals.                      
       The House bill would authorize an increase of $37.4 million to      
   procure an additional 1,092 enhanced position location reporting system 
   (EPLRS) radios.                                                         
       The Senate amendment would authorize an increase of $37.3 million   
   for 1,092 EPLRS radios.                                                 
       The conferees agree to authorize an increase of $30.4 million for   
   EPLRS radios and transfer $20.1 million for JTIDS terminals to ballistic
   missile defense procurement.                                            
       The conferees agree to authorize $67.5 million for critical data    
   distribution systems.                                                   
           Area common user system modernization program                           
       The budget request included $82.4 million for Area Common User      
   System (ACUS) modernization.                                            
       The House bill would authorize an increase of $10.0 million to      
   procure tactical communications technologies for evaluation by Force XXI
   experimental forces.                                                    
       The Senate amendment would authorize an increase of $33.0 million to
   support ongoing modifications to the ACUS and support migration to the  
   Army's Warfighter Information Network.                                  
    The conferees agree to authorize an increase of $23.0 million for ACUS.
           Information system security program                                     
       The budget request included $10.2 million to procure information    
   system security devices.                                                
    The House bill would support the budget request.                       
       The Senate amendment would authorize an increase of $5.5 million to 
   support minimum production requirements for 400 Airterm KY 100 devices. 
       The conferees agree to authorize an increase of $3.5 million for    
   Airterm KY 100 devices.                                                 
           Ground based common sensors                                             
       The budget request included $26.8 million for ground based common   
   sensors.                                                                
    The House bill and Senate amendment would authorize the budget request.
       The conferees agree to eliminate funding in fiscal year 1998 based  
   on the Army decision to reschedule the initial operational test and     
   evaluation for this program.                                            
           Shortstop                                                               
       The budget request included no funds for the Shortstop electronic   
   protection system (SEPS).                                               
       The House bill would authorize an increase of $9.0 million to       
   procure 42 additional SEPS needed in Korea.                             
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize $6.0 million for SEPS devices      
   needed by U.S. forces in Korea.                                         
           Night vision                                                            
    The budget request included $85.3 million for night vision systems.    
       The House bill would authorize an increase of $30.8 million that    
   would be used to procure additional systems: $17.0 million for AN/PVS 7 
   night vision goggle systems; $5.4 million for ANVIS 25mm image          
   intensifiers; and $8.4 million for night vision driver viewers for the  
   M113A3.                                                                 
       The Senate amendment would authorize an increase of $36.0 million   
   that would be used to procure additional night vision systems: $8.0     
   million for AN/PEQ 2 aiming light systems; $17.0 million for AN/PVS 7   
   night vision goggle systems; $10.0 million for AN/PAS 13 thermal weapon 
   sight systems; and $1.0 million for 2,900 borelights.                   
       The conferees agree to authorize an increase of $26.4 million for   
   night vision equipment: $11.0 million for AN/PVS 7 systems; $5.5 million
   for AN/PEQ 2 aiming light systems; $6.9 million for AN/PAS 13 thermal   
   weapon sights; $2.0 million for light weight video systems; and $1.0    
   million for borelights.                                                 
           LOGTECH                                                                 
    The budget request included $3.4 million for LOGTECH systems.          
       The House bill would authorize an increase of $11.7 million to      
   procure additional radio frequency (RF) tagging systems.                
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $10.0 million for   
   additional RF tagging equipment.                                        
           Maneuver control system                                                 
       The budget request included $15.7 million for the maneuver control  
   system (MCS).                                                           
    The House bill and Senate amendment would authorize the budget request.
       The conferees note a history of significant problems with the Army's
   efforts to develop the software requirements for this                   
                    program and corresponding delays in scheduled operational     
          testing. The conferees also note that this system failed two of four    
          development testing activities. Until MCS meets all the established     
          system requirements and the Army validates corrective actions through   
          requisite testing, the conferees agree to eliminate further funding for 
          this program.                                                           
           Automated data processing equipment                                     
       The budget request included $125.1 million for Automated Data       
   Processing Equipment (ADPE).                                            
       The House bill would authorize an increase of $13.0 million to      
   procure additional Sustaining Base Information Services (SBIS) hardware.
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $7.0 million of SBIS
   hardware.                                                               
           Railway car, flat, 100 ton                                              
       The budget request included $17.8 million for procurement of 100 ton
   railway cars.                                                           
    The House bill and Senate amendment would authorize the budget request.
       The conferees agree to eliminate fiscal year 1998 funding for       
   procurement of railway cars. The conferees note that the Army was able  
   to take advantage of an unanticipated opportunity to procure 86% of its 
   rail car requirement in calendar year 1997.                             
           Training devices, nonsystem                                             
       The budget request included $49.7 million for nonsystem training    
   devices.                                                                
       The House bill would authorize an additional $4.0 million for four  
   fire training systems.                                                  
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $4.0 million for    
   four fire fighter training systems.                                     
           Close combat tactical trainers                                          
       The budget request included $92.9 million for simulation network    
   close combat tactical trainers (CCTT).                                  
       The House bill would authorize a decrease of $11.5 million due to   
   the delay in initial operation test and evaluation for the close combat 
   tactical training systems.                                              
       The Senate amendment would authorize a decrease of $10.0 million for
   procurement of training system components and would authorize a transfer
   of an additional $11.5 million to PE 64780A to resolve software         
   problems.                                                               
       The conferees agree to authorize a decrease of $38.4 million in     
   procurement funding for the program. Included in this reduction is the  
   transfer of $10.5 million to PE 64780A.                                 
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $6,086.0 million for Aircraft Procurement, Navy in the Department of 
   Defense. The House bill would authorize $6,173.0 million. The Senate    
   amendment would authorize $6,482.3 million. The conferees recommended an
   authorization of $6,437.3 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1070 to 1072 Insert here                                  
           AV 8H Harrier remanufacture                                             
       The budget request included $300.1 million to procure 11 AV 8B      
   remanufactured aircraft for the Marine Corps. The fiscal year 1997 plan 
   for AV 8B remanufacture in fiscal year 1998 called for a procurement of 
   12 aircraft in fiscal year 1998. However, the budget request for fiscal 
   year 1998 included 11 aircraft, a further indication of the Department  
   of Defense's inability to execute its own previously stated procurement 
   program.                                                                
       The House bill would authorize an increase of $33.0 million for an  
   additional aircraft.                                                    
       The Senate amendment would authorize an increase of $89.6 million,  
   including $24.6 million for an additional aircraft remanufacture and    
   $65.0 million for training simulators.                                  
       The conferees agree to authorize an increase of $6.2 million for an 
   additional AV 8B remanufacture. The conferees understand that an        
   additional remanufacture can be funded with this increase through       
   program savings.                                                        
           T 45TS Goshawk                                                          
       The budget request included $269.8 million for 12 T 45 trainer      
   aircraft and $6.2 million for advance procurement of 12 T 45C aircraft  
   in fiscal year 1999.                                                    
       The House bill would authorize an increase of $100.0 million for the
   procurement of six additional aircraft.                                 
       The Senate amendment would authorize an increase of $102.0 million  
   for the same purpose.                                                   
       The conferees note with concern the recent grounding of the T 2     
   trainers because of flight control malfunctions. The T 2s are being     
   replaced by the T 45. Accordingly, the conferees agree to authorize     
   $315.2 million, an increase of $45.4 million to accelerate fielding of  
   the T 45 by increasing the fiscal year 1998 acquisition from 12 to 15   
   aircraft.                                                               
           EA 6 Series                                                             
    The budget request included $86.8 million for EA 6B modifications.     
       The House bill would authorize an increase of $68.0 million,        
   including $50.0 million for 10 wing center sections (WCS) and $18.0     
   million to continue the turbine engine blade containment system (TEBS). 
       The Senate amendment would authorize an increase of $25.0 million to
   incorporate a low risk, affordable upgrade to the EA 6B in conjunction  
   with modifications already underway to counter the new family of        
   threats.                                                                
       The conferees agree to authorize an increase of $25.0 million to    
   replace the WCS of 5 additional EA 6Bs. The increase of $25.0 million   
   for WCS is partially offset by a $10.0 million reduction for late       
   obligations, resulting in a net increase of $15.0 million for EA 6B     
   modifications. The conferees urge the Secretary of the Navy to provide  
   funds to complete the WCS modifications in the fiscal year 1999 budget  
   request.                                                                
           P 3C anti-surface warfare improvement program                           
       The budget request included $164.9 million for P 3 series           
   modifications, $74.7 million of which is for the procurement of four    
   anti-surface warfare improvements program (AIP) kits, and $41.3 million 
   of which is for 11 sustained readiness program (SRP) kits.              
       The House bill would authorize an increase of $56.6 million for an  
   additional eight AIP kits and an increase of $35.1 million to procure 17
   additional shipsets of SRP kits. In addition, the House would authorize 
   an increase of $11.0 million for light weight environmentally sealed    
   parachute assemblies (LESPA) and an increase of $1.4 million for oil    
   debris detection systems (ODDS).                                        
       The Senate amendment would authorize an increase of $17.3 million   
   for the procurement of two P 3C AIP kits and direct the Secretary of the
   Navy to formally evaluate the advisability of renegotiating the P 3C AIP
   contract to eliminate the cost penalties that are being incurred as a   
   consequence of current Navy budgeting practices.                        
       The conferees agree to authorize the following increases to the     
   budget request: $25.0 million for sustained readiness program (SRP)     
   kits, $17.3 million for anti-surface warfare improvement program (AIP)  
   kits, and $8.0 million for light weight environmentally sealed parachute
   assemblies.                                                             
           Power plant changes                                                     
    The budget request included $14.0 million for power plant changes.     
       The House bill would authorize an increase of $1.6 million to       
   incorporate the oil debris detection system (ODDS) on the P 3, E 2 and C
   2 fleets, with $1.4 million for the P 3 and $100,000 for the E 2 and C 2
   fleets. The House bill would apportion the increase each for ODDS in    
   individual aircraft modification accounts. The ODDS is an on-board      
   detection system that alerts air crews to the presence of metal chips in
   engines and propeller gear boxes, allowing flights to be terminated     
   prior to catastrophic failure of critical components.                   
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $1.6 million in the 
   power plant changes budget line item for the incorporation of ODDS in P 
   3, E 2, and C 2 fleets.                                                 
           Common Avionics Changes                                                 
       The budget request included $131.6 million for common avionics      
   changes, but did not contain any funding to procure AN/AWW 13 guided    
   weapon control monitor sets. The AN/AWW 13 provides the data link       
   capability for F/A 18 series aircraft to employ the precision-guided    
   Walleye and the Stand-off Land Attack Missiles.                         
    The Senate amendment would authorize the budget request.               
       The House bill would authorize an additional $9.0 million to        
   continue AN/AWW 13 production. The House bill would also provide an     
   additional $4.0 million in PE 64215N for integration of the ground      
   proximity warning system (GPWS) into the Navy/Marine Corps helicopters  
   fleets.                                                                 
       The conferees agree to authorize $130.4 million, which includes an  
   additional $6.0 million to continue AN/AWW 13 production and $4.0       
   million for GPWS integration. These increases are offset by a $10.0     
   million reduction for late obligations and a $1.2 million reduction for 
   systems engineering growth in other programs funded in this budget line.
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $1,136.3 million for Weapons Procurement, Navy in the Department of  
   Defense. The House bill would authorize $1,214.7 million. The Senate    
   amendment would authorize $1,200.4 million. The conferees recommended an
   authorization of $1,089.4 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1077 to 1078 Insert here                                  
           Tactical Tomahawk                                                       
       The Department of the Navy and the Department of Defense advised the
   conferees of a proposal by the current prime Tomahawk contractor to     
   upgrade the capability and reduce the production unit cost of the       
   Tomahawk cruise missile. The upgraded missile, a variant of the current 
   Tomahawk (known as ``Tactical Tomahawk'' or the ``Tomahawk Block IV+''),
   would include several enhancements to improve the tactical              
   responsiveness of the missile. The Navy and the contractor would attempt
   to reduce Tomahawk missile unit cost by exploiting commercial           
   manufacturing practices for the missile. Overall, the Navy is projecting
   that the Department could achieve life cycle cost savings for the       
   Tactical Tomahawk of approximately $400.0 million, compared to similar  
   costs for the currently planned Tomahawk Block IV missile system. The   
   conferees also understand that the initial operational capability (IOC),
   fiscal year 2002, for the improved Tomahawk would be approximately two  
   years later than the IOC for Tomahawk Block IV, fiscal year 2000.       
       Under the Navy's proposal, the Department would use approximately   
   $25.0 million in additional fiscal year 1998 research and development   
   and other procurement funding to begin the effort. The conferees        
   understand that the Department wants to implement such a program as     
   early as possible in fiscal year 1998. In fact, the Navy had asked the  
   conferees for the authority to divert these funds from the Weapons      
   Procurement, Navy account by terminating the last year of the multi-year
   contract for procurement of the Tomahawk Block III missile.             
       In general, the conferees support the concept of a program to       
   upgrade the capabilities of the Tomahawk missile and to reduce the      
   missile's unit cost. However, there are acquisition strategy and funding
   issues that must be addressed before the conferees would agree to such a
   proposal. Such questions include whether: (1) this program should be a  
   sole source award to the current prime contractor; (2) the Navy and     
   whichever prime contractor may be selected for such a program should    
   evaluate subsystem alternatives such as engines on a ``least cost'' or  
   ``best value'' basis; and (3) buying the last increment of missiles on  
   the current contract is less important than beginning a new program     
   earlier.                                                                
       If the Secretary of Defense decides that starting the program in    
   fiscal year 1998 is critical, the Secretary of Defense may submit a     
   reprogramming request to transfer fiscal year 1998 funds that would be  
   necessary to implement an alternative approach for the Tomahawk program.
   The conferees expect that such a request would include more detailed    
   supporting rationale upon which the recommendation is based and would   
   address the acquisition strategy and funding issues involved.           
           Joint Standoff Weapon                                                   
       The budget request included $58.7 million for 113 Joint Standoff    
   Weapon (JSOW) missiles for the Navy. No funds were requested to procure 
   JSOW missiles for the Air Force until fiscal year 1999.                 
       The House bill would authorize an increase of $10.0 million for the 
   Navy to procure 37 additional missiles and an increase of $29.0 million 
   for the Air Force to initiate procurement of 100 missiles.              
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $5.0 million for the
   Navy to procure a total of up to 150 JSOW, and an increase of $19.0     
   million for the Air Force to initiate acquisition of up to 100 JSOW.    
           Penguin missile program                                                 
       The budget request included no funds for procurement of Penguin     
   missiles.                                                               
    The House bill would approve the request.                              
       The Senate amendment would authorize an increase of $15.0 million   
   for procurement of additional missiles to satisfy outstanding inventory 
   objectives and sustain procurement of the Penguin missile during fiscal 
   year 1998 to reduce costs by achieving labor learning and production    
   stability.                                                              
       The conferees agree to authorize an increase of $7.5 million for    
   procurement of Penguin missiles.                                        
           Hellfire II missiles                                                    
       The budget request included no funds for Hellfire missiles for the  
   Navy or Marine Corps.                                                   
       The House bill would authorize $37.5 million for 700 Hellfire II    
   missiles to address a shortfall in Navy and Marine Corps inventory      
   requirements.                                                           
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize $20.0 million for procurement of   
   Hellfire II missiles for the Navy and Marine Corps.                     
           Close-in weapon system surface mode upgrade                             
       The budget request included $10.0 million for procurement of        
   close-in weapon system (CIWS), but did not include any funding to       
   procure surface mode upgrade kits for this system.                      
       The House bill would authorize an increase of $20.0 million to      
   procure CIWS upgrade kits for both surface combatants and other ships   
   equipped with this system.                                              
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $15.0 million for   
   procurement of CIWS surface-mode upgrade kits.                          
           Pioneer logistic support                                                
       The budget request included $4.0 million for support of Pioneer     
   unmanned aerial vehicle (UAV).                                          
       The Senate amendment would authorize an increase of $3.0 million to 
   continue common automatic recovery system (CARS) logistic support in the
   Procurement, Defense-Wide account.                                      
    The House bill would authorize the budget request.                     
       The conferees agree to authorize an increase of $3.0 million for    
   logistic support in the Weapons Procurement, Navy Pioneer budget line   
   item.                                                                   
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $5,817.8 million for Aircraft Procurement, Air Force in the          
   Department of Defense. The House bill would authorize $6,770.9 million. 
   The Senate amendment would authorize $6,048.9 million. The conferees    
   recommended an authorization of $6,425.7 million. Unless noted          
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              
   Offset Folios 1083 to 1085 Insert here                                  
            15E                                                                    
       The budget request included $159.0 million to continue the          
   procurement of F 15E strike aircraft.                                   
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $100.8 million  
   for procurement of an additional three F 15E aircraft.                  
       The conferees agree to authorize an increase of $67.3 million to    
   procure an additional two F 15E aircraft.                               
           C 130J                                                                  
       The budget request included $49.9 million for the procurement of one
   C 130J aircraft.                                                        
       The House bill would authorize an increase of $522.6 million for an 
   additional nine aircraft.                                               
       The Senate amendment would authorize an increase of $371.1 million  
   for five additional aircraft and associated logistic support.           
       The conferees agree to authorize a total of $527.5 million for eight
   additional C 130J aircraft and support as shown below:                  
                                       C 130 PROGRAMS                                      
                                   [Dollars in millions]                                   
          Type     Budget request            House bill             Senate bill         Conference agreement    
                  Quantity    Amount    Quantity     Amount    Quantity     Amount    Quantity      Amount  
KC 130J                                       +3     +179.7                                 +2      +120.0  
WC 130J                                                              +3     +177.0          +2      +132.8  
EC 130J                                       +1      +49.9          +1      +70.5          +1       +74.6  
C 130J                   1      49.9          +5     +293.0          -1      -49.9          -1       -49.9  
C 130J ANG                                                           +2      +95.8          +4      +226.0  
 Logistics:                                                                  +29.7                          
                ----------  --------  ----------  ---------  ----------  ---------  ----------  ----------  
Total                    1      49.9          +9     +522.6          +5     +371.1          +8      +527.5  
           Predator Unmanned Aerial Vehicle                                        
       The budget request included $116.5 million for 15 Predator unmanned 
   aerial vehicles (UAV).                                                  
       The House bill would authorize an increase of $30.0 million for the 
   procurement of attrition UAV and spares.                                
    The Senate amendment would authorize the budget request.               
    The conferees agree to authorize an increase of $25.0 million.         
            15 modifications                                                       
     The budget request included $169.6 million for F 15 modifications.    
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $95.4 million,  
   including $72.6 million to restore a reduction in F 15 modifications    
   made by the Air Force in its budget request, and $22.8 million to       
   accelerate by one year the incorporation of the PW 220E engine program. 
       The conferees agree to authorize $181.4 million: an increase of     
   $11.8 million, for F 15 modifications; a decrease of $5.0 million for   
   terminated upgrades; an increase of $12.8 million for the PW 220E engine
   program; and an increase of $4.0 million for data link acceleration.    
            16 modifications                                                       
     The budget request included $216.2 million for F 16 modifications.    
       The House bill would authorize an increase of $20.0 million for a   
   digital terrain system (DTS).                                           
       The Senate amendment would authorize an increase of $8.6 million to 
   procure non-developmental item (NDI) systems that incorporate in one pod
   the targeting and navigation functions of the low-altitude navigation   
   and targeting infrared for night (LANTIRN) pods.                        
       The conferees agree to authorize $209.2 million for F 16            
   modifications, a decrease of $7.0 million from the budget request. The  
   $7.0 million reduction is the result of a reduction of $13.0 million for
   global positioning system (GPS), a reduction of $6.0 million for late   
   obligations, offset by an increase of $12.0 million for DTS.            
           Passenger safety and global air traffic management                      
       Although the budget request included funds to modify some Air Force 
   aircraft to comply with global air traffic management (GATM)            
   requirements, there was no specific request for either GATM or passenger
   safety modifications for Air Force aircraft.                            
       The House bill would authorize an increase of $67.7 million for     
   GATM, but no increase for passenger safety modifications.               
       The Senate amendment would authorize the budget request. The Senate 
   report (S. Rept. 105 29) included specific direction to the Secretary of
   Defense to encourage the use of commercial off-the-shelf (COTS)         
   technology and non-developmental item (NDI) solutions to GATM           
          requirements.                                                           
       The conferees agree to authorize an increase of $17.5 million for   
   the modification of Air Force aircraft to comply with GATM requirements,
   and $32.5 million for passenger safety modifications, to include        
   initiation of navigation safety phase II modifications, the traffic     
   collision avoidance system (TCAS), and the ground proximity warning     
   system (GPWS), as directed by the Secretary of Defense. The conferees   
   expect the Air Force to include in the fiscal year 1999 budget request  
   and the Future Years Defense Program (FYDP) sufficient funding to       
   complete these required upgrades.                                       
           Defense Airborne Reconnaissance Program                                 
       Procurement for the Defense Airborne Reconnaissance Program (DARP)  
   is contained in a number of procurement lines, distributed among the    
   individual services and the defense-wide procurement account. The budget
   request included:                                                       
       (1) $67.1 million in Aircraft Procurement, Air Force (APAF) line 60;
     (2) $141.5 million in APAF, line 73;                                  
       (3) $12.8 million in Other Procurement, Air Force (OPAF), line 111; 
   and                                                                     
     (4) $97.5 million in Procurement, Defense-wide (PDW), line     7.     
       The conferees agree to authorize increases in DARP procurement as   
   shown below:                                                            
              DEFENSE AIRBORNE RECONNAISSANCE PROCUREMENT PROGRAMS             
                            [In millions of dollars]                           
                             Program  Budget request        Proposed change     Conference agreement    
                                                            House     Senate            
Rivet Joint mods                                  61.1                            61.1  
Rivet Joint technology transfer                              20.0       20.0       5.6  
Combat Sent mods                                   6.0                             6.0  
RC 135 re-engining                                           52.0                 27.4  
RJ Sensors and spares                                                             35.0  
SR 71 mods                                                               9.0       9.0  
                                      ----------------  ---------  ---------  --------  
Subtotal--APAF 60                                 67.1       72.0       29.0     144.1  
                                      ================  =========  =========  ========  
Budget Request                                   141.5                           141.5  
RC 135 re-engining                                                      54.8         0  
Senior Glass                                                            13.0      24.0  
SYERS                                                         5.0                  5.0  
                                      ----------------  ---------  ---------  --------  
Subtotal--APAF 73                                141.5        5.0       67.8     170.5  
                                      ================  =========  =========  ========  
DARP RC 135                                       12.8                            12.8  
RJ Sensors and spares                                        35.0                       
                                      ----------------  ---------  ---------  --------  
Subtotal--OPAF 111                                12.8       35.0                 12.8  
                                      ================  =========  =========  ========  
DARP                                              97.4                            97.4  
Common automatic recovery system                                         5.0            
                                      ----------------  ---------  ---------  --------  
Subtotal--PDW 7                                   97.4                   5.0      97.4  
           Theater airborne warning system                                         
       The budget request included no funds for the Theater Airborne       
   Warning System (TAWS) program, which is designed to equip the existing  
   fleet of Rivet Joint aircraft with a medium-wave infrared sensor for    
   ballistic missile detection.                                            
       The House bill and Senate amendment would authorize an increase of  
   $20.0 million for the TAWS program.                                     
       The conferees agree to authorize an increase of $5.6 million for the
   demonstration phase of the TAWS program. If this phase of the program   
   proves to be successful, the conferees would be supportive of moving    
   into the procurement phase in order to equip the Rivet Joint fleet with 
   this capability.                                                        
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $404.0 million for Ammunition Procurement, Air Force in the          
   Department of Defense. The House bill would authorize $437.0 million.   
   The Senate amendment would authorize $420.8 million. The conferees      
   recommended an authorization of $398.5 million. Unless noted explicitly 
   in the statement of managers, all changes are made without prejudice.   
   Offset Folios 1091 to 1092 Insert here                                  
           Overview                                                                
      The budget request for fiscal year 1998 contained an authorization of
   $2,557.7 million for Missile Procurement, Air Force in the Department of
   Defense. The House bill would authorize $2,389.2 million. The Senate    
   amendment would authorize $2,411.2 million. The conferees recommended an
   authorization of $2,376.3 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1094 to 1095 Insert here                                  
           AGM 130 powered GBU 15                                                  
      The budget request included $1.5 million for AGM 130 management,     
   administration, and contractor support.                                 
      The House bill would authorize an increase of $41.0 million for the  
   procurement of 100 AGM 130 missiles.                                    
   The Senate amendment would authorize the budget request.                
      The conferees agree to authorize $25.0 million, an increase of $23.5 
   million for AGM 130.                                                    
           AGM 65 Maverick                                                         
   The budget request included no funds for AGM 65 modifications.          
   The House bill would authorize $11.0 million for AGM 65 modifications.  
   The Senate amendment would authorize the budget request.                
      The conferees understand that early-generation models of the AGM 65  
   require upgrading to further extend their longevity. The conferees are  
   aware that the gap between the completion of testing and the beginning  
   of production could significantly increase the cost of the upgrade, as  
   well as unacceptably delay its fielding. Therefore, the conferees agree 
   to authorize an increase of $8.0 million to eliminate any gap with      
   low-rate production and to ensure a smooth transition to full-rate      
   production, which the conferees assume will occur in fiscal year 1999.  
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $6,561.3 million for Other Procurement, Air Force in the Department  
   of Defense. The House bill would authorize $6,574.1 million. The Senate 
   amendment would authorize $6,798.5 million. The conferees recommended an
   authorization of $6,543.6 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1098 to 1101 Insert here                                  
           Theater deployable communications                                       
       The budget request included $17.0 million for the procurement of    
   tactical communications and electronics equipment.                      
       The House bill would authorize an increase of $25.0 million for     
   theater deployable communications equipment as part of its National     
   Guard and Reserve Equipment package.                                    
       The Senate amendment would authorize an increase of $38.0 million   
   for theater deployable communications equipment.                        
       The conferees agree to authorize an increase of $18.0 million for   
   procurement of theater deployable communications equipment.             
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $1,695.1 million for Defense-wide Procurement in the Department of   
   Defense. The House bill would authorize $1,837.0 million. The Senate    
   amendment would authorize $1,749.3 million. The conferees recommended an
   authorization of $2,057.2 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1104 to 1107 Insert here                                  
           Automated document conversion system                                    
       The budget request included no funds for the automated document     
   conversion system (ADCS).                                               
    The House bill would authorize $30.0 million for ADCS.                 
    The Senate amendment would authorize the budget request.               
    The conferees agree to authorize $20.0 million for ADCS.               
           Advanced SEAL delivery system                                           
       The budget request included $43.2 million for the special operations
   Advanced SEAL Delivery System program.                                  
    The House bill and Senate amendment would authorize the budget request.
       The conferees agree to a total authorization of $8.9 million and the
   transfer of $34.3 million to PE 116404BB, as discussed in Title II of   
   this conference agreement.                                              
           Night firing scopes                                                     
       The budget request included $10.3 million for special operations    
   small arms procurement.                                                 
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $2.4 million for
   night vision scopes for the M4 carbine.                                 
       The conferees agree to authorize an increase of $1.0 million for    
   night vision scopes.                                                    
           Overview                                                                
       The budget request for fiscal year 1998 contained no authorization  
   for National Guard and Reserve Procurement in the Department of Defense.
   The House bill would authorize $700.4 million. The Senate amendment     
   would authorize $653.0 million. The conferees recommended an            
   authorization of $643.0 million. Unless noted explicitly in the         
   statement of managers, all changes are made without prejudice.          
           Overview                                                                
       The conferees recognize the increasingly critical role that reserve 
   component forces play in worldwide deployments and are concerned about  
   current and prior year levels of funding for reserve component          
   modernization. It is essential that both active and reserve component   
   leadership work together to identify total force modernization          
   requirements and ensure that these requirements are funded. The         
   conferees strongly encourage the Department of Defense to work closely  
   with each of the military departments to ensure the modernization of the
   reserve components.                                                     
       The budget request included $968.5 million, as shown in the table   
   below, for National Guard and Reserve equipment.                        
National Guard and Reserve Equipment and Aircraft                       
Millions                                                                
  Procurement of WTCV, Army                                               
 $22.1                                                                   
  Procurement of Ammunition, Army                                         
 143.8                                                                   
  Other Procurement, Army                                                 
 382.9                                                                   
  Aircraft Procurement, Navy                                              
 35.1                                                                    
  Procurement of Ammunition (Navy & Marine Corps)                         
 6.0                                                                     
  Other Procurement, Navy                                                 
 3.9                                                                     
  Procurement, Marine Corps                                               
 17.9                                                                    
  Aircraft Procurement, Air Force                                         
 238.2                                                                   
  Procurement of Ammunition, Air Force                                    
 29.5                                                                    
  Other Procurement, Air Force                                            
 89.2                                                                    
    Department of Defense total                                           
 968.5                                                                   
       The conferees agree to authorize funding increases for reserve      
   component programs as follows:                                          
Millions                                                                
  UH 60 Blackhawk                                                         
 $89.0                                                                   
  M109A6 Paladin                                                          
 56.0                                                                    
  Field Artillery Ammunition Support Vehicles                             
 40.0                                                                    
  Heavy Equipment Transporter vehicles                                    
 45.0                                                                    
  Bradley Fighting Vehicle upgrades                                       
 95.0                                                                    
  Theater Deployable Communications                                       
 18.0                                                                    
  Airborne Mine Counter-Measure equipment                                 
 7.5                                                                     
  KC 135 re-engining                                                      
 52.0                                                                    
   16 Improved Avionics Intermediate Shop                                 
 16.0                                                                    
  C 130 aircraft                                                          
 433.4                                                                   
   Total increase                                                         
 851.9                                                                   
       Additionally, the conferees agree to authorize an increase of $365.0
   million to the budget request for National Guard and Reserve            
   miscellaneous equipment:                                                
Millions                                                                
 Army Reserve                                                            
  Miscellaneous                                                           
 $75.0                                                                   
 Navy Reserve                                                            
  Miscellaneous                                                           
 80.0                                                                    
 Marine Corps Reserve                                                    
  Miscellaneous                                                           
 65.0                                                                    
 Air Force Reserve                                                       
  Miscellaneous                                                           
 50.0                                                                    
 Army National Guard                                                     
  Miscellaneous                                                           
 70.0                                                                    
 Air National Guard                                                      
  Miscellaneous                                                           
 25.0                                                                    
    Total Miscellaneous equipment                                         
 365.0                                                                   
       The conferees direct that the miscellaneous funding be allocated    
   exclusively by reserve component chiefs and that reserve component      
   chiefs give priority consideration to the following items: medium truck 
   extended service programs; carrier modifications; CH 47 helicopters;    
   multiple launch rocket systems; Avenger air defense systems (including  
   table top trainers); training simulator devices; night vision equipment;
   mobile backscatter truck inspection system; heavy expanded mobility     
   tactical truck (HEMTT) wrecker; HEMTT fuel tanker conversion kit; all   
   terrain crane (20 ton); Atlas 10K variable reach forklift; barge        
   derrick; reverse osmosis water purification unit, 3 thousand gallons per
   hour; 5KW generator set; MK 19 grenade machine gun; F/A 18              
   modifications; C 9 replacement aircraft; SH 60B Seahawk helicopter;     
   mobile inshore underwater van upgrades; logistics vehicle system (LVS); 
   MK 48 front power unit; LVS rear body units; F/A 18+ modifications; CH  
   53E helicopters; F 16 situational awareness data link; F 16 laser       
   designator/targeting pods; A 10 situational awareness data link; A 10   
   electronic warfare management system; F 16 upgraded data transfer unit; 
   HH 60 helicopter self protection system; F 16 electronic warfare        
   management system; ALQ 131 multiplexer bus interface; C 130 integrated  
   electronic warfare suite; enhanced flightline security systems; combat  
   arms training equipment; C 5 simulator; vibration management enhancement
   program; 5 ton truck; maneuver control system; CH 47D full authority    
   digital engine control; small arms engagement skills trainers; CH 47D   
   fuel cells; M917 dump trucks; B 1 enhancements; F 16/A 10 digital       
   transfer cartridge; and F 16 C/D onboard oxygen generating system.      
       Funding allocated by reserve component chiefs for miscellaneous     
   equipment must meet the following criteria:                             
       (1) there is a requirement for the equipment that has been validated
   by the Joint Requirements Oversight Council;                            
       (2) that such equipment is included for reserve component           
   modernization in the future-years defense program;                      
       (3) that such equipment is consistent with the use of reserve       
   component forces called for in Department warplans; and                 
       (4) the funds can be obligated during the fiscal year for which     
   funds have been authorized and appropriated.                            
       Overall, the conferees agree to authorize a total of $2.2 billion   
   for National Guard and Reserve equipment and aircraft.                  
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $620.7 million for Chemical Agent and Munitions Destruction, Army in 
   the Department of Defense. The House bill would authorize $610.7        
   million. The Senate amendment would authorize $614.7 million. The       
   conferees recommended an authorization of $600.7 million. Unless noted  
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              
   Offset Folios 1114 insert here                                          
                               LEGISLATIVE PROVISIONS ADOPTED                     
                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              
           Chemical agents and munitions destruction program (sec. 107)            
       The budget request included $620.7 million for the defense chemical 
   agents and munitions destruction program, to include: $472.2 million for
   operation and maintenance; $82.2 million for procurement; and $66.3     
   million for research and development. Additionally, the budget request  
   included $131.6 million for military construction.                      
       The House bill contained a provision (sec. 107) that would authorize
   $610.7 million for the chemical agents and munitions destruction        
   program.                                                                
       The Senate amendment contained a provision (sec. 107) that would    
   authorize $614.7 million for the chemical agents and munitions          
   destruction program, including an increase of $4.0 million for research 
   and development to expedite and accelerate the development and fielding 
   of critical advanced sensors that are part of the Army's mobile         
   munitions assessment system.                                            
    The Senate recedes with an amendment.                                  
       The conferees agree to a provision (sec. 107) that would authorize  
   $600.7 million for the defense chemical agents and munitions destruction
   program, to include: $72.2 million for procurement; $462.2 million for  
   operation and maintenance; and $66.3 million for research and           
   development. Of the amount authorized for research and development, $4.0
   million shall be available to expedite and accelerate the development   
   and fielding of critical advanced sensors that are part of the Army's   
   mobile munitions assessment system.                                     
           Conduct of the chemical agents and munitions destruction program        
       Section 152 of the National Defense Authorization Act for Fiscal    
   Year 1996 (Public Law 104 106), directed the Secretary of Defense to    
   conduct an assessment of the chemical stockpile disposal program and to 
   consider measures that could be taken to reduce program costs, while    
   continuing to ensure the maximum protection of the public, the workers, 
   and the environment. Section 152 also required the Secretary to report  
   the results of the assessment to the Congress with the submission of the
   fiscal year 1998 defense budget request. Consideration of the use of    
   alternative demilitarization technologies (other than incineration) was 
   to be specifically addressed.                                           
       The conferees support the Department of Defense (DOD) position and  
   the National Research Council recommendation that the Army proceed with 
   the current baseline incineration program until the evaluation of       
   alternative chemical munitions destruction technologies is concluded.   
   The conferees note the progress made in chemical demilitarization       
   operations at Johnston Atoll and Tooele, Utah, the approval of          
   environmental permits, and the award of the chemical demilitarization   
   facility construction contract at Umatilla, Oregon, and the status of   
   the environmental permitting process for the chemical demilitarization  
   sites at Anniston, Alabama, and Pine Bluff Arsenal, Arkansas.           
       The conferees support the Department's decision to continue efforts 
   to develop chemical neutralization technologies for destruction of the  
   chemical agents at the bulk-only chemical storage sites. The conferees  
   urge the appropriate and expeditious pursuit of any necessary National  
   Environmental Policy Act (NEPA) analysis of the research and development
   efforts to support pilot testing of these alternative technologies for  
   use at Aberdeen Proving Ground, Maryland, and Newport Chemical Depot,   
   Indiana.                                                                
       The conferees also agree with plans by the Department to assess the 
   feasibility of alternative technologies for destruction of lethal       
   chemical agents associated with assembled chemical munitions and would  
   support the demonstration of those alternatives deemed feasible for     
   potential use at the chemical demilitarization sites at Pueblo,         
   Colorado, and Lexington-Blue Grass Army Depot, Kentucky. As required by 
   Section 142 of the National Defense Authorization Act for Fiscal Year   
   1997 (Public Law 104 201), the conferees expect the Secretary of Defense
   to submit a report to the Congress by December 31, 1997, that identifies
   the status of the assessment, the technologies that appear to be        
   feasible, the plans for further assessment and demonstration of these   
   technologies, and the potential impact on the cost and schedule for     
   completion of destruction operations at Pueblo and Lexington-Blue Grass.
       The conferees understand that a major aspect of the chemical        
   non-stockpile materiel project is the development of a system for       
   disposal of the chemical agent identification kits, which have been     
   classified as chemical weapons/agents for the purpose of the chemical   
   disposal program, rather than hazardous waste. The conferees direct the 
   Secretary of Defense to conduct an assessment of its policy, which      
   includes chemical agent identification kits in the chemical agent       
   demilitarization program, the current plans for disposal, and the       
   potential changes in policy and disposal alternatives that could result 
   in significant reductions in the cost of the non-stockpile program with 
   no reduction in overall program safety. The assessment shall be         
   conducted in coordination with the National Research Council. The       
   results of the assessment and the Secretary's decision should be        
   provided to the congressional defense committees by March 31, 1998.     
           Chemical stockpile emergency preparedness program (CSEPP)               
       The conferees note the actions taken by the DOD and the Army to     
   improve management of the chemical weapons demilitarization program and 
   to make the program more responsive to community concerns. The conferees
   believe that the Army and the DOD must continue to emphasize the        
   involvement of the communities with chemical stockpile storage sites    
   that are part of the program's decision-making process. The conferees   
   also note progress in improving emergency preparedness planning and     
   preparations by both states and local communities near the chemical     
   stockpile storage sites, but believe that continued effort is required. 
       Section 1076(a) of the National Defense Authorization Act for Fiscal
   Year 1997 (Public Law 104 201) directed the Secretary of the Army to    
   submit a report to the Congress that would assess the successful        
   implementation of site specific integrated product and process teams    
   (IPT) as a management tool for the chemical stockpile emergency         
   preparedness program (CSEPP). On July 9, 1997, the Secretary of Defense 
   advised the Congress that the Army and the Federal Emergency Management 
   Agency (FEMA) had reached an agreement on the implementation and        
   establishment of the site-specific IPTs, and advised the Congress of    
   changes in the management of the CSEPP. The conferees understand that   
   under the terms of the agreement between the Army and FEMA, the State   
   and local community governments would be given the flexibility they need
   to implement the emergency preparedness program. Under the agreement,   
   funding for, and the conduct of on-post emergency preparedness and      
   technical support for on-post and off-post emergency preparedness will  
   remain the responsibility of the Army. FEMA will assume responsibility  
   and accountability for working with State and local governments to      
   enhance the required off-site emergency preparedness capabilities within
   established resources. The conferees are aware that the Director of FEMA
   intends to empower the FEMA regional offices with the primary           
   responsibility and accountability for working with the State and local  
   communities, and to restructure FEMA headquarters operations to create a
   more efficient and cost-effective management structure.                 
       The conferees understand that the Army and FEMA believe that        
   legislative authority is necessary to codify the agreement between the  
   Army and FEMA. The conferees note that FEMA already possesses           
   considerable authority for off-site emergency preparedness under        
   existing law and that the fiscal year 1998 budget contained no formal   
   proposal to establish a separate defense-related activities program     
   account for FEMA. The conferees direct the Secretary of Defense to      
   submit any proposed legislative changes and the budget for the CSEPP in 
   the fiscal year 1999 DOD budget request. The congressional defense      
   committees will review any proposed legislation and the budget request  
   for CSEPP during consideration of the fiscal year 1999 budget request,  
   as well as progress made in emergency preparedness, the implementation  
   of the site-specific IPT, and the working relationships among Federal,  
   State, and local authorities involved in the CSEPP.                     
                                  SUBTITLE B--ARMY PROGRAMS                       
           Army helicopter modernization plan (sec. 111)                           
       The Senate amendment contained a provision (sec. 111) that would    
   require the Army to provide a plan to the Congress that would address   
   current and future helicopter modernization requirements and proposed   
   funding. Specifically, the provision would require the Army to report on
   the following:                                                          
       (1) A detailed assessment of the Army's present and future          
   helicopter inventory, including number of aircraft, age of aircraft,    
   availability of spare parts, flight hour costs, roles and functions     
   assigned to the fleet as a whole and to its individual types of         
   aircraft, and the mix of active component and reserve component aircraft
   in the fleet;                                                           
       (2) Estimates and analysis of requirements and funding proposed for 
   procurement of new aircraft;                                            
       (3) An analysis of requirements and funding proposed for extended   
   service plans or service life extension plans for fleet aircraft;       
       (4) A plan for retiring aircraft no longer required or capable of   
   performing assigned functions, including a discussion of opportunities  
   to eliminate older aircraft models and to focus future funding on       
   current or future generation aircraft;                                  
     (5) The implications of the plan for the defense industrial base;     
       The provision would require the Secretary of the Army to certify    
   that the plan would be funded in the Future Years Defense Program       
   submitted to Congress in Fiscal Year 1998 and would limit the obligation
   of funds to no more than 25 percent of the amounts authorized to be     
   appropriated for helicopter modifications or upgrades until 30 days     
   after the aircraft modernization plan is provided to the congressional  
   defense committees.                                                     
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would limit the obligation 
   of funds to 80 percent of funds authorized for helicopter modifications 
   and would require the Secretary of the Army to design the plan so that  
   it could be funded within the funding levels expected to be available   
   for Army aircraft programs in the next Future Years Defense Program.    
           Multiyear procurement authority for specified Army programs (sec. 112)  
       The Senate amendment contained a provision (sec. 112) that would    
   authorize the Secretary of the Army to enter into a multiyear           
   procurement contract, beginning with fiscal year 1998, for the          
   procurement of the AH 64D fire control radar system. The Senate         
   amendment contained an additional provision (sec. 113) that would       
   authorize the Secretary of the Army to enter into a multiyear           
   procurement contract, beginning with fiscal year 1998, for the          
   procurement of trucks associated with the family of medium tactical     
   wheeled vehicles.                                                       
    The House bill contained no similar provisions.                        
    The House recedes.                                                     
           M113 vehicle modifications (sec. 113)                                   
       The conferees agree to a legislative provision (sec. 113) that would
   make available $35.2 million only for procurement and installation of A3
   upgrade kits for the M113 vehicle.                                      
                                  SUBTITLE C--NAVY PROGRAMS                       
           New Attack Submarine program (sec. 121)                                 
       The budget request included $284.8 million for advance procurement  
   of components for future nuclear attack submarines, and proposed a      
   change in the acquisition strategy contained in the National Defense    
   Authorization Act for Fiscal Year 1997 that directed competition between
   two submarine shipbuilders. The proposed change in strategy includes a  
   contractor teaming agreement to build the first four new attack         
   submarines.                                                             
       The House bill authorized the budget request and contained no       
   provision on submarine teaming.                                         
       The Senate amendment contained a provision (sec. 121) that would    
   authorize the Secretary of the Navy to enter into a contract or         
   contracts for the construction of four nuclear attack submarines under  
   the terms of a teaming arrangement between Electric Boat and Newport    
   News Shipbuilding.                                                      
    The House recedes.                                                     
           CVN 77 Nuclear Aircraft Carrier program (sec. 122)                      
    The budget request included no funding for CVN 77.                     
    The House bill would authorize the budget request.                     
    The Senate amendment contained a provision (sec. 122) that would:      
       (1) authorize $345.0 million for procurement and construction of    
   components for the CVN 77 aircraft carrier and authorize the Secretary  
   of the Navy to enter into a contract or contracts with the carrier      
   shipbuilder for such purposes;                                          
       (2) authorize $35.0 million for research, development, test, and    
   evaluation of technologies that have potential for use in the CVN 77;   
   and                                                                     
       (3) direct the Secretary to structure the procurement of the CVN 77 
   so that the carrier is acquired for an amount not to exceed $4.6        
   billion, with allowances for adjustments to this amount due to:         
     (a) outfitting and post delivery costs,                               
       (b) inflation occurring after or compliance with changes in Federal,
   state, or local laws enacted after September 30, 1997,                  
       (c) increases or decreases in costs attributable to new technology  
   built into CVN 77 as compared to the technology built into the baseline 
   design of the CVN 76, and                                               
       (d) increases or decreases in costs resulting from changes the      
   Secretary proposes in the funding plan of the so-called Smart Buy       
   proposal on which the projected savings are based.                      
    The House recedes with an amendment which would:                       
       (1) authorize the Secretary of the Navy to procure the CVN 77       
   subject to the availability of appropriations for that purpose;         
       (2) authorize $50.0 million for advance procurement and advance     
   construction of components for the CVN 77 and authorize the Secretary of
   the Navy to enter into a contract or contracts for such purposes;       
       (3) permit the Secretary of Defense to transfer up to $295.0 million
   to the CVN-77 program and allow this transfer to be made in addition to 
   the transfer authority limit provided for elsewhere in the National     
   Defense Authorization Act for Fiscal Year 1998;                         
       (4) direct the Secretary of the Navy to obligate and expend the     
   funds available for advance procurement and advance construction of     
   carrier components for the CVN 77 in fiscal year 1998 in a manner that  
   is designed to result in cost savings that will meet a cost limitation  
   of $4.6 billion for the procurement of that vessel;                     
       (5) direct the Secretary of Defense to make plans to attain the cost
   savings in the funding plan presented to Congress by the ship builder in
   March 1997; and                                                         
       (6) direct the Secretary of the Navy to structure and manage the CVN
   77 procurement program so that the $4.6 billion cost limitation is not  
   exceeded, except for adjustments to this amount resulting from:         
     (a) outfitting and post delivery costs,                               
       (b) inflation occurring after or compliance with changes in Federal,
   state, or local laws enacted after September 30, 1997,                  
       (c) increases or decreases in costs attributable to new technology  
   built into CVN 77 as compared to the technology built into the baseline 
   design of the CVN 76, and                                               
       (d) increases or decreases in costs resulting from changes the      
   Secretary proposes in the funding plan on which the projected savings   
   are based.                                                              
       The conferees support construction of the CVN 77 and believe that   
   initiating advance procurement for it in fiscal year 1998, rather than  
   in fiscal year 2000 as currently projected in the Future Years Defense  
   Program (FYDP), has the potential to produce considerable savings if    
   additional funds are provided in fiscal years 1998 through 2001.        
   Therefore, the conferees strongly encourage the Secretary of Defense to 
   make available up to $295.0 million in fiscal year 1998 and to include  
   in the FYDP accompanying the fiscal year 1999 budget request the funding
   necessary to achieve the savings required to remain within the $4.6     
   billion cost limitation.                                                
           Exclusion from cost limitation for Seawolf submarine program (sec. 123) 
       The Senate amendment contained a provision (sec. 123) that would    
   reaffirm the existing cost cap for Seawolf submarines but would make it 
   clear that certain costs associated with now canceled Seawolf submarines
   should not be taken into account.                                       
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would exclude from the cost
   limitation for the Seawolf submarine program $272.4 million initial     
   class design costs that were previously allocated to other canceled     
   ships in the class. The amendment would also require the Inspector      
   General of the Department of Defense to determine whether:              
       (1) the request of the Secretary of the Navy for exclusion of $745.4
   million of the costs associated with canceled submarines is justified;  
   and                                                                     
       (2) any further exclusions from or increases to the cost cap will be
   required.                                                               
       The Inspector General shall report the findings to the Committee on 
   Armed Services of the Senate and the Committee on National Security of  
   the House of Representatives not later than March 30, 1998.             
                               SUBTITLE D--AIR FORCE PROGRAMS                     
            Authorization for B 2 bomber program (sec. 131)                        
       The budget request included $174.1 million for modification of      
   aircraft on order or already in the inventory to the Block 30           
   configuration.                                                          
       The House bill would authorize an increase of $331.2 million for    
   long lead funding for an additional nine aircraft above the 21 already  
   authorized.                                                             
       The Senate amendment would authorize the budget request and included
   a provision (sec. 131) that would prohibit the use of any funds to      
   procure any additional B 2 bomber aircraft or to maintain any part of   
   bomber industrial base solely for the purpose of preserving the option  
   to procure additional B 2 bomber aircraft in the future.                
    The Senate recedes with an amendment.                                  
       The conferees agree to authorize $331.2 million to be used either   
   for long lead activities related to the procurement of additional B 2   
   aircraft, or for modification and repair of the existing fleet of B 2   
   bomber aircraft, depending on the President's determination of the      
   requirement for additional B 2 aircraft.                                
       The provision would also direct the Secretary of Defense to ensure  
   that all appropriate actions are taken to preserve the options of the   
   President until submission of the report required by section 8131 of the
   Department of Defense Appropriations Act for fiscal year 1998.          
            ALR radar warning receivers (sec. 132)                                 
       The Senate amendment contained a provision (sec. 132) that would    
   require a study of the comparative effectiveness of upgrading the ALR 69
   radar warning receiver and further acquisition of the ALR 56M radar     
   warning receiver.                                                       
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                       Analysis of requirements for replacement of engines on      
           military aircraft derived from Boeing 707 aircraft (sec. 133)           
       The Senate amendment contained a provision (sec. 142) that would    
   require a study of re-engining priorities, options, and benefits for    
   military aircraft derived from Boeing 707 type aircraft.                
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would clarify the          
   requirements for the study.                                             
                                  SUBTITLE E--OTHER MATTERS                       
                       Pilot program on sales of manufactured articles and services
           of certain army industrial facilities without regard to availability    
           from domestic sources (sec. 141)                                        
       The Senate amendment contained a provision (sec. 143) that would    
   authorize Army industrial facilities to sell articles or services to an 
   entity that will incorporate those articles or services into a weapon   
   system to be procured by the Department of Defense or will use those    
   articles or services to manufacture weapon systems that will be         
   ultimately procured by the Department of Defense.                       
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would authorize a two-year 
   pilot program for not more than three facilities and require a review by
   the Inspector General of the Department of Defense.                     
            NATO Joint Surveillance/Target Attack Radar System (sec. 142)          
       The Senate amendment contained a provision (sec. 144) that would    
   allow the Secretary of Defense to initiate contracts for Phase I of a   
   NATO Alliance Ground Surveillance (NATO AGS) capability based on the    
   Joint Surveillance/Target Attack Radar System (JSTARS) following the    
   conclusion of a cooperative project agreement for a NATO AGS. The Senate
   amendment would also authorize the transfer of funds from U.S. JSTARS to
   the NATO AGS program, and would allow for the modification of two Air   
   Force JSTARS aircraft into a NATO configuration.                        
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
            Limitation on obligation of funds for the Seawolf submarine program    
       The House bill contained a provision (sec. 121) that would prohibit 
   the obligation of more than 50 percent of the fiscal year 1998 funds    
   authorized and appropriated for the Seawolf submarine until the         
   Secretary of the Navy certifies that not less than 50 percent of the New
   Attack Submarine technology insertion opportunities for the first four  
   submarines were included in the Future Years Defense Program            
   accompanying the fiscal year 1999 budget request.                       
    The Senate amendment contained no similar provision.                   
       Having received written assurance from the Secretary that the fiscal
   year 1999 budget request will comply with the provision in the House    
   bill, the House recedes.                                                
            Reduction in authorization of appropriations                           
       The Senate amendment contained a provision (sec. 110) that would    
   reduce funds available to the Department of Defense for Advisory and    
   Assistance Services by $30.0 million.                                   
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
            Airborne self-protection jammer                                        
       The Senate amendment contained a provision (sec. 124) that would    
   place a limitation on the resumption of serial production of the        
   Airborne Self-Protection Jammer, pending a certification by the         
   Secretary of Defense.                                                   
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
                       Prohibition on use of funds for acquisition or alteration of
           private drydocks                                                        
       The Senate amendment contained a provision (sec. 141) that would    
   prevent the use of DOD funds for the expansion of private drydocks.     
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
                   TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION          
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $35,934.5 million for Research and Development in the Department of  
   Defense. The House bill would authorize $37,273.7 million. the Senate   
   amendment would authorize $36,957.0 million. The conferees recommended  
   an authorization of $36,537.0 million. Unless noted explicitly in the   
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1125 insert here                                          
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $4,510.8 million for Army, Research and Development in the Department
   of Defense. The House bill would authorize $4,752.9 million. The Senate 
   amendment would authorize $4,745.5 million. The conferees recommended an
   authorization of $4,633.5 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1127 to 1136 insert here                                  
                           FUNDING EXPLANATIONS                          
           University and industry research centers                                
       The budget request included $45.5 million in PE 61104A for          
   university and industry research centers.                               
       The House bill would authorize an increase of $1.9 million in PE    
   61104A for electromechanics and hypervelocity physics.                  
       The Senate amendment would authorize an increase of $2.3 million in 
   PE 61104A for the Army federated laboratory advanced telecommunications 
   and information distribution research program (ATIRP).                  
       The conferees agree to authorize an increase of $1.0 million for    
   electromechanics and hypervelocity physics. The conferees also agree to 
   authorize $2.3 million of the remaining funds for the establishment of  
   the ATIRP.                                                              
           Combat vehicle and automotive advanced technology                       
       The budget request included $33.1 million for Combat Vehicle and    
   Automotive Advanced Technology (PE 62601A).                             
       The House bill authorized an increase of $11.0 million for a variety
   of innovative research projects.                                        
       The Senate amendment would authorize an increase of $4.0 million for
   the National Automotive Center to fund cooperative contracts using      
   matching funds (PE 62601A).                                             
       The conferees agree to authorize $40.612 million in PE 62601A, an   
   increase of $7.5 million: $4.0 million for continued funding of         
   cooperative and dual-use contracts to integrate commercial automotive   
   technology into Army vehicles; $1.0 million for completion of the High  
   Output Diesel Engine (HODE) project; and $2.5 million for new           
   alternative vehicle propulsion efforts with industry and academia,      
   including, but not limited to, innovation or improvements related to    
   diesel, internal combustion, fuel cell, and electric propulsion         
   technologies.                                                           
       The conferees commend the National Automotive Center for its efforts
   to improve the automotive technology available in Army ground vehicle   
   systems while reducing the operating and support costs, particularly    
   through the use of affordable commercial technology, competitive        
   procedures, and matching funds from industry.                           
           Plastic cased ammunition                                                
       The budget request included $18.2 million in PE 63004A for weapons  
   and munitions advanced technology.                                      
       The House bill would authorize an increase of $8.0 million in PE    
   63004A: $5.0 million for electro-rheological fluids recoil for future   
   artillery systems; and $3.0 million for plastic cased ammunition.       
    The Senate amendment would authorize the budget request.               
    The conferees agree to authorize an increase of $3.0 million for       
                    plastic cased ammunition research in PE 62624A. The conferees 
          also agree to authorize a reduction of $1.1 million, without prejudice, 
          in PE 62624A.                                                           
            Electronics and electronic devices                                     
       The budget request included $20.2 million in PE 62705A for research 
   and development in electronics and electronic devices.                  
       The House bill would authorize an increase of $5.0 million for field
   battery recharging capability (thermophotovoltaic) research and $3.0    
   million for battery manufacturing technology.                           
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase: $1.5 million for field
   battery recharging capability (thermophotovoltaic) research; and $1.5   
   million for manufacturing technology research associated with AA zinc   
   batteries for military applications.                                    
            Bioremediation, education, science, and technology program             
       The budget request included $17.5 million for environmental quality 
   technology within PE 62720A. The budget request included no funds in    
   that program element for the bioremediation, education, science, and    
   technology program (BEST), which supports multidisciplinary research and
   education in bioremediation science.                                    
       The House bill would authorize an additional $4.0 million in PE     
   62720A for the BEST program.                                            
    The Senate amendment would authorize the budget request.               
    The Senate recedes.                                                    
       The conferees expect that the use of additional funds for BEST will 
   provide a direct benefit to the Department of Defense efforts in the    
   area of bioremediation.                                                 
            Plasma energy pyrolysis system                                         
       The budget request included $17.5 million for environmental         
   technology in PE 62720A. No funding was specifically identified for the 
   Plasma Energy Pyrolysis System (PEPS) technology.                       
       The House bill and Senate amendment would authorize $8.7 million for
   PEPS technology.                                                        
       The conferees agree to an increase of $6.0 million in PE 62720A for 
   the ongoing joint effort between the U.S. Army Environmental            
   Center/Environmental Technology Division and the Tennessee Valley       
   Authority/Muscle Shoals Environmental Research Center to develop,       
   demonstrate, and validate the PEPS technology.                          
       The purpose of PEPS is to develop plasma technology as a method of  
   producing heat for the breakdown of waste materials. The Muscle Shoals  
   Environmental Research Center provides a level of technical expertise   
   that stems from forty years of experience in working with electric arc  
   furnaces, a thermal process similar to PEPS. For that reason, the       
   participation of the Muscle Shoals Environmental Research Center is a   
   necessary element of PEPS. However, the conferees direct that no more   
   than 15 percent of the PEPS funds be made available for                 
          the participation of the Muscle Shoals Environmental Research Center.   
       The goals of the PEPS program are to evaluate the capability of     
   plasma technology for the destruction of hazardous components, verify   
   slag suitability for regular landfill disposal, identify potential      
   hazards associated with the process emissions, and develop qualified    
   cost estimates for the future use of the process on large scale         
   operations. The conferees direct the Secretary of the Army to report to 
   the congressional defense committees on the progress made in meeting    
   these goals with fiscal year 1998 funds.                                
            Radford Environmental Development and Management Program               
       The budget request included $17.5 million for environmental quality 
   technology within PE 62720A. No funding was specifically identified to  
   support the development of an integrated environmental and pollution    
   prevention management and control system through the Radford            
   Environmental Development and Management Program (REDMAP).              
       The House bill would direct the Secretary of the Army to ensure     
   adequate support for the REDMAP initiative within funds authorized for  
   environmental quality technology.                                       
       The Senate amendment would authorize an increase of $5.0 million in 
   PE 62720A to support REDMAP.                                            
       The conferees agree to authorize an increase of $5.0 million in PE  
   62720A for REDMAP. The conferees note that some of the basic research   
   necessary for REDMAP has already been accomplished through the Facility 
   Environmental Management and Monitoring System (FEMMS) at Tobyhanna Army
   Depot, Pennsylvania. The conferees expect that REDMAP will use relevant 
   information developed through FEMMS.                                    
            Military engineering technology                                        
       The budget request included $36.4 million in PE 62784A for military 
   engineering technology.                                                 
       The Senate amendment would authorize an increase of $5.0 million in 
   PE 62784A: $1.0 million to enhance research in combat support, combat   
   engineering, and base facility construction, operations, and maintenance
   at locations subject to cold weather; and $4.0 million for energy       
   efficient military applications.                                        
    The House bill would authorize the budget request.                     
       The conferees agree to an increase of $1.0 million in PE 62784A for 
   cold weather research. The conferees also agree to an increase of $4.0  
   million in PE 65856A for fuel cell military applications as mentioned   
   elsewhere in the report.                                                
            Medical advanced technology                                            
       The budget request included $10.6 million in PE 63002A for medical  
   advanced technology.                                                    
       The House bill would authorize an increase of $5.8 million in PE    
   63002A: $3.5 million for virtual reality emergency medical telemedicine 
   (VREMT); and $2.3 million for telemedicine technology.                  
       The Senate amendment would authorize an increase of $4.6 million in 
   PE 63002A: $1.0 million for intravenous membrane oxygenator; and $3.6   
   million for Meals Ready-to-Eat nutrition research.                      
       The conferees agree to authorize an increase of $2.5 million for    
   VREMT. The conferees also agree to authorize an increase of $3.5 million
   for nutrition research in PE 62787A.                                    
           Combat vehicle and automotive advanced technology                       
       The budget request included $32.7 million to develop combat vehicle 
   and automotive technologies.                                            
       The House bill would authorize an increase of $3.0 million to       
   support development of advanced composite materiel and electric drive   
   technology.                                                             
       The Senate amendment would authorize an increase of $9.0 million to 
   further explore aluminum metal matrix technologies.                     
       The conferees agree to authorize a total of $38.7 million in PE     
   63005A. Of this amount, $2.0 million is for advanced composite materiel 
   development and $6.5 million is for aluminum metal matrix technologies. 
           Information systems technology, superiority, and security               
       The budget request included $544.4 million for information systems  
   and information technology research, development, test, and evaluation. 
   Of that amount, $306.0 million was for information security research,   
   development, test, and evaluation.                                      
       The House bill would authorize the following increases to the budget
   request:                                                                
       (1) $2.0 million in PE 63006A for tactical internet command and     
   control protection;                                                     
       (2) $6.7 million in PE 65604A for information operations/warfare    
   survivability analysis of command, control, communications, and         
   computers/information electronic warfare systems;                       
       (3) $1.6 million in PE 33150A for development and application of    
   information protection measures for the Army's component of the global  
   command and control systems for the U.S. European Command; and          
       (4) $2.7 million in PE 33140F for the Air Force information         
   protection program.                                                     
       The House report (H. Rept. 105 132) would also direct the Secretary 
   of Defense to provide to the congressional defense committees, with the 
   submission of the fiscal year 1999 budget request, an assessment of the 
   progress in the Department's information systems security program that  
   addresses the current status of the program, specific actions being     
   taken on the recommendations of the 1996 Defense Science Board Task     
   Force on Information Warfare-Defense, and additional actions that should
   be taken to assure the increased security and integrity of the Defense  
   information infrastructure. The House report would also require the     
   Secretary to address measures necessary to assure the integrity of those
   elements of the National Information Infrastructure on which the Defense
   Information Infrastructure depends, and to identify any additional      
   resources and legislative authority which might be required.            
    The Senate amendment would authorize the budget request.               
       The House recedes from its recommendation for additional funding.   
   The conferees, however, share the views expressed in the House report   
   regarding the need to treat information technology as a vital strategic 
   resource, and the need to address the potential vulnerabilities of the  
   information infrastructure. The conferees direct the Secretary of       
   Defense to submit to the congressional defense committees the assessment
   of the Department's information systems security program as discussed in
   the House report.                                                       
           Missile and rocket advanced technology                                  
       The budget request included $117.1 million to develop missile       
   technologies.                                                           
       The House bill would authorize a decrease of $57.7 million for the  
   enhanced fiber-optic guided missile (EFOG M) program.                   
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize $31.4 million to continue          
   development of EFOG M technologies and complete the advanced concept    
   technology demonstration (ACTD) planned for fiscal year 1998. The       
   conferees further direct that funds provided for the ACTD be used       
   exclusively for that activity and not for procurement of additional     
   missiles beyond those required for the evaluation. The conferees also   
   agree to authorize an additional $3.0 million for the future missile    
   technology insertion program for a total authorization of $93.8 million 
   for PE 63313A.                                                          
           Landmine warfare and barrier advanced technology                        
       The budget request included $19.3 million to develop landmine       
   detection technologies.                                                 
       The House bill would authorize an additional $5.0 million for       
   countermine technologies.                                               
       The Senate amendment would authorize an additional $6.6 million to  
   support development and testing of vehicular mounted mine detector      
   technologies.                                                           
       The conferees agree to authorize $27.0 million in PE 63606A, an     
   increase of $2.7 million for the vehicular mounted mine detection system
   and an additional $5.0 million for countermine technology development.  
           Joint service small arms program                                        
       The budget request included $4.8 million to conduct joint           
   development of future small arms requirements.                          
       The House bill would authorize an increase of $7.0 million to       
   support development of the objective individual combat weapon (OICW) and
   advanced light anti-armor weapon system (ALAWS) technology.             
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $4.5 million in PE  
   63607A. Of this amount, $3.0 million is for OICW and $1.5 million is for
   ALAWS technology.                                                       
           Armament enhancement initiative                                         
       The budget request included $40.3 million to develop future         
   generation main battle tank armaments.                                  
       The House bill would authorize an additional $20.0 million for      
   accelerated development of the tank extended range munition-kinetic     
   energy (TERM KE).                                                       
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize a total of $38.3 million for the   
   Armament Enhancement Initiative (PE 63639A). The conferees note an Army 
   decision to terminate the Smart Target Activated Fire and Forget (STAFF)
   munition and pursue further development of the Tank Extended Range      
   Munition-Kinetic Energy (TERM KE). The conferees, therefore, agree to   
   authorize a decrease of $17.0 million for STAFF and an increase of $15.0
   million for TERM KE.                                                    
           Aviation-advanced development                                           
       The budget request included $7.1 million to develop aviation        
   technologies.                                                           
       The House bill would authorize an additional $5.0 million for       
   development of retinal display technologies.                            
    The Senate amendment would authorize the budget request.               
    The conferees agree to authorize $12.1 million in PE 63801A.           
           All source analysis system                                              
       The budget request included $24.0 million to continue development of
   the All Source Analysis System (ASAS).                                  
       The House bill would authorize an increase of $3.5 million for      
   software upgrades.                                                      
       The Senate amendment would authorize an increase of $3.2 million to 
   expand advanced fusion technology efforts.                              
    The House recedes.                                                     
           Light tactical wheeled vehicles                                         
       The budget request included $9.9 million to develop light tactical  
   wheeled vehicle technologies.                                           
    The House bill and Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $9.9 million in PE   
   64642A and direct the Army to report on future light tactical wheeled   
   vehicle requirements. The conferees note the Army has failed to provide 
   a clear and definitized plan that addresses future light tactical       
   vehicle requirements and are unsure about the future direction of Army  
   wheeled vehicle programs.                                               
           Engineer mobility equipment development program                         
       The budget request included $56.2 million to support improvements to
   engineer mobility equipment (PE 64649A).                                
    The House bill and Senate amendment would authorize the budget request.
       The conferees agree to a total authorization of $52.2 million in PE 
   64649A, a decrease of $4.0 million. The conferees note that the engineer
   mobility equipment development program has suffered from late obligation
   and system management problems.                                         
           Automatic test equipment                                                
       The budget request included $2.6 million to develop automatic test  
   equipment technologies.                                                 
       The House bill would authorize an increase of $2.3 million for      
   Integrated Family of Test Equipment (IFTE) technology development.      
    The Senate amendment authorized the budget request.                    
    The Senate recedes.                                                    
           Tactical exploitation of national capabilities                          
       The budget request included $107.2 million for the various Tactical 
   Exploitation of National Capabilities (TENCAP) and related research and 
   development projects within the military services' Tactical Intelligence
   and Related Activities aggregation and the Joint Military Intelligence  
   Program.                                                                
       The House bill would authorize a decrease in these individual       
   accounts by approximately 10 percent.                                   
    The Senate amendment would authorize the budget request.               
    The House recedes.                                                     
       The conferees agree that the tactical ``operationalization'' of     
   space has become relatively commonplace within military doctrine,       
   planning, and execution, and that specialized TENCAP projects to inform,
   educate, and provide improved space-related capabilities should be      
   reviewed for possible reduction or reorientation. While the conferees   
   fully support the TENCAP program, they believe there may be a need to   
   begin to reduce and phase out the specialized projects to exploit space 
   and national capabilities. Such exploitation should be the focus of new 
   programs from the outset of their development.                          
       Therefore, the conferees direct the Secretary of Defense to submit a
   report to the congressional defense and intelligence committees by March
   15, 1998, describing the Secretary's assessment of the continuing       
   utility of the TENCAP program, and recommendations for evolving or      
   phasing out the existing TENCAP program.                                
           Combined arms tactical trainer                                          
       The budget request included $2.8 million to develop combined arms   
   tactical trainer (CATT) technologies.                                   
    The House bill would authorize the budget request.                     
    The Senate amendment would authorize the transfer of $11.5             
                    million from procurement to PE 64780A to resolve software     
          problems associated with these trainers.                                
    The conferees agree to authorize $13.3 million in PE 64780A.           
           Landmine warfare/barrier-engineering development                        
       The budget request included $22.6 million to develop minefield      
   detection technologies.                                                 
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
       The conferees agree to authorize a decrease of $13.9 million in PE  
   64808A for development work associated with the airborne standoff       
   minefield detection system (ASTAMIDS) as technical difficulties with    
   this technology have been identified and the system is not ready to     
   enter engineering and manufacturing development (EMD).                  
           Sense and destroy armament missile-engineering development              
       The budget request included $22.4 million to continue development of
   the sense and destroy armament missile (SADARM).                        
    The House bill and Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $10.9 million for the
   SADARM program. The conferees note the program has suffered from        
   technical difficulties associated with development of the baseline      
   munition. The conferees support the SADARM program but believe the      
   baseline system testing scheduled for calendar year 1998 should be      
   completed prior to funding preplanned product improvement work.         
           Fuel cells                                                              
    The budget request included no funding for fuel cell technology.       
       The House bill would authorize an increase of $1.8 million in PE    
   63712N to establish a cooperative research and development effort for a 
   cost-shared demonstration of proton exchange membrane fuel cell         
   technology and an increase of $3.5 million in PE 63513N to continue the 
   program for design of a full scale ships service molten carbonate fuel  
   cell power plant and demonstration of a 500 kilowatt molten carbonate   
   fuel cell.                                                              
       The Senate amendment would authorize an increase of $1.75 million in
   PE 63712N to establish a cooperative research and development effort    
   between the Naval Surface Warfare Center (NSWC) in Crane, Indiana and   
   private industry. The Senate amendment also provided for an increase of 
   $4.0 million in PE 62784A for additional technology development of      
   energy efficient military applications between the U.S. Army Corps of   
   Engineers, Construction Engineering Research Laboratories and private   
   industry. In each instance, the Senate amendment directed participants  
   from the private sector to contribute an amount of funding that is      
   equivalent to the Federal funding level.                                
       The conferees agree to authorize an increase of $1.75 million in PE 
   63712N, as discussed in the House report (H. Rept. 105 132) and the     
   Senate report (S. Rept. 105 29), an increase of $3.5 million in PE      
   63513N for continuation of molten carbonate fuel cell development, as   
   discussed in the House report, and an increase of $4.0 million in PE    
   65856A for additional technology development of energy efficient        
   military applications, as discussed in the Senate report.               
       The conferees note that over the course of several budget cycles    
   there have been numerous funding adds for development and utilization of
   fuel cell technology. The conferees believe that there is an absence of 
   a clearly defined strategy and implementation program for the           
   development and application of advanced fuel cell technology and other  
   energy efficient applications for the Department of Defense (DOD). The  
   conferees direct the Secretary of Defense to develop a strategy to      
   address a broader spectrum of interests and applications of fuel cell   
   technology within the military departments. The conferees expect that   
   the strategy will include private sector contribution in an amount that 
   is, at a minimum, equal to the Federal funding level for the            
   continuation and development of fuel cell technology.                   
       The conferees are also aware that the Department of Energy (DOE) has
   been involved in the development and application of advanced fuel cell  
   technology. The conferees direct the Secretary of Defense to work with  
   the Secretary of Energy in the development of a common strategy to avoid
   duplication of effort between the two departments.                      
       The conferees direct the Secretary of Defense to report to the      
   congressional defense committees by March 31, 1998 on the overall       
   science and technology strategy for the development and application of  
   advanced fuel cell technology and other energy efficient applications by
   the defense agencies and military departments. Moreover, the report     
   should explain the common strategy developed by the Secretaries of      
   Defense and Energy in this area.                                        
           Combat vehicle improvement program                                      
       The budget request included $136.5 million to develop combat vehicle
   improvements to existing systems.                                       
       The House bill would authorize an increase of $20.1 million for     
   combat vehicle improvement purposes.                                    
       The Senate amendment would authorize an increase of $20.0 million   
   for combat vehicle improvement purposes.                                
       The conferees agree to authorize an increase of $22.5 million in PE 
   23735A for a total of $159.0 million. Of this amount, $12.0 million is  
   for development of field emission display units for armored vehicles;   
   $4.0 million is for development of AN/VVR-1 Laser Warning Receivers; and
   $6.5 million is for the M1 system enhancement program (SEP).            
           Aircraft modification/product improvement program                       
       The budget request included $2.6 million to support improvements to 
   existing aircraft systems.                                              
       The House bill would authorize an increase of $20.0 million for the 
   improved cargo helicopter (ICH) program.                                
    The Senate amendment would authorize an increase of $30.0 million      
          for ICH.                                                                
       The conferees agree to authorize an increase of $20.0 million for   
   ICH in PE 23744 for a total of $22.6 million.                           
           Digitization                                                            
       The budget request included $157.0 million to support Army          
   digitization efforts.                                                   
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $11.0 million   
   for outstanding digitization requirements.                              
       The conferees note concerns expressed by defense appropriations     
   subcommittees regarding the funding of certain Army digitization        
   activities in the Digitization program element (PE 23758A) of the Army  
   Research and Development budget request.                                
       The conferees agree to reallocate $100.0 million from the Army      
   request for digitization funding as follows:                            
Research, Development, Test and Evaluation, Army                        
In millions                                                             
 Digitization:                                                           
  Applique                                                                
 $2.6                                                                    
  Tactical Internet                                                       
 6.0                                                                     
 Other:                                                                  
  Force XXI Initiatives                                                   
 38.9                                                                    
  Striker                                                                 
 3.9                                                                     
  Mortar Fire Control                                                     
 10.0                                                                    
  Radio Frequency Technology                                              
 1.7                                                                     
  Light Weight Laser Designator                                           
 2.8                                                                     
  Combat Synthetic Training Assessment Range                              
 5.4                                                                     
  Airborne Command & Control System                                       
 11.0                                                                    
 Missile Procurement, Army:                                              
  Avenger Slew-to-Cue                                                     
 7.4                                                                     
 Other Procurement, Army:                                                
  Gun Laying Positioning System                                           
 6.0                                                                     
  PLS Enhanced                                                            
 3.0                                                                     
  Radio Frequency Technology                                              
 1.2                                                                     
       The conferees encourage the Army to further develop a clear and     
   comprehensive digitization program that depicts requirements, funding,  
   and timelines associated with the ultimate goal of fielding a digitized 
   Corps early in the next century and to consult with the congressional   
   defense committees concerning that program. The conferees expect that   
   this effort will be fully funded in future budget submissions and that  
   congressional defense committees will be notified of proposed           
   acquisitions and activities. The conferees agree to authorize $65.6     
   million for digitization in PE 23758A.                                  
           Missile/air defense product improvement program                         
       The budget request included $17.4 million to support improvements to
   existing air defense systems.                                           
       The House bill would authorize an increase of $16.7 million, $10.0  
   million for Patriot PAC 3 development and $6.7 million for the Stinger  
   Block II development effort.                                            
       The Senate amendment would authorize an increase of $10.0 million   
   for Patriot anti-cruise missile (PACM) development.                     
       The conferees agree to authorize $31.4 million, an increase of $14.0
   million in PE 23801A, $10.0 million for the completion of the PACM      
   development effort and $4.0 million for the Stinger Block II program.   
           Healthcare information protection demonstration                         
       The budget request included $9.6 million in PE 33140A for the Army's
   information systems security program.                                   
       The House bill would authorize an increase of $2.5 million to       
   initiate a demonstration program for military healthcare information    
   protection that would be consistent with national healthcare and        
   information initiatives, and would direct the Secretary of the Army to  
   report to the congressional defense committees on related matters.      
    The Senate amendment would authorize the budget request.               
    The Senate recedes.                                                    
           End item industrial preparedness activities                             
       The budget request included $44.3 in PE 78045A for the Army's       
   manufacturing technology program.                                       
       The House bill would authorize an increase of $15.0 million for     
   munitions manufacturing technology.                                     
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $15.0 million in PE 
   78045A to accelerate key munitions manufacturing technologies in        
   composites, electronics, energetics, power supplies, and metal parts, as
   recommended in the House report (H. Rept. 105 132). The conferees intend
   this funding to be used to reduce the cost of future munitions and to   
   enable both government- and contractor-owned munitions production       
   facilities to produce research quantities and production quantities of  
   munitions concurrently; to adopt design changes and product improvements
   more rapidly; and to make short production runs more feasible and less  
   costly.                                                                 
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $7,611.0 million for Navy, Research and Development in the Department
   of Defense. The House bill would authorize $7,947.0 million. The Senate 
   amendment would authorize $7,813.0 million. The conferees recommended an
   authorization of $7,774.9 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          
   Offset Folios 1149 to 1160 insert here                                  
           Defense research sciences                                               
       The budget request included $366.3 million in PE 61153N for Navy    
   defense research sciences.                                              
       The House bill would authorize an increase of $10.0 million to      
   continue the program of basic research in molecular design materials    
   science that was initiated in 1994.                                     
    The Senate amendment would authorize the budget request.               
       The conferees agree to an increase of $8.0 million in PE 61153N.    
   Further, the conferees agree with the direction contained in the House  
   report (H. Rept. 105 132) with regard to the molecular design materials 
   science program. The Secretary of the Navy shall conduct an assessment  
   of the goals, objectives, and progress in the program, future directions
   and funding requirements, and report the results of the assessment to   
   the congressional defense committees by March 15, 1998.                 
           Marine mammal research program                                          
       The budget request included $366.3 million in PE 61153N for Navy    
   Defense Research Sciences, including $137.1 million to support basic    
   research in ocean sciences.                                             
       The House bill would authorize an increase of $500,000 to continue  
   the Navy's cooperative marine mammal research program.                  
    The Senate amendment would authorize the budget request.               
    The House recedes.                                                     
       The conferees direct the Secretary of the Navy to submit to the     
   congressional defense committees, by March 1, 1998, a report on the     
   research being conducted in the marine mammal research program, the     
   technological implications of this research to Navy sonar requirements, 
   and future plans for the program.                                       
           Power electronic building blocks                                        
       The budget request included $46.9 million in PE 62121N for applied  
   research in surface ship technology.                                    
       The House bill and the Senate amendment would authorize an increase 
   of $6.0 million for power electronic building block (PEBB) technology.  
       The conferees agree to an increase of $6.0 million in PE 62121N for 
   the acceleration of the PEBB program to provide electric power system   
   options for future shipboard designs that include electric drive and for
   meeting reduced manning goals through automation of ship systems. The   
   conferees urge the use of virtual prototyping for simulation and        
   evaluation of advanced concept electrical systems in this effort.       
           Power node control centers                                              
       The budget request included $46.8 million in PE 62121N for applied  
   research in surface ship and submarine, hull, mechanical, and electronic
   technology, logistics technology, and environmental protection for all  
   Navy platforms and shore facilities.                                    
       The House bill would authorize an increase of $1.5 million in PE    
   62121N to continue the development of power node control centers for    
   advanced integrated electrical distribution system fault detection,     
   switching, reconfiguration, and control of shipboard electrical systems.
    The Senate amendment would authorize the budget request.               
    The Senate recedes.                                                    
           Second source for carbon fibers                                         
       The budget request included $76.7 million in PE 62234N for          
   materials, electronics, and computer technologies.                      
       The House bill and the Senate amendment would authorize an increase 
   of $2.0 million in PE 62234N to complete the qualification of new       
   processes for aviation platforms and the development of a second source 
   for carbon fibers.                                                      
       The conferees agree to authorize an increase of $2.0 million in PE  
   62334N to continue and complete the program initiated in fiscal year    
   1997 to address new materials processes such as resin transfer molding  
   and to establish second source qualification procedures for advanced    
   composites used in naval aircraft and prepreg systems.                  
           Titanium processing technology                                          
       The budget request included $76.7 million in PE 62234N for          
   materials, electronics, and computer technologies.                      
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $2.0 million in 
   PE 62234N to support the development of the plasma quench process for   
   use in the production of ultra-fine titanium powder and in the injection
   molding process.                                                        
    The House recedes.                                                     
       The conferees direct that all applicable competitive procedures be  
   used in the award of contracts or other agreements under this program,  
   and that cost sharing requirements for non-federal participants be      
   utilized where appropriate.                                             
           Arctic climate observations                                             
       The budget request included $48.2 million in PE 62435N for applied  
   research in oceanographic and atmospheric technologies. The request     
   included no funds for continuation of the ocean climate research        
   program.                                                                
       The House bill would authorize an increase of $3.0 million in PE    
   62435N to support the second year of the arctic oceanographic           
   observation program, a four-year, cooperative program for the           
   utilization of underwater acoustic techniques to determine ocean climate
   and acoustic characteristics in a large ocean basin.                    
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $2.0 million to     
   continue the program for investigation of the use of long-range         
   underwater sound transmissions to detect and monitor changes in the     
   ocean, as described in the House report (H. Rept. 105 132).             
           National Oceanographic Partnership Program                              
       The budget request included $48.2 million in PE 62435N for applied  
   research in oceanographic and atmospheric technology.                   
       The House bill and Senate amendment would authorize an increase of  
   $16.0 million in PE 62435N for the National Oceanographic Partnership   
   Program (NOPP).                                                         
       The conferees agree to an increase of $12.0 million in PE 62435N to 
   maintain the momentum of the program until additional funds for support 
   of the program can be included in the budget requests of other          
   participating agencies and departments.                                 
       The conferees further direct the Secretary of Defense to coordinate 
   with the Secretaries of Commerce, Energy, and Interior, the Director of 
   the National Science Foundation, the Administrators of the National     
   Aeronautics and Space Administration and the Environmental Protection   
   Agency on funding levels required in future budget requests for         
   continuation of the NOPP. The conferees direct the Secretary of Defense 
   to provide a report to the congressional defense committees by February 
   28, 1998 on the funding for the program identified in the fiscal year   
   1998 budget requests of participating agencies and the Department of    
   Defense.                                                                
           Antisubmarine warfare technology                                        
       The budget request included $35.7 million in PE 62633N for undersea 
   warfare weaponry technology.                                            
       The House bill would authorize an increase of $4.0 million in PE    
   63747N to mature the development of hydrodynamics and propulsion        
   technologies for the 6.25 torpedo vehicle and expand guidance and       
   control technologies.                                                   
       The Senate amendment would authorize an increase of $4.0 million in 
   PE 62633N to accelerate technology leading to the development of a quick
   reaction antisubmarine/anti-torpedo weapon needed for close-range       
   engagements and for the protection of surface ships and submarines from 
   torpedo attack.                                                         
       The conferees agree to authorize an increase of $3.0 million in PE  
   62633N for antisubmarine warfare technologies applicable to quick       
   reaction antisubmarine systems, as recommended in the House report (H.  
   Rept. 105 132) and the Senate report (S. Rept. 105 29). The additional  
   funding should be used to mature hydrodynamics, propulsion, and guidance
   and control technologies for the 6.25 torpedo vehicle to accelerate its 
   development and introduction into the fleet.                            
           Composite helicopter hangar                                             
    The budget request included no funds for composite helicopter hangars. 
    The House bill authorized the budget request.                          
       The Senate amendment would authorize an increase of $10.0 million   
   above the budget request in PE 63508N to begin a developmental effort to
   design and fabricate the outer shell of a DDG 51 helicopter hangar      
   structure using composite materials.                                    
       The conferees agree to authorize an increase of $10.0 million in PE 
   63508N for development of a composite helicopter hangar development and 
   a general reduction of $5.0 million to PE 63508N.                       
           Project ``M''                                                           
       The budget request included $39.7 million in PE 63508N for          
   technologies for submarine and surface ship handling, machinery, and    
   engineering systems.                                                    
       The House bill authorized an increase of $5.0 million to continue   
   the Navy's program for transition, development and demonstration of     
   advanced quieting technology developed under the Defense Advanced       
   Research Project Agency Project ``M''.                                  
    The Senate amendment authorized the budget request.                    
       The conferees agree to authorize a $5.0 million increase for Project
   ``M''.                                                                  
           Marine Corps advanced technology demonstration                          
       The budget request included $34.2 million to support the Marine     
   Corps advanced technology demonstration (ATD).                          
       The House bill would authorize an increase of $19.8 million to      
   support the Commandant's Warfighting Laboratory. The House bill would   
   also provide $5.0 million for a low-cost, close-range unmanned aerial   
   vehicle (UAV) project.                                                  
       The Senate amendment would authorize an increase of $15.0 million   
   for the Commandant's Warfighting Laboratory.                            
       The conferees agree to authorize an increase of $19.5 million in PE 
   63640M. Of this amount, $17.5 million is for the Commandant's           
   Warfighting Laboratory and $2.0 million is for the common automatic     
   recovery system for a total of $53.7 million in this program element.   
           Freeze-dried blood research project                                     
       The budget request included $18.3 million in PE 63706N for medical  
   development programs.                                                   
       The House bill and Senate amendment would authorize an increase of  
   $2.5 million for the freeze-dried blood research project.               
       The conferees agree to authorize an increase of $1.5 million in PE  
   63706N to continue research on freeze-dried blood processes to develop a
   safe and reliable supply of blood for combat casualties. The conferees  
   recognize the commercial potential of this technology and urge the Navy 
   to pursue dual-use application and cost-sharing in this program to the  
   maximum extent practicable.                                             
           Littoral antisubmarine warfare technology demonstration                 
       The budget request included $54.8 million in PE 63747N for advanced 
   development of undersea warfare advanced technology, including $30.9    
   million for shallow water surveillance advanced technology.             
       The House bill would authorize an increase of $5.0 million in PE    
   63747N for continued development, demonstration, and evaluation of the  
   technology for a mobile, high power broadband acoustic surveillance     
   source that is based upon the adaptation of commercial-off-the-shelf    
   (COTS) air-gun technology that was developed originally for the oil     
   exploration industry.                                                   
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $3.0 million for the
   continuation of the COTS air-gun technology demonstration and evaluation
   program and understand that this will lead to a decision by the Navy on 
   whether to proceed with the development of COTS air-gun technology as an
   acoustic surveillance source.                                           
           Beach and surf zone obstacle clearance                                  
       The budget request included $41.6 million in PE 63782N for advanced 
   development and demonstration of technology for shallow water mine      
   counter-measures.                                                       
       The House bill would authorize an increase of $750,000 to complete  
   the additional testing required for determination of the GPU 5 gunpod's 
   capability to breach beach and surf zone obstacles safely, quickly, and 
   decisively when mounted on an air-cushion landing craft.                
    The Senate amendment would authorize the budget request.               
    The Senate recedes.                                                    
           High frequency surface wave radar                                       
       The budget request included $87.2 million in PE 63792N for the      
   advanced technology transition program.                                 
       The House bill and Senate amendment would authorize an increase of  
   $4.0 million for high frequency surface wave radar (HFSWR) advanced     
   technology demonstration.                                               
       The conferees agree to an increase of $4.0 million in PE 63792N to  
   complete the HFSWR demonstration.                                       
           Visualization architecture and technology                               
       The budget request included $7.8 million for advanced technology in 
   aviation survivability (PE 63216N) and $33.2 million for major test and 
   evaluation investments (PE 64759N).                                     
       The House bill would authorize an increase of $3.0 million in PE    
   64759N for visualization architecture and technology that would focus on
   development of data display technologies, enhanced situational          
   awareness, and other capabilities required to enhance the ability of    
   developmental and operational testers to assess complex, dynamic air    
   combat testing and operations.                                          
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $3.0 million in PE  
   63216N for visualization architecture and technology. The conferees     
   direct that all applicable competitive procedures be used in the award  
   of contracts or other agreements under this program, and that           
   cost-sharing requirements for non-federal participants be utilized,     
   where appropriate.                                                      
           Antisubmarine warfare systems development                               
       The budget request included $22.9 million in PE 63254N for          
   development of antisubmarine warfare systems.                           
       The House bill would authorize an increase of $3.8 million to       
   complete demonstration/validation of sonobuoy geo-positioning system    
   integration and transducer enhancements for improving the shallow water 
   antisubmarine warfare effectiveness of the air deployed low frequency   
   projector.                                                              
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize a $2.0 million increase in PE      
   63254N for improving the shallow water antisubmarine warfare            
   effectiveness of the air deployed low frequency projector.              
           CV(X) carrier system development                                        
       The budget request included $98.6 million in PE 63512N for future   
   aircraft carrier research and development.                              
       The House bill would authorize a decrease of $88.4 million for CV(X)
   carrier system development. The House report (H. Rept. 105 132)         
   expressed the belief that it would be neither fiscally nor technically  
   prudent to increase advanced carrier systems research and development   
   for the CV(X) to the degree sought by the Navy. The report also         
   expressed the belief that increased emphasis should be placed on the    
   research and development program for the CVN 77 to provide a transition 
   to the CV(X).                                                           
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize $20.6 million in PE 63512N, a      
   reduction of $78.0 million for future aircraft carrier research and     
   development.                                                            
       The conferees encourage the Chief of Naval Operations to define the 
   operational requirement for the CV(X) aircraft carrier program and      
   develop a road map for the CV(X) research, development, test and        
   evaluation program to ensure the capabilities of the CV(X) meet that    
   requirement.                                                            
           Advanced submarine systems development                                  
       The budget request included $59.1 million in PE 63561N for          
   innovative research and development in submarine technologies and their 
   subsequent evaluation, demonstration, and validation for                
                    submarine platforms, in order to increase the submarine       
          technology base and provide subsystem design options that are not       
          currently feasible.                                                     
       The House bill would authorize an increase of $103.0 million for    
   development (in parallel with development of the New Attack Submarine   
   (NAS)) of a large-scale vehicle (LSV) demonstrator that would not be    
   limited by form (hull or appendages) or by a single hull design, and    
   would also direct the Secretary of the Navy to issue a competitive      
   solicitation for the demonstrator to the shipyards not currently        
   involved in the design or future construction of the NAS. The House bill
   would further direct the transfer to the submarine large scale          
   demonstrator of funds in the Future Years Defense Program accompanying  
   the fiscal year 1998 budget for the Arsenal Ship demonstrator.          
       The Senate amendment would authorize an increase of $15.0 million to
   accelerate the development of what are now considered far-term          
   technologies, such as an advanced propulsor, rim driven motors, and     
   advanced hull forms.                                                    
       The conferees agree to authorize an increase of $54.9 million. The  
   Secretary of the Navy is authorized to pursue a third demonstrator that 
   is not limited by form or single hull design and issue a competitive    
   solicitation to all responsible sources for such a demonstrator. To     
   avoid costly oversights and conflicts between the LSV builder and the   
   technology providers, the Secretary of the Navy should ensure that the  
   NAS shipbuilders are participants, as appropriate, in the process of    
   including new technologies into the LSV.                                
       The Secretary of the Navy should provide the congressional defense  
   committees not later than the time at which the fiscal year 1999 defense
   budget request is submitted a report detailing the Navy's plans for LSV 
   development.                                                            
           Cruiser conversion program design                                       
       The budget request included $38.6 million for ship preliminary      
   design and feasibility studies in PE 63564N.                            
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize a $25.0 million increase in PE 
   64567N to initiate planning for mid-life conversion of Aegis cruisers   
   and reduce schedule risk on development of DD 21.                       
       The conferees agree to authorize a $15.0 million increase in PE     
   63564N to initiate the cruiser conversion program. The conferees direct 
   the Secretary of the Navy to provide a report on the cruiser conversion 
   plan to the congressional defense committees with the submission of the 
   fiscal year 1999 defense budget request.                                
           Intercooled recuperated gas turbine engine                              
       The budget request included $49.7 million in PE 63573N for the      
   Navy's advanced surface machinery program, including $32.3 million to   
   continue development of the intercooled recuperated (ICR) gas turbine   
   engine.                                                                 
       The House bill would authorize the budget request. The House report 
   (H. Rept. 105 132) would direct the Secretary of the Navy to report an  
   assessment of the progress in the ICR engine program.                   
       The Senate amendment would also authorize the budget request. The   
   Senate report (S. Rept. 105 29) would direct the Secretary of the Navy  
   to prepare and submit a plan that makes provisions for at-sea testing,  
   completion of development, and introduction of the ICR engine into the  
   fleet.                                                                  
       The conferees agree to authorize a reduction to the budget request  
   for the ICR program of $2.0 million, without prejudice. The conferees   
   direct the Secretary of the Navy to conduct an assessment of the        
   progress in the ICR engine program and plans for its continuation. The  
   assessment shall address the technical progress in the program, future  
   plans for engine testing and qualification (including plans for testing 
   at land-based test sites and at-sea), options for completion of         
   development and introduction of the ICR engine into the fleet if testing
   proves successful, the status of agreements with the United Kingdom and 
   participating countries regarding the conduct of, and funding for,      
   continuation of the program, and budget estimates of the costs necessary
   to complete the program. The results of the assessment shall be reported
   to the congressional defense committees with the submission of the      
   fiscal year 1999 defense budget request.                                
           Automatic target recognition/optical correlation                        
       The budget request included $34.2 million in PE 63609N for Navy     
   conventional munitions development, $26.2 million in PE 63601F for Air  
   Force conventional weapons technology, and $4.8 million in PE 63232D for
   automatic target recognition.                                           
       The House bill would authorize an increase of $8.0 million in PE    
   63609N for development and demonstration of a miniature optical         
   correlator for automatic target recognition and improved aimpoint       
   selection for the Standard Missile, and an increase of $3.5 million in  
   PE 63601F for the development and demonstration of a miniature optical  
   correlator for automatic target recognition and aimpoint selection for  
   the AGM 130 missile.                                                    
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $4.2 million in PE  
   63609N and an increase of $1.5 million in PE 63601F for the development 
   and demonstration of optical correlation technology, as described in the
   House report (H. Rept. 105 132). The increase in PE 63601F is offset by 
   a reduction of $3.0 million for next generation air-to-air threats.     
           Marine Corps assault vehicles                                           
       The budget request included $60.1 million to support the development
   of the advanced amphibious assault vehicle (AAAV).                      
       The House bill would authorize an increase of $10.0 million to meet 
   additional development requirements.                                    
       The Senate amendment would authorize an increase of $10.1 million   
   for the AAAV.                                                           
       The conferees agree to authorize an increase of $8.0 million for a  
   total of $68.1 million in PE 63611M.                                    
           Marine Corps ground combat/support systems                              
       The budget request included $36.5 million to support development of 
   Marine Corps ground combat systems.                                     
       The House bill would authorize an increase of $3.6 million to       
   support development requirements for the lightweight 155mm howitzer.    
    The Senate amendment would authorize the budget request.               
    The Senate recedes.                                                    
           Cooperative engagement capability                                       
       The budget request included $139.2 million in PE 63658N for the     
   cooperative engagement capability (CEC).                                
       The House bill would authorize a total increase of $50.0 million in 
   PE 63658N for the CEC program: $15.0 million to continue the accelerated
   development of the low cost common equipment set; $5.0 million to       
   support transfer of the CEC design and development agent to industry;   
   $20.0 million to accelerate integration of the CEC into Navy E 2C and P 
   3 aircraft; $5.0 million to initiate development of an integrated       
   capability between CEC and the ship self defense program (SSDS); and    
   $5.0 million to accelerate joint service integration and demonstration  
   of CEC with the Army's Patriot and the Marine Corps' Hawk air defense   
   missile systems.                                                        
       The Senate amendment would authorize an increase of $9.5 million in 
   PE 63658N to:                                                           
       (1) $5.0 million to continue the transition of design responsibility
   from its developer to the CEC procurement contractor; and               
       (2) $4.5 million to continue integration of CEC into the Marine     
   Corps Hawk missile system.                                              
       The Senate amendment would also authorize $5.0 million in PE 64212N 
   to initiate development of a Ku-band data link kit for the SH 60B       
   helicopter to avoid CEC interference.                                   
       The conferees agree to authorize an increase of $33.0 million in PE 
   63658N as follows:                                                      
    (1) $15.0 million for low cost common equipment sets;                  
    (2) $10.0 million for P 3 and E 2C integration;                        
    (3) $5.0 million for CEC SSDS integration; and                         
    (4) $3.0 million for CEC Hawk missile system  integration.             
       The conferees agree not to authorize an increase in PE 64212N for   
   the SH 60B Ku-band data link.                                           
           Composite engineered materials                                          
       The budget request included $1.7 million in PE 63725N for advanced  
   development of materials, electronics and computer technologies.        
       The House bill would authorize an increase of $3.0 million to       
   complete the shore facilities materials program in cost-shared research 
   on carbon fiber-reinforced, recycled thermoplastic engineered lumber.   
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $3.0 million to     
   complete the shore facilities materials program in cost-shared research 
   on carbon fiber-reinforced, recycled thermoplastic engineered lumber.   
           Land attack systems technology                                          
       The budget request included $37.8 million in PE 63795N for          
   development, demonstration, and validation of land attack systems       
   technology for naval ship-to-shore fire support.                        
    The House bill would authorize the following increases:                
       (1) $15.1 million to complete the development and commence the      
   integration of a fire control system to support the initial operational 
   capability of the advanced 5"/62 caliber gun and the extended range     
   guided munition;                                                        
       (2) $10.0 million for flight test demonstration and risk reduction  
   for the land attack Standard missile;                                   
       (3) $20.0 million for program definition and risk reduction         
   activities to permit the Navy tactical missile system (NTACMS) to begin 
   accelerated engineering and manufacturing development in fiscal year    
   1999; and                                                               
       (4) $5.0 million to continue the micro-electromechanical systems    
   (MEMS) technology guidance and control risk reduction program.          
    The Senate amendment would authorize the following increases:          
       (1) $15.1 million for the continued development of the naval surface
   fire support warfare control system (NWCS);                             
       (2) $5.0 million to pursue a flight demonstration program for the   
   land attack Standard missile; and                                       
     (3) $20.0 million  for developing NTACMS.                             
    The conferees agree to authorize the following increases to PE 63795N: 
       (1) $8.0 million to complete the extended range guided munition     
   development and commence the integration of a fire control system;      
       (2) $3.0 million to pursue a flight demonstration program for the   
   land attack Standard missile;                                           
     (3) $10.0 million  for developing NTACMS; and                         
     (4) $2.0 million for MEMS.                                            
       The conferees are concerned that the Navy is pushing systems to     
   flight test to meet surface fire support requirements without an initial
   analysis of whether the systems are capable of meeting Naval            
                    surface fire support requirements. In addition, a number of   
          mature systems, sub-systems and components appear to be capable of      
          fulfilling surface fire support requirements without further            
          development. However, without the basic analysis which would allow the  
          Navy to narrow the field of candidates intelligently, too many systems  
          are moving toward fulfilling the same requirement and too many          
          opportunities to take advantage of developed systems are being missed.  
          To correct these deficiencies, the conferees strongly encourage the Navy
          to conduct the basic analysis necessary to move forward with a focused  
          effort to meet the surface fire support requirement. To accomplish this,
          the conferees suggest the Navy evaluate the concept of a virtual land   
          attack warfare development center that would electronically link        
          existing expertise while avoiding expensive travel costs. The Navy      
          should consider using funding from prime systems for meeting the surface
          fire support analytical requirement, including Standard missile, Navy   
          tactical missile system, and Tomahawk. The conferees believe the Navy   
          needs to conduct this analysis to eliminate redundancy and take         
          advantage of mature technologies to make progress in meeting naval      
          surface fire support requirements.                                      
           Nonlethal weapons and technologies of mass protection program           
       The budget request included $16.8 million for the nonlethal weapons 
   (NLW) and technologies program.                                         
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $3.3 million to 
   address underfunding by the Department of Defense in support of         
   nonlethal weapons technologies research and development program.        
    The Senate recedes.                                                    
       The Senate report (S. Rpt. 105 29) expressed the view that the      
   Department of Defense should continue to focus its efforts on developing
   weapons and technologies to assist U.S. military forces, who are        
   increasingly involved in non-traditional military situations, with the  
   necessary tools and flexibility to manage, shape, deter, or contain     
   future conflicts across the operational spectrum. The conferees note the
   recent decision by the Department of Defense to ship nonlethal weapons  
   and technologies to U.S. ground forces participating in the North       
   Atlantic Treaty Organization (NATO) Stabilization Force (SFOR) during   
   the recent violent confrontations between American forces and Bosnian   
   Serb demonstrators.                                                     
       The conferees commend the military services for their efforts in the
   NLW area and encourage the Department of Defense (DOD) to increase its  
   investments in the research, development, and procurement of nonlethal  
   weapons and technologies, as well as associated doctrinal and training  
   initiatives. Further, the conferees expect the DOD to provide the funds 
   necessary to fulfill the requirements for nonlethal weapons and         
   technologies identified by the military services, rather than requiring 
   the military services to fund NLW programs out of their existing        
   budgets.                                                                
           CH 60 helicopter development                                            
       The budget request included $31.8 million for CH 60 helicopter      
   advance procurement.                                                    
    The House bill and Senate amendment would authorize the budget request.
       The conferees agree to authorize a transfer of $31.8 million from   
   Aircraft Procurement, Navy to PE 64212N to enable the Navy to conduct   
   non-recurring engineering efforts, including drawings for engineering   
   development.                                                            
           Parametric airborne dipping sonar                                       
       The budget request included no funds for the parametric airborne    
   dipping sonar (PADS).                                                   
       The Senate amendment would authorize an increase of $10.0 million in
   PE 64212N for the continued development of PADS.                        
    The House bill authorized the budget request.                          
       The conferees agree to authorize an increase of $5.0 million        
   increase for PADS in PE 64212N.                                         
           P 3 maritime patrol aircraft modernization program                      
       The budget request included $3.2 million in PE 64221N to continue   
   engineering and manufacturing development of upgrades to the P 3C       
   aircraft system to enhance surface and surface tracking, classification,
   and attack capabilities.                                                
       The House bill would authorize an increase of $12.0 million to      
   continue and accelerate the integration of anti-surface warfare         
   improvement program (AIP) sensors to reduce operator workload, modernize
   the operator-machine interface to take advantage of new displays and    
   controls, provide additional sensor integration/enhancements,           
   improve/automate tactical planning aids, and provide for multi-sensor   
   data correlation and fusion.                                            
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $10.0 million in PE 
   64221N for the P 3C maritime patrol aircraft modernization program as   
   recommended in the House report (H. Rept. 105 132).                     
       The conferees note the continuing disparity between the operational 
   requirements of the unified commanders-in-chief (CINCs) and the Navy's  
   plans for modernization of the P 3C fleet. The conferees direct the     
   Secretary of the Navy to provide an assessment of the implications of   
   this disparity to the congressional defense committees with the         
   submission of the fiscal year 1999 defense budget request.              
           H 1 upgrades                                                            
    The budget request included $80.7 million to support H 1 upgrades.     
       The House bill and Senate amendment would authorize a transfer of   
   $5.6 million from the H 1 program in Navy procurement to support efforts
   to provide for a common cockpit in PE 64245N.                           
    The conferees agree to authorize the transfer of $5.6 million          
                    from the H 1 upgrade program to PE 64245N for a total of $86.3
          million in that program element. The conferees agree to authorize a     
          total of $12.9 million for H 1 modifications.                           
           Advanced ranging source                                                 
       The budget request included $16.9 million in PE 64261N for          
   engineering and manufacturing development of acoustic search sensors.   
       The House bill would authorize an increase of $4.0 million to       
   accelerate the development of alternative shallow water-capable sound   
   sources in the advanced extended echo ranging (AEER) program and ensure 
   that unique acoustic technology is available for the advanced ranging   
   source (ARS) and air deployed low frequency project (ADLFP) comparative 
   program testing.                                                        
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $2.0 million for the
   purposes identified in the House report (H. Rept. 105 132).             
           High Power Discriminator                                                
       The budget request included no funds in PE 64307N to begin          
   development of a High Power Discriminator (HPD).                        
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $35.0 million   
   for the HPD Program.                                                    
       The conferees agree to authorize an increase of $25.0 million for   
   the HPD Program in PE 64307N.                                           
       The conferees support the concept of using existing X-Band radar    
   technology in support of the Navy's theater ballistic missile defense   
   effort. The proposed HPD would consist of a solid state X-Band radar for
   long-range acquisition and discrimination for theater ballistic missile 
   defense and cruise missile defense. This concept would leverage the     
   significant investment already made in the Army's ground-based radar.   
           Maritime fire support demonstrator/arsenal ship                         
       The budget request included $102.9 million in PE 64310N for the Navy
   and $47.2 million in PE 63763E for the Defense Advanced Research        
   Projects Agency (DARPA) to continue development of the arsenal ship     
   demonstrator. The budget request also included $55.0 million in PE      
   64567N for the Navy's next generation surface combatant, SC 21.         
       The House bill would authorize no funding for the arsenal ship      
   program. It would direct the Under Secretary of Defense (Acquisition and
   Technology) and the Secretary of the Navy to review the acquisition     
   strategy for the SC 21 program and determine whether or not a           
   prototyping strategy is appropriate for the new surface combatant.      
       The Senate amendment would authorize an increase of $25.0 million in
   PE 64310N to ensure that sufficiently robust funding is available early 
   in Phase III, the construction phase for the arsenal ship (now          
   redesignated the maritime fire support demonstrator (MFSD)), for        
   schedule risk reduction and to promote the introduction of new          
   technologies into the demonstrator.                                     
       The conferees agree to authorize $35.0 million in PE 64310N and no  
   funding in PE 63673E to continue the MFSD program, a total reduction of 
   $105.2 million. The reduction reflects the concerns stated in the fiscal
   year 1997 and the fiscal year 1998 reports by the congressional defense 
   committees and in the statement of managers which accompanied the       
   conference report on H.R. 3230 (H. Rept. 104 724).                      
       As noted in the House report (H. Rept. 105 132), the Navy's original
   concept for the arsenal ship was for the development and demonstration  
   of a ``proof-of-principle strike warfare ship'' that would establish a  
   new paradigm for the development and construction of Navy ships. A      
   stealthy, highly survivable, heavily armed, and minimum manpower fire   
   support ship, the arsenal ship demonstrator would be the prototype of a 
   force of up to six such ships, each armed with as many as 500 vertical  
   launch cells.                                                           
       The Senate report (S. Rept. 105 29) noted that the Navy's concept   
   for execution of the land attack mission has evolved from delivery of   
   massive firepower from a limited number of single-mission hulls to      
   delivery of fires by a closely interconnected, distributed network of   
   multi-mission surface combatants. This evolution is reflected in the    
   preferred option identified in the SC 21 cost and operational           
   effectiveness analysis: a multi-mission destroyer optimized for land    
   attack, the DD 21. The Navy has stated that the MFSD lies on the        
   critical path to successful development of a DD 21 design in time to    
   begin lead ship construction in fiscal year 2004. The Navy believes that
   all the technologies identified in the arsenal ship concept development 
   phase will be relevant to the DD 21, and that the MFSD will also serve  
   as a test-bed for emerging technologies following completion of the     
   initial demonstration with the fleet in 2001. The conferees are deeply  
   concerned that, although the stated purpose of the original arsenal ship
   demonstrator program changed significantly with the Navy's announcement 
   of the new MFSD strategy in April 1997, the DARPA and the Navy continue 
   to pursue the MFSD program without any apparent near-term change in the 
   original program direction and without addressing the issues that have  
   been previously raised by the congressional defense committees. The     
   conferees understand that the program now under contract continues to   
   focus on the development and demonstration of the arsenal ship concept, 
   not on the maritime fire support demonstrator and its relationship to DD
   21.                                                                     
       The conferees note the views expressed in the House report that the 
   differences in ship size and mission capability between the Arsenal Ship
   and DD 21, as conceived, could yield two separate development programs  
   and that the overlapping schedules for the demonstrator and the DD 21   
   program do not provide sufficient opportunity for the experience gained 
   from the demonstrator to provide maximum benefit to design and          
   construction of the DD 21.                                              
       The conferees believe that, if the MFSD program is to be relevant,  
   the program must focus on the development and demonstration of new      
   processes and procedures for the development and construction           
                    of Navy ships, and on the development and demonstration of    
          technologies that might be used in the DD 21 or in other future Navy    
          ship construction programs. The demonstrator program must be structured 
          to achieve these ends and the development and demonstration of the      
          technologies to be evaluated on the demonstrator must be explicitly     
          defined, programmed, and funded. The conferees do not believe that the  
          MFSD, as a demonstrator and test bed, should be funded in a program     
          element for engineering and manufacturing development.                  
       Therefore, the conferees direct the Secretary of Defense to prepare 
   and submit to the congressional defense committees a plan for the       
   development, demonstration, and evaluation of the MFSD and for          
   development, demonstration, and evaluation of the various technologies  
   that will be demonstrated and evaluated on the demonstrator. The        
   technologies should include those being considered for incorporation in 
   the detailed design of the DD 21, for subsequent technology insertion   
   into the DD 21 program, or for use in other future naval ship           
   construction programs. The plan shall include the management structure, 
   program plan, schedule, and funding required for development of the MFSD
   and for development, demonstration and evaluation of each of the        
   technologies under consideration. The conferees further direct that of  
   the funds authorized to be appropriated for the MFSD program in fiscal  
   year 1998, not more than 50 percent may be obligated until the plan is  
   provided to the Congress.                                               
       The conferees also direct that any program to convert the MFSD to an
   operational surface combatant will require completion of a Milestone    
   II/IV review and decision by the Secretary of Defense that formally     
   addresses the same issues regarding the requirement and program for the 
   MFSD that have been previously raised by the congressional defense      
   committees with regard to the arsenal ship.                             
           Multi-purpose processor                                                 
       The budget request included $42.3 million in PE 64503N for SSN 688  
   and TRIDENT modernization, including $33.5 million for submarine sonar  
   improvement. However, the budget request included no funds for the      
   multi-purpose processor (MPP).                                          
       The House bill would authorize an increase of $15.0 million for     
   advanced development and rapid introduction of the MPP into the U.S.    
   submarine fleet.                                                        
       The Senate amendment would authorize an increase of $25.0 million   
   above the budget request in PE 64503N to be used as an SBIR follow-on   
   for advanced development of MPP transportable software technology,      
   technology insertion, advanced processor software builds, and for       
   providing MPP units and training throughout the fleet and the Navy      
   research and development community.                                     
       The conferees agree to authorize an increase of $15.0 million for   
   the SBIR follow-on for advanced development of MPP transportable        
   software technology, technology insertion, advanced processor software  
   builds, and for providing MPP units and training.                       
           Advanced submarine tactical electronic combat system                    
       The budget request included $311.1 million in PE 64558N to continue 
   engineering and manufacturing development for the New Attack Submarine  
   (NSSN), including $95.8 million for NSSN combat system development.     
       The House bill would authorize an increase of $17.0 million in PE   
   64558N to restore the deferred elements of the advanced submarine       
   tactical electronic combat system (ASTECS) and the integrated electronic
   support measures mast (IEM), ASTECS/IEM program.                        
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $8.0 million in PE  
   64558N to restore the deferred elements of the ASTECS/IEM program.      
           CVN 77 research and development                                         
       The budget request included $17.9 million in PE 64567N for aircraft 
   carrier contract design for the CVN 77.                                 
       The House bill would authorize an increase of $17.0 million to      
   accelerate the evaluation of maturing advanced technologies for         
   potential incorporation into the design of the CVN 77.                  
       The Senate amendment would authorize an increase of $17.0 million in
   PE 63564N.                                                              
       The conferees agree to authorize an increase of $17.0 million in PE 
   64567N to be used only for CVN 77 research, development, test and       
   evaluation to accelerate the evaluation of maturing advanced            
   technologies for potential incorporation into the design of CVN 77.     
           Ship self-defense system                                                
       The budget request included $132.3 million in PE 64755N for the     
   Navy's ship self defense program including $8.2 million for continued   
   development of the NULKA active countermeasures decoy.                  
       The House bill would authorize an increase of $8.6 million to       
   activate the integrated ship self-defense test site at Wallops Island,  
   and would direct the Secretary of the Navy to provide $6.0 million from 
   available funds to refurbish and install an AN/SPS 48E air search radar 
   at the test site. The House bill would direct the Secretary of the Navy 
   to reassess the requirement for close-in defense of Navy surface ships  
   and report the results of the assessment and the plan for meeting the   
   requirement to the congressional defense committees by February 28,     
   1998. Fiscal year 1998 funds would not be authorized to be obligated for
   the rolling airframe missile (RAM) upgrade program until 30 days after  
   the congressional defense committees receive the Secretary's report.    
       The Senate amendment would authorize an increase of $34.0 million in
   PE 64755N, including:                                                   
       (1) $19.0 to pursue the system integration needed to integrate the  
   cooperative engagement capability (CEC), the advanced combat direction  
   system (ACDS), and the ship self-defense system (SSDS) local area       
   networks to create a single                                             
          tactical picture and a central integrated combat direction system;      
     (2) $2.0 million for continued development of the NULKA decoy; and    
       (3) $13.0 million for accelerating the infrared search and track    
   program (IRST).                                                         
       The conferees agree to authorize the following ship self-defense    
   increases to PE 64755N:                                                 
       (1) $10.0 million to pursue the system integration needed to        
   integrate the cooperative engagement capability (CEC), the advanced     
   combat direction system (ACDS), and the ship self-defense system (SSDS) 
   local area networks to create a single tactical picture and a central   
   integrated combat direction for a quick reaction combat capability      
   (QRCC);                                                                 
       (2) $4.0 million to activate the integrated ship self-defense test  
   site at Wallops Island;                                                 
     (3) $2.0 million for continued NULKA development; and                 
     (4) $4.0 million to accelerate the IRST program.                      
       The conferees direct the Secretary of the Navy to assess the        
   requirement for close-in defense of Navy surface ships as discussed in  
   the House report (H. Rept. 105 132), and to report the results of that  
   assessment and the plans for meeting the requirement to the             
   congressional defense committees by February 28, 1998.                  
           Safety and survivability enhancements                                   
       The budget request included $263.9 million in PE 65864N for test and
   evaluation support.                                                     
       The House bill would authorize an increase of $2.0 million to       
   continue the program for procurement, test, and alveolation of          
   commercial off-the-shelf non-development items (COTS NDI) that have high
   potential for contributing to safety of flight, fire fighting, damage   
   control, emergency preparedness ashore, survival at sea, and            
   chemical/biological warfare defense. The additional funds would permit  
   the program to assess COTS NDI that are new to the industrial           
   marketplace.                                                            
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $1.0 million in PE  
   65864N for Navy safety and survivability enhancements.                  
            2 eight-blade composite propeller system                               
       The budget request included $64.9 million in PE 24152N for          
   development of pre-planned product improvements in E 2C aircraft and    
   weapon system capabilities, involving $39.4 million for E 2C mission    
   system improvements.                                                    
       The House bill would authorize an increase of $10.0 million to      
   initiate a 24 month program for development and demonstration of an     
   eight-blade composite propeller system for the E 2C.                    
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize the budget request. The conferees  
   understand that the Navy has advertised for bids and plans to award a   
   contract to develop a new eight-blade composite propeller for the E 2C  
   and C 2A aircraft to address existing system limitations and reduce     
   maintenance and operations costs. The conferees direct the Secretary of 
   the Navy to ensure that the solicitation and contract award process for 
   the award of such a contract complies with Federal Acquisition          
   Regulations.                                                            
           Battle force tactical trainer                                           
       The budget request included $59.0 million in PE 24571N for          
   consolidated training systems development, including $2.9 million for   
   continued development of the battle force tactical training (BFTT)      
   system.                                                                 
       The House bill would authorize an increase of $5.0 million for the  
   integration of ship and battle force electronic surveillance systems    
   into the BFTT system.                                                   
    The Senate amendment would authorize the budget request.               
    The Senate recedes.                                                    
           Joint tactical combat training system                                   
       The budget request included $59.0 million in PE 24571N for          
   consolidated training systems development, including $33.6 million for  
   continued development of the joint tactical combat training system      
   (JTCTS). The JTCTS is a Navy-led, joint Air Force/Navy program for the  
   development of fixed, transportable, and mobile range instrumentation   
   for shore-based tactical air crew training and for deployable, at-sea   
   naval expeditionary force training.                                     
       The House bill would authorize a reduction of $27.5 million to the  
   budget request for JTCTS and would direct the Secretary of the Navy, in 
   coordination with the Secretary of the Air Force, to conduct an         
   assessment of the JTCTS requirement and development program and report  
   the results of the assessment to the congressional defense committees by
   December 31, 1997.                                                      
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize the budget request for the JTCTS   
   program. The conferees understand that JTCTS is an Acquisition Category 
   and an Office of the Secretary of Defense (OSD) special interest        
   program, and that a thorough assessment and baseline review of the      
   program was successfully completed in May 1997 by the Secretary of the  
   Navy, the Secretary of the Air Force, a senior OSD review team and the  
   Defense Test and Training Steering Group. The conferees further         
   understand that the Navy Fleet commanders in chief have endorsed the    
   JTCTS as their number two training range priority. The conferees also   
   understand that the design of JTCTS provides a neck-down strategy for   
   replacement of existing legacy training and test range instrumentation  
   that will result in considerable savings when the planned transition to 
   JTCTS begins in fiscal year 2000. The conferees strongly support the    
   development and fielding of common training and test range              
   instrumentation systems for the Air Force and                           
                    the Navy and encourage the Secretary of Defense to ensure the 
          maintenance of the schedule for development of JTCTS. The results of the
          program assessment directed in the House Report (H. Rept. 105 132) and  
          any revisions to the program baseline, funding requirements, and        
          schedule should be forwarded to the congressional defense committees by 
          January 31, 1998.                                                       
           Marine Corps communications systems                                     
       The budget request included $38.3 million to support development of 
   Marine Corps communications systems.                                    
       The House bill would authorize an increase of $9.9 million to       
   support development of Marine Corps communication system requirements.  
   Of this amount, $2.0 million was for the tactical hand-held radio; $1.5 
   million was for tactical remote sensors; $0.7 million was for Marine    
   common hardware suite (MCHS); $1.0 million was for the tactical         
   electronic reconnaissance processor and intelligence systems; $5.0      
   million was for close-range unmanned aerial vehicle (UAV) data links;   
   and a $0.3 million decrement was for the TENCAP program.                
       The Senate amendment would authorize an increase of $0.7 million for
   MCHS.                                                                   
       The conferees agree to authorize an increase of $7.0 million for a  
   total of $45.3 million in PE 26313M. Of this amount, $2.0 million is for
   the tactical hand-held radios and $5.0 million is for the close-range   
   UAV data link.                                                          
           Marine Corps ground combat/supporting arms systems                      
       The budget request included $12.6 million for Marine Corps ground   
   combat system development initiatives.                                  
       The House bill would authorize an increase of $5.0 million in PE    
   26623M. Of this amount, $4.3 million would be used to integrate and test
   the AN/VVR 1 laser warning receiver on the M1A1 Abrams tank and $0.7    
   million would be used to support the development of Marine Corps        
   clothing requirements.                                                  
    The Senate amendment would support the budget request.                 
       The conferees agree to authorize an increase of $2.1 million in PE  
   26623M for the integration and testing of the AN/VVR 1 laser warning    
   receiver on the Marine Corps M1A1 tank.                                 
           Manufacturing technology programs                                       
       The budget request included no funds for the Navy's manufacturing   
   technology (MANTECH) program.                                           
       The House bill would authorize funding for the MANTECH program      
   through section 211 of Title II, as noted elsewhere.                    
       The Senate amendment would authorize an increase of $50.0 million in
   PE 78011N in order to address funding shortfalls in the MANTECH program 
   for fiscal year 1998. The Senate amendment also required the Secretary  
   of the Navy to provide a report to the congressional defense committees 
   on his plan to strengthen and stabilize funding for the Navy MANTECH    
   program.                                                                
       The conferees agree to an increase of $55.0 million in PE 78011N for
   the MANTECH program. The conferees are once again disappointed in the   
   Navy's budget request for the manufacturing technology (MANTECH)        
   program. The program has traditionally focused on making weapon systems 
   and equipment more affordable through the application of advanced       
   manufacturing methods to weapon systems production. In this time of     
   severe budget constraints, the conferees expect the Navy to make every  
   effort to pursue programs directed at lowering the long-term cost of    
   weapon systems.                                                         
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $14,451.4 million for Air Force, Research and Development in the     
   Department of Defense. The House bill would authorize $14,659.7 million.
   The Senate amendment would authorize $14,302.3 million. The conferees   
   recommended an authorization of $14,338.9 million. Unless noted         
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              
   Offset Folios 1182 to 1191 Insert here                                  
           Integrated High Payoff Rocket Propulsion Technology                     
       The budget request included $48.1 million for rocket propulsion     
   technology in the Integrated High Payoff Rocket Propulsion Technology   
   (IHPRPT) initiative programs.                                           
       The House bill would authorize $57.6 million for IHPRPT programs, an
   increase of: $6.0 million to PE 62601F; $1.5 million to PE 63302F; $1.0 
   million to PE 62111N; and $1.0 million to PE 63217N.                    
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize $55.4 million for IHPRPT initiative
   programs, an increase of: $4.8 million to PE 62601F; $1.5 million to PE 
   63302F; and $1.0 million to PE 63217N.                                  
           Military Spaceplane                                                     
       The budget request included no funds for the Military Spaceplane    
   technology program.                                                     
       The House bill would authorize an increase of $15.0 million in PE   
   63302F for the Military Spaceplane program.                             
       The Senate amendment would authorize an increase of $10.0 million in
   PE 63401F for the Military Spaceplane program.                          
       The conferees agree to authorize an increase of $10.0 million for   
   the Military Spaceplane program in PE 63401F.                           
       Although the National Space Launch Policy assigns to NASA the lead  
   for reusable launch vehicle development, the Department of Defense has  
   been participating in such activities for many years. The Air Force has 
   developed a military spaceplane program to complement NASA's efforts    
   while focusing on specific military requirements and applications, a    
   responsibility that does not reside with NASA. The Commander-in-Chief of
   U.S. Space Command is in the process of identifying military            
   requirements for such a program and the Air Force has established a     
   program office and a new program element to manage this activity. The   
   Air Force is also working to include funding in the Future Years Defense
   Program for this effort. The conferees do not view these actions as     
   duplicative of NASA's work on reusable launch vehicles.                 
       The conferees believe that the Department of Defense should begin to
   define a military spaceplane concept that meets legitimate military     
   requirements in the future while exploiting technological progress made 
   in NASA's reusable launch vehicle program. The conferees direct the     
   Secretary of Defense to provide a report describing the status of this  
   effort to the congressional defense committees by February 15, 1998.    
           Solar thermionics orbital transfer vehicle                              
       The budget request included no funds for the solar thermionics      
   orbital transfer vehicle program.                                       
       The House bill would authorize an increase of $20.0 million in PE   
   63401F for the solar thermionics orbital transfer vehicle program.      
       The Senate amendment would authorize an increase of $10.0 million   
   for this program.                                                       
       The conferees agree to authorize an increase of $7.5 million in PE  
   63401F for the solar thermionics orbital transfer vehicle.              
       The conferees have supported thermionics technology development for 
   space applications. The solar powered orbital transfer vehicle has been 
   identified by the Air Force as a Third Millennium initiative. This      
   program combines thermionic technology for electricity production and   
   thermal propulsion which can be used to move spacecraft to higher or new
   orbits.                                                                 
                      Joint air-to-surface standoff missile/standoff land attack   
           missile-expanded response                                               
       The budget request included $9.6 million in PE 64312N and $203.3    
   million in PE 27325F for development of the Air Force/Navy Joint Air to 
   Surface Standoff Missile (JASSM) program and $28.9 million in PE 64603N 
   to continue development of the Navy's Standoff Land Attack              
   Missile-Enhanced Response (SLAM-ER) program. The request also included  
   $21.7 million for procurement of 22 SLAM-ER missiles for the Navy.      
       The House bill and the Senate amendment would authorize the budget  
   request for JASSM and for SLAM-ER.                                      
       The conferees direct the Secretary of Defense to include SLAM-ER    
   plus and the two alternative systems that are funded in the JASSM       
   program in the Analysis of Alternatives for JASSM.                      
       Accordingly, the conferees agree to authorize $5.5 million in PE    
   64321N and $170.0 million in PE 27325F to continue the JASSM program,   
   $28.9 million in PE 64603N to continue the development of SLAM-ER, and  
   $21.7 million for SLAM-ER procurement.                                  
                                 JOINT AIR-TO-SURFACE STANDOFF MISSILE/STANDOFF LAND ATTACK MISSILE                                
                                                      [In millions of dollars]                                                     
Program element and description                                       Budget request      HNSC      SASC     Conference agreement     Change  
PE64312N--Tri-Service Standoff Attack Missile                                    9.6       9.6       9.6                      5.5       -4.1  
PE27325F--Joint Air-to-surface standoff missile                                203.3     203.3     203.3                    170.0      -33.3  
PE64603N--Unguided Conventional Air-launched Weapons (SLAM ER)                  28.9      28.9      28.9                     28.9             
WPN line 18--Harpoon Mods (SLAM ER)                                             21.7      21.7      21.7                     21.7             
                                                                   -----------------  --------  --------  -----------------------  ---------  
Total                                                                          263.5     263.5     263.5                    226.1      -37.4  
       The conferees note that the lack of agreement between the Navy and  
   the Air Force on the conduct of the JASSM program calls for clear       
   guidance from the Secretary of Defense. The Secretary has four obvious  
   alternatives to examine that could have entirely different effects on   
   future budgets.                                                         
       (1) Develop JASSM to meet the operational needs of the Navy and the 
   Air Force, with SLAM-ER not procured beyond an interim capability.      
       (2) Continue the JASSM program as a joint program for both the Navy 
   and Air Force, while the Navy continues a separate development of       
   SLAM-ER as currently planned.                                           
       (3) Develop separate programs for the Navy and the Air Force, with  
   SLAM-ER as the Navy choice, and JASSM as the Air Force selection.       
       (4) Develop SLAM-ER as the single program for both the Air Force and
   the Navy.                                                               
       The conferees direct the Secretary of Defense to review the SLAM-ER 
   and JASSM programs and alternatives outlined above and to report to the 
   congressional defense committees within 60 days of the enactment of this
   Act.                                                                    
           Major test and evaluation investment                                    
       The budget request included $47.3 million in PE 64759F for major    
   test and evaluation investment.                                         
       The House bill would authorize an increase of $14.8 million for     
   range improvement program/modernize range C41 capabilities.             
       The Senate amendment would authorize a decrease of $6.0 million for 
   infrastructure reduction.                                               
       The conferees agree to authorize an increase of $10.0 million for   
   the range modernization described in the House report (H. Report 105    
   132). The conferees also agree to a general reduction of $3.0 million in
   PE 64759F.                                                              
           Smart monitoring system                                                 
       The budget request included $5.9 million for pollution prevention in
   PE 65854F.                                                              
       House bill would authorize an additional $5.0 million in PE 65854F  
   to expand Air Force demonstration efforts related to the smart          
   monitoring system, a real-time monitoring technology for soil and       
   groundwater contamination.                                              
       The Senate amendment would authorize the budget request. The        
   conferees agree to authorize an increase of $4.0 million in PE 65854F   
   for the smart monitoring system.                                        
           Rocket Systems Launch Program                                           
       The budget request included $8.0 million in PE 65860F for the Rocket
   Systems Launch Program (RSLP).                                          
       The House bill would authorize an increase of $25.0 million for RSLP
   to support the launch of an Atmospheric Intercept Technology (AIT)      
   demonstration payload.                                                  
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $20.0 million for   
   RSLP in support of the AIT program. The conferees direct the Ballistic  
   Missile Defense Organization and the Air Force to develop a coordinated 
   implementation plan for executing the RSLP and AIT budgets in order to  
   maximize the benefit to the AIT program.                                
           Cruise missile defense                                                  
       The budget request included no funds to begin transitioning sensor  
   technology from the Defense Advanced Research Projects Agency (DARPA) to
   the Air Force for insertion into the Airborne Warning and Control System
   (AWACS) or the Joint Surveillance Target Attack Radar System (JSTARS)   
   for cruise missile defense.                                             
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize increases of $10.0 million to  
   PE 27417F to begin the necessary upgrades to AWACS, and $10.0 million to
   PE 27581F to begin necessary upgrades to JSTARS.                        
       The conferees agree to authorize an increase of $3.0 million in PE  
   27581F to begin necessary upgrades to JSTARS for cruise missile defense.
       Given the growing threat posed by cruise missiles, the conferees    
   continue to support development of a comprehensive cruise missile       
   defense architecture, integrated into DOD's overall air and theater     
   missile defense efforts. Because counter cruise missile technologies    
   have matured at DARPA, and because DARPA funding to support key sensor  
   technologies ends in fiscal year 1998, the conferees strongly urge the  
   Air Force to begin to integrate these technologies into operational     
   platforms, specifically into the AWACS and JSTARS platforms. The        
   conferees expect the Air Force to assume these two important            
   initiatives. To support these efforts, the conferees encourage the Air  
   Force to prepare expeditiously the report on cruise missile defense     
   directed in the statement of managers accompanying the conference report
   on H.R. 2266 (H. Rept. 105 265). The conferees understand that the Air  
   Force's report could conclude that the Air Force should apply additional
   funds to cruise missile defense upgrades to the AWACS or JSTARS programs
   during fiscal year 1998 beyond those approved in this Act. If that is   
   the conclusion of the report, the conferees would be willing to         
   entertain a request to reallocate funds within the AWACS or JSTARS      
   programs, or to reprogram funds from other activities.                  
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $9,069.7 million for Defense-Wide, Research and Development in the   
   Department of Defense. The House bill would authorize $9,611.0 million. 
   The Senate amendment would authorize $9,796.8 million. The conferees    
   recommended an authorization of $9,546.1 million. Unless noted          
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              
   Offset Folios 1197 to 1207 Insert here                                  
           University research initiatives                                         
       The budget request included $237.7 million in PE 61103D for         
   university research initiatives including $10.0 million for the Defense 
   Experimental Program to Stimulate Competitive Research (DEPSCoR).       
       The House bill would authorize a decrease of $13.0 million in PE    
   61103D: an increase of $10.0 million for (DEPSCoR); and a decrease of   
   $23.0 million.                                                          
       The Senate amendment would authorize $20.0 million for DEPSCoR      
   within the amount of the budget request.                                
       The conferees agree to authorize an increase of $10.0 million in PE 
   61103D for DEPSCoR in addition to the $10.0 million in the amount of the
   budget request. The conferees also agree to a reduction, without        
   prejudice, of $20.0 million in PE 61103D.                               
           Next generation internet                                                
       The budget request included $40.0 million in PE 62110E for the      
   Defense Advanced Research Projects Agency (DARPA) component of the Next 
   Generation Internet (NGI) program.                                      
       The House bill would authorize an increase of $15.0 million in PE   
   62110E for specific connectivity, functionality, services, and software 
   among the applications communities and regional consortia to maximize   
   the value of the services deployed under the NGI. The House bill would  
   also direct the use of competitive procedures in the award of contracts,
   grants, or other transactions under the program and would encourage the 
   use of cost-sharing where feasible.                                     
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $2.0 million in PE  
   62110E for the purposes discussed in the House report (H. Rept. 105     
   132). The conferees endorse the NGI program and support the concept of  
   involving the applications communities, including federal agencies,     
   state and local governments, academia, and the private sector, to       
   incorporate networking technologies developed under the program to      
   achieve capabilities beyond those of the current Internet               
   infrastructure. The conferees also support the formation of cooperative 
   agreements within the regional consortia established under the program  
   to leverage the knowledge, skills, and methods of the individual members
   from government, industry, and academia. The conferees encourage DARPA  
   to consider supporting, under the NGI program, industry and university  
   consortia investigating and demonstrating ultra-high speed, optical     
   time-division-multiplexed technologies for networks and interchanges.   
           Chemical and biological defense program                                 
       The budget request included $530.9 million for the chemical and     
   biological defense program ($320.9 million for research, development,   
   test and evaluation activities and $210.0 million for procurement) and  
   $61.0 million for the Defense Advanced Research Projects Agency (DARPA) 
   biological defense program.                                             
       The House bill would authorize an increase of $16.6 million for the 
   chemical/biological defense program in the following activities: a $10.8
   million increase in PE 62384BP to continue the SAFEGUARD                
   proof-of-concept multi-spectral sensor program; a $1.5 million increase 
   in PE 63384BP for vaccine advanced development; a $858,000 increase in  
   PE 64384BP for vaccine development and a $5.0 million increase in PE    
   63884BP to support on-going development efforts in detectors,           
   decontamination equipment, and protective equipment for the             
   Chemical-Biological Quick Reaction Force (CBQRF) and its components.    
       The Senate amendment would authorize an increase of $6.5 million for
   the chemical-biological defense research and development program for the
   following activities: $2.0 million for the development of a joint       
   service prototype hybrid integrated sensor array for chemical and       
   biological point detection; $4.5 million to meet unfunded requirements  
   for biological detectors for the Chemical-Biological Incident Response  
   Force (CBIRF); would make $1.5 million available from funds requested   
   for PE 62383E for a study on the use of antibodies as medical defenses  
   against biological agents; and would reduce the budget request for PE   
   62383E by $6.5 million. Additionally, the amendment would recommend that
   $16.1 million of fiscal year 1997 funds, identified by the Department of
   Defense as excess to the program because of the inability to execute the
   assembly of biological integrated defense systems (BIDS) until the end  
   of fiscal year 1999, be used instead for unfunded research, development 
   and procurement efforts in the chemical-biological defense program,     
   counterproliferation and including counterterrorist efforts to protect  
   against the use of weapons of mass destruction.                         
       The conferees agree to authorize an increase of $12.4 million to    
   meet shortfalls in the chemical and biological defense program for      
   research and development of detection capabilities, to include the      
   following: $10.5 million in PE 62384BP, of which $3.0 million shall be  
   available for the SAFEGUARD program; and a $2.0 million increase in PE  
   61384BP to increase efforts in research and development of              
   chemical/biological detection capabilities. The conferees also agree to 
   a $6.5 million reduction in PE 62383E.                                  
       To close gaps and funding shortfalls in medical defenses against    
   biological agents, the conferees direct that $1.5 million in PE 63384BP 
   and $858,000 in PE 64384BP be made available for vaccine development    
   efforts, and that $1.5 million in PE 62383E be made available to study  
   the use of therapeutic human antibodies as medical defenses against     
   biological agents. Additionally, the conferees direct the Secretary of  
   Defense to submit the report required by the Senate report on the       
   National Defense Authorization Act for Fiscal Year 1997 (S. Rept. 104   
   267) on the utility and possible benefits of this technology, by March  
   31, 1998.                                                               
       The conferees have reviewed the Department of Defense March 1997    
   annual report to Congress on the nuclear, biological, and chemical      
   defense program. The conferees understand that the Department has       
   responded to all recommendations in the General Accounting Office's     
   report NSIAD 96 102 ``Chemical and Biological Defense: Emphasis Remains 
                    Insufficient to Resolve Continuing Problems.'' In addressing  
          the recommendations of the GAO, the conferees believe that the          
          Department is now better prepared to address the shortcomings that still
          exist in the U.S. armed forces' chemical-biological defense posture.    
       However, funding constraints in the Department's budget request     
   could delay modernization and affect the training and readiness of the  
   force. The conferees understand that the Joint Senior Leaders Course and
   the Toxic Agent Leader Training Course have been dropped from the Army  
   Chemical School's training course list because of funding constraints.  
   The conferees also understand that the Department lacks a mechanism to  
   provide adequate information on the current status of                   
   chemical-biological defense training, equipment, and readiness. The     
   conferees strongly recommend the incorporation of an assessment of      
   chemical-biological defense training and readiness into the unit        
   readiness reporting system and direct the Department of Defense to      
   report to the congressional defense committees on steps that will be    
   taken, in lieu of reinstating the training courses, to ensure that      
   chemical-biological defense specialists maintain their expertise, and   
   how units and senior leaders in the armed forces will maintain their    
   proficiency in chemical-biological matters.                             
       The Secretary of Defense recommended in the Quadrennial Defense     
   Review that the Department increase funding by approximately $1.0       
   billion over the program plan on counterproliferation, particularly for 
   protective measures against chemical weapons. In response to that       
   recommendation, the conferees expect that increased funding provided in 
   fiscal year 1998 for chemical and biological defenses will be utilized  
   in accordance with requirements identified as shortfalls by the Joint   
   Staff and the Counterproliferation Program Review Committee (CPRC).     
   Additionally, the conferees expect the fiscal year 1999 budget request, 
   and subsequent budget requests, to reflect the recommendations contained
   in the QDR for increased funding levels for the chemical-biological     
   defense program.                                                        
       Despite congressional direction contained in the National Defense   
   Authorization Act for Fiscal Year 1994 (Public Law 103-160) that        
   management and oversight of the chemical and biological warfare defense 
   program and the chemical and biological medical defense be conducted by 
   a single executive agent and program manager, the conferees understand  
   from the Counterproliferation Program Review Committee's May 1997       
   ``Report on Activities and Program for Countering Proliferation and NBC 
   Terrorism'' that ``* * * beginning in FY98, [the Defense Advanced       
   Research Projects Agency (DARPA) biological warfare defense program]    
   will no longer be incorporated into the CBD [chemical-biological        
   defense] Program management and oversight structure.'' The conferees    
   direct the Secretary of Defense to ensure that the DARPA biological     
   warfare defense program is coordinated and integrated under the program 
   management and oversight of the Department's chemical-biological defense
   program.                                                                
       The conferees understand that the Department's policies on anthrax  
   vaccination of U.S. armed forces and support for other than U.S. armed  
   forces are awaiting final approval, and that these decisions will affect
   total funding, vaccine production, and storage requirements. The        
   conferees also note the impending award of a prime systems contract to  
   develop new biological defense vaccines, pursue vaccine licensing, and  
   produce stockpile vaccines to meet the Department's requirements.       
       The conferees understand that the Department of Defense is currently
   dependent upon a single source of supply for permeable chemical         
   protective garment materials used in the joint service chemical         
   protective suit and related chemical protective garments, and believe   
   that the Department of Defense should consider taking those actions     
   necessary to qualify additional sources of supply for these materials.  
   The conferees direct the Secretary of the Army, as executive agent for  
   the chemical-biological defense program, to report to the congressional 
   defense committees on any plans to qualify additional sources for these 
   materials.                                                              
       The conferees direct the Secretary of Defense to address the above  
   issues as specific areas of interest in the next annual report to       
   Congress on the NBC defense program.                                    
           Tactical technology                                                     
       The budget request included $157.3 million in PE 62702E for tactical
   technology programs.                                                    
       The House bill would authorize a decrease of $43.9 million in PE    
   62702E.                                                                 
       The Senate amendment would authorize an increase of $3.0 million to 
   provide for lethality demonstration and the definition of a tactical    
   configuration of the small low-cost interceptor device (SLID).          
       The conferees agree to authorize a decrease of $16.0 million in PE  
   62702E: a general decrease of $10.0 million; a decrease of $3.0 million 
   for the compact laser program; and a decrease of $3.0 million for       
   chemically specific detection. The conferees also agree to authorize    
   $3.0 million of funds available in PE 62702E for facial recognition     
   technology.                                                             
       The conferees urge the Defense Advanced Research Projects Agency to 
   fund the SLID program in a manner to provide for the greatest likelihood
   of a rapid, successful transition to the Army.                          
           Integrated command and control                                          
       The budget request included $37.0 million in PE 62708E for          
   integrated command and control technology.                              
       The House bill would authorize an increase of $23.0 million for flat
   panel display initiative/high definition systems.                       
       The Senate amendment would authorize an increase of $18.0 million   
   for flat panel display technology.                                      
       The conferees agree to authorize an increase of $12.0 million in PE 
   62708E for flat panel display technology. The conferees recommend that  
   the program place increased emphasis on the demonstration of flat panel 
   displays for various applications by the military services in order to  
   facilitate the transition of the program to the services for military   
   applications.                                                           
           Materials and electronics technology                                    
       The budget request included $192.1 million in PE 62712E for         
   materials and electronics technology.                                   
       The House bill would authorize an increase of $7.5 million in PE    
   62712E for 3 D microelectronics.                                        
       The Senate amendment would authorize an increase of $15.5 million in
   PE 62712E: $1.0 million for hard carbon coatings; $7.5 million for      
   seamless high off-chip connectivity (SHOCC); and $7.0 million for mixed 
   mode electronics multitechnology insertion (MIME).                      
       The conferees agree to authorize the following increases in PE      
   62712E: $5.0 million for 3 D microelectronics; $1.0 million for hard    
   carbon coatings; $6.0 million for SHOCC; $7.0 for MIME; $6.0 million to 
   continue the program for applied research in extreme ultraviolet        
   lithography and fabrication of nanoelectronic structures as recommended 
   in the House report (H. Rept. 105 132); $4.0 million to accelerate the  
   development of life support trauma and transport (LSTAT) and the joint  
   service program for the test of the LSTAT that is being led by the Army 
   as recommended in the House report (H. Rept. 105 132), and $3.0 million 
   for the development of technologies for cryogenic electronics and high  
   temperature superconductivity as recommended by the House report (H.    
   Rept. 105 132).                                                         
       With regard to the LSTAT program, the conferees agree with the      
   requirement in the House report (H. Rept. 105 132), which directs the   
   Secretary of the Army to submit a report on the plan for completing the 
   joint service test program and plans for fielding the LSTAT and other   
   advanced battlefield life support and evacuation systems to the         
   congressional defense committees with the submission of the defense     
   budget request for fiscal year 1999.                                    
           Explosives demilitarization technology                                  
       The budget request included $12.2 million for the explosives        
   demilitarization program (PE 63104D).                                   
       The House bill would authorize an increase of $3.0 million to       
   maintain the level of funding necessary to permit the acceleration of   
   promising technologies and the evaluation of additional alternative     
   technologies in the explosives demilitarization program (PE 63104D)     
   established in the National Defense Authorization Act for Fiscal Year   
   1996 (Public Law 104 106).                                              
       The Senate amendment included a provision (sec. 235) that would     
   direct the Secretary of Defense to conduct an explosive munitions       
   demilitarization demonstration program, and using competitive           
   procedures, conduct a demonstration using an existing, commercially     
   available blast chamber technology as an alternative to open burning,   
   open pit detonation of munitions; require the Secretary of Defense to   
   submit to Congress, along with the fiscal year 2000 budget, a report on 
   the results of the demonstration program and assessment of the relative 
   benefits of the blast chamber technology with regard to levels of       
   emissions and noise, and a cost benefit analysis of this technology. The
   provision would increase the budget request for the explosives          
   demilitarization technology program by $6.0 million for the             
   demonstration program and reduce by $6.0 million the budget request for 
   the Army account for special equipment for user testing.                
    The Senate recedes.                                                    
       The conferees agree to authorize an increase of $4.0 million for the
   munitions standardization, effectiveness and safety program (PE 65805A) 
   which shall be used for the explosives demilitarization technology      
   program (PE 63104D) to maintain the level of funding necessary to permit
   the acceleration of promising technologies and to evaluate alternative  
   technologies. The conferees understand that commercial technology that  
   utilizes blast chamber technology is available as a potential           
   alternative technology to demilitarize old conventional ammunition. The 
   successful demonstration of this technology could reduce the Army's     
   reliance on open burning and open detonation.                           
       The conferees direct that, from the authorized funds available to   
   the program in fiscal year 1998, the Secretary of Defense shall conduct 
   a demonstration program utilizing commercially available blast chamber  
   technology and provide a report to the congressional defense committees 
   no later than March 1, 1999 on the results of the demonstration program.
   The program shall be conducted using competitive procedures. The report 
   shall include an assessment of the relative benefits of utilizing a     
   blast chamber technology and the open burning, open pit detonation      
   process with regard to the levels of emissions and noise that results   
   from the use of these processes and a cost benefit analysis of this     
   technology.                                                             
           Counterterror technical support program                                 
       The budget request included $34.8 million for the counterterror     
   technical support program.                                              
       The House bill would authorize $41.8 million, a $7.0 million        
   increase for safety devices and facial recognition technology.          
       The Senate amendment would authorize a $20.0 million increase for   
   research and development activities on structural response and          
   mitigation, counterterrorist explosive research, demonstration of       
   non-intrusive inspection technologies and facial recognition technology.
       The conferees agree to authorize an increase of $3.0 million for the
   counterterror technical support program for efforts to develop          
   innovative technologies to protect U.S. forces and infrastructure       
   against acts of terrorism. The conferees note that $3.0 million is      
   available for the facial recognition technology program within the      
   defense tactical technology program (PE 62702E).                        
       Collaborative efforts with allies who have demonstrated capabilities
   to counter terrorist acts, such as Israel and the United Kingdom, should
   remain a high priority for the United States. The tragic deaths of U.S. 
   forces in Saudi Arabia as a result of terrorist attacks on structures   
   where U.S. armed forces lived and worked highlight the urgent need for  
   the Department of Defense (DOD) to examine options to retrofit existing 
   structures and to develop design guidelines for new and existing        
   structures. The conferees support recent collaborative efforts between  
   the United States, Israel, and the United Kingdom, to strengthen        
   existing structures against terrorist and ballistic missile attacks.    
    The budget request included $13.0 million in the physical              
                    security equipment program (PE 63228D) to test and evaluate   
          commercial equipment for force protection. The conferees believe that   
          fiscal year 1998 funds in this program should be used to evaluate       
          commercially available technology that may provide the DOD with options 
          to retrofit existing structures, which would provide increased          
          protection to U.S. forces against terrorist attacks.                    
       While Congress has supported the funding for a Pulsed Fast Neutron  
   Analysis (PFNA) technology program in prior years, the conferees are    
   concerned about the Department's continued failure to request funds for 
   this activity. Based on issues raised by a recent General Accounting    
   Office report on the PFNA system technology, the conferees agree with   
   the recommendations in the House report (H. Rept. 105 32) that direct   
   the Secretary of Defense and the Secretary of Treasury to conduct an    
   assessment of the operational requirements for a PFNA cargo inspection  
   system, and report to the Congress on the results of that assessment and
   the other issues raised by the House by December 31, 1997. Should there 
   be a joint recommendation to continue the program, the conferees direct 
   the Department to notify the congressional defense committees of its    
   intention to use fiscal year 1998 funds in this program for that        
   purpose.                                                                
                      Domestic emergency response to threats of terrorist use of   
           weapons of mass destruction                                             
       The budget request included $170.2 million for key Department of    
   Defense programs to counter paramilitary and terrorist threats involving
   weapons of mass destruction. This total included $49.5 million to       
   improve emergency response preparedness and coordination with state and 
   local agencies through First Responder training, interagency exercises  
   and technical assistance.                                               
       The House bill would authorize increases of $2.0 million in the     
   counterterror technical support program (PE 63122D), $5.0 million in the
   chemical/biological defense program (PE 63884BP), and a total of $12.0  
   million in the counterproliferation support program (PE 65160D) for     
   improvements in emergency response force equipment and training for     
   response to potential terrorist use of weapons of mass destruction.     
       The Senate amendment would authorize the budget request. The        
   amendment would also make available, from the verification and control  
   technology activity of the Department of Energy budget for other defense
   activities, $3.0 million for training and related activities to prepare 
   Federal, State, and local First Responders to work effectively as part  
   of the domestic emergency response program.                             
    The House recedes.                                                     
       The National Defense Authorization Act for Fiscal Year 1997 (Public 
   Law 104 201) directed the President to take immediate action to enhance 
   the capability of the Federal government to prevent and respond to      
   terrorist incidents involving weapons of mass destruction, and to       
   provide enhanced support to improve the capabilities of state and local 
   emergency response agencies to prevent and respond to such incidents at 
   both the national and local levels. The President's assessment and those
   actions taken at the interagency level and within the Department of     
   Defense are detailed in the President's January 1997 report to the      
   Congress and in the Department of Defense May 1997 report to Congress,  
   ``Domestic Preparedness Program in the Defense against Weapons of Mass  
   Destruction.''                                                          
       The conferees note the actions taken to date to enhance emergency   
   domestic preparedness and response to terrorist nuclear, biological, or 
   chemical attacks under the Department's counterproliferation support    
   program and the chemical-biological defense program. The conferees      
   support the Department's budget request to continue these efforts in    
   domestic emergency response preparedness through First Responder        
   training and assistance to metropolitan area authorities, improvement of
   the Department's rapid chemical and biological response capabilities,   
   and the conduct of preparedness exercises in coordination with Federal, 
   state, and local agencies.                                              
       Public Law 104 201 requires the Secretary of Defense to establish   
   and maintain at least one chemical-biological domestic terrorism rapid  
   response team. The conferees direct the Secretary of the Army, as       
   executive agent for the domestic emergency response program, to ensure  
   that the plans, programs, and budget of the Chemical-Biological Quick   
   Reaction Force (CBQRF) and its components are reviewed to ensure full   
   coordination and integration of participating DOD assets. The conferees 
   also direct the Assistant to the Secretary of Defense (Nuclear,         
   Chemical, and Biological Defense Program) to ensure that all research,  
   development, and acquisition efforts in support of the CBQRF and its    
   components are fully integrated and coordinated within the Department's 
   chemical and biological defense program.                                
       The conferees note that an interagency training strategy is being   
   developed that would initially focus training under the domestic        
   emergency response preparedness program on professional emergency       
   response organizations in the 27 cities and metropolitan areas          
   identified by the Federal Bureau of Investigation as being at           
   particularly high risk, and would complete First Responder training for 
   126 major metropolitan areas and cities within three years. The training
   program and priorities must be coordinated with State emergency         
   management directors. The conferees agree with the overall need to      
   establish training priorities, but recommend that emphasis also needs to
   be placed on training the local volunteer emergency First Response      
   organizations that make up the majority of the nation's emergency       
   response forces. The conferees also believe that in addition to the     
   ``train the trainer'' approach being used in the existing program, an   
   exportable training package should be developed that is oriented toward 
   the training of volunteer emergency First Responders.                   
       The conferees endorse the use of training exercises to test and     
   improve consequence management response capabilities, but believe that  
   the exercise site requirements should be based on the training and      
   exercise needs of the agencies to be exercised, site capabilities,      
   frequency of use, and proximity to participating agencies. The conferees
   encourage the development of an overall coordinated training exercise   
   strategy similar to that developed for training by the Senior           
   Interagency Group.                                                      
       Responding to domestic emergencies has been identified in the report
   of the Quadrennial Defense Review (QDR) as an appropriate mission for   
   the National Guard. Consistent with the President's                     
                    January 1997 report to the Congress and the May 1997          
          Department of Defense report on ``Domestic Preparedness Program in the  
          Defense against Weapons of Mass Destruction,'' the conferees direct the 
          Secretary of Defense to report to the congressional defense committees  
          on the status of any plans for assigning the National Guard a role in   
          countering chemical and biological terrorism in the United States. The  
          report should define any such missions of the National Guard and how    
          that role complements other Federal, State, and local authorities with  
          similar responsibilities; the cost for developing the capability for    
          National Guard personnel to train State and local First Responders; the 
          cost for chemical and biological technology and equipment; and the need 
          to develop appropriate response plans, while avoiding unnecessary       
          duplication.                                                            
       The conferees direct the Secretary of Defense, in coordination with 
   the Director of the Federal Emergency Management Agency and the Director
   of the Federal Bureau of Investigation, to provide an annual assessment 
   of progress in the domestic emergency response preparedness program. The
   report should be submitted to the congressional defense committees      
   beginning with the fiscal year 1999 budget request and extending through
   fiscal year 2001.                                                       
           Counterproliferation support program                                    
       The budget request included $65.3 million for the                   
   counterproliferation support program (PE 63160D).                       
       The House bill would authorize an increase of $3.0 million to       
   continue the counterproliferation mission analysis and planning system  
   (CAPS).                                                                 
       The Senate amendment would authorize an increase of $20.0 million to
   the budget request for the following activities: $3.0 million for the   
   high frequency active auroral research program (HAARP), $1.0 million for
   development of a portable trace element detection system; $6.0 million  
   to continue the SAFEGUARD proof-of-concept multi-spectral sensor        
   program; and $10.0 million to continue the CAPS program. In addition,   
   the amendment would recommend a $7.0 million increase to the budget     
   request for U.S. Special Operations Command (USSOCOM) operations and    
   maintenance for equipment to detect, and destroy underground facilities,
   and for training activities to destroy, render safe, transport or       
   recover weapons of mass destruction from deep underground structures.   
       The conferees agree to authorize an increase of $10.0 million to the
   budget request for the counterproliferation support program (PE 63160D) 
   to continue CAPS ($7.0 million) and HAARP ($3.0 million). The conferees 
   also agree to a $7.0 million increase to the budget request for USSOCOM 
   operations and maintenance for WMD equipment and training.              
       The conferees agree to a separate provision, described elsewhere in 
   this report, that would allow the Secretary of Defense to reprogram up  
   to $50.0 million from amounts authorized for fiscal year 1998 for       
   unfunded shortfalls in key counterproliferation capabilities or other   
   areas where more counterproliferation progress can be achieved with     
   additional funding.                                                     
       In addition to the reprogramming notifications required by law, the 
   conferees direct the Secretary of Defense to notify the congressional   
   defense committees 30 days in advance of its intent to obligate or      
   expend fiscal year 1998 funds not authorized by this Act for            
   counterproliferation activities. The notification shall include the     
   purpose for which the funds are to be utilized, and a certification that
   the activity addresses a shortfall in existing and programmed           
   capabilities to counter the proliferation of weapons of mass destruction
   (WMD) or their means of delivery, as identified by the Commanders in    
   Chief (CINCs) and the Counterproliferation Program Review Committee     
   (CPRC).                                                                 
           Ballistic Missile Defense Organization funding                          
       The budget request included approximately $2.6 billion for the      
   Ballistic Missile Defense Organization (BMDO) for research, development,
   test, and evaluation (RDT&E). The budget request also included $386.4   
   million in procurement funds formerly managed by BMDO that were         
   transferred to the military services. As addressed elsewhere in this    
   report, the conferees have agreed to include a legislative provision    
   requiring that these procurement funds be transferred back to BMDO. In  
   addition, the conferees have agreed to specifically authorize these     
   procurement funds in their original BMDO program elements. Consistent   
   with these changes, the following direction addresses these fiscal year 
   1998 procurement funds as part of the budget request for BMDO. Funding  
   direction regarding BMDO military construction is located elsewhere in  
   this report. Specific programmatic and funding guidance is provided     
   below.                                                                  
                                    BMDO FUNDING ALLOCATION                                    
                                    [In millions of dollars]                                   
Program element        Budget request    SASC change    HNSC change    Conf. change     Total authorized  
 RDT&E:                         249.5         +188.4          +35.0          +171.0                420.5  
 Procurement:                    20.1                                                               20.1  
                    -----------------  -------------  -------------  --------------  -------------------  
BMDO Total                    2,966.6         +578.7         +817.5          +709.5              3,676.1  
\1\Following submission of the budget request, the Department of Defense submitted a revised fiscal year 1998 budget request for THAAD of $353.4 million for Dem/Val and no funds for EMD.    
\2\Transfer to Cooperative BMD.                                                                                                                                                               
                        LOW COST LAUNCH TECHNOLOGY                       
       The budget request included no funds to support low cost launch     
   technologies, such as pressure fed engine technology.                   
       The House bill would authorize an increase of $15.0 million in PE   
   63302F for development of the Scorpius low cost launch concept.         
       The Senate amendment would authorize an increase of $10.0 million in
   PE 63173C for low cost launch technology development, including the     
   Scorpius concept.                                                       
       The conferees agree to authorize an increase of $5.0 million in PE  
   63173C and an increase of $5.0 million in PE 63401F for low cost launch 
   technology, including the Scorpius and Excalibur concepts.              
                THEATER HIGH ALTITUDE AREA DEFENSE SYSTEM                
       The budget request included $556.1 million for the Theater High     
   Altitude Area Defense (THAAD) program, of which $294.6 million was      
   included in PE 63861C and $261.5 million was included in PE 64861C. The 
   Department of Defense, after an analysis of the THAAD program by the    
   Quadrennial Defense Review, submitted an amended budget request of      
   $353.4 million in PE 63861C and no funding in PE 64861C.                
       The House bill would authorize the original budget request in PE    
   63861C and $306.5 million in PE 64861C.                                 
       The Senate amendment would authorize $353.4 million in PE 63861C and
   no funds for THAAD in PE 64861C.                                        
       The conferees agree to authorize $406.1 million in PE 63861C for    
   THAAD and no funds in PE 64861C.                                        
       The conferees express their continued strong support for THAAD and  
   believe that fielding THAAD as expeditiously as possible is a matter of 
   highest priority.                                                       
       The conferees understand that the funding added for THAAD           
   demonstration and validation will be used for extensive risk reduction  
   activities to put the program on sounder technical and programmatic     
   footing when it enters engineering and manufacturing development (EMD)  
   in fiscal year 1999.                                                    
       The conferees also support DOD efforts to contain program cost      
   growth that could result from schedule delays and technical             
   complications. The conferees expect the Secretary of Defense to review  
   the full range of cost control options applicable to the EMD phase of   
   the program, including, but not limited to, options involving           
   competition and leader-follower. The conferees direct the Secretary of  
   Defense to submit a report on the results of this review to the         
   congressional defense committees by March 15, 1998.                     
       The conferees continue to note their concern over long delays in the
   THAAD program. In the wake of the Gulf War, Congress directed the       
   deployment of effective theater missile defenses at the earliest        
   possible date. The THAAD program was initiated in calendar year 1992 and
   deployment originally planned for the mid-1990s. Yet BMDO now supports a
   14-year development program, with a first unit equipped                 
                    (FUE) in calendar year 2006, arguing that a 12-year           
          development program entails excessive programmatic and schedule risks.  
       The conferees understand that the most recent THAAD schedule        
   supported by BMDO includes a number of opportunities to accelerate the  
   program, depending on the technical progress. The conferees continue to 
   believe that rapid deployment is critical to meet well understood       
   warfighter requirements, and that every reasonable effort should be made
   to achieve an FUE in calendar year 2004. The conferees direct the       
   Secretary of Defense to take all appropriate budgetary and programmatic 
   steps for fiscal year 1998 to ensure that the program can be accelerated
   if opportunities arise to do so.                                        
       The conferees are also concerned that a delay in the program will   
   adversely affect THAAD EMD and procurement funding in the FYDP. The     
   conferees direct the Secretary of Defense to submit a FYDP that fully   
   funds a THAAD program oriented toward the earliest possible deployment, 
   consistent with moderate program risk.                                  
                      navy upper tier (theater wide)                     
       The budget request included $194.9 million in PE 63868C for the Navy
   Upper Tier theater missile defense system.                              
       The House bill would authorize an increase of $150.0 million for the
   Navy Upper Tier program.                                                
       The Senate amendment would authorize an increase of $80.0 million   
   for the Navy Upper Tier program.                                        
    The Senate recedes.                                                    
       The conferees are concerned that the Department of Defense still has
   not thoroughly assessed the feasibility of accelerating the currently   
   planned Navy Upper Tier deployment date of fiscal year 2008. Noting     
   numerous administration statements attaching high priority to TMD       
   programs, the conferees direct the Secretary of Defense to report to the
   congressional defense committees no later than February 15, 1998, on the
   cost and technical feasibility of options for a more robust Navy Upper  
   Tier flight test program, the earliest technically feasible deployment  
   date, and costs associated with such a deployment date.                 
                         NATIONAL MISSILE DEFENSE                        
       The budget request included $504.1 million in PE 63871C for the     
   National Missile Defense (NMD) program. Following the budget submission,
   and pursuant to the Quadrennial Defense Review, the Secretary of Defense
   requested that the NMD budget request be increased by $474.0 million for
   fiscal year 1998.                                                       
       The House bill and Senate amendment would authorize an increase of  
   $474.0 million for the NMD program.                                     
       The conferees agree to authorize an increase of $474.0 million for  
   the NMD program.                                                        
       The conferees have expressed concern for some time that the NMD     
   program has been underfunded. The Department of Defense has acknowledged
   this funding shortfall and recommended an increase of $474.0 million in 
   fiscal year 1998, and approximately $2.3 billion over the years of the  
   Future Years Defense Program (FYDP). The conferees note that this does  
   not include any funding for the actual deployment of an NMD system.     
       Although the conferees are pleased that the Secretary of Defense has
   sought to rectify NMD funding shortfalls, they are disappointed that it 
   has taken so long. Even with significant congressional increases over   
   the last two years, the NMD program remains high risk, largely due to   
   the administration's failure to adequately fund robust testing          
   activities. Unfortunately, the addition of $474.0 million in fiscal year
   1998 will do little in the near-term to compensate for this problem. The
   conferees are concerned by the lack of detail accompanying the Secretary
   of Defense's request to increase the NMD program budget by $2.3 billion 
   over the FYDP. In addition, the conferees are not satisfied with the    
   degree of information provided to date on how past NMD funding increases
   have been spent. Therefore, the conferees direct the Secretary of       
   Defense to submit a report to the congressional defense committees by   
   February 15, 1998, providing a detailed accounting of how NMD funds have
   been spent since the beginning of fiscal year 1996 and a detailed plan  
   for the allocation of NMD funding in the FYDP. In addition, the         
   Secretary shall provide a detailed description of the cost estimating   
   and cost control mechanisms in place within DOD for the NMD program, and
   an assessment of whether they are adequate.                             
       The conferees believe that BMDO should continue to understand issues
   associated with sea-based NMD options. The conferees are aware of       
   analysis that shows that a version of the Navy Upper Tier TMD system    
   could be employed in an NMD role. Therefore, the conferees direct the   
   Director of BMDO to submit a report to the congressional defense        
   committees by February 15, 1998, describing whether and how the Navy    
   Upper Tier program could be upgraded in the future to provide a limited 
   NMD capability. The report should address the technical issues          
   associated with a sea-based NMD option as well as costs associated with 
   such a concept. The report should also address whether and, if so, how a
   sea-based NMD system could be integrated into and supplement a          
   ground-based NMD system, whether and, if so, how a sea-based system     
   would provide needed additional capabilities in support of the          
   requirements for the existing NMD program, and whether such a system    
   would comply with the ABM Treaty.                                       
              COOPERATIVE BALLISTIC MISSILE DEFENSE PROGRAM              
       The budget request included $38.7 million for the Arrow Continuation
   Experiments/Arrow Deployability (ACES/ADP) program (PE 63872C), $12.9   
   million for the Unmanned Aerial Vehicle Boost Phase Intercept (UAV BPI) 
   program (PE 63870C), and $16.5 million for the Tactical High Energy     
   Laser (THEL) program (PE 63308A), all of which are U.S.-Israeli         
   cooperative missile defense programs. The budget request included no    
   funding for the Russian American Observation Satellite (RAMOS) program  
   and the Active Plasma Experiment (APEX) program, both of which are      
   cooperative Russian-American programs.                                  
       The House bill would authorize $123.1 million in a new BMDO program 
   element (63XXXC) for cooperative international BMD programs, including  
   $48.7 million for the Arrow program, an increase of $10.0               
                    million; the budget request for the UAV BPI program; $38.2    
          million for THEL, of which $15.0 million was a funding increase and     
          another $6.7 million was to be funded by BMDO administrative accounts;  
          and $30.0 million for RAMOS and APEX.                                   
       The Senate amendment would authorize $53.7 million for Arrow in PE  
   63872C, an increase of $15.0 million; $17.9 million for UAV BPI in PE   
   63870C, an increase of $5.0 million; $51.5 million for THEL in PE       
   63308A, an increase of $35.0 million; and no funding for RAMOS or APEX. 
       The conferees agree to authorize $50.7 million for Arrow in PE      
   63872C, an increase of $10.0 million; $16.4 million for UAV BPI in PE   
   63870C, an increase of $3.5 million; $51.0 million for THEL in PE       
   63308A, an increase of $34.5 million; $13.0 million for RAMOS in PE     
   63173C; and $8.0 million for APEX in PE 63173C.                         
       The House recedes on its initiative to create a new cooperative BMD 
   PE for fiscal year 1998. A legislative provision to create a new        
   cooperative BMD program element for fiscal year 1999 is described       
   elsewhere in this report. The conferees expect that these programs and  
   other appropriate programs will be managed through this new cooperative 
   BMD program element.                                                    
                            SPACE-BASED LASER                            
       The budget request included $28.9 million in PE 63173C for the Space
   Based Laser (SBL) program.                                              
    The House bill would authorize the budget request for the SBL program. 
       The Senate amendment would authorize an increase of $118.0 million  
   for the SBL program.                                                    
       The conferees agree to authorize an increase of $98.0 million for   
   the SBL program, for a total of $126.9 million in fiscal year 1998.     
       The conferees strongly endorse the recommendation of BMDO's SBL     
   Independent Review Team (IRT) to proceed on a low risk path leading to  
   the launch of an ABM Treaty compliant Readiness Demonstrator (RD) in    
   fiscal year 2005. In a letter of August 15, 1997 to the Senate Majority 
   Leader, the Secretary of Defense confirmed that SBL technology ``has    
   reached a level of maturity enabling us to focus on integration issues  
   that could lead to a future space demonstration of a sub-scale          
   vehicle.'' The conferees believe that such an SBL RD can be developed   
   and launched without violating the ABM Treaty. Proceeding with an SBL RD
   will not commit the United States to development or deployment of an    
   operational SBL system, but will preserve this option for future        
   consideration.                                                          
       The conferees support the management structure that has been        
   established for the SBL program, with the Air Force acting as the       
   executive agent for BMDO, but believe that the Air Force must program a 
   share of the funding needed to develop and launch the SBL RD. The       
   conferees understand that the Air Force leadership is committed to such 
   a cost-sharing arrangement and look forward to this commitment being    
   reflected in the fiscal year 1999 budget request and in future Air Force
   Program Objective Memorandum (POM) submissions. The conferees also      
   understand that the Secretary of Defense is considering options for     
   increasing funding for the SBL program in the BMDO budget. The conferees
   recognize that full funding of the SBL RD program will allow a much more
   efficient and lower risk program. Therefore, the conferees strongly urge
   the Secretary of Defense to explore all possible means of including the 
   full SBL IRT recommended funding profile for a fiscal year 2005 launch  
   in the combined BMDO and Air Force Future Years Defense Program (FYDP), 
   starting with the fiscal year 1999 budget request.                      
       The conferees direct that all funds authorized to be appropriated   
   for the SBL program in fiscal year 1998 be managed with the principal   
   objective of developing an SBL RD capable of being launched in fiscal   
   year 2005. The conferees further direct that all funds authorized to be 
   appropriated in fiscal year 1998 for the SBL program be directly        
   executed by the Commander of the Air Force Space and Missile Systems    
   Center (SMC).                                                           
       The conferees recognize that the Commander of SMC may recommend that
   some limited amount of critical and potentially high payoff SBL         
   technology research and development be continued even if it does not    
   directly support the SBL RD. However, due to the overarching priority of
   launching the SBL RD in fiscal year 2005, the conferees direct that     
   obligation of SBL funds for such activities be limited, and only occur  
   following consultation with the Committee on Armed Services of the      
   Senate and the Committee on National Security of the House of           
   Representatives.                                                        
       The conferees direct the Commander of SMC to establish promptly an  
   SBL RD baseline, to include a set of technical objectives and           
   requirements, a contracting strategy, a system design, a program        
   schedule, and a funding profile that would support a launch in fiscal   
   year 2005. The conferees understand that the SBL IRT focused primarily  
   on a single SBL RD design. However, the conferees support the steps     
   taken by the Commander of SMC to rapidly assess technical and           
   contractual options that may allow a treaty compliant SBL RD to be      
   developed and launched more rapidly and affordably. To ensure that the  
   focus of the program remains on a fiscal year 2005 launch, the conferees
   expect to be consulted prior to the adoption of any excursions from the 
   SBL IRT recommended baseline.                                           
       The conferees note that the SBL IRT concluded that a new integrated 
   test facility is an essential and relatively long-lead element of the   
   SBL RD effort. Therefore, the conferees direct the Commander of SMC to  
   proceed expeditiously in fiscal year 1998 with the selection of a site  
   for such a facility. The Commander of SMC shall include the             
   requirements, costs, and schedule for this facility in the SBL RD       
   baseline, as well as an assessment of the cost effectiveness of         
   continuing to operate other SBL test facilities such as the one at      
   Capistrano, California.                                                 
       The conferees direct the Secretary of Defense to submit a report on 
   the status of the SBL RD baseline, and related issues, to the           
   congressional defense committees by March 1, 1998.                      
            Strategic environmental research and development program               
       The budget request included $54.9 million in PE 63716D for the      
   Strategic Environmental Research and Development Program (SERDP).       
    The House bill would authorize an increase of $3.0 million in PE       
                    63716D to pursue projects that focus on the elimination of    
          toxic materials and solvents from explosives and other energetic        
          materials.                                                              
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize an increase of $3.0 million in PE  
   63716D for the purpose of developing environmentally benign energetic   
   materials.                                                              
            Advanced electronics technologies                                      
       The budget request included $277.0 million in PE 63739E for advanced
   technology development of a variety of electronics technologies.        
       The House bill would authorize an increase of $6.0 million for      
   research in extreme ultraviolet (EUV) lithography and fabrication of    
   nanoelectronic structures and an increase of $15.0 million for the      
   transition of the x-ray lithography program from the Defense Advanced   
   Research Projects Agency (DARPA) to the Navy.                           
       The Senate amendment would authorize an increase of $23.0 million to
   continue the proximity x-ray lithography program and an increase of $2.0
   million to complete the point-source x-ray lithography program in fiscal
   year 1998. The Senate amendment would also decrease by $3.0 million the 
   amount of funding authorized in project MT 06.                          
       The conferees agree to authorize an increase of $18.0 million for   
   the proximity x-ray lithography program and an increase of $2.0 million 
   to complete the point-source x-ray program in fiscal year 1998. The     
   conferees also agree to decrease by $4.0 million the amount authorized  
   for project MT 06.                                                      
       The conferees agree to authorize an increase of $6.0 million in PE  
   62712E for EUV lithography as discussed elsewhere in the Statement of   
   Managers for the National Defense Authorization Act for Fiscal Year     
   1998.                                                                   
       The conferees endorse the views expressed in the House report (H.   
   Rept. 105 132) regarding the need to ensure a smooth transition of the  
   proximity x-ray lithography program from DARPA to the Navy and the      
   private sector. The conferees direct, therefore, that Naval Air Systems 
   Command be appointed executive agent for the program and that all funds 
   expended for research and development of proximity x-ray, and related   
   technologies, be coordinated through and meet the program priorities of 
   the Naval Air Systems Command and the Naval Research Laboratory. The    
   conferees urge the Navy to coordinate research in cross-cutting         
   technologies between the proximity x-ray program, and related           
   technologies, and the DARPA sub-tenth micron advanced lithography       
   program. The conferees endorse the Senate report requirement (S. Rept.  
   105 29) that the Navy prepare and submit a plan to expeditiously        
   complete the transition of the program to industry with fieldable       
   technology. The plan must be submitted to the congressional defense     
   committees no later than 180 days after the date of enactment of this   
   Act.                                                                    
            Electronic commerce resource centers                                   
       The budget request included $14.9 million in PE 63753S for          
   electronic commerce resource centers (ECRC).                            
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $3.0 million in 
   PE 63753S for the establishment of a new ECRC.                          
       The conferees agree to authorize an increase of $6.0 million in PE  
   63753S: $3.0 million for the establishment of a new center, as discussed
   in the Senate report (S. Rept. 105 29); and $3.0 million for the        
   establishment of an additional center. The conferees direct that all    
   applicable competitive and merit-based procedures be used in the award  
   of contracts, grants, or other agreements under this program, and that  
   cost-sharing requirements for non-federal participants be utilized where
   appropriate.                                                            
            Land warfare technologies                                              
       The budget request included $82.58 million in PE 63764E for land    
   warfare technologies advanced technology development.                   
       The House bill would authorize an increase of $6.6 million in PE    
   63764E for the active structural control program and $14.0 million for  
   the DP 2 vectored thrust program. The House bill would also authorize a 
   $9.0 million reduction in PE 63764E.                                    
       The Senate amendment would authorize an increase of $4.4 million for
   the active structural control program.                                  
       The conferees agree to authorize an increase of $5.4 million for the
   active structural control program. The conferees also agree to a        
   decrease of $5.0 million in PE 63764E for the small unit operations     
   program.                                                                
       The conferees are aware of recent progress in the activities related
   to the DP 2 vectored thrust program. The Office of Naval Research has   
   recently sponsored the vectored thrust program and prior year funds were
   transferred from the Defense Advanced Research Projects Agency for this 
   purpose. The conferees encourage the Navy to reprogram additional funds 
   to support this program should initial testing prove successful.        
            Defense Reconnaissance Support Activities                              
       The budget request included $49.4 million in PE 35159I for Defense  
   Reconnaissance Support Activities.                                      
       The House bill would direct the Department of Defense to            
   discontinue, not later than October 1, 1999, the Defense Space          
   Reconnaissance Program (DSRP) and close the Defense Space Program Office
   (DSPO).                                                                 
       The Senate amendment contained no such direction and would authorize
   the budget request.                                                     
    The House recedes.                                                     
       The conferees agree that there appears to be an overly bureaucratic 
   management of space reconnaissance support to military operations. The  
   DSPO was established in 1981 to provide management support and oversight
   of programs which improve satellite reconnaissance support to the       
   operational military commander. DSPO was established as an overt liaison
   between the then unacknowledged National Reconnaissance Office (NRO) and
   the military services. After public acknowledgment of the NRO, the      
   Director of the NRO: (1)                                                
                    established direct support to military operations as a core   
          function of the Office; and (2) created the NRO position of Deputy      
          Director, Military Support to manage this function and the DSPO         
          organization.                                                           
       The conferees believe the Department needs to review the need for   
   continuing the DSPO in light of the NRO's public acknowledgment and its 
   stated military support mission. Further, the conferees believe that the
   position of Deputy Under Secretary of Defense for Space provides the    
   additional civilian oversight necessary to ensure the effective         
   application of space support to the military services.                  
       Therefore, the conferees believe the Secretary of Defense should    
   determine whether there is a need to retain the DSPO management         
   organization and the DSRP program it manages. The conferees note that   
   such a determination could benefit from the advice of the Task Force on 
   Defense Reform. The conferees direct the Secretary to report to the     
   congressional defense and intelligence committees on the results of his 
   determination by March 1, 1998.                                         
           Special operations tactical systems development                         
       The budget request included $73.1 million to support special        
   operations tactical systems development (PE 116404BB).                  
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $2.7 million to 
   support special operations tactical systems.                            
       The conferees agree to authorize the transfer of $36.4 million from 
   special operations shipbuilding procurement to the advanced SEAL        
   delivery system (ASDS) to address funding shortfalls. The conferees are 
   concerned about the significant problems associated with development and
   management over the life of the ASDS program. The conferees have been   
   notified of the program shortfalls and corrective actions implemented by
   the Navy to bring this program back on track. The conferees agree to    
   support the Navy request to use available procurement funds to support  
   proposed corrective actions and expect the Navy to improve its oversight
   of this important program. The conferees are aware that a realignment of
   funds will be made in the fiscal year 1999 budget request to complete   
   ASDS 1. The conferees direct that, prior to February 15, 1998, the      
   Secretary of the Navy report to the congressional defense committees on 
   the total projected costs of the ASDS, the estimated date of            
   construction completion, and adjusted plans for sea trials and initial  
   operating capability. In addition, the report shall include the Future  
   Years Defense Program funding for the ASDS program.                     
       The conferees agree to authorize a total of $109.5 million in PE    
   116404BB.                                                               
           Special operations intelligence systems development                     
       The budget request included $4.9 million to support special         
   operations intelligence systems development.                            
       The House bill would authorize an increase of $3.0 million to       
   support the mission familiarization virtual reality project and an      
   additional increase of $5.0 million for the special operations forces   
   intelligence vehicle.                                                   
       The Senate amendment would authorize an increase of $4.0 million to 
   develop the joint threat warning system.                                
       The conferees agree to authorize an increase of $6.0 million for    
   special operations system development. Of this amount, $3.0 million is  
   for the special operations forces intelligence vehicle and $3.0 million 
   is for the joint threat warning system.                                 
                        ITEMS OF SPECIAL INTEREST                        
           Army research institute                                                 
       The conferees note the continuing needs of the Army for analyses    
   related to personnel recruitment and training as well as issues related 
   to gender and racial integration. The conferees note the studies in     
   these areas carried out by the Army Research Institute and urge the Army
   to consider its requirements for further research before taking action  
   to reduce further the activities of the Institute.                      
           Aviation advanced technology                                            
       The budget request included $31.3 million for aviation advanced     
   technology in PE 63003A. The conferees encourage the Army, with the     
   funds available, to consider exploring the potential operational value  
   and key technical issues related to an integrated manned and unmanned   
   aerial vehicle scout team.                                              
           BOL expendable dispenser system                                         
       The conferees are aware of the important survivability enhancement  
   that the BOL expendable dispenser system provides our operational F 14  
   aircraft, and the potential capability that the system may provide for  
   other aircraft.                                                         
       The Congress provided approximately $18.0 million in fiscal year    
   1997 for final testing and qualification of the BOL on the F/A 18C/D    
   aircraft. The conferees understand that progress in testing and         
   qualification has been slow, despite the Navy's expressed desire to     
   accelerate the program for the F/A 18C/D. The conferees direct the      
   Secretary of the Navy to report to Congress with the submission of the  
   fiscal year 1999 budget on the results of the Navy's assessment and     
   intentions regarding qualification and potential fielding the BOL system
   on the F/A 18C/D aircraft.                                              
           Department of Defense science and technology program                    
       Today, U.S. military forces have the capabilities to deploy anywhere
   in the world, sustain forward presence indefinitely, and win decisively 
   on any battlefield. Those capabilities are a direct result of           
   investments in research and technology sustained over the last 50 years.
   Such investments have played a crucial role in the development of       
   advanced technologies and in the education and training of scientific   
   personnel required to support the technological advances necessary for  
   maintaining military superiority.                                       
    The conferees note with concern the continuing reduction in the        
                    funding in real terms for science and technology programs in  
          the Department of Defense, especially in the programs of the services.  
          Because military forces will be smaller in the future, effective        
          application of technology will be even more critical for battlefield    
          superiority. Investments in defense science and technology programs     
          should be strengthened in recognition of this reality. The conferees    
          urge the Department to include a robust level of funding for science and
          technology programs in the request for fiscal year 1998.                
           High temperature superconductor power applications                      
       The conferees understand that the Navy is pursuing large-scale      
   applications of high temperature superconductors (HTS) for electric     
   drive ship propulsion and other applications. The conferees also note   
   that the Submarine Technology Assessment Panel, commissioned by the     
   Assistant Secretary of the Navy (Research, Development and Acquisition),
   recommended in its final report that the Navy focus research and        
   development efforts to ensure the maturity of the superconducting       
   technology and the incorporation of electric drive into a submarine     
   design as soon as feasible. In light of the initiation of the Navy      
   development and production of the New Attack submarine, SC 21 and CV(X),
   and the progress realized by the commercial sector in the development   
   and application of this technology and its potential benefits, the      
   conferees encourage the Navy to consider this technology for widespread 
   use in propulsion and auxiliary equipment. The conferees direct the     
   Secretary of the Navy to submit a report to the congressional defense   
   committees, no later than March 1, 1998, that describes the results of  
   the tests conducted on the prototype HTS motor.                         
                      Improving collaboration between the Department of Defense and
           the Department of Energy laboratories                                   
       The conferees endorse the direction given on pages 425 and 426 of   
   the Senate report (S. Rept. 105 29) regarding the establishment of a    
   pilot program proposal for direct collaboration between the Department  
   of Defense and the Department of Energy laboratories and sites. However,
   in order to provide for a more focused program, the conferees direct    
   that the Under Secretary of Defense for Acquisition and Technology need 
   only work in consultation with the Assistant Secretary of Energy for    
   Defense Programs in preparing the pilot proposal.                       
           Interferometric synthetic aperture radar                                
       Forward deployed U.S. armed forces have a need for up-to-date and   
   highly accurate maps that provide three-dimensional location of targets,
   including altitude, latitude, and longitude, and for reconstruction of  
   terrain in a three-dimensional setting for planning combat missions. The
   conferees understand that an airborne interferometric synthetic aperture
   radar (IFSAR) has the potential to provide imagery of one foot          
   resolution and digital terrain elevation data (DTED) at DTED level 4.   
       The conferees understand that the Army and the Defense Advanced     
   Research Projects Agency recently demonstrated an airborne IFSAR during 
   operations in support of U.S. ground forces in Bosnia. The test system  
   is relatively small and for test purposes was flown on a business jet,  
   which proved satisfactory in Bosnia. To operate in a major regional     
   contingency, however, U.S. armed forces would require a larger, more    
   capable system, flying at higher altitudes.                             
       The conferees direct the Secretary of Defense and the Intelligence  
   community to study the costs, feasibility, and potential capability     
   gains of placing an IFSAR on a U 2 or high altitude endurance unmanned  
   aerial vehicle, and to report the results of this analysis to the       
   congressional defense committees with the submission of the fiscal year 
   1998 budget request.                                                    
           Naval biodynamics laboratory data bank                                  
       For nearly thirty years, the NBDL focused on the intensive test,    
   study, and analysis of the human body's response to the trauma of       
   crashes, and developed a national data bank of collective human crash   
   response information based on approximately 3,500 crash tests using live
   human subjects. In 1996, the NBDL ceased operations as a result of      
   previous decisions to close the laboratory, but was not able to         
   consolidate and safely store its research information in a consistent,  
   useful data bank format. The conferees believe that the effort spent in 
   amassing the unique human response data by the NBDL should not be lost. 
   Accordingly, the conferees direct the Secretary of the Navy to develop a
   plan that establishes a national crash survival data bank that will     
   safeguard the integrity of the data gathered by the NBDL and to submit a
   report on the plan and the funding required to establish the data bank  
   with the fiscal year 1999 Department of Defense budget request.         
           Strategic systems industrial capabilities                               
       The Department of Defense has consistently highlighted the need to  
   maintain certain industrial base skills and technologies unique to      
   strategic programs. The conferees support the efforts that the          
   Department and the services have made to ensure that these technologies 
   and skills are maintained for future uses. The conferees support Air    
   Force efforts with respect to specialized materials, such as 2 2 3      
   carbon/carbon, that may be needed for future space and other            
   applications. The conferees urge the Secretary to review the Future     
   Years Defense Program to ensure that Strategic Systems specialized      
   industrial base issues are adequately funded.                           
           Telemedicine                                                            
       The conferees have a continuing interest in telemedicine and in the 
   promise that the application of telemedicine technology holds for       
   improvements in the health care of service members on the battlefield,  
   at sea, and in military and civilian health care facilities. The        
   conferees are aware that the General Accounting Office (GAO) in its     
                    February 1997 report ``Telemedicine: Federal Strategy is      
          Needed to Guide Investments'' concluded that telemedicine has the       
          potential to revolutionize the way health care is delivered and that    
          recent increased interest in telemedicine technology has resulted in    
          widespread applications throughout the United States. However, the GAO  
          also concluded that no overarching, government-wide strategy exists to  
          ensure that the most is gained from federal telemedicine efforts. The   
          conferees believe that because the Department of Defense (DOD) is one of
          the major federal investors in telemedicine and manages one of the      
          nation's largest health care systems, it would be in a good position to 
          help forge an overall telemedicine strategy. A first step in this       
          direction would be the development of a department-wide telemedicine    
          strategy.                                                               
       The conferees strongly recommend that the Secretary of Defense      
   develop and submit to the congressional defense committees by March 31, 
   1998, an overarching telemedicine research and development and operation
   strategy. The strategy should clearly define the scope of telemedicine  
   in the Department, establish DOD-wide goals and objectives, and identify
   actions and appropriate milestones for achieving them; prioritize and   
   target near- and long-term investments, especially for goals related to 
   combat casualty care and operations other than war; and clarify the     
   roles of DOD oversight organizations. The conferees also recommend that 
   the Secretary coordinate with the Joint Working Group on Telemedicine in
   the development of national goals and objectives for telemedicine.      
                               LEGISLATIVE PROVISIONS ADOPTED                     
                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              
           Dual-use technology program (sec. 203)                                  
       The House bill contained a provision (sec. 203) that would direct   
   the Department of Defense to fund the dual-use science and technology   
   program in fiscal year 1998 as a percentage of the science and          
   technology program of each of the services.                             
       The Senate amendment contained a provision (sec. 216) that would    
   establish a set of goals with increasing levels of funding for new      
   starts in the applied research accounts of the military services to be  
   devoted to dual-use projects in each of fiscal years 1998, 1999, and    
   2000. Under the provision, the dual-use projects entered into by the    
   military services would have to require a minimum cost-share of 50      
   percent from non-federal participants in order to count toward meeting  
   the specified goal. The provision would also assign oversight           
   responsibility for implementation of dual-use technologies to an        
   official who would report directly to the Under Secretary of Defense for
   Acquisition and Technology.                                             
       The House recedes with an amendment that would increase the goals   
   set in the Senate provision and impose the percentages to the entire    
   applied research accounts of the military services rather than new      
   starts within those accounts for each of fiscal years 1998, 1999, 2000, 
   and 2001. The provision would also place restrictions on the proportion 
   of in-kind contribution in the non-federal cost-share for dual-use      
   projects that would be applied toward meeting the goals. Finally the    
   provision would specifically authorize $50.0 million for the Commercial 
   Operations and Support Initiative (COSSI) and $75.0 million for the     
   dual-use science and technology projects in fiscal year 1998. The       
   conferees direct that the funds authorized for the COSSI program in     
   fiscal year 1998 be used only to complete projects under existing       
   agreements and that no new solicitation under the COSSI program be      
   initiated until fiscal year 1999.                                       
       The conferees direct the Secretary of Defense to submit to the      
   congressional defense committees, at the time of the budget request for 
   each of the fiscal years for which a goal applies under the provision, a
   report on the plans for the program for the fiscal year of the request. 
   The report should provide sufficient detail with respect to funding     
   allocations, priorities, and technology development goals for both the  
   science and technology program and the COSSI program to allow Congress  
   to make an informed decision on the request.                            
               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    
           Manufacturing technology program (sec. 211)                             
       The House bill contained a provision (sec. 211) that would amend    
   section 2525 of title 10, United States Code, through fiscal year 2000, 
   to establish a funding requirement for the manufacturing technology     
   (MANTECH) program of 0.25 percent of the amount available for           
   demonstration and validation, engineering and manufacturing development,
   operational system development, and procurement programs of the Army,   
   the Navy, the Air Force, and Defense Agencies, or the amount authorized 
   by law for manufacturing technology projects of the military departments
   and defense agencies, whichever amount is greater. The provision would  
   also require an annual report to Congress through fiscal year 2000.     
       The Senate amendment contained a provision (sec. 231) that would    
   amend section 2525(c)(2) of title 10, United States Code, to clarify the
   rationale for the requirement that the Department seek the participation
   of manufacturers of manufacturing equipment in the projects under the   
   MANTECH program.                                                        
       The House recedes with an amendment that would include the          
   requirement for the Secretary of Defense to prepare a five year plan for
   the MANTECH program that establishes manufacturing technology goals,    
   milestones, and priorities, the investment strategy for the program,    
   annual program objectives, and annual funding for the program by defense
   agencies and the military departments.                                  
       The conferees strongly endorse the Department of Defense            
   manufacturing technology program. The program provides ``seed funding'' 
   for the development of moderate to high risk material, process, and     
   equipment technology to enable production of advanced, high quality     
   weapons systems with shorter lead times and reduced acquisition costs.  
   The conferees also endorse the need to stabilize the funding level for  
   the MANTECH program and eliminate the uncertainty in annual funding     
                    that has reduced the program's effectiveness and efficiency.  
          The conferees believe that the program's objectives, investment         
          strategy, and funding level must be closely tied to the manufacturing   
          technology and process requirements of the various Defense acquisition  
          programs. To achieve this goal and to maintain the Department of Defense
          MANTECH program at the funding level needed to assure the availability  
          of advanced manufacturing technology and processes, the conferees       
          recommend that the Secretary establish a funding target for the program 
          of at least 0.25 percent of the amount programmed by each of the        
          military departments and defense agencies for their demonstration and   
          validation, engineering and manufacturing development, operational      
          system development, and procurement programs.                           
           Report on operational field assessments program (sec. 212)              
       The House bill contained a provision (sec. 220) that would require  
   the Secretary of Defense to submit to the Congress no later than March  
   30, 1998 a report on the operational field assessments program,         
   including a description of future plans for the program and funding     
   requirements for planned activities under the program.                  
       The Senate amendment contained no similar provision, but authorized 
   an increase of $8.0 million in PE 65118D for operational field          
   assessments in fiscal year 1998.                                        
       The Senate recedes with an amendment that would require the         
   Secretary of Defense to report to the Congress on the manner in which   
   the operational field assessment program plan will ensure responsiveness
   to the mission needs of the commanders of the unified combatant         
   commands. The conferees agree to authorize an increase of $4.0 million  
   in PE 65118D to support operational field assessments in fiscal year    
   1998.                                                                   
           Joint Strike Fighter Program (sec. 213)                                 
       The Senate amendment contained a provision (sec. 211) that would    
   require the Secretary of Defense to submit a report to the congressional
   defense committees on the options for the sequence in which the variants
   of the Joint Strike Fighter (JSF) are to be produced and fielded.       
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would include a requirement
   for certification that the JSF program contains sufficient funding to   
   carry out an alternate engine program that includes flight qualification
   of an alternate engine.                                                 
           Kinetic energy tactical anti-satellite technology program (sec. 214)    
       The Senate amendment contained a provision (sec. 218) that would    
   authorize $80.0 million in PE 63892D to continue the Kinetic Energy     
   Tactical Anti-Satellite (KE ASAT) program in fiscal year 1998. The      
   provision would also prohibit the obligation of funds in PE 65104D,     
   relating to technical studies and analyses, until the funds appropriated
   for the KE ASAT program for fiscal year 1998 have been released to the  
   KE ASAT program manager.                                                
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would authorize $37.5      
   million for the KE ASAT program for fiscal year 1998.                   
       The conferees understand that the administration maintains that     
   there is no military requirement for the KE ASAT program and that the   
   Department of Defense does not support it. However, there appears to be 
   some confusion regarding the Department's support for some degree of KE 
   ASAT technology development. The Department of Defense's recent Space   
   Control Architecture study appears to endorse continued development of  
   KE ASAT technology, and the National Space Policy appears to call for   
   the development of active counter-satellite capabilities.               
       In light of these factors, the conferees direct the Secretary of    
   Defense to submit a report to the congressional defense committees by   
   February 15, 1998, to include the following: (1) a determination as to  
   whether the National Space Policy and DOD Space Policy establish        
   requirements for the development of active counter-satellite            
   capabilities; (2) a summary of the DOD Space Control Architecture study,
   including any updates to the study, and the study's findings and        
   recommendations regarding the KE ASAT program; and (3) a determination  
   by the Secretary as to whether the Department of Defense should develop 
   active counter-satellite capabilities and, if so, whether the Secretary 
   intends to sustain some level of KE ASAT technology development. The    
   report shall be submitted in an unclassified form and, if necessary, in 
   a classified form.                                                      
       The conferees note that fiscal year 1997 funds remain available for 
   the KE ASAT program. The conferees continue to support the development  
   of KE ASAT technology.                                                  
           Micro-satellite technology development program (sec. 215)               
       The Senate amendment contained a provision (sec. 219) that would    
   authorize $50.0 million in PE 63401F for the Clementine 2 program. The  
   provision would also prohibit the obligation of more than $35.0 million 
   of funds authorized in PE 64480F for the Global Positioning System Block
   IIF satellite system until the Secretary of Defense certifies to        
   Congress that the Secretary has made available for obligation funds     
   appropriated for fiscal year 1998 for the Clementine 2 Micro-Satellite  
   program.                                                                
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would require: (1) that the
   Clementine 2 program be restructured into a micro-satellite technology  
   development program that supports a range of space mission areas; and   
   (2) the Secretary of Defense to provide a report on the restructured    
   micro-satellite program to the congressional defense committees.        
       The conferees note that the Air Force and U.S. Space Command have   
   supported micro-satellite development activities and that the Air Force 
   has established and provided a limited amount of funding for such a     
   program in the Future Years Defense Program. The conferees continue to  
   support innovative technology demonstrations designed to test key       
   technologies in space and urge the Secretary of Defense to              
                    ensure that the restructured micro-satellite technology       
          program continues such efforts. The conferees note that the Air Force,  
          in conjunction with the office of the Deputy Undersecretary of Defense  
          for Space, has developed a range of options for such a program. The     
          conferees believe that funds appropriated for the Clementine 2 program  
          in prior years should be used to support the restructured               
          micro-satellite program.                                                
           High altitude endurance unmanned vehicle program (sec. 216)             
       The Senate amendment contained a provision (sec. 213) that would    
   impose a cost cap on the High Altitude Endurance Unmanned Aerial Vehicle
   (HAE UAV) program at the levels requested in the fiscal year 1998 budget
   request.                                                                
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would clarify the reporting
   requirement of the provisions and the certification requirements for the
   program.                                                                
            22 aircraft program (sec. 217)                                         
       The Senate amendment contained a provision (sec. 212) that would    
   impose cost caps on both the total cost of engineering and manufacturing
   development (EMD) and the total cost of production of the F 22.         
   Additionally, the Senate amendment would require an annual report by the
   Comptroller General that would assess the progress of EMD and its       
   prospect of completion under the cost cap. The annual report would be   
   required until EMD is complete. Finally, the Senate amendment would     
   limit the obligation of funds authorized to be appropriated each fiscal 
   year to 90 percent until the Comptroller General's annual report is     
   submitted.                                                              
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would allow adjustments to 
   the cost caps for economic inflation and compliance with laws enacted   
   after September 30, 1997.                                               
                        SUBTITLE C--BALLISTIC MISSILE DEFENSE PROGRAMS            
           National Missile Defense Program (sec. 231)                             
       The Senate amendment contained a provision (sec. 225) that would    
   require the Secretary of Defense to structure the National Missile      
   Defense (NMD) program to support an integrated NMD system test in fiscal
   year 1999. The provision would also require the Secretary of Defense to 
   prepare a plan for the development and deployment of an NMD system that 
   could achieve initial operational capability in fiscal year 2003.       
   Finally, the provision would authorize $978.1 million for NMD in fiscal 
   year 1998.                                                              
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Budgetary treatment of amounts for procurement for ballistic 
           missile defense programs (sec. 232)                                     
       The House bill contained a provision (sec. 231) that would require  
   future budget requests for procurement of the National Missile Defense  
   program and for core theater missile defense programs to be within the  
   accounts of the Ballistic Missile Defense Organization (BMDO) rather    
   than in the accounts of the military services.                          
       The Senate amendment contained a provision (sec. 226) that would    
   direct the Secretary of Defense to transfer ballistic missile defense   
   program procurement funds previously managed by the Ballistic Missile   
   Defense Organization from military service accounts back to their       
   original BMDO procurement accounts.                                     
       The Senate recedes with an amendment that combines the House and the
   Senate provisions.                                                      
           Cooperative Ballistic Missile Defense program (sec. 233)                
       The House bill contained a provision (sec. 232) that would establish
   a Cooperative Ballistic Missile Defense Program within the Ballistic    
   Missile Defense Organization (BMDO), to support on-going and future     
   technical and analytical cooperative efforts between the United States  
   and other nations that contribute to U.S. missile defense capabilities. 
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would provide the         
   Secretary of Defense discretion to exclude certain ballistic missile    
   defense acquisition programs from the cooperative ballistic missile     
   defense program element. The conferees understand that BMDO has         
   developed plans for the creation of a dedicated cooperative ballistic   
   missile defense program element and look forward to this new program    
   element in the fiscal year 1999 budget request.                         
                      Annual report on the threat posed to the United States by    
           weapons of mass destruction, ballistic missiles, and cruise missiles    
           (sec. 234)                                                              
       The House bill contained a provision (sec. 234) that would direct   
   the Secretary of Defense, in consultation with the Director of Central  
   Intelligence, to prepare and submit to Congress by January 30 of each   
   year, a report on threats posed to the United States and its allies by  
   cruise missiles, ballistic missiles, and weapons of mass destruction,   
   and the proliferation of such technologies.                             
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Director of Ballistic Missile Defense Organization (sec. 235)           
       The House bill contained a provision (sec. 235) that would require  
   that the Director of the Ballistic Missile Defense Organization (BMDO)  
   carry the grade of lieutenant general or general or, in the case of an  
   officer of the Navy, vice admiral or admiral. It would also require that
   the Director of BMDO report directly to the Secretary of Defense.       
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would permit the          
   appointment of a civilian official of equivalent grade as Director of   
   BMDO and eliminate the requirement that the Director report directly to 
   the Secretary of Defense.                                               
       The conferees direct the Secretary of Defense to ensure that the    
   director of BMDO is accorded full access to the Secretary and all other 
   senior Department of Defense officials on matters pertaining to the     
   management of ballistic missile defense programs for which the director 
   has responsibility.                                                     
                      Repeal of required deployment dates for core theater missile 
           defense programs (sec. 236)                                             
       The House bill contained a provision (sec. 233) that would amend    
   section 234(a) of the Ballistic Missile Defense Act of 1995 by          
   eliminating deployment dates for certain core theater missile defense   
   (TMD) programs and modifying the deployment date for the Theater High   
   Altitude Area Defense (THAAD) program. The provision also made technical
   and conforming changes to section 234(a).                               
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would eliminate all       
   deployment dates for core TMD programs from section 234(a) of the       
   Ballistic Missile Defense Act of 1995.                                  
       The conferees continue to support the earliest possible deployment  
   of effective theater missile defenses, consistent with acceptable       
   program risk, as a matter of high national priority. The conferees      
   believe that the mandated deployment dates made clear the high priority 
   attached by Congress to all four core theater missile defense programs. 
   These dates and congressional funding increases have propelled the Navy 
   Area Theater Ballistic Missile Defense program into engineering and     
   manufacturing development and the Patriot Advanced Capability-3 (PAC 3) 
   program into procurement. Congressionally mandated deployment dates were
   also motivated by the Department of Defense's failure to commit firmly  
   to a deployment schedule for the Navy Theater Wide and THAAD programs   
   that would result in deployment of these vital capabilities at the      
   earliest opportunity consistent with acceptable technical and program   
   risk.                                                                   
       Henceforth, the conferees anticipate that a statement of            
   congressional intent concerning the management of the core TMD programs 
   will be issued annually. The conferees believe that the flexibility of  
   annual statements will allow for rigorous and effective congressional   
   oversight.                                                              
                                  SUBTITLE D--OTHER MATTERS                       
                      Restructuring of National Oceanographic Partnership Program  
           organization (sec. 241)                                                 
       In signing the National Defense Authorization Act for Fiscal Year   
   1997, the President issued a statement that the statute's method for the
   appointment of certain members of the National Ocean Leadership Council 
   would violate the Appointments Clause of the Constitution. Although the 
   statement provided that the Council should not exercise significant     
   governmental authority, the administration allowed the Council to be    
   convened with the 12 members whose appointment did not raise any        
   constitutional issue, pending the enactment of corrective legislation.  
       The House bill contained a provision (sec. 214) that would amend    
   section 7902 of title 10, United States Code, to provide that the       
   President, or his designee, shall appoint members of the National Ocean 
   Research Council who are not already government officers, to represent  
   the views of the ocean industries, state governments, and academia, and 
   such other views as the President considers appropriate.                
       The Senate amendment contained a provision (sec 234) that would     
   amend section 7902(b) to revise the membership of the Council by        
   removing those members whose appointment would raise constitutional     
   questions. The National Ocean Leadership Council would remain as        
   currently established by the administration, with members representing  
   the 12 Federal agencies with significant oceanographic interest. The    
   provision also recommended that the membership of the Council's Ocean   
   Research Advisory Panel be expanded to include representatives from the 
   National Academy of Sciences, the National Academy of Engineering, and  
   the Institute of Medicine, as well as government, academia, and the     
   oceans industry.                                                        
       The House recedes with an amendment that would clarify the role of  
   the Ocean Research Advisory Panel with regard to membership and         
   responsibilities.                                                       
                      Maintenance and repair of real property at Air Force         
           installations (sec. 242)                                                
       The House bill contained a provision (sec. 215) that would amend    
   chapter 949 of title 10, United States Code, by adding a new provision  
   to permit the use of both research, development, test, and evaluation   
   funds and operations and maintenance funds for maintenance and repair of
   real property at Air Force installations.                               
    The Senate amendment contained no similar provision.                   
     The Senate recedes.                                                   
                      Expansion of eligibility for the defense experimental program
           to stimulate competitive research (sec. 243)                            
       The House bill contained a provision (sec. 216) that would amend    
   section 257 of the National Defense Authorization Act for Fiscal Year   
   1995 (Public Law 103 337) to ensure the eligibility of the Commonwealth 
   of Puerto Rico and other U.S. territories to participate in the Defense 
   Experimental Program to Stimulate Competitive Research.                 
    The Senate amendment contained a similar provision (sec. 233).         
    The House recedes.                                                     
                      Bioassay testing of veterans exposed to ionizing radiation   
           during military service (sec. 244)                                      
       The House bill contained a provision (sec. 217) that would authorize
   $300,000 for the Nuclear Test Personnel Program conducted by the Defense
   Special Weapons Agency.                                                 
       The Senate amendment contained a similar provision (sec. 220) that  
   would authorize $300,000 for the Nuclear Test Personnel Program         
   conducted by the Defense Special Weapons Agency for the third phase of  
   bioassay testing of radiation-exposed veterans who participated in      
   radiation-risk activities, and would direct the collection of samples by
   the appropriate department of agency appropriate agency, and the        
   transfer under appropriate chain of custody to the Brookhaven National  
   Laboratory.                                                             
       The House recedes with an amendment that would authorize $300,000   
   for the Nuclear Test Personnel Program from funds authorized for the    
   Defense Special Weapons Agency to conduct the third phase of bioassay   
   testing of veterans exposed to ionzing radiation during their military  
   service.                                                                
       The conferees agree that neither the Brookhaven National Laboratory,
   nor the Defense Special Weapons Agency (DSWA), have the capability to   
   collect the samples from the veterans who participated in the United    
   States atmospheric nuclear testing program or the occupation of         
   Hiroshima and Nagasaki, Japan. Therefore, the conferees direct the      
   appropriate department or agency, with access to the veterans who       
   participated in these activities, to collect the required bioassay      
   samples and transfer them to Brookhaven National Laboratory under the   
   appropriate chain of custody.                                           
           Sense of Congress regarding Comanche program (sec. 245)                 
       The House bill contained a provision (sec. 218) that would express  
   support for Comanche program technology transfer and acquisition        
   efforts.                                                                
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would express the sense of
   Congress that the Department of Defense should evaluate potential       
   technology transfer and acquisition initiatives within the Army Comanche
   program that have the potential to increase the efficiency of the       
   program or reduce risk. If the Department identifies an initiative with 
   merit, the conferees expect that funding will be identified for the     
   initiative in the future years defense program.                         
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
           Strategic environmental research and development program                
       The House bill contained a provision (sec. 212) that would direct   
   the Secretary of Defense to submit a report on the Strategic            
   Environmental Research and Development Program (SERDP) by February 28,  
   1998. In relation to each SERDP project, the report would specify the   
   following: (1) defense-unique and mission-relevant aspects; and (2)     
   certify that it does not duplicate other environmental research,        
   development, and demonstration efforts of other government entities or  
          organizations.                                                          
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees have been advised by the Department of Defense that   
   technologies funded through SERDP are carefully screened to identify    
   projects that may duplicate efforts within the Department. The conferees
   direct the Department of Defense to ensure that every effort is made to 
   avoid redundant research and development efforts in the area of         
   environmental technology.                                               
           Tactical unmanned aerial vehicles                                       
       The House bill contained a provision (sec. 213) that would prohibit 
   the obligation of funds for the Outrider Advanced Concept Technology    
   Demonstration (ACTD) program.                                           
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees are disappointed with the progress of the Outrider    
   ACTD program to date. The conferees believe that the program has        
   suffered irreparably from unstable and ambiguous joint requirements and 
   note that the program appears to be on a path to failure with respect to
   its operational capabilities. In the future, the conferees will look    
   less favorably on ACTD programs that are not limited demonstrations of  
   mature technologies, but rather thinly veiled attempts to evade the     
   regular order of the acquisition process.                               
       Accordingly, the conferees agree to authorize $45.0 million for     
   completion of the Outrider ACTD development and user activities, but not
   procurement of operational Outrider systems. Moreover, the conferees    
   agree to authorize these Outrider ACTD activities in PE 63003A, Advanced
   Aviation Technology program.                                            
           Land attack standard missile                                            
       The House bill contained a provision (sec. 219) that would authorize
   an increase of $10.0 million increase in PE 63795N for flight test      
   demonstration and risk reduction activities for the Land Attack Standard
   Missile. In addition, the provision would decrease PE 63217N (Air       
   Systems and Weapons Advance Technology) by $5.0 million and PE 63508N   
   (Ship Hull Mechanical and Electrical Technology) by $5.0 million.       
    The Senate amendment contained no similar provision.                   
       The House recedes. The conferees agree to authorize an increase of  
   $3.0 million in PE 63795N for the Land Attack Standard Missile as       
   discussed elsewhere in this report.                                     
           Tactical High Energy Laser program                                      
       The House bill contained a provision (sec. 236) that would transfer 
   the Tactical High Energy Laser (THEL) program from the Department of the
   Army to the Ballistic Missile Defense Organization, and authorize $38.2 
   million for THEL in fiscal year 1998.                                   
    The Senate amendment contained no similar provision.                   
       The House recedes. Fiscal year 1998 funding for THEL is addressed   
   elsewhere in this report.                                               
           Advanced anti-radiation guided missile program                          
       The Senate amendment contained a provision (sec. 214) that would    
   authorize the Secretary of the Navy to use up to $25.0 million of the   
   amount authorized for fiscal year 1997 for the advanced anti-radiation  
   guided missile (AARGM) program to fund fiscal year 1998 research        
   development, test, and evaluation programs of the Navy that have a      
   higher priority.                                                        
       The House bill contained no similar provision, but would authorize  
   an increase of $35.0 million in PE 25601N to continue the ARRGM program.
    The Senate recedes.                                                    
       The conferees share the concerns expressed in the House report (H.  
   Rept. 105 132) that the high degree of concurrency in the schedule for  
   development and demonstration of the AARGM results in increased risk to 
   the program and that a more sequential development program may be       
   warranted. Accordingly, the conferees reiterate the guidance in the     
   House report (H. Rept. 105 132) that the Secretary of the Navy conduct  
   an independent assessment of the program plan, development and          
   demonstration schedule, program execution, technical performance, and   
   program risk. The Secretary shall report the results of the assessment  
   to the congressional defense committees by March 31, 1998. The report   
   should also include the Secretary's recommendations regarding the       
   objectives of the program, revisions to the program schedule, and the   
   funding required to complete the program.                               
           Federally funded research and development centers                       
       The Senate amendment contained a provision (sec. 215) that would    
   prohibit the Department of Defense (DOD) from funding more than 6,206   
   staff years of technical effort for federally funded research and       
   development centers (FFRDC's) out of the funds authorized to be         
   appropriated for the DOD for fiscal year 1998.                          
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
                      Department of Defense/Veterans' Administration cooperative   
           research program                                                        
       The Senate amendment contained a provision (sec. 221) that would    
   authorize $15.0 million for the Department of Defense/Veterans          
   Administration (DOD/VA) cooperative research program from the funds     
   authorized to be appropriated for research, development, test, and      
   evaluation for defense agencies in fiscal year 1998.                    
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees agree to authorize $15.0 million in PE 63738D for the 
   Cooperative DOD/VA Medical Research Program of which $4.5 million is    
   authorized for the Persian Gulf illness clinical trials program         
   discussed on page 161 of the House report (H. Rept. 105 132). The       
   conferees direct that all applicable competitive, merit-based           
                    procedures be used in the award of contracts, grants or other 
          agreements under the Cooperative DOD/VA Medical Research Program. The   
          conferees further direct the Secretary of Defense to ensure that any    
          Department of Defense funds authorized for fiscal year 1998 program be  
          expended for research on the medical problems of men and women          
          associated with military service.                                       
           Multitechnology integration in mixed-mode electronics                   
       The Senate amendment contained a provision (sec. 222) that would    
   authorize an increase of $7.0 million for multitechnology integration in
   mixed-mode electronics (MIME) research. The Senate provision would      
   reduce by an equal amount the funds authorized to be appropriated for   
   procurement for the reserve components of the armed services and made   
   available for special equipment for user testing.                       
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees agree to authorize an increase of $7.0 million in PE  
   62712E for applied research in MIME technology, as discussed elsewhere  
   in this report.                                                         
           Facial recognition technology program                                   
       The Senate amendment contained a provision (sec. 223) that would    
   authorize an increase of $5.0 million for a facial recognition          
   technology program.                                                     
       The House bill contained no similar provision, but would authorize  
   $5.0 million for a facial recognition technology program in the         
   counterterror technical support program (PE 63122D).                    
       The Senate recedes. The conferees agree to authorize $3.0 million   
   for a facial recognition technology program in the defense tactical     
   technology program (PE 62702E).                                         
           Explosives demilitarization technology                                  
       The Senate amendment included a provision (sec. 235) that would     
   direct the Secretary of Defense to conduct an explosive munitions       
   demilitarization demonstration program, and using competitive           
   procedures, conduct a demonstration using an existing, commercially     
   available blast chamber technology as an alternative to open burning,   
   open pit detonation of munitions; require the Secretary of Defense to   
   submit to Congress, along with the fiscal year 2000 budget, a report on 
   the results of the demonstration program and assessment of the relative 
   benefits of the blast chamber technology with regard to levels of       
   emissions and noise, and a cost benefit analysis of this technology. The
   provision would increase the budget request for the explosives          
   demilitarization technology program by $6.0 million for the             
   demonstration program and reduce by $6.0 million the budget request for 
   the Army account for special equipment for user testing.                
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees agreed to authorize an increase of $4.0 million for   
   the munitions standardization, effectiveness and safety program (PE     
   65805A) from which a demonstration program utilizing commercially       
   available blast chamber technology may be conducted, and is described   
   elsewhere in this title.                                                
                            TITLE III--OPERATION AND MAINTENANCE                  
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $93,195.7 million for Operation and Maintenance in the Department of 
   Defense and $2,163.4 for Working Capital Fund Accounts in fiscal year   
   1998. The House bill would authorize $92,616.2 million for Operation and
   Maintenance and $2,153.6 for Working Capital Fund Accounts. The Senate  
   amendment would authorize $93,292.9 million for Operation and           
   Maintenance and $1,488.1 for Working Capital Fund Accounts. The         
   conferees recommended an authorization of $93,794.2 million for         
   Operation and Maintenance and $2,031.9 for Working Capital Fund Accounts
   for fiscal year 1998. Unless noted explicitly in the statement of       
   managers, all changes are made without prejudice.                       
   Offset Folios 1243 to 1265 Insert here                                  
                        ITEMS OF SPECIAL INTEREST                        
           Arms control implementation                                             
       The budget request included $315.1 million for arms control         
   implementation programs in the military services and the Department of  
   Defense. This request is based on anticipated dates of implementation of
   the various arms control treaties.                                      
       The House bill would authorize a decrease of $25.5 million, which   
   would result in an $11.2 million reduction to the On Site Inspection    
   Agency (OSIA) operations and maintenance account and a $14.3 million    
   reduction to the Defense Special Weapons Agency (DSWA) verification     
   demonstration technology program (PE 63711H). These reductions were due 
   to slippage in the entry into force of the Open Skies Treaty, the       
   Strategic Arms Reduction Treaty II, the Comprehensive Test Ban Treaty   
   (CTBT), and non-implementation of the Bilateral Destruction Agreement   
   (BDA).                                                                  
       The Senate amendment would authorize a decrease of $20.0 million,   
   which would result in a $10.0 million reduction to the OSIA operations  
   and maintenance account and a $10.0 million reduction to the DSWA       
   verification demonstration technology program.                          
       The conferees agree to authorize a decrease of $25.5 million to the 
   budget request for arms control implementation for fiscal year 1998, as 
   follows: $11.2 million for the OSIA operations and maintenance account; 
   and $14.3 million for the DSWA verification technology demonstration    
   program (PE 63711H).                                                    
       The conferees direct the Department of Defense to provide the       
   congressional defense committees with a program plan for the nuclear    
   control technology research program (PE 63711H) in support of the CTBT, 
   and include the estimated costs. The Department should also include in  
   the report its assessment of recommendations by the National Research   
   Council on research deemed to be necessary to meet nuclear test         
   monitoring goals, and how the nuclear arms control technology activity  
   meets congressionally mandated objectives. The conferees are willing to 
   provide adequate funding for programs that would enable the United      
   States to independently monitor and detect nuclear test activities      
   worldwide and fulfill its obligations under a comprehensive test ban, if
   and when that treaty enters into force, and do not wish the funding     
   reduction to nuclear control technology activities (PE 63711H) to be    
   misconstrued.                                                           
           National Defense Sealift Fund (NDSF)                                    
       The budget request included $812.9 million in the National Defense  
   Sealift Fund (NDSF) for sealift acquisition. Of this amount, $581.3     
   million would be for the procurement of two large medium speed          
   roll-on/roll-off (LMSR) strategic sealift ships, $131.5 million for     
   resolution of cost growth that has occurred on LMSRs authorized in prior
   years, $70.0 million for advance procurement of components for an LMSR  
   that is planned for authorization in fiscal year 1999, and $30.1 million
   for completion of ships authorized in prior years.                      
    The House bill would authorize a decrease of $9.8 million.             
       The Senate amendment would authorize a decrease of $651.3 million   
   for procurement and for advance procurement of LMSRs. The Senate        
   amendment would also authorize a decrease of $25.0 million because of   
   contract savings in previously authorized and appropriated NDSF         
   programs. In addition, the Senate amendment would authorize an increase 
   of $1.0 million to provide support for a Department of Defense study of 
   future requirements and specifications for maritime prepositioning force
   recapitalization.                                                       
       The conferees agree to authorize $581.3 million for procurement of  
   two LMSRs, $70.0 for advance procurement, and $30.1 million for         
   completion of prior year ships. The conferees further agree to a        
   decrease of $131.5 million which includes a decrease of $131.0 million  
   for prior year cost growth, which the conferees believe can be deferred 
   until fiscal year 1999; and a decrease of $0.5 million as a result of   
   fiscal year 1997 contract savings.                                      
           National imagery and mapping agency                                     
       The budget request included $680.3 million in Operations and        
   Maintenance, Defensewide, for the Joint Military Intelligence Program   
   portion of the National Imagery and Mapping Agency (NIMA).              
       The House bill would authorize the following: (1) a reduction of    
   $30.0 million for production and customer support on the grounds that   
   migration to the Digital Processing System should have resulted in      
   significant reductions in operations and maintenance costs; (2) a       
   reduction of $10.0 million for mission support in anticipation of       
   significant cost reductions as a result of various mission and          
   organization consolidations; (3) a reduction of $15.0 million to        
   accelerate the downsizing of NIMA's personnel consistent with the       
   Digital Processing System phase-out; and (4) a reduction of $23.2       
   million for continued research and development efforts for an           
   interferometric synthetic aperture radar (IFSAR) mission on board the   
   Space Shuttle to collect Digital Terrain Elevation Data (DTED) level 2  
   information for mapping because of a belief that other, more            
   cost-effective, commercial alternatives to the IFSAR mission exist.     
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize the following reductions, as       
   reflected in the Classified and Intelligence line within Operations and 
   Maintenance, Defensewide: $35.0 million in production; $11.0 million in 
   mission support; $15.0 million in management and customer support; and  
   $3.2 million for the Shuttle IFSAR mission, with the remaining funding  
   to be used to fund commercial alternatives to the shuttle DTED mapping  
   mission if the NIMA Director determines that such alternatives are cost-
   and mission-effective, or to continue preparation for the shuttle       
   mission. The conferees also agree to authorize the budget request for   
   NIMA civilian personnel. The conferees direct the Director of NIMA to   
   submit the personnel plan specified in the House report (H. Rept. 105   
   132).                                                                   
           Travel re-engineering                                                   
       The House report (H. Rept. 105 132), which raised concerns over the 
   compliance by the Department of Defense with section 356 of the National
   Defense Authorization Act for Fiscal Year 1996, would direct the        
   Secretary of Defense to comply with the reporting requirement in that   
   section, and would prohibit the Department from processing a Request for
   Proposal. The conferees are aware that the Secretary of Defense has now 
   complied with the reporting requirement, and note that the Request for  
   Proposal has been released.                                             
       The House report also expressed concern about the impact of any new 
   system on small and medium-sized travel agencies and the possible       
   restriction of fair competition in the travel industry. The challenge   
   facing the Department is to automate a largely unautomated and expensive
   travel system. The conferees expect the Secretary of Defense to ensure  
   that this effort to automate the system will be interoperable with      
   existing commercial systems to ensure that small and medium-sized travel
   agencies continue to have an equal opportunity to compete to provide    
   actual travel services, and will incorporate the best business practices
   of the commercial travel industry. According to the schedule provided by
   the Department of Defense, system testing in Region 6 will occur during 
   the second quarter of fiscal year 1998.                                 
       The conferees direct the Secretary of Defense to report to the      
   Committee on Armed Services of the Senate and the Committee on National 
   Security of the House of Representatives, not later than May 1, 1998,   
   the lessons learned as a result of establishing the Defense Travel      
   System in Region 6. This report shall include, at a minimum: industry   
   response to the Request for Proposal; the performance measures that were
   used to evaluate the system testing; the cost of the Region 6 program,  
   including infrastructure development, software development, hardware    
   acquisition, and administration; the quantitative and qualitative       
   benefits of the program; the plan for integrating the Defense Travel    
   System in other regions; any differences between the Region 6 contract  
   and those anticipated for subsequent expansion to other regions; and the
   evaluation plan for full implementation.                                
                               LEGISLATIVE PROVISIONS ADOPTED                     
                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              
           Fisher House trust funds (sec. 304)                                     
       The House bill contained a provision (sec. 1006) that would provide 
   permanent authorization for the expenditure of funds from the Fisher    
   House trust fund.                                                       
       The Senate amendment contained a provision (sec. 305) that would    
   authorize $150,000 to be appropriated from the Fisher House Trust Fund, 
   Department of the Army, and $150,000 to be appropriated from the Fisher 
   House Trust Fund, Department of the Navy. No funds were authorized to be
   appropriated from the Fisher House Trust Fund, Department of the Air    
   Force.                                                                  
       The House recedes with an amendment that would increase the amount  
   authorized to be appropriated from the Army Fisher House Trust Fund to  
   $250,000.                                                               
           Refurbishment of M1A1 tanks (sec. 306)                                  
       The House bill contained a provision (sec. 306) that would authorize
   $35.0 million for the refurbishment of M1A1 tanks at the Anniston Army  
   Depot under the Department of the Army's Abrams Integrated Management   
   XXI (AIM XXI) program if the Secretary of Defense determines that the   
   program is cost effective.                                              
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would not require this    
   work to be performed at the Anniston Army Depot.                        
                      Operation of prepositioned fleet, National Training Center,  
           Fort Irwin, California (sec. 307)                                       
       The House bill contained a provision (sec. 313) that would provide  
   funding associated with the operation of the preposition fleet of       
   equipment used by Army units during training rotations at the National  
   Training Center (NTC).                                                  
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
       The conferees are concerned with the Department of the Army's       
   decision to change the way unit rotations to the NTC are funded.        
   Currently, the Army provides funding to the National Training Center    
   from a central account to defray the costs associated with units' use of
   pre-positioned equipment at the NTC. Under a new Army proposal, starting
   in fiscal year 1998, units scheduled to go to the NTC would have to pay 
   for the use of the pre-positioned equipment out of the funds provided   
   for home station training. The conferees believe that this would have a 
   detrimental impact upon unit readiness as home station training, and    
   thus total training, was reduced.                                       
           Refurbishment and installation of air search radar (sec. 308)           
       The House bill contained a provision (sec. 305) that would authorize
   $6.0 million for the refurbishment and installation of the AN/SPS 48E   
   air search radar for the Ship Self-Defense Systems at the Integrated    
   Ship Defense Systems Engineering Center, Walllops Island, Virginia.     
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would make the provision  
   permissive.                                                             
           Contracted training flight services (sec. 309)                          
       The Senate amendment contained a provision (sec. 371) that would    
   authorize $12.0 million for contracted training flight services.        
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Procurement technical assistance programs (sec. 310)                    
       The House bill contained a provision (sec. 307) that would authorize
   $15.0 million for a consolidated Procurement Technical Assistance Center
   (PTAC) and the Electronic Commerce Resource Center (ECRC) programs.     
       The Senate amendment contained a provision (sec. 821) that would    
   authorize $12.0 million for the PTAC program.                           
    The House recedes.                                                     
           Operation of Fort Chaffee, Arkansas (sec. 311)                          
       The Senate amendment contained a provision (sec. 306) that would    
   authorize $6.854 million for the operation of Fort Chaffee, Arkansas.   
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                            SUBTITLE B--MILITARY READINESS ISSUES                 
                      Monthly reports on allocation of funds within operation and  
           maintenance budget subactivities (sec. 321)                             
       The House bill contained a provision (sec. 312) that would require  
   the Secretary of Defense to notify and receive approval from the        
   congressional defense committees prior to the reallocation of operation 
   and maintenance funds above a certain threshold.                        
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the         
   Department of Defense to provide a monthly report to Congress outlining 
   the reallocation of funds within the operation and maintenance accounts 
   and the effect of this reallocation on the ability of the Department to 
   perform the functions for which the funds were originally appropriated. 
           Expansion of scope of quarterly readiness reports (sec. 322)            
       The House bill contained a provision (sec. 311) that would expand   
   the Quarterly Readiness Report required by section 361 of the National  
   Defense Authorization Act for Fiscal Year 1996 (Public Law 104 106) to  
   include data and analysis on additional readiness indicators, which     
   would provide a more comprehensive readiness assessment.                
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would include additional  
   factors to be included in these reports such as personnel skills and    
   pre-positioned equipment.                                               
                      Semiannual reports on transfers from high-priority readiness 
           appropriations (sec. 323)                                               
       The House bill contained a provision (sec. 315) that would extend   
   through November 1, 2000, the requirement for the Secretary of Defense  
   to report semi-annually on transfers from high-priority readiness       
   accounts, in compliance with section 362 of the National Defense        
   Authorization Act for Fiscal Year 1996 (Public Law 104-106). This       
   provision would also expand the number of readiness accounts to be      
   considered in the report.                                               
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would make it a semiannual
   report.                                                                 
           Annual report on aircraft inventory (sec. 324)                          
       The Senate amendment contained a provision (sec. 1037) that would   
   require the Undersecretary of Defense (Comptroller) to submit with the  
   budget request an annual report to the Congress on the aircraft in the  
   inventory of the Department of Defense. The provision would also require
   the modification of budget data exhibits to display total numbers of    
   aircraft where numbers of primary aircraft or primary authorized        
   aircraft are displayed in exhibits.                                     
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Administrative actions adversely affecting military training 
           or other readiness activities (sec. 325)                                
       The Senate amendment contained a provision (sec. 363) that would    
   require the Secretary of Defense to provide the President, the Committee
   on Armed Services of the Senate, the National Security Committee of the 
   House of Representatives, and the head of any relevant Federal agency   
   with written notification of any Federal administrative action that has 
   or would have a significant adverse effect on the military readiness of 
   any of the armed forces or a critical component of the armed forces,    
   such as a Marine battalion preparing for deployment as part of a Marine 
   Expeditionary Unit, or Special Operations Forces dedicated to a specific
   mission. Notification would be provided as soon as the Secretary becomes
   aware of an adverse administrative action or proposed administrative    
   action. The notification would delay the implementation of the action   
   for a period of 30 days unless the Secretary determines that the        
   compliance with the proposed action is in the best interest of the      
   American public, or the President directs the Secretary to comply based 
   on a determination that the implementation of the action is more        
   important than the effects on military readiness.                       
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Common measurement of operations and personnel tempo (sec. 326)         
       The Senate amendment contained a provision (sec. 1032) that would   
   require the Chairman of the Joint Chiefs of Staff to develop, to the    
   maximum extent practicable, a common measurement of operations tempo    
   (OPTEMPO) and personnel tempo (PERSTEMPO).                              
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Inclusion of Air Force depot maintenance as operation and    
           maintenance budget activity group (sec. 327)                            
       The House bill contained a provision (sec. 373) that would require  
   the Secretary of the Air Force, beginning in fiscal year 1999, to       
   identify funding for depot maintenance in a discreet subactivity        
          group.                                                                  
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a technical amendment.                         
           Prohibition of implementation of tiered readiness system (sec. 328)     
       The House bill contained a provision (sec. 314) that would prohibit 
   the implementation of any tiered readiness system which would change    
   military service-specific methods of determining priorities for         
   allocating funding, personnel, equipment, equipment maintenance, and    
   training resources to military units, and the associated level of       
   readiness of those units that result from those priorities, from the    
   system that existed on October 1, 1996, until the Secretary of Defense  
   provides Congress with a report recommending a new tiered readiness     
   system along with legislative proposals and these proposals are enacted 
   by the Congress.                                                        
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would prohibit the        
   implementation of a new tiered or cyclical readiness system based on the
   results of the reviews as required by section 329 and section 330 of    
   this Act, or any other review. The amendment would clarify that the     
   prohibition does not preclude the Secretary of Defense from taking      
   necessary action to maintain the combat preparedness of the active and  
   reserve components of the United States Armed Forces.                   
       The conferees note that this provision does not block the ability of
   the Department of Defense to routinely adjust the manner in which it    
   manages force readiness, particularly as it pertains to maintaining     
   necessary combat capabilities. Rather, the provision precludes the      
   adoption of a new tiered or cyclical readiness system, as outlined in   
   section 329 and section 330 of this Act, pending subsequent             
   congressional review and concurrence given the significant policy issues
   associated with such proposals. Accordingly, the provision allows for   
   the Secretary of Defense, following the completion of the reviews       
   required by sections 329 and 330 of this Act, or any other review the   
   Secretary may deem appropriate, to submit, for Congressional            
   consideration, a request for relief from this prohibition.              
           Report on military readiness requirements of the Armed Forces (sec. 329)
       The Senate amendment contained a provision (sec. 1034) that would   
   direct the Department to further explore the potential for tiered       
   readiness. This provision would require the Chairman and the service    
   chiefs, together with the Commander in Chief of the Special Operations  
   Command and the commanders of the other unified commands, to prepare a  
   second report that would examine the extent to which the readiness of   
   the armed forces could be tiered. Rather than looking at a generic major
   regional conflict, this report would require an examination of the      
   tiered readiness concept within the force structure advocated by the    
   Quadrennial Defense Review, including the armed forces required to deter
   or defeat a strategic attack upon the United States. The report would   
   include a rotational examination of the tiering of the armed forces that
   would focus on the brigade and battalion levels of the Army and Marine  
   Corps Divisions, the squadron levels of the Air Force, Navy and Marine  
   Corps Wings, and the Navy Fleets.                                       
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Assessment of cyclical readiness posture of the Armed Forces (sec.  330)
       The Senate amendment contained a provision (sec. 1035) that would   
   require the Secretary of Defense to report on the impact of moving to a 
   cyclical readiness approach for major warfighting units. Under this     
   approach, a high state of readiness alternates from one unit to another,
   as is already done with the blue and gold crews on ballistic missile    
   submarines. The report should identify the savings and risks associated 
   with cyclical readiness.                                                
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Report on military exercises conducted under certain training
           exercise programs (sec. 331)                                            
       The House bill contained a provision (sec. 316) that would require  
   the Secretary of Defense to report by January 15, 1998, on both past and
   planned joint training exercises sponsored by the Chairman, Joint Chiefs
   of Staff (CJCS) Exercise Program and the Partnership for Peace (PFP)    
   program. The report would include the type, description, duration,      
   objectives, the percentage of service-unique training accomplished, and 
   an assessment of the training value of each CJCS and PFP exercise.      
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would include exercises   
   funded through the Cooperative Threat Reduction Program. The conference 
   agreement would also require the report to include an assessment of the 
   value provided through enhanced military to military relationships      
   between the participating nations, and the extent to which the training 
   exercises enhanced the readiness capabilities of all forces involved in 
   the exercise.                                                           
           Report on overseas deployment (sec. 332)                                
       The Senate amendment contained a provision (sec. 1033) that would   
   require the Department of Defense to report on the number of personnel  
   deployed overseas as of June 30, 1996 and June 30, 1997. The report     
   would distinguish between personnel who are forward deployed as their   
   permanent duty station and those deployed overseas for temporary duty,  
   such as service-specific exercises, joint exercises, exercises with     
   allies, and deployments for contingency operations.                     
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                            SUBTITLE C--ENVIRONMENTAL PROVISIONS                  
                      Revision of membership terms for Strategic Environmental     
           Research and Development Program Scientific Advisory Board (sec. 341)   
       The House bill contained a provision (sec. 341) that would amend    
   section 2904(b)(4) of title 10, United States Code, to provide that     
   appointments to the Strategic Environmental Research and Development    
   Program (SERDP) Scientific Advisory Board be for not less than two years
   and not more than four years. The Department of Defense recommended this
   provision to give the SERDP director the flexibility to fill unexpected 
   vacancies on the Board.                                                 
    The Senate amendment contained a similar provision.                    
    The Senate recedes.                                                    
                      Amendment to authority to enter into agreements with other   
           agencies in support of environmental technology certification (sec. 342)
       The House bill contained a provision (sec. 342) that would expand   
   the authority of the Secretary of Defense under section 327 of the      
   National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 
   201). Section 327 authorizes the Secretary to initiate a program to     
   provide for cooperative agreements with state and local governmental    
   agencies in support of multi-state and regional certification of        
   environmental cleanup technologies. The House provision would           
   specifically authorize the Secretary to enter into agreements with      
   Indian tribes and would broaden the range of technologies subject to    
   evaluation for certification.                                           
       The Senate amendment contained a provision (sec. 335) that would    
   require the Department to prepare guidelines for cost-sharing related to
   the cooperative agreements authorized under section 327.                
       The Senate recedes with an amendment that would expand the scope of 
   the program as proposed in the House bill, but require the Department of
   Defense to prepare guidelines and meet expanded reporting requirements. 
   The new authority would become effective 30 days after the date of      
   submission of the guidelines required by the provision.                 
                      Modifications of authority to store and dispose of           
           non-defense toxic and hazardous materials (sec. 343)                    
       The House bill contained a provision (sec. 344) that would amend    
   section 2692 of title 10, United States Code, to clarify exemptions from
   the prohibition against Department of Defense (DOD) storage or disposal 
   of toxic or hazardous material that is not owned by the Department. The 
   administration recommended this provision to ensure that the Department 
   has appropriate authority to control munitions stored or disposed of in 
   connection with the following DOD activities: (1) storage of explosive  
   and hazardous materials in conjunction with space launch programs; (2)  
   storage of member personal property, such as guns, ammunition, and      
   related material, when such storage is in the interest of public safety;
   (3) storage of allied/foreign munitions during joint testing, exercises 
   or coalition warfare; (4) storage of explosives and hazardous materials 
   in support of other U.S. Government agencies, to include State and local
   law enforcement agencies; (5) storage of contractor owned explosive     
   materials when performing a service for the benefit of the U.S.         
   Government; and (6) storage of commercial explosives on DOD             
   installations participating in full or partial privatization.           
    The Senate amendment contained a similar provision (sec. 331).         
    The Senate recedes with a clarifying amendment.                        
                      Annual report on payments and activities in response to fines
           and penalties assessed under environmental laws (sec. 344)              
       The Senate amendment contained a provision (sec. 332) that would    
   require an annual report of fines and penalties assessed against the    
   Department of Defense (DOD) under Federal, State, or local environmental
   laws.                                                                   
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Annual report on environmental activities of the Department  
           of Defense overseas (sec. 345)                                          
       The Senate amendment contained a provision (sec. 333) that would    
   require the Department of Defense (DOD) to report annually on overseas  
   environmental restoration, compliance, and other international          
   environmental activities.                                               
    The House bill contained no similar provision.                         
    The House recedes with a technical amendment.                          
       The conferees hold a strong interest in ensuring appropriate        
   oversight of funds used in support of the Department's overseas         
   environmental policy.                                                   
                      Review of existing environmental consequences of the presence
           of the United States Armed Forces in Bermuda (sec. 346)                 
       The Senate amendment contained a provision (sec. 1091) that would   
   require the Secretary of Defense, not later than 120 days after the date
   of enactment of this Act, to submit a report to the congressional       
   defense committees that describes the remaining environmental effects of
   the presence of the United States Armed Forces in Bermuda.              
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Sense of Congress on deployment of United States Armed Forces
           abroad for environmental preservation activities (sec. 347)             
       The House bill contained a provision (sec. 1062) that would express 
   the sense of Congress that the United States Armed Forces should not be 
   deployed outside the United States to provide assistance to another     
   nation in connection with environmental preservation activities within  
   that nation.                                                            
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
                      Recovery and sharing of costs of environmental restoration at
           Department of Defense sites (sec. 348)                                  
       In relation to Department of Defense cost-sharing policies and      
   practices at cleanup sites, the Senate amendment contained a provision  
   (sec. 337) that would direct the Secretary of Defense to: (1) provide   
   guidance to the military departments and the Defense Logistics Agency   
   (DLA) that resolves current inconsistencies in recovering cleanup costs 
   from potentially responsible third parties; (2) require the military    
   departments and DLA to aggressively pursue future cost reimbursement and
   recovery actions; (3) require the military departments and the DLA to   
   identify contractors or other private third parties involved in         
   contamination at Department of Defense (DOD) sites; (4) require the     
   military departments and DLA to obtain all relevant data regarding      
   contractors or other responsible parties identified contributing to site
   contamination, regardless of wrongdoing; (5) require the military       
   departments and DLA to gather and maintain the most timely and accurate 
   cost data available from the departments' and other agencies' records;  
   (6) require the military departments and DLA to provide consistent      
   estimates, including all cleanup costs for DOD environmental reports to 
   Congress, regardless of the source of funds; and (7) require the        
   military departments to offset environmental restoration budget         
   requirements with amounts recovered from liable third parties or        
   contractors.                                                            
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
       The conferees note that there have been a series of General         
   Accounting Office (GAO) reports on DOD environmental cleanup which      
   indicate that the Department has incurred a significant amount of       
   cleanup expenses in instances in which a third party may have           
   contributed to the contamination of government property. The GAO has    
   reported that the DOD lacks uniform guidance regarding the policies and 
   practices for recovery of such costs. The conferees have concluded that 
   inconsistent policies have contributed to a lack of focus and minimal   
   cost-recovery or cost-sharing at third party sites, particularly at     
   government-owned/contractor-operated facilities.                        
                      Partnerships for investment in innovative environmental      
           technologies (sec. 349)                                                 
       The House bill contained a provision (sec. 346) that would support  
   the administration's proposal to authorize the Secretary of Defense to  
   enter into partnerships with private sector entities in order to        
   demonstrate and validate innovative environmental technologies. All     
   partnership relationships would be contingent upon a determination that 
   there is a clear potential for the technology to be of significant value
   to Department of Defense environmental activities. The authority would  
   be subject to expiration three years after the enactment of this Act and
   the Secretary of Defense would have to provide annual reports to        
   Congress on the use of this authority.                                  
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would: (1) require the use
   of competitive procedures for the selection of any private sector       
   participants in a partnership; (2) require that parties other than the  
   Department of Defense provide at least 50 percent of the funding in any 
   partnership (not including in-kind contributions or pre-existing        
   investments); (3) permit partnerships only in the case of technologies  
   that the Secretary determines would not be developed without the        
   commitment of Department of Defense funds and are likely to be of       
   significant value to the Department at a substantial number of clean-up 
   sites; and (4) require the Secretary to develop appropriate regulations 
   to ensure that all Department of Defense funds committed to a           
   partnership are expended to develop the technologies authorized in the  
   partnership agreement.                                                  
       In addition, the amendment would require the Secretary of Defense,  
   before entering into any partnership, to evaluate: (1) the potential for
   the technology to be used by the Department for environmental           
   remediation; (2) the technical feasibility and maturity of the          
   technology being considered; (3) the adequacy of financial and          
   management plans; (4) a cost and benefit analysis of the proposed       
   technologies; (5) the potential for transfer or commercialization of the
   technology; and (6) the proposed cost-sharing arrangement.              
           Procurement of recycled copier paper (sec. 350)                         
       The Senate amendment contained a provision (sec. 340) that would    
   codify and extend the Executive Order 12873 requirements for Federal    
   agencies to increase the use of recycled-content paper products, as     
   specifically applied to the Department of Defense (DOD). The provision  
   would specifically require the Department to use recycled-content copier
   paper, as follows: 20 percent, January 1, 1998; 30 percent, January 1,  
   1999; and 50 percent, January 1, 2004, but if DOD is unable to meet the 
   2004 deadline the Secretary of Defense must certify that fact to        
   Congress one year prior, which would vitiate the deadline. The          
   Department would not be required to meet any of these deadlines if the  
   cost differential between recycled-content paper and virgin paper       
   exceeds seven percent.                                                  
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would replace the seven    
   percent cost differential with a requirement that the relevant          
   departmental secretary make a finding that there is a ``significant''   
   price difference between recycled-content and virgin copier paper.      
                      Pilot program for the sale of air pollution emission         
           reduction incentives (sec. 351)                                         
       The Senate amendment contained a provision (sec. 338) that would    
   support the administration's proposal to give the military departments  
   the authority to sell emission reduction credits, also known as         
   incentives. The provision directs the Secretary of Defense to promulgate
   regulations that would provide for the retention of the proceeds at the 
   facility that developed the credits for sale. The provision would also  
   allow for use of proceeds from the sale of emission reduction credits to
   pay for fees and other charges associated with identifying, quantifying,
   or valuing the credits.                                                 
                    Subsequent to the development of credits, less than $500,000  
          may be retained Defense-wide.                                           
    The House bill contained no similar provision.                         
    The House recedes with a technical amendment.                          
       The conferees view the retention and use of proceeds at the facility
   level as a key element of this provision. In addition, the costs        
   associated with identifying, quantifying, or valuing a facility's       
   emission reduction credits should not be subject to the $500,000 cap on 
   proceeds retention. Finally, the conferees expect that this new         
   authority would be utilized at active facilities within the Department  
   of Defense.                                                             
                             SUBTITLE D--DEPOT-LEVEL ACTIVITIES                   
       The House bill contained six provisions (secs. 331 336) that would  
   govern the activities of the Department of Defense (DOD) in relation to 
   the maintenance and repair of military equipment. The Senate amendment  
   contained two similar provisions, and seven additional provisions not   
   contained in the House bill.                                            
       The conference agreement includes thirteen provisions concerning    
   depot maintenance policy. The conferees believe these provisions will   
   provide the Department with additional flexibility to utilize the most  
   efficient source of maintenance and repair services that are consistent 
   with the national security requirements of the United States.           
           Definition of depot-level maintenance and repair (sec. 355)             
       The House bill contained a provision (sec. 333(a)) that would       
   establish a statutory definition of depot-level maintenance and repair, 
   based on the definition contained in current DOD regulations. This      
   provision would require the inclusion of all depot-level maintenance and
   repair, including maintenance performed under other names such as       
   interim contractor support (ICS) and contractor logistics support (CLS),
   for purposes of calculating the amount of depot maintenance performed by
   public and private sector activities, as required by section 2466 of    
   title 10, United States Code, and other applicable sections.            
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would codify a definition 
   of depot maintenance that is similar to the definition contained in the 
   House bill, except that it would not include the procurement of a major 
   weapon system modification or upgrade designed to improve program       
   performance, the nuclear refueling of an aircraft carrier, or the       
   procurement of parts for a safety modification.                         
           Core logistics capabilities of Department of Defense (sec. 356)         
       The House bill contained a provision (sec. 334) that would amend    
   section 2464 of title 10, United States Code, to make it clear that it  
   is essential for national defense that the Department of Defense (DOD)  
   maintain a core logistics capability that is government-owned and       
   government-operated. The provision would require the Secretary of       
   Defense to identify those logistics activities necessary to maintain a  
   core logistics capability that would include the capability, facilities,
   and equipment to maintain and repair those weapons systems necessary to 
   meet the requirements of the National Military Strategy.                
       The provision would require that, within four years of initial      
   operational capability, DOD develop the capability to repair new weapons
   systems purchased by the Department that are identified as requiring a  
   core logistics capability at government-owned and government-operated   
   facilities.                                                             
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the         
   Secretary of Defense to identify those logistics capabilities that are  
   necessary to maintain and repair the weapon systems and other military  
   equipment that are required to enable the armed forces to fulfill the   
   strategic and contingency plans prepared by the Chairman of the Joint   
   Chiefs of Staff. The provision would require the performance of core    
   logistics workloads necessary to maintain this capability within public 
   depot activities.                                                       
       The provision does not require that maintenance for all weapon      
   systems necessary for the execution of DOD strategic and contingency    
   plans be performed at public facilities. Rather, it requires that the   
   capability to perform maintenance and repair on these systems be        
   retained in the public depot activities and that these activities be    
   assigned sufficient workload to ensure that they are operated as cost   
   efficiently as possible while preserving sufficient surge capacity to   
   support the strategic and contingency plans of the U.S. Armed Forces.   
   The conferees recognize that an efficient operation that preserves this 
   surge capability does not require more than a single work shift at the  
   depots during peacetime.                                                
       The conference agreement creates specific exemptions from the core  
   capability requirements, including an exemption for commercial systems  
   purchased by DOD where these purchases do not constitute a majority of  
   the sales of that item. The provision would also make conforming changes
   to existing sections of law.                                            
                      Increase in percentage of depot-level maintenance and repair 
           that may be contracted for performance by non-government personnel (sec.
           357)                                                                    
       The Senate amendment contained a provision (sec. 311) that would    
   allow the Department of Defense to utilize private entities to perform  
   greater amounts of depot maintenance on military equipment. The         
   provision would allow each of the military departments to spend up to 50
   percent of their depot maintenance funds on contracts for maintenance at
   locations other than public depots. The remaining fifty percent of      
   funding would have to be expended for maintenance at public depot       
   activities; whether performed by government or non-governmental         
   personnel. This authority would become effective on October 1, 1998.    
    The House bill had no similar provision.                               
       The House recedes with an amendment that would allow the military   
   departments to increase from 40 percent to 50 percent the share of      
                    depot level maintenance performed by the private sector. These
          percentages would continue to be calculated based on whether the        
          maintenance is performed by public or private sector personnel.         
           Annual report on depot-level maintenance and repair (sec. 358)          
       The Senate amendment contained a provision (sec. 314) that would    
   require the Secretary of Defense to provide an annual report to the     
   Congress detailing the percentage of depot maintenance funds used during
   the preceding fiscal year for performance of depot-level maintenance and
   repair workloads at public and private facilities. The provision would  
   also require that the Comptroller General of the United States provide  
   the Congress with his views on whether the Department of Defense has    
   complied with the requirements of section 2466 of title 10, United      
   States Code.                                                            
    The House bill contained no similar provision.                         
    The House recedes with a technical amendment.                          
                      Requirement for use of competitive procedures in contracting 
           for performance of depot-level maintenance and repair workloads formerly
           performed at closed or realigned military installations (sec. 359)      
       The House bill contained a provision (sec. 333(b)) that would       
   restrict the Secretary of Defense, or the secretary of a military       
   department, from entering into a contract for the performance of        
   depot-level maintenance and repair at any facility that was approved in 
   1995 for closure under the Defense Base Closure and Realignment Act     
   (BRAC), unless the following requirements are met:                      
       (1) The secretary concerned would certify to the Congress that all  
   of the other maintenance and repair facilities of that department are at
   80 percent capacity, as defined by the BRAC Commission in 1995;         
       (2) The secretary concerned would certify to the Congress that the  
   total cost of the proposed contract would be less than if the           
   depot-level maintenance or repair were accomplished in facilities owned 
   and operated by the Department of Defense;                              
       (3) All of the data used to determine the total costs would be      
   available for examination; and                                          
       (4) None of the depot-level maintenance and repair work proposed    
   under the contract was considered to be a core logistics capability of  
   the military department concerned prior to July 1, 1995.                
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would replace the         
   restrictions on privatizing-in-place the workloads at the closing public
   depot activities with a requirement to conduct fair and open            
   competitions for these workloads. The requirement would only apply to   
   those workloads that are proposed to be competed for outsourcing after  
   enactment of the National Defense Authorization Act for Fiscal Year     
   1998. The requirement does not apply to those workloads that may not be 
   outsourced because they are necessary to retain a core depot maintenance
   capability in public depot activities, workloads that were outsourced   
   before the enactment of the National Defense Authorization Act for      
   Fiscal Year 1998, or workloads that would be consolidated within another
   public depot activity.                                                  
       The provision outlines a number of requirements that the Department 
   of Defense must satisfy in the conduct of these competitions. The       
   conferees understand that these are only a few of the issues that the   
   Department will have to address in the solicitation for, and            
   consideration of, bids.                                                 
       (1) The source selection process must permit both public and private
   offerors to submit bids.                                                
       (2) The source selection process must take into account the fair    
   market value of any land, plant, or equipment at a closed or realigned  
   military installation that is proposed to be used by the private offeror
   in the performance of the workload.                                     
       (3) The source selection process must take into account the total   
   direct and indirect costs that will be incurred by the Department of    
   Defense and the total direct and indirect savings that will be derived  
   by the Department of Defense. Such savings would include any overhead   
   savings (e.g., reduced administrative costs, more efficient utilization 
   of facilities) that would result from the consolidation of workloads to 
   the remaining public depot activities.                                  
       (4) The cost standards used to determine the depreciation of        
   facilities and equipment shall provide, to the maximum extent           
   practicable, identical treatment for all public and private offerors.   
   The conferees expect that this will include, at a minimum, identical    
   depreciation periods for plant and equipment at public and private      
   facilities.                                                             
       (5) Any offeror, whether public or private, must be permitted to    
   team with any other public or private entity to perform the workload at 
   any location or locations of their choosing. The provision specifically 
   states that no offeror may be given any preferential consideration for, 
   or in any way be limited to, performing the workload at the closed or   
   realigned facility or at any other specific location. The conferees     
   expect full and open competitions for these workloads and expect that   
   private sector bidders would submit proposals to perform these workloads
   at locations other than the closed or realigned installations. The      
   Department would be expected to consider real differences among bidders 
   in cost or capability to perform the work based on factors that would   
   include the proposed location or locations of the workloads. The        
   consideration of such differences does not constitute ``preferential    
   treatment.''                                                            
       (6) The provision would authorize the bundling of unrelated         
   workloads into one contract only if the Secretary of Defense determines 
   in writing that individual workloads cannot be performed separately by  
   qualified bidders as logically and economically as the combined         
   workloads can be performed by a single entity. The conferees are        
   concerned that the bundling of these workloads could disadvantage       
   bidders that are fully qualified to perform one or more of the          
   individual workloads but cannot adequately perform all of the workloads 
   combined. This would allow more offerors to participate in the          
   competition and might yield increased savings to the taxpayer.          
       (7) Before a request for proposal for these workloads can be issued,
   the Secretary of Defense must provide the Congress with a detailed      
   directive or plan describing the procedures DOD would use to conduct    
   these competitions. The conferees expect that the Secretary's report    
   will explain any differences between the evaluation criteria or other   
   procedures that will be used for these upcoming competitions and those  
   that were used in the recent competition for the C 5 aircraft           
   maintenance workload. The report should also describe any special       
   requirements or criteria for these competitions, whether required by    
   this provision or by the Department of Defense, that the Department does
   not anticipate applying to future public-private competitions that do   
   not involve closed or realigned facilities.                             
       The provision would also require that the Comptroller General review
   the solicitations and competitions conducted pursuant to this authority 
   and determine if the Department has complied with the requirements of   
   this provision. The conferees note that section 716 of title 13, United 
   States Code, gives the Comptroller General access to the information    
   necessary to make his determination. This section requires each agency  
   to provide the Comptroller General with all necessary information. The  
   Comptroller General is required to maintain the same level of           
   confidentiality for a record made available under this section, as is   
   required of the head of the releasing agency. On the basis of this      
   section, agencies have historically provided the General Accounting     
   Office with information on the conduct of a procurement, regardless of  
   whether a contract has yet been awarded. The conferees expect the Air   
   Force to provide similar access in the case of public-private           
   competitions covered by this section.                                   
       The conferees are concerned that access to information was not      
   provided to the Comptroller General during the recent competition for   
   the C 5 workload. The refusal on the part of the Source Selection       
   Authority and General Counsel of the Air Force to provide such          
   information is inexplicable given the authority in title 13 cited above.
   The conferees note that the legislation restricting access to source    
   selection material specifically states that ``[N]othing in this section 
   shall be construed to authorize the withholding of any information from 
   the Congress, any committee or subcommittee thereof, a Federal agency,  
   any board of contract appeals of a Federal agency, the Comptroller      
   General, or an Inspector General of a Federal agency'' (41 U.S.C. 423). 
       The new provision would also provide a mechanism for the public     
   depots (or any other offeror) to appeal directly to the Secretary of    
   Defense, or his designee, if they believe the competition was conducted 
   unfairly. The Secretary could not designate the source selection        
   authority or an official within the same military department to perform 
   this responsibility. The conferees expect that the procedures           
   established by the Secretary will clarify that the Secretary need not   
   consider on the merits any protest that has already                     
          been decided on the merits by the General Accounting Office.            
       Finally, the provision would require the Secretary to report to the 
   Congress on the proposed allocation of workloads currently performed at 
   Kelly and McClellan Air Force Bases. Although the report must include a 
   capacity utilization analysis based on the maximum potential capacity   
   certified for the 1995 Base Realignment and Closure Commission, the     
   conferees note that nothing precludes the Secretary from including      
   additional analysis that would utilize any alternative baseline believed
   to be appropriate.                                                      
                      Clarification of prohibition on management of depot employees
           by constraints on personnel levels (sec. 360)                           
       The Senate amendment contained a provision (sec. 313) that would    
   prohibit the management of personnel who are involved in depot          
   maintenance on the basis of any constraint or limitation in terms of man
   years, end strength, full-time equivalent positions, or maximum number  
   of employees.                                                           
    The House bill contained no similar provision.                         
    The House recedes.                                                     
       The conferees believe personnel assigned to perform depot           
   maintenance should be managed by the amount of workload required to be  
   performed and the amount of funds provided for its performance.         
           Centers of industrial and technical excellence (sec. 361)               
       The House bill contained a provision (sec. 335) that would direct   
   the Secretary of Defense to establish Centers of Industrial and         
   Technical Excellence at existing Department of Defense (DOD) maintenance
   and repair depots to encourage the reengineering of industrial          
   processes, the adoption of best business practices, and to enable       
   public-private partnerships for the performance of depot-level          
   maintenance and repair.                                                 
    The Senate amendment contained a similar provision (sec. 312).         
       The House recedes with an amendment that would apply the provisions 
   of section 2667(d) of title 10, United States Code, and allow lease     
   proceeds and other receipts from these partnerships to be credited to   
   the account that incurred the costs. That credit would permit the       
   centers to be reimbursed for expenses related to these partnerships. The
   conferees direct the Secretary of Defense to annually report to the     
   congressional defense committees on the revenues received pursuant to   
   this authority.                                                         
                      Extension of authority for aviation depots and naval         
           shipyards to engage in defense related production and services (sec.    
           362)                                                                    
       The House bill contained a provision (sec. 331) that would extend   
   through fiscal year 1999 the authority provided by section 1425 of the  
   National Defense Authorization Act for Fiscal Year 1991 (Public Law     
   101--510) for naval shipyards and aviation depots of all the military   
   departments to bid on defense-related production and services.          
       The Senate amendment contained a similar provision (sec. 318) that  
   would extend this authority through fiscal year 1998.                   
    The Senate recedes.                                                    
                      Repeal of conditional repeal of certain depot-level          
           maintenance and repair laws and a related reporting requirement (sec.   
           363)                                                                    
       The Senate amendment contained a provision (sec. 317) that would    
   repeal section 311 of the National Defense Authorization Act for Fiscal 
   Year 1996, which would have repealed sections 2466 and 2469 of title 10,
   United States Code, contingent upon the submission of a new policy by   
   Department of Defense (DOD) to replace those statutes. Section 311 would
   be irrelevant because the DOD failed to submit an acceptable plan.      
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Personnel reductions, Army depots participating in Army      
           Workload and Performance System (sec. 364)                              
       The House bill contained a provision (sec. 336) that would prohibit 
   any reduction in force of any civilian employees at the five Army       
   maintenance depots participating in the demonstration and testing of the
   Army Workload and Performance System (AWPS), until the Secretary of the 
   Army certifies to the Congress that the AWPS is fully operational and   
   the manpower audits being performed by the General Accounting Office,   
   the Army Audit Agency, and the Army Inspector General have been         
   completed.                                                              
    The Senate amendment contained no similar provision.                   
       The Senate recedes with a clarifying amendment that would prohibit  
   the initiation of any reduction in force of any civilian employees at   
   the five Army maintenance depots participating in the demonstration and 
   testing of AWPS, until a report is provided by the Secretary of the Army
   certifies to the Congress that the AWPS is fully operational. This      
   prohibition does not apply to any reductions in force necessary to      
   implement the BRAC 1995 decisions at Letterkenny and Red River Army     
   Depots. The conferees believe that because this personnel system is used
   to determine the number of employees that are necessary to perform the  
   work at the depots, it should be operational before a determination is  
   made regarding additional reductions in force. The conferees do not view
   this provision as a precedent for prohibiting reductions in force at    
   Department of Defense installations.                                    
                      Report on allocation of core logistics activities among      
           Department of Defense facilities and private sector facilities (sec.    
           365)                                                                    
       The Senate amendment contained a provision (sec. 315) that would    
   require the Department of Defense to evaluate and report to the Congress
   on an alternative set of criteria for distinguishing core from non-core 
   maintenance.                                                            
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Review of use of temporary duty assignments for ship repair  
           and maintenance (sec. 366)                                              
       The Senate amendment contained a provision (sec. 316) that would    
   require the General Accounting Office to review the Navy's policies for 
   using Temporary Duty shipyard workers to perform ship maintenance work  
   at home ports.                                                          
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Sense of Congress regarding realignment of performance of    
           ground communication-electronic workload (sec. 367)                     
       The Senate amendment contained a provision (sec. 319) that would    
   express the Sense of the Congress that the transfer of the ground       
   communication-electronic workload to Tobyhanna Army Depot, Pennsylvania,
   should be carried out in adherence to the schedule prescribed for that  
   transfer by the Defense Depot Maintenance Council on March 13, 1997.    
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      SUBTITLE E--COMMISSARIES AND NONAPPROPRIATED FUND           
                      Reorganization of laws regarding commissaries and exchanges  
           and other morale, welfare, and recreation activities (sec. 371)         
       The House bill contained a provision (sec. 361) that would          
   reorganize chapter 147 of title 10, United States Code, so that the     
   chapter deals exclusively with provisions of law relating to            
   commissaries, exchanges, and other morale, welfare and recreation       
   activities.                                                             
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Merchandise and pricing requirements for commissary stores (sec. 372)   
       The House bill contained a provision (sec. 362) that would amend    
   section 2486 of title 10, United States Code, to restrict the categories
   of merchandise that may be sold in commissaries; require that no change 
   in the current commissary surcharge could occur without a prior         
   authorization in law; and provide that the Secretary of Defense may not 
   make any change in pricing policies without advance notice to Congress  
   and a waiting period of 90 legislative days.                            
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require that any    
   proposed change to the authorized product list be submitted annually and
   would establish, in law, that the amount of the surcharge would be five 
   percent of the sale price of merchandise sold.                          
                      Limitation on noncompetitive procurement of brand-name       
           commercial items for resale in commissary stores (sec. 373)             
       The House bill contained a provision (sec. 363) that would amend    
   section 2486(e) of title 10, United States Code, to make more rigorous  
   the standard for determining brand name commercial items that may be    
   sold by commissaries.                                                   
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Treatment of revenues derived from commissary store          
           activities (sec. 374)                                                   
       The House bill contained a provision (sec. 366) that would provide  
   that amounts received by the Defense Commissary Agency (DECA) from      
   certain sources be deposited in the surcharge account.                  
    The Senate amendment contained a similar provision (sec. 351).         
       The House recedes with an amendment that would not permit earnings  
   from the sale of tobacco products to be deposited in the surcharge      
   account.                                                                
                      Maintenance, repair, and renovation of Armed Forces          
           Recreation Center, Europe (sec. 375)                                    
       The conferees agree to a provision that would clarify the authority 
   of the Secretary of Defense to use appropriated funds to maintain,      
   repair, and renovate real property at the Armed Forces Recreation       
   Center, Europe.                                                         
                      Plan for use of public and private partnerships to benefit   
           morale, welfare and recreation activities (sec. 376)                    
       The House bill contained a provision (sec. 365) that would permit   
   the Secretary of Defense to authorize nonappropriated fund              
   instrumentalities to enter into leases, licensing agreements, concession
   agreements, and other contracts with private persons and state or local 
   governments involving real and personal property under the control of   
   such nonappropriated fund instrumentalities in order to facilitate the  
   provision of facilities, goods, or services to authorized patrons.      
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the         
   Secretary of Defense to develop a comprehensive plan defining the       
   purpose and goals, and describing how the Department would implement and
   administer leases, licensing agreements, concession agreements, and     
   other contracts with private persons and state or local governments     
   involving real and personal property under the control of such          
   nonappropriated fund instrumentalities in order to facilitate the       
   provision of facilities, goods, or services to authorized patrons, and  
   submit the plan to the Congress.                                        
                                     INSTRUMENTALITIES                            
                                  SUBTITLE F--OTHER MATTERS                       
                      Assistance to local educational agencies that benefit        
           dependents of members of the armed forces and Department of Defense     
           civilian employees (sec. 381)                                           
       The House bill contained a provision (sec. 371) that would authorize
   $35.0 million for educational assistance to local education agencies    
   where the standard for the minimum level of education within the state  
   could not be maintained because of the large number of military         
   connected students or the effects of base realignments and closures.    
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Center for Excellence in Disaster Management and Humanitarian
           Assistance (sec. 382)                                                   
       The Senate amendment contained a provision (sec. 362) that would    
   authorize the Secretary of Defense to operate a Center for Excellence in
   Disaster Management and Humanitarian Assistance at Tripler Army Medical 
   Center to address the military's role in a wide range of disaster       
   initiatives throughout Southeast Asia and the Pacific Basin region.     
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would not require the      
   location of this center to be at the Tripler Army Medical Center.       
                      Applicability of Federal printing requirements to Defense    
           Automated Printing Service (sec. 383)                                   
       The House bill contained a provision (sec. 377) that would clarify  
   that the Defense Automated Printing Service (DAPS) shall comply with    
   chapter 5 of title 44, United States Code, regarding printing services. 
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a technical amendment.                         
                      Study and notification requirements for conversion of        
           commercial and industrial type functions to contractor performance (sec.
           384)                                                                    
       The House bill contained a provision (sec. 1412) that would amend   
   current law dealing with congressional notification of any decision to  
   study a commercial function of the Department of Defense for possible   
   outsourcing to the private sector, and any decision to ultimately       
   outsource such a function.                                              
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would amend current law to
   expand congressional notifications and to include a timetable for       
   conversion to contractor performance.                                   
                      Collection and retention of cost information data on         
           contracted out services and functions (sec. 385)                        
       The House bill contained a provision (sec. 1413) that would require 
   the Secretary of Defense to collect and permanently retain, cost        
   information data regarding performance of the service or function by    
   private contractor employees.                                           
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would limit the time that 
   the data would have to be retained to ten years.                        
                      Financial assistance to support additional duties assigned to
           Army National Guard (sec. 386)                                          
       The Senate amendment contained a provision (sec. 364) that would    
   authorize the Secretary of the Army to contribute funds to the Army     
   National Guard in order to pay for the costs of those services carried  
   out by the Guard in the performance of maintenance and other            
   responsibilities of the Secretary.                                      
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Competitive procurement of printing and duplication services (sec. 387) 
       The House bill contained a provision (sec. 1404) that would extend  
   the authority under the fiscal year 1996 act that would require the     
   Secretary of Defense to procure 70 percent of the non-classified        
   printing services from the commercial sector. The provision would also  
   prohibit the Defense Automation and Printing Service from imposing a    
   surcharge on printing and duplication services when those services are  
   procured outside the Department of Defense.                             
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
                      Continuation and expansion of demonstration program to       
           identify overpayments made to vendors (sec. 388)                        
       The House bill contained a provision (sec. 376) that would          
   reauthorize, through fiscal year 1998, section 354 of the National      
   Defense Authorization Act for Fiscal Year 1996 (Public Law 104 106),    
   which provides for a demonstration program to identify overpayments made
   to vendors. The authority provided by this specific provision is        
   restricted to the identification of any overpayments and does not extend
   to the collection of debts. Authority for the procurement of debt       
   collection services is already provided by section 3718 of title 31,    
   United States Code.                                                     
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the General 
   Accounting Office to review the program and report to Congress any      
   significant findings such as the amount of funds that were recovered,   
   together with any problems that occurred during the collection of these 
   funds.                                                                  
                      Standard forms regarding performance work statement and      
           request for proposal for conversion of services and functions at        
           military installations (sec. 389)                                       
       The House bill contained a provision (sec. 1411) that would require 
   the Secretary of Defense to develop standard performance work statements
   and standard requests for proposal to be used when considering          
   outsourcing of commercial functions. The use of such forms would provide
   relief from certain cumbersome procedures and requirements of OMB       
   circular A 76.                                                          
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would allow the Secretary 
   to develop certain forms to meet the requirements of A 76. The conferees
   encourage the Secretary, when developing such forms, to give priority to
   services and functions that have already been converted by 50 percent.  
           Base operations support for military installations on Guam (sec. 390)   
       The House bill contained a provision (sec. 378) that would prohibit 
   the use of nonimmigrant aliens, as defined in section 101(a)(15)(H)(ii) 
   of title 8, United States Code, for any base operations support contract
   to be performed on Guam.                                                
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Warranty claims recovery pilot program (sec. 391)                       
       The Senate amendment contained a provision (sec. 367) that would    
   authorize a pilot program to recover any refunds owed the Air Force for 
   maintenance work performed in public depots on aircraft engines while   
   under warranty. Receipts under this program would be returned to the    
   appropriations account from which the maintenance work was funded.      
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would require the          
   Comptroller General to review this program and report the results to the
   Congress.                                                               
                      Program to investigate fraud, waste, and abuse within        
           Department of Defense (sec. 392)                                        
       The House bill contained a provision (sec. 372) that would authorize
   the continuation of Operation Mongoose through fiscal year 2003. The    
   section would establish the Under Secretary of Defense (Comptroller) as 
   the executive agent for this program and would require a report on the  
   activities of the operation.                                            
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that permanently provides for a
   program in the Department of Defense that coordinates the identification
   and prevention of fraudulent financial actions within Department of     
   Defense (DOD). The conferees support the acceleration of transportation 
   and vendor pay review and believe in expanding the program to use       
   information from other government agencies to detect fraud within DOD.  
   By mining financial information, the Department of                      
                    Defense would be able to expand its current fraud detection   
          efforts to improve the integrity of its financial management systems    
          while reducing waste, fraud, and abuse.                                 
       In addition, the conferees direct the Secretary of Defense to       
   provide a report to the Committee on Armed Services of the Senate and   
   the Committee on National Security of the House of Representatives by   
   December 31, 1997, on the activities reviewed by Operation Mongoose, the
   savings or costs avoidance identified by activity, the number of cases  
   referred for investigation, and the number of cases investigated by the 
   investigating agency.                                                   
           Multitechnology automated reader card demonstration program (sec. 393)  
       The Senate bill contained a provision (sec. 369) that would require 
   the Secretary of the Navy to carry out a two year demonstration program 
   during 1998 and 1999 to expand the use of multitechnology automated     
   reader cards throughout the Navy and Marine Corps. This demonstration   
   would include the use of ``smartship'' technology.                      
    The House bill included no similar provision.                          
    The House recedes.                                                     
                      Plan for reduction in overhead costs of inventory control    
           points (sec. 394)                                                       
       The House bill contained a provision (sec. 1421) that would require 
   the Secretary of Defense to develop and implement a plan to reduce the  
   overhead costs of the supply management activities of the Defense       
   Logistics Agency and the military services to eight percent of the      
   annual net sales.                                                       
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the         
   development of a plan on how the Department will reduce its overhead    
   costs of the Inventory Control Points (ICPs) to eight percent by October
   1, 2000.                                                                
                      Schedule for implementation of best inventory management     
           practices at Defense Logistic Agency (sec. 395)                         
       The Senate amendment contained a provision (sec. 366) that would    
   direct the Director of the Defense Logistics Agency to develop and      
   submit to Congress a schedule for the implementation of the best        
   inventory management practices found in the commercial sector that are  
   consistent with military requirements.                                  
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would expand the list of   
   items to include pharmaceutical, automotive, and other supplies.        
       The conferees are concerned with recent reports of the excess       
   inventory maintained by the Department of Defense. The retention of this
   inventory requires the expenditure of resources for storage and         
   administration. The conferees note the recent General Accounting Office 
   report outlining the significant quantities of excess inventory         
   prepositioned in Europe and direct the Department to take those actions 
   necessary to reduce the items for which there is no identified need and 
   where disposal would result in long-term savings to the Federal         
   Government.                                                             
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
                      Quarterly reports on execution of operation and maintenance  
           appropriations                                                          
       The House bill contained a provision (sec. 317) that would require  
   the Secretary of Defense to report quarterly on the execution of the    
   operation and maintenance budget.                                       
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Exclusion of certain large maintenance and repair projects   
           from percentage limitation on contracting for depot-level maintenance   
       The House bill contained a provision (sec. 332) that would exclude  
   from the restrictions contained in section 2466 of title 10, United     
   States Code, an aircraft carrier or a submarine repair or overhaul      
   project that represents five percent or more of the total amount made   
   available to the Department of the Navy for depot-level maintenance and 
   repair.                                                                 
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees agree that the exception to the definition of depot   
   maintenance for the refueling of nuclear aircraft carriers contained    
   within section 355 of the Act together with the additional flexibility  
   provided by the change from 60/40 to 50/50, should provide the same     
   flexibility the House bill intended to provide.                         
                      Authorization to pay negotiated settlement for environmental 
           cleanup at former department of defense sites in Canada                 
       The House bill contained a provision (sec. 343) that would authorize
   the Secretary of Defense to pay the Government of Canada up to $100.0   
   million through annual payments over a ten year period for the          
   environmental cleanup of four sites formerly operated by the U.S. Armed 
   Forces in Canada: 21 Distant Early Warning (DEW) Line sites; Goose Bay  
   Airfield; Haines-Fairbanks Pipeline sites; and the U.S. Naval Station,  
   Argentia. The authorization request was based on a bilateral agreement  
   between the United States and Canada. The agreement provided for the    
   payment of the $100.0 million into the Foreign Military Sales (FMS)     
   Trust Fund Account so that the Canadian Government could draw against   
   this account to purchase unspecified military equipment from an         
   undetermined manufacturing source.                                      
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees decline to provide the requested authorization and    
   direct the Department to focus on funding and conducting environmental  
   cleanup at sites where there is an existing legal obligation.           
                      Revision of report requirement of Navy program to monitor    
           ecological effects of organotin                                         
       The House bill contained a provision (sec. 345) that would extend   
   the date and expand the scope of a reporting requirement originally     
   established in section 333 of the National Defense Authorization Act for
   Fiscal Year 1997 (Public Law 104 201).                                  
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees intend to monitor the progress made by the            
   Environmental Protection Agency (EPA) and the Navy in implementation of 
   criteria established by EPA for control of organotin. If the permitting 
   process is not consistent with the EPA criteria, the conferees are      
   prepared to revisit this issue in relation to the Department's fiscal   
   year 1999 budget request.                                               
                      Pilot program to test an alternative technology for          
           eliminating solid and liquid waste emissions during ship operations     
       The House bill contained a provision (sec. 347) that would authorize
   the Secretary of the Navy to establish a pilot program to demonstrate   
   plasma arc technology for treating shipboard solid and liquid waste. The
   technology would consist of a compact, stationary, high alumina         
   refractory hearth, plasma arc melter system for incineration of waste.  
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees note that the Navy is currently investigating the     
   applications of plasma arc technology for the destruction of shipboard  
   solid waste. That work is taking place in an approved research and      
   development program. As a part of that program, the Navy tested the     
   feasibility of using a high alumina refractory hearth for shipboard     
   applications and determined that the hearth structure was unacceptable  
   because the variable shipboard waste streams produce a molten slag that 
   dissolves high alumina hearth walls. However, that was only one aspect  
   of the plasma arc technology research and development efforts.          
   Therefore, the conferees encourage the Navy to continue its current     
   effort to develop the plasma arc thermal destruction technology.        
                      Transfer of jurisdiction over exchange, commissary, and      
           morale, welfare and recreation activities to Under Secretary of Defense 
           Comptroller                                                             
       The House bill contained a provision (sec. 364) that would amend    
   section 135 of title 10, United States Code, to transfer administrative 
   responsibility within the Department of Defense for the areas of        
   exchange, commissary, and nonappropriated fund instrumentalities        
   regarding morale, welfare and recreation activities from the Under      
   Secretary of Defense for Personnel and Readiness to the Under Secretary 
   of Defense (Comptroller).                                               
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Authorized use of appropriated funds for relocation of Navy  
           Exchange Service Command                                                
       The House bill contained a provision (sec. 367) that would provide  
   that the Navy Exchange Service Command (NEXCOM) shall not be required to
   reimburse the United States for appropriated funds allotted to NEXCOM   
   during fiscal years 1994, 1995, and 1996 for costs incurred in          
   connection with the relocation of NEXCOM headquarters to Virginia Beach,
   Virginia and for the lease of headquarters space.                       
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Prohibition on use of Special Operations Command budget for  
           base operation support                                                  
       The House bill contained a provision (sec. 375) that would amend    
   section 167(f) of title 10, United States Code, to prohibit the use of  
   funds provided for the Special Operations Command for base operations   
   support expenses incurred at military installations.                    
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees note that Congress established the Special Operations 
   Command, including a separate major force budget program (MFP 11), to   
   correct serious deficiencies in special operations capabilities and to  
   ensure special operations combat readiness. The conferees believe that  
   the regular practice of using MFP 11 funds for base operations support  
   would be in conflict with the original intent for these funds. However, 
   the conferees recognize the need to provide the Commander-in-Chief of   
   the Special Operations Command with the flexibility to use these funds  
   in this manner should the necessity arise. Therefore, the conference    
   agreement does not contain this provision. However, the conferees intend
   to monitor this issue closely to ensure that MFP 11 funds are used in a 
   manner consistent with the intentions of Congress and agree to revisit  
   the issue should the need arise.                                        
                      Availability of funds for separation pay for defense         
           acquisition personnel                                                   
       The House bill contained a provision (sec. 1303) that would         
   authorize $100.0 million in operations and maintenance funding for      
   payment of separation pay to the Department of Defense civilian         
   acquisition personnel.                                                  
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
           Competitive procurement of finance and accounting services              
       The House bill contained a provision (sec. 1401) that would require 
   the Secretary of Defense to competitively procure finance and accounting
   services currently provided by the Defense Finance and Accounting       
   Service from among government and private sector sources.               
    Senate amendment contained no similar provision.                       
    The House recedes.                                                     
                      Competitive procurement of services to dispose of surplus    
           defense property                                                        
       The House bill contained a provision (sec. 1402) that would require 
   the Secretary of Defense to make available for competition those        
   functions of the Defense Reutilization and Marketing Service that are   
   associated with the disposal of surplus Department of Defense property. 
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Competitive procurement of functions performed by Defense    
           Information Systems Agency                                              
       The House bill contained a provision (sec. 1403) that would require 
   the Secretary of Defense to competitively procure commercial and        
   industrial type functions performed by the Defense Information Systems  
   Agency.                                                                 
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Competitive procurement of commercial and industrial type    
           functions by defense agencies                                           
       The House bill contained a provision (sec. 1406) that would require 
   the Secretary of Defense to competitively procure commercial and        
   industrial type functions performed by defense agencies.                
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Consolidation of procurement technical assistance centers and
           electronic commerce resource centers                                    
       The House bill contained a provision (sec. 1422) that would require 
   consolidation of the Procurement Technical Assistance Center (PTAC) and 
   the Electronic Commerce Resource Center (ECRC) programs in fiscal year  
   1998. The provision would also require the use of competitive procedures
   in granting awards under the consolidated program.                      
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
           Risk assessments under the defense environmental restoration program    
       The Senate amendment contained a provision (sec. 336) that would    
   direct the Secretary of Defense to define the elements of a relative    
   risk site evaluation methodology, to develop uniform guidance for site  
   assessment and ranking, and to ensure consistent application of the     
   guidance. The Department's relative risk site evaluation involves three 
   site categories for justifying requirements and allocating funds: high; 
   medium; and low. According to the Department, the high relative risk    
   sites are given a greater funding priority than the medium and low      
   relative risk sites.                                                    
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
                      Tagging system for identification of hydrocarbon fuels used  
           by the Department of Defense                                            
       The Senate amendment contained a provision (sec. 339) that would    
   authorize the Department of Defense to conduct a pilot program to       
   determine if hydrocarbon fuels used by the Department can be tagged in  
   order to deter theft and facilitate the determination of the source of  
   surface and underground pollution in locations having separate fuel     
   storage facilities from the Department and civilian companies.          
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
           Report on options for the disposal of chemical weapons and agents       
       The Senate amendment contained a provision (sec. 341) that would    
   require the Secretary of Defense to submit a report to Congress on the  
   options available to the Department of Defense for the disposal of      
   chemical weapons and agents without building additional chemical weapons
   disposal facilities in the continental United States.                   
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees note that the National Defense Authorization Act for  
   Fiscal Year 1996 (Public Law 104 106) directed the Secretary of Defense 
   to conduct an assessment of the chemical stockpile disposal program and 
   to consider measures that could be taken to reduce program costs.       
   Further discussion on the results of the assessment are addressed       
   elsewhere in the statement of managers.                                 
           Integration of military exchange services                               
       The Senate amendment contained a provision (sec. 352) that would    
   require the secretaries of the military departments to integrate the    
   three military exchange systems by September 30, 2000.                  
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees endorse the concept of exchange integration. The      
   conferees recognize that the Department of Defense is currently         
   conducting a due diligence study to determine which functions could be  
   integrated to yield savings and efficiencies while preserving high      
   levels of customer service. The conferees direct the Secretary of       
   Defense, upon completion of the due diligence study and if the study so 
   recommends, to develop a plan for integrating the functions identified  
   in the report. The plan must include a timeline for accomplishing each  
   of the integration functions. The plan shall be submitted to the        
   Congress not later than 120 days after the due diligence study is       
   completed.                                                              
                        TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS               
                      LEGISLATIVE PROVISIONS ADOPTED                     
                                  SUBTITLE A--ACTIVE FORCES                       
           End strengths for active forces (sec. 401)                              
       The House bill contained a provision (sec. 401) that would authorize
   end strengths for the active forces, as indicated in the table below:   
        Service         Fiscal year 1998--         
                      Request     Recommendation  
Army                  495,000            495,000  
Navy                  390,802            395,000  
Marine Corps          174,000            174,000  
Air Force             371,577            381,000  
                 ------------  -----------------  
Total               1,431,379          1,445,000  
       The Senate amendment contained a provision (sec. 401) that would    
   authorize active duty end strengths for fiscal year 1998, as shown      
   below:                                                                  
                                         Fiscal year--                           
                    1997 authorization     1998 request     1998 recommendation  
Army:                          495,000          495,000                 485,000  
Navy:                          407,318          390,802                 390,802  
Marine Corps:                  174,000          174,000                 174,000  
Air Force:                     381,000          371,577                 371,577  
       The House recedes with an amendment that would authorize active duty
   end strengths for fiscal year 1998 as shown below:                      
                                         Fiscal year--                          
                    1997 authorization     1998 request     1998 authorization  
Army                           495,000          495,000                495,000  
Navy                           407,318          390,802                390,802  
Marine Corps                   174,000          174,000                174,000  
Air Force                      381,100          371,577                371,577  
                 ---------------------  ---------------  ---------------------  
Total                        1,457,418        1,431,379              1,431,379  
                      Permanent end strength levels to support two major regional  
           contingencies (sec. 402)                                                
       The Senate amendment contained a provision (sec. 402) that would    
   repeal section 691 of title 10, United States Code, as amended by       
   section 402 of the National Defense Authorization Act for Fiscal Year   
   1997.                                                                   
    The House bill contained a similar provision.                          
       The House recedes with an amendment that would amend section 691 of 
   title 10, United States Code to make the end strength floors consistent 
   with the active duty end strengths authorized in section 401 of the     
   conference agreement. Additionally, the amendment would provide the Army
   one and one-half percent flexibility below the floor while retaining one
   percent flexibility for the Navy, Marine Corps and the Air Force.       
       The conferees are concerned about the strains being placed on       
   military personnel and their families. There is an apparent incongruence
   between the number and frequency of deployments, the extraordinary pace 
   of operations, and the continued pressure through the budget process to 
   reduce military personnel levels. The conferees intend to continue to   
   examine closely and challenge, as appropriate, any recommendations of   
   the Department of Defense, the Quadrennial Defense Review, or the       
   National Defense Panel to further reduce military personnel. The        
   conferees will be especially vigilant for reductions in military        
   personnel levels that appear to be driven purely by budget pressures,   
   and not supported by the fielding modern systems that require fewer     
   personnel or changes in the requirements of the national military       
   strategy.                                                               
       The conferees note that section 691 of title 10, United States Code,
   as amended by the conference report, requires the Secretary of Defense  
   to fully fund and maintain the end strength floors in future budgets.   
                                 SUBTITLE B--RESERVE FORCES                       
           End strengths for Selected Reserve (sec. 411)                           
       The House bill contained a provision (sec. 411) that would authorize
   end strengths for the Selected Reserve as indicated in the table below: 
                Fiscal year 1997 authorized         Fiscal year 1998--        
                                                 Request    Recommendation  
ARNG                                 366,758     366,516           366,516  
USAR                                 215,179     208,000           208,000  
USNR                                  96,304      94,294            94,294  
USMCR                                 42,000      42,000            42,000  
ANG                                  109,178     107,377           107,377  
USAFR                                 73,311      73,431            73,431  
Coast Guard                            8,000       8,000             8,000  
                ----------------------------  ----------  ----------------  
Total                                910,730     899,618           899,618  
    The Senate amendment contained a provision (sec. 411) that would       
                    authorize Selected Reserve end strengths for fiscal year 1998 
          as shown below:                                                         
                                                                       Fiscal year--                         
                                                  1997 authorization    1998 request    1998 recommendation  
The Army National Guard of the United States                 366,758         366,516                361,516  
The Army Reserve                                             215,179         208,000                208,000  
The Naval Reserve                                             96,304          94,294                 94,294  
The Marine Corps Reserve                                      42,000          42,000                 42,000  
The Air National Guard of the United States                  109,178         107,377                108,002  
The Air Force Reserve                                         73,311          73,431                 73,542  
The Coast Guard Reserve                                        8,000           8,000                  8,000  
       The House recedes with an amendment that would authorize Selected   
   Reserve end strengths for fiscal year 1998 as shown below:              
                                                                       Fiscal year--                         
                                                  1997 authorization    1998 request    1998 recommendation  
The Army National Guard of the United States                 366,758         366,516                361,516  
The Army Reserve                                             215,179         208,000                208,000  
The Naval Reserve                                             96,304          94,294                 94,294  
The Marine Corps Reserve                                      42,000          42,000                 42,000  
The Air National Guard of the United States                  109,178         107,377                108,002  
The Air Force Reserve                                         73,311          73,431                 73,447  
The Coast Guard Reserve                                        8,000           8,000                  8,000  
       The conferees recommend an Army National Guard end strength below   
   the 1998 request as a result of the Off-Site Review the Army announced  
   on June 5, 1997, in which the active Army, the Army Reserve, and the    
   Army National Guard agreed on personnel reductions recommended by the   
   Quadrennial Defense Review. The conferees recommend increased end       
   strengths for the Air National Guard and the Air Force Reserve to       
   accommodate retention of the PAA C 130 aircraft at current levels. The  
   conferees also recommend an adjustment to the Air Force Reserve end     
   strength consistent with the recommendation that would prohibit the     
   Secretary of the Air Force from replacing civilian base security        
   personnel with active guard and reserve personnel. The conferees        
   adjusted the recommended authorization of appropriations to reflect     
   these recommendations.                                                  
                      End strengths for Reserves on active duty in support of the  
           Reserves (sec. 412)                                                     
       The House bill contained a provision (sec. 412) that would authorize
   the end strengths of the reserves on active duty in support of the      
   reserves as indicated in the table below. These end strengths are       
   included within the total end strengths authorized for the Selected     
   Reserve.                                                                
                                 Fiscal year--                         
            1997 authorization    1998 request    1998 recommendation  
ARNG                    22,798          22,310                 22,310  
USAR                    11,729          11,500                 11,500  
USNR                    16,603          16,136                 16,136  
USMCR                    2,559           2,559                  2,559  
ANG                     10,403          10,616                 10,616  
USAFR                      655             963                    748  
          --------------------  --------------  ---------------------  
Total                   64,747          64,084                 63,869  
       The Senate amendment contained a provision (sec. 412) that would    
   authorize full-time support end strengths for fiscal year 1998 as shown 
   below:                                                                  
                                                                       Fiscal year--                         
                                                  1997 authorization    1998 request    1998 recommendation  
The Army National Guard of the United States                  22,798          22,310                 22,310  
The Army Reserve                                              11,729          11,500                 11,500  
The Naval Reserve                                             16,603          16,136                 16,136  
The Marine Corps Reserve                                       2,559           2,559                  2,559  
The Air National Guard of the United States                   10,403          10,616                 10,671  
The Air Force Reserve                                            655             963                    963  
       The House recedes with an amendment that would authorize full-time  
   support end strengths for fiscal year 1998 as shown below:              
                                                                       Fiscal year--                         
                                                  1997 authorization    1998 request    1998 recommendation  
The Army National Guard of the United States                  22,798          22,310                 22,310  
The Army Reserve                                              11,729          11,500                 11,500  
The Naval Reserve                                             16,603          16,136                 16,136  
The Marine Corps Reserve                                       2,559           2,559                  2,559  
The Air National Guard of the United States                   10,403          10,616                 10,671  
The Air Force Reserve                                            655             963                    867  
                                                --------------------  --------------  ---------------------  
Total                                                         64,747          53,468                 53,372  
       The recommended change to the end strength for reserves on active   
   duty in support of the Air Force Reserve results from an increase to    
   support the retention of C 130 PAA aircraft at the current levels, a    
   reduction from the budget request consistent with the recommendation    
   that would prohibit the Secretary of the Air Force from replacing       
                    civilian base security personnel with active guard and reserve
          personnel, and an increase to accommodate the creation of deployable    
          force protection teams in the Air Force Reserve. The conferees adjusted 
          the recommended authorization of appropriations to reflect these        
          changes.                                                                
       Additionally, the conferees are concerned about a range of issues   
   related to management, utilization, and assignment of persons           
   participating in the active guard and reserve programs. The committees  
   of jurisdiction intend to examine these matters during the second       
   session of the 105th Congress.                                          
           End strengths for military technicians (dual status) (sec. 413)         
       The House bill contained a provision (sec. 413) that would authorize
   military technician end strength as indicated by the fiscal year 1998   
   recommendation below and would require future defense budget requests to
   include a legislative provision specifically detailing the end strength 
   of the dual status military technicians to be authorized.               
Service                        Fiscal year--                      
            1997 program    1998 request    1998 recommendation  
ARNG              23,125          22,991                 23,125  
USAR               5,503           5,205                  5,503  
ANG               22,853          22,574                 22,853  
USAFR              9,802           9,622                  9,802  
          --------------  --------------  ---------------------  
Total             61,283          60,392                 61,283  
       The Senate amendment contained a provision that increased above the 
   budget request the authorized levels of military technicians in the Air 
   National Guard and in the Air Force Reserve to support revised C 130    
   aircraft levels (sec. 413).                                             
    The Senate recedes.                                                    
                         SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS              
           Authorization of appropriations for military personnel (sec. 421)       
       The House bill contained a provision (sec. 421) that would authorize
   $69,539,862,000 to be appropriated for military personnel, an increase  
   of $66,100,000 to the budget request.                                   
       The Senate amendment contained a provision (sec. 421) that would    
   authorize $69,244,962,000 to be appropriated to the Department of       
   Defense for military personnel.                                         
       The House recedes with an amendment that would authorize            
   $69,470,505,000 to be appropriated for military personnel.              
       The conferees recommended the following modifications to the budget 
   request for military personnel:                                         
Fisal year 1998 Military Personnel Budget Items                         
          [In millions of dollars]                                                
 Increases:                                                              
  Fed. Civilian Military Leave                                            
 85.0                                                                    
  C 130 Force Structure (AFR & ANG)                                       
 5.4                                                                     
  Army End Strength Separation Cost                                       
 90.0                                                                    
  Increase Family Separation Pay                                          
 25.0                                                                    
  Field Duty Income Protection                                            
 18.0                                                                    
  Increase Hazardous Incentive Pay                                        
 22.1                                                                    
  Dental Pay Incentives                                                   
 15.0                                                                    
  WWII Subsistence Allowances                                             
 1.0                                                                     
  Transfer from Contigency Operations Funds                               
 213.6                                                                   
   Total Adds                                                             
 475.1                                                                   
 Reductions:                                                             
  FY 98 AC End Strength Underexecution Savings                            
 297.5                                                                   
  Army                                                                    
 240.0                                                                   
  Navy                                                                    
 10.0                                                                    
  USMC                                                                    
 3.6                                                                     
  Air Force                                                               
 43.9                                                                    
  USAF 15-year Retirement Savings                                         
 58.5                                                                    
  Army NG 5K End Strength Reduction                                       
 22.0                                                                    
  RC Support Total Force                                                  
 13.0                                                                    
  Health Professional Scholarship                                         
 25.6                                                                    
  Foreign Currency Fluctuation                                            
 62.0                                                                    
   Total reductions                                                       
 478.6                                                                   
  Net Change from President's Budget                                      
 -3.5                                                                    
                    LEGISLATIVE PROVISIONS NOT ADOPTED                   
                      Increase in number of members in certain grades authorized to
           serve on active duty in support of the reserves                         
       The House bill contained a provision (sec. 414) that would authorize
   increases in the grades of reserve members authorized to serve on active
   duty or on full-time national guard duty for the administration of the  
   reserves or the national guard.                                         
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                             TITLE V--MILITARY PERSONNEL POLICY                   
                        ITEMS OF SPECIAL INTEREST                        
           Personal finance training                                               
       The conferees are concerned about reports of personal financial     
   difficulties being experienced by military personnel, especially lower  
   ranking personnel. The conferees commend the Department of Defense and  
   the services for their on-going efforts to assist and educate young     
   service members and their families in ways and means of successfully    
   managing their personal finances. The conferees urge the                
                    Secretary of Defense and the Secretaries of the Military      
          Departments to review the adequacy of their training programs with      
          regard to personal finance training to ensure a continuum of training   
          that would provide all service members with the basic skills required to
          manage their personal finances. These courses should include checkbook  
          management, credit card management, and debt management.                
                      Sequester of Department of Defense funds as a result of a    
           prohibition against military recruiting on campuses of Connecticut State
           colleges and universities                                               
       The conferees are aware that the Connecticut State Legislature and  
   the State Supreme Court have taken steps to prohibit military recruiting
   on the campuses of state funded colleges and universities. As a result  
   of this prohibition, and in accordance with section 558 of the National 
   Defense Authorization Act for Fiscal Year 1995, the Department of       
   Defense suspended payment of contract and grant funding to these        
   colleges and universities.                                              
       The conferees note that the Connecticut State Legislature is not    
   scheduled to meet until February 1998. The Governor has pledged that he 
   will ensure the passage of legislation that would remedy the matter     
   concerning access of military recruiters to Connecticut state           
   institutions of higher education.                                       
       In order to provide the State of Connecticut with the opportunity to
   repeal its prohibition, the conferees direct the Secretary of Defense   
   not to use funds that would have been used for contracts or grants to   
   higher education institutions in Connecticut as sources in a            
   reprogramming request nor to submit such funds as part of a rescission  
   offer until March 29, 1998. If the State of Connecticut has not repealed
   the prohibition as of March 29, 1998, the Secretary of Defense may use  
   the funds in a reprogramming or rescission activity.                    
       Notwithstanding this sequestering of funds, the conferees insist    
   that military recruiters be afforded access to institutions of higher   
   education or face the consequence of loss of federal funds.             
                               LEGISLATIVE PROVISIONS ADOPTED                     
                            SUBTITLE A--OFFICER PERSONNEL  POLICY                 
                      Limitation on number of general and flag officers who may    
           serve in positions outside their own service (sec. 501)                 
       The House bill contained a provision (sec. 501) that would limit the
   number of general and flag officers serving in external assignments to  
   no more than 24.5 percent of the total number of such officers          
   authorized by Congress.                                                 
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would establish the number
   of general and flag officers serving in external assignments to no more 
   than 26.5 percent of the total number of such officers authorized by    
   Congress, and would increase the length of time a general or flag       
   officer may serve in a Joint Task Force without counting against the    
   limit imposed by this provision.                                        
       The conferees agree that the limit is computed in the aggregate and 
   not by individual service, and that the designation of ``dual-hatted''  
   positions as external or internal service billets shall be in accordance
   with service policies and regulations.                                  
                      Exclusion of certain retired officers from limitation on     
           period of recall to active duty (sec. 502)                              
       The House bill contained a provision (sec. 502) that would exclude  
   retired military chaplains, health care professionals, and officers     
   serving on the American Battle Monuments Commission from being subject  
   to the statutory limits on the period of time that recalled retirees may
   serve on active duty.                                                   
    The Senate amendment contained a similar provision (sec. 504).         
    The Senate recedes with a clarifying amendment.                        
                      Clarification of officers eligible for consideration by      
           promotion boards (sec. 503)                                             
       The House bill contained a provision (sec. 503) that would clarify  
   that officers serving on active duty and in the reserve components may  
   be excluded from consideration from promotion to the next higher grade  
   if they are on a promotion board report, even if that report had not yet
   been approved by the President.                                         
    The Senate amendment contained a similar provision.                    
    The House recedes with a clarifying amendment.                         
                      Authority to defer mandatory retirement for age of officers  
           serving as chaplains (sec. 504)                                         
       The House bill contained a provision (sec. 504) that would repeal   
   the prohibition on Navy chaplains on the retired list from serving as   
   the Chief or Deputy Chief of Chaplains in the Navy. This provision would
   also increase the mandatory retirement age for the Chief or Deputy Chief
   of Chaplains in the Navy from 62 to 68 years of age. In addition, the   
   provision would permit service secretaries to defer the retirement of   
   officers serving as chaplains until age 68 if the chaplains served in   
   direct support of units and installations.                              
    The Senate amendment contained a similar provision.                    
       The Senate recedes with an amendment that would permit service      
   secretaries to defer the retirement of chaplains until age 68 as long as
   the secretary considers the deferment in the best interest of the       
   service.                                                                
                      Increase in number of officers allowed to be frocked to      
           grades of colonel and Navy captain (sec. 505)                           
       The Senate amendment contained a provision (sec. 502) that would    
   increase the number of officers who may wear the grade and insignia of  
   an O 6 (colonels in the Army, Air Force, and Marine Corps and captains  
   in the Navy).                                                           
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Increased years of commissioned service for mandatory        
           retirement of regular generals and admirals in grades above major       
           general and rear admiral (sec. 506)                                     
       The Senate amendment contained a provision (sec. 505) that would    
   increase the mandatory retirement point for three-star generals and     
   admirals to 38 years of commissioned service and for four-star generals 
   and admirals to 40 years of commissioned service.                       
    The House bill contained no similar provision.                         
    The House recedes.                                                     
       The conferees do not intend that all three- and four-star officers  
   be allowed to serve to the increased mandatory retirement points. The   
   mandatory retirement points were increased to permit certain general and
   flag officers to serve long enough to develop and implement the         
   long-term plans and policies required of certain senior positions       
   without jeopardizing their chances of serving in positions of increased 
   responsibility before reaching mandatory retirement. The conferees      
   recognize that the improper implementation of this provision could have 
   serious effects on the promotion flow points to other grades. The       
   services retain all of their general and flag officer management tools  
   which enable them to manage the career of those officers who become the 
   most senior leaders within the military services without negatively     
   affecting the career opportunities for junior officers.                 
                      Uniform policy for requirement of exemplary conduct by       
           commanding officers and others in authority (sec. 507)                  
       The Senate amendment contained a provision (sec. 554) that would    
   establish, in statute, exemplary standards for commanding officers and  
   others in positions of authority and responsibility.                    
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Report on the command selection process for District         
           Engineers of the Army Corps of Engineers (sec. 508)                     
       The Senate amendment contained a provision (sec. 1079) that would   
   require the Secretary of Defense to report to the Congress concerning   
   the selection and assignment policies and procedures pertaining to      
   District Engineers of the Army Corps of Engineers.                      
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would require the Secretary
   of the Army to provide the report to the Congress.                      
                            SUBTITLE B--RESERVE COMPONENT MATTERS                 
           Individual Ready Reserve activation authority (sec. 511)                
       The House bill contained a provision (sec. 511) that would authorize
   the President, under the Presidential Selective Reserve Call-up         
   authority, to recall up to 30,000 members of a new category of the      
   Individual Ready Reserve that would consist of those personnel, in the  
   military skills designated by the Secretary of Defense, who had         
   volunteered for this category prior to leaving active duty.             
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Termination of Mobilization Income Insurance Program (sec. 512)         
       The House bill contained a provision (sec. 512) that would terminate
   the Ready Reserve Mobilization Income Insurance Program effective upon  
   enactment of the National Defense Authorization Act for Fiscal Year     
   1998.                                                                   
    The Senate amendment contained a similar provision (sec. 511).         
    The Senate recedes.                                                    
                      Correction of inequities in medical and dental care and death
           and disability benefits for reserve members who incur or aggravate an   
           illness in the line of duty (sec. 513)                                  
       The House bill contained a provision (sec. 513) that would authorize
   medical and dental care for the family member of a reservist who incurs 
   or aggravates an injury or illness in the line of duty while serving on 
   active duty for a period of 30 days or less and whose orders are        
   subsequently modified to extend the period of active duty.              
    The Senate amendment contained a similar provision (sec. 661).         
    The Senate recedes with a clarifying amendment.                        
                      Authority to permit non-unit assigned officers to be         
           considered by vacancy promotion board to general officer grades (sec.   
           514)                                                                    
       The House bill contained a provision (sec. 515) that would authorize
   the Secretary of the Army to permit officers not assigned to units of   
   the Selected Reserve to compete for promotion to brigadier general and  
   major general within the same promotion board process as officers who   
   are assigned to units.                                                  
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Prohibition on use of Air Force Reserve AGR personnel for Air
           Force base security functions (sec. 515)                                
       The House bill contained a provision (sec. 517) that would prohibit 
   the Secretary of the Air Force from using members of the Air Force      
   Reserve who are on active duty in support of the reserves (known as     
   active guard and reserve or AGR personnel) to perform force protection, 
   base security, or security police functions at an Air Force facility in 
   the United States until six months after the Secretary submits a report 
   to the Congress on the use of AGR personnel in these functions.         
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would prohibit replacing  
   security related military technician or civilian positions at the Air   
   Force Reserve bases with AGR personnel during fiscal year 1998.         
       The conferees view the Air Force proposal to provide base security  
   at four Air Force Reserve bases in the United States as an attempt to   
   eliminate civilian technician positions. Use of the AGRs for this       
   security mission would replace 72 Air Reserve technicians and 136       
   Department of Defense civilians now providing base security at these    
   bases. For these reasons, the conferees would prohibit the Secretary of 
   the Air Force from utilizing AGRs for base security at United States    
   bases during fiscal year 1998. In another provision in the conference   
   report, the conferees direct the Secretary of Defense to submit a report
   to the Congress on the feasibility and advisability of converting all   
   active guard and reserve positions to military technicians. Until this  
   study is complete, any conversion of military technician positions to   
   active guard and reserve would be premature.                            
                      Involuntary separation of reserve officers in an inactive    
           status (sec. 516)                                                       
       The Senate amendment contained a provision (sec. 512) that would    
   permit the President to discharge or retire a reserve commissioned      
   officer in an inactive status who cannot or will not retire.            
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
       The conferees expect that the service secretaries exercise prudence 
   and discretion when they use this authority. The decision to            
   involuntarily discharge or retire any officer is one that must be       
   reached only after careful deliberation. The conferees do not intend    
   that this authority be used indiscriminately or to limit the career     
   potential of individual officers without compelling justification.      
                      Federal status of service by National Guard members as honor 
           guards at funerals of veterans (sec. 517)                               
       The Senate amendment contained a provision (sec. 514) that would    
   permit National Guard members who serve on funeral details for veterans 
   of the armed forces to receive credit as a period of drill or training  
   otherwise required.                                                     
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
       The conferees expect that participation of National Guard personnel 
   in a funeral detail or honor guard will be strictly voluntary and that  
   this authority will not be used as a basis for justifying force         
   structure, end strength, or appropriations.                             
                              SUBTITLE C--MILITARY TECHNICIANS                    
                      Authority to retain on the reserve active-status list until  
           age 60 military technicians in the grade of brigadier general (sec. 521)
       The House bill contained a provision (sec. 521) that would restore  
   the authority that existed prior to the enactment of the Reserve Officer
   Personnel Management Act (ROPMA) that permitted the Secretaries of the  
   Army and Air Force to retain brigadier general military technicians on  
   the active-status list up to age 60.                                    
    The Senate amendment contained a similar provision (sec. 513).         
    The Senate recedes.                                                    
           Military technicians (dual status) (sec. 522)                           
       The House bill contained a provision (sec. 522) that would define a 
   military technician (dual status) as a federal civilian employee who is 
   hired in accord with titles 5 or 32, United States Code, and who, as a  
   condition of federal civilian employment, must maintain military        
   membership in the Selected Reserve, and who also must be assigned to a  
   position as a technician in the administration and training of the      
   Selected Reserve, or to a position in the maintenance and repair of     
   supplies or equipment issued to the Selected Reserve or armed forces and
   require that, unless exempted by law, all military technicians hired on 
   or after December 1, 1995, (the date of enactment of Public Law 104 61) 
   would be required to maintain military membership in the Selected       
   Reserve unit by which they are employed as a military technician, or in 
   a unit they are employed as a military technician to support.           
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Non-dual status military technicians (sec. 523)                         
       The House bill contained a provision (sec. 523) that would cap the  
   numbers of non-dual status technicians permitted in each of the reserve 
   components in fiscal year 1998, and require the service secretaries in  
   future years to reduce the number of non-dual status technicians by at  
   least 10 percent per year.                                              
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would authorize the number
   of non-dual status technicians in each component, and require the       
   Secretary of Defense to report to the Congress, not later than 90 days  
   after enactment, the actual number of non-dual status technicians in    
   each component, and to submit to Congress, not later than 180 days after
   enactment, a plan to ensure that by the end of fiscal year 2007, and    
   thereafter, all military technician positions are only occupied by      
   military technicians (dual status).                                     
                      Report on feasibility and desirability of conversion of AGR  
           personnel to military technicians (dual status) (sec. 524)              
       The House bill contained a provision (sec. 524) that would require  
   the Secretary of Defense to report to the Congress on the feasibility   
   and desirability of converting active guard and reserve personnel to    
   dual status military technicians.                                       
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
             SUBTITLE D--MEASURES TO IMPROVE RECRUIT QUALITY AND REDUCE RECRUIT   
                                    ATTRITION                                     
           Reform of military recruiting systems (sec. 531)                        
       The House bill contained a provision (sec. 531) that would require  
   the Secretary of Defense to undertake a series of department-wide       
   reforms to improve the efficiency and effectiveness of military         
   recruiting.                                                             
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would include the use of  
   pre-enlistment waivers among those codes and systems to be revised and  
   updated.                                                                
                      Improvements in medical prescreening of applicants for       
           military service (sec. 532)                                             
       The House bill contained a provision (sec. 532) that would direct   
   the Secretary of Defense to undertake a number of reforms, to include:  
       (1) Requiring each applicant for military service to provide the    
   name of the applicant's medical insurer, the names of past medical      
   providers, and a release to obtain the applicant's medical records;     
       (2) Revising the questions asked of applicants to tie the questions 
   more directly to conditions that most frequently result in medical      
   separations;                                                            
       (3) Assigning to a contractor or agency other than the Military     
   Entrance Processing Command (MEPCOM) the responsibility for evaluating  
   medical conditions of recruits that are missed during MEPCOM's accession
   processing; and                                                         
       (4) Requiring all applicants for military service be tested for use 
   of illegal drugs at the MEPCOM station.                                 
   The Senate amendment contained no similar provision.                    
   The Senate recedes with a clarifying amendment.                         
           Improvements in physical fitness of recruits (sec. 533)                 
       The House bill contained a provision (sec. 533) that would direct   
   the Secretary of Defense to undertake a range of measures to improve the
   level of physical fitness of new recruits prior to the start of basic   
   training, including the use of incentives, monetary and otherwise, for  
   new recruits in the delayed entry program to voluntarily participate in 
   supervised conditioning activities.                                     
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
       The conferees expect that any activities developed to improve the   
   physical fitness of recruits will be organized, formally scheduled, and 
   supervised by personnel who have been appropriately trained to conduct  
   physical readiness training. The conferees do not intend that recruits  
   will be afforded unescorted, unsupervised access to military fitness    
   facilities.                                                             
                         SUBTITLE E--MILITARY EDUCATION AND TRAINING              
                             PART I--OFFICER EDUCATION PROGRAMS                   
                      Requirement for candidates for admission to United States    
           Naval Academy to take oath of allegiance (sec. 541)                     
       The House bill contained a provision (sec. 543) that would codify   
   what now is implemented by policy--that persons seeking admission to the
   United States Naval Academy take and subscribe to an oath of allegiance 
   to the United States as a requirement for admission. This provision     
   would make the requirement for an oath consistent in law for all three  
   service academies.                                                      
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Service academy foreign exchange program (sec. 542)                     
       The House bill contained a provision (sec. 546) that would authorize
   the Air Force Academy to enter into agreements with foreign governments 
   in order to carry out a military academy foreign exchange program.      
       The Senate amendment contained a provision (sec. 521) that would    
   authorize exchange programs at each of the service academies.           
       The Senate recedes with an amendment that would authorize exchange  
   programs at all three service academies and would establish cost and    
   enrollment limits.                                                      
                      Reimbursement of expenses incurred for instruction at service
           academies of persons from foreign countries (sec. 543)                  
       The House bill contained a provision (sec. 544) that would constrain
   the Secretary of Defense's waiver authority for the cost of attendance  
   for international students entering the service academies after the date
   of enactment to no more than 25 percent of the per-person cost of       
   attendance by an international student, but would permit the Secretary, 
   in exceptional cases, to waive more than 25 per cent of the cost for up 
   to five international students at each of the service academies, and    
   would recommend a reduction in fiscal year 1998 of $4.2 million in      
   Defense-wide Operations and Maintenance accounts and a $1.0 million     
   reduction in the amounts authorized for military personnel in the Army, 
   Navy and Air Force.                                                     
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would establish the amount
   of the cost of attendance for international students at the service     
   academies permitted to be waived at 35 percent, but would permit the    
   Secretary to waive more than 35 per cent of the cost for up to five     
   international students at each of the service academies, would make the 
   restrictions effective for students entering the academies after May    
   1998, and would restore the reductions to the military personnel and    
   operations and maintenance accounts.                                    
           Continuation of support to senior military colleges (sec. 544)          
       The House bill contained a provision (sec. 567) that would require  
   that the Secretary of Defense continue support to the senior military   
   colleges (Texas A&M University, Norwich University, The                 
                    Virginia Military Institute, The Citadel, Virginia Polytechnic
          Institute and State University, and North Georgia College and State     
          University) in three principal ways: 1) retention of the long-standing  
          commitment by the Army to provide active duty service for all graduates 
          of the colleges who desire it and who are recommended for it by their   
          respective professors of military science; 2) participation by the      
          active duty personnel assigned to the Reserve Officers' Training Corps  
          (ROTC) detachments at each college in the leadership, academic and      
          military development of the corps of cadets, beyond ROTC programs; and  
          3) continued operation of the ROTC program at each of the colleges.     
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would ensure active duty  
   service for graduates of the senior military colleges who request such  
   service, who are medically and physically qualified, and are recommended
   by the professor of military science. Additionally, the amendment would 
   ensure continued operation of the ROTC program at each of the senior    
   military colleges.                                                      
                      Report on making United States nationals eligible for        
           participation in Senior Reserve Officers' Training Corps (sec. 545)     
       The House bill contained a provision (sec. 572) that would require  
   the Secretary of Defense to report to the Congress on the utility of    
   permitting United States nationals to participate in the Senior Reserve 
   Officers' Training Corps.                                               
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Coordination of establishment and maintenance of Junior      
           Reserve Officers' Training Corps units to maximize enrollment and       
           enhance efficiency (sec. 546)                                           
       The Senate amendment contained a provision (sec. 525) that would    
   require the Secretary of Defense to coordinate the establishment and    
   maintenance of Junior Reserve Officers' Training Corps in order to      
   maximize enrollment and to take into consideration openings of new      
   schools and consolidation of schools.                                   
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would change the           
   requirement from the Secretary of Defense to the secretaries of the     
   military departments and delete the requirement that the Secretary of   
   Defense seek additional funding from the local educational agencies.    
                              PART II--OTHER EDUCATION MATTERS                    
           United States Naval Postgraduate School (sec. 551)                      
       The House bill contained a provision (sec. 545) that would amend the
   current authority governing admittance of civilians at the Naval        
   Postgraduate School, and create new authority to admit enlisted         
   personnel to the school. Thus, the section would authorize the Secretary
   of the Navy to admit civilians on a space-available basis, with         
   reimbursement being required either on an in-kind basis or on a         
   cost-reimbursable basis, and would also authorize enlisted members to   
   attend courses on a space-available basis.                              
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would permit enlisted     
   personnel to attend courses on a space-available basis.                 
           Community College of the Air Force (sec. 552)                           
       The House bill contained a provision (sec. 573) that would permit   
   enlisted members of the Army, Navy, or Marine Corps who are assigned as 
   instructors in Air Force technical schools and enlisted students in Air 
   Force training programs to participate in and receive associate degrees 
   through the Community College of the Air Force.                         
       The Senate amendment contained a provision (sec. 522) that would    
   permit enlisted members of the Army, Navy, or Marine Corps who are      
   assigned as instructors in Air Force technical schools to participate in
   and receive associate degrees through the Community College of the Air  
   Force.                                                                  
    The House recedes with a clarifying amendment.                         
                      Preservation of entitlement to educational assistance of     
           members of the Selected Reserve serving on active duty in support of a  
           contingency operation (sec. 553)                                        
       The Senate amendment contained a provision (sec. 523) that would    
   ensure that members of the Selected Reserve who are ordered to active   
   duty in support of a contingency operation, and required to discontinue 
   a course of study under the GI Bill benefit, would not have those months
   charged against their GI Bill entitlement.                              
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                         PART III--TRAINING OF ARMY DRILL SERGEANTS               
           Reform of Army drill sergeant selection and training process (sec.  556)
       The House bill contained a provision (sec. 542) that would require  
   the Secretary of the Army to institute a number of reforms in the       
   processes by which drill sergeants are selected and trained.            
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Training in human relations matters for Army drill sergeant  
           trainees (sec. 557)                                                     
       The House bill contained a provision (sec. 547) that would require  
   the Secretary of the Army to expand the human relations instruction now 
   provided to drill sergeant trainees to at least two days of instruction.
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
            SUBTITLE F--COMMISSION ON MILITARY TRAINING AND GENDER-RELATED ISSUES 
                      Commission on Military Training and Gender-Related Issues    
           (secs. 561 566)                                                         
       The House bill contained a provision (sec. 541) that would require  
   the establishment of a panel to review the basic training programs of   
   the Army, Navy, Air Force, and Marine Corps, and to make recommendations
   for improvements to these programs.                                     
       The Senate amendment contained a provision (sec. 552) that would    
   establish an 11-member commission to study issues related to gender     
   integration in the military services.                                   
       The House recedes with an amendment that would integrate the scope  
   of the independent panel into that of the commission, and reduce the    
   membership of the commission to 10, five of which would be appointed by 
   the chairman and ranking member of the Committee on Armed Services of   
   the Senate and the remaining five appointed by the chairman and ranking 
   member of the National Security Committee of the House of               
   Representatives.                                                        
       The House bill contained a provision (sec. 548) that would require  
   each of the secretaries of military departments to submit a report to   
   the Committee on Armed Services of the Senate and the National Security 
   Committee of the House of Representatives, within 180 days after the    
   date of enactment, on gender-segregated basic training.                 
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would incorporate the     
   information required by the report into the provision that would        
   establish a commission for review of gender integration in the military 
   departments.                                                            
                         SUBTITLE G--MILITARY DECORATIONS AND AWARDS              
                      Purple Heart to be awarded only to members of the Armed      
           Forces (sec. 571)                                                       
       The House bill contained a provision (sec. 552) that would limit    
   eligibility for the award of the Purple Heart to members of the armed   
   forces.                                                                 
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Eligibility for Armed Forces Expeditionary Medal for         
           participation in Operation Joint Endeavor or Operation Joint Guard (sec.
           572)                                                                    
       The House bill contained a provision (sec. 553) that would require  
   the Secretary of Defense to designate participation by service members  
   in Operation Joint Endeavor or Operation Joint Guard in the Republic of 
   Bosnia and Herzegovina as meeting the requirements for award of the     
   Armed Forces Expeditionary Medal.                                       
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Clarification of eligibility of members of Ready Reserve for 
           award of service medal for heroism (sec. 574)                           
       The Senate amendment contained a provision (sec. 531) that would    
   authorize members of the Ready Reserve to be awarded the service medal  
   for heroism on the same basis as active duty service members.           
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      One-year extension of period for receipt of recommendations  
           for decorations and awards for certain military intelligence personnel  
           (sec. 575)                                                              
       The Senate amendment contained a provision (sec. 533) that would    
   extend, by one year, the time in which military intelligence personnel  
   could apply for consideration of an award for service in the Cold War   
   era.                                                                    
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Eligibility of certain World War II military organizations   
           for award of unit decorations (sec. 576)                                
       The Senate amendment contained a provision (sec. 534) that would    
   authorize the service secretaries to award a unit decoration to any unit
   or other organization of the armed forces of the United States that     
   supported the planning or execution of combat operations during World   
   War II.                                                                 
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
           Retroactivity of Medal of Honor special pension (sec. 577)              
       The Senate amendment contained a provision (sec. 535) that would    
   authorize retroactive payment of the special pension to which recipients
   of the Medal of Honor are entitled to those African-American World War  
   II soldiers who were awarded the Medal of Honor as a result of          
   legislation in the National Defense Authorization Act for Fiscal Year   
   1996.                                                                   
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                            SUBTITLE H--MILITARY JUSTICE MATTERS                  
           Amendments to the Uniform Code of Military Justice (secs. 581 and 582)  
       The House bill contained two provisions (secs. 569 and 570) that    
   would amend the Uniform Code of Military Justice. Section 569 would     
   authorize a general court-martial to adjudge a sentence of confinement  
                    for life without eligibility for parole. Section 570 would    
          limit to the President or the Secretary concerned, without delegation,  
          the authority to grant parole to an offender serving a life sentence on 
          appeal from a denial of parole.                                         
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                                  SUBTITLE I--OTHER MATTERS                       
           Sexual harassment investigations and reports (sec. 591)                 
       The Senate amendment contained a provision (sec. 553) that would    
   establish rigorous reporting requirements and time lines for completing 
   investigations into allegations of sexual harassment within the armed   
   services.                                                               
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Sense of the Senate regarding study of matters relating to   
           gender equity in the Armed Forces (sec. 592)                            
       The Senate amendment contained a provision (sec. 551) that would    
   express the sense of the Congress that the Comptroller General of the   
   United States should conduct a study on any inequality, or perception of
   inequality, in the treatment of men and women in the armed forces and   
   report to Congress within one year of enactment of the National Defense 
   Authorization Act for Fiscal Year 1998.                                 
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would express the sense of 
   the Senate that the Comptroller General of the United States should     
   conduct a study on any inequality, or perception of inequality, in the  
   treatment of men and women in the armed forces and report to the Senate 
   within one year of enactment of the National Defense Authorization Act  
   for Fiscal Year 1998.                                                   
                      Authority for personnel to participate in management of      
           certain non-Federal entities (sec. 593)                                 
       The House bill contained a provision (sec. 563) that would authorize
   service secretaries to approve on a case-by-case basis the limited      
   service of military and civilian personnel as directors, trustees, or   
   officers of a military welfare society, such as Army Emergency Relief,  
   or other designated entities.                                           
    The Senate amendment contained a similar provision (sec. 555).         
       The Senate recedes with an amendment that would require that the    
   approved non-Federal agencies be limited to not-for-profit agencies and 
   would not permit participation as part of the service member's official 
   duties.                                                                 
       The conferees support the participation of military and civilian    
   personnel in the military welfare agencies and other non-Federal,       
   not-for-profit entities without compensation and at no cost to the      
   Federal Government.                                                     
                      Treatment of participation of members in Department of       
           Defense civil military programs (sec. 594)                              
       The House bill contained a provision (sec. 566) that would prohibit 
   the secretary of a military department from requiring or requesting a   
   service member to submit, for consideration by a selection board,       
   evidence of the service member's support and service to non-Department  
   of Defense organizations. In addition, the section would prohibit       
   promotion and selection boards from using involvement in civil-military 
   and community support programs as a special evaluation criteria.        
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would permit consideration
   by promotion boards of voluntarily submitted information. The conferees 
   recognize that there are currently precise policies governing           
   communication with and information available to selection boards.       
                      Comptroller General study of Department of Defense civil     
           military programs (sec. 595)                                            
       The House bill contained a provision (sec. 565) that would require  
   the Comptroller General to conduct a study to evaluate the civil        
   military programs of the military services.                             
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Establishment of public affairs specialty in the Army (sec. 596)        
       The House bill contained a provision (sec. 571) that would establish
   public affairs as a special branch of the Army.                         
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would establish a public  
   affairs speciality within the Army.                                     
           Grade of defense attache AE1 in France (sec. 597)                       
       The Senate amendment contained a provision (sec. 557) that would    
   require the Secretary of Defense and Chairman of the Joint Chiefs of    
   Staff to ensure that the defense attache AE1 in France is an officer who
   holds or is promotable to the grade of brigadier general or, in the case
   of the Navy, rear admiral (lower half).                                 
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
           Report on crew requirements of WC 130J aircraft (sec. 598)              
       The House bill contained a provision (sec. 564) that would preclude 
   navigator and other manpower requirements of units engaged in eyewall   
   penetration of tropical cyclones from being reduced below the           
   requirements established as of October 1, 1997 until the end of a       
   six-month period after the Secretary of the Air Force reports to the    
   Congress on the manpower requirements for WC 130J aircraft.             
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would eliminate the       
   prohibition on reducing personnel levels in WC 130J units, and would add
   a requirement that the Secretary of the Air Force submit a plan to the  
   Congress for assisting personnel in these units transition to other     
   units or job specialities.                                              
                      Improvement of missing persons authorities applicable to     
           Department of Defense (sec. 599)                                        
       The House bill contained a provision (sec. 568) that would restore  
   provisions pertaining to U.S. prisoners of war, those missing in action,
   and unaccounted for persons, enacted in the National Defense            
   Authorization Act for Fiscal Year 1996 (Public Law 104 106) and         
   subsequently repealed by the National Defense Authorization Act for     
   Fiscal Year 1997 (Public Law 104 201). Specifically, the section would  
   expand the scope of current law by:                                     
       (1) Making it applicable to Department of Defense civilians and     
   contractors accompanying armed forces in the field;                     
       (2) Establish a 48-hour suspense for the commander's initial report 
   of a missing person's status;                                           
       (3) Require the theater component commander's involvement in the    
   initial assessment of a missing person's status;                        
       (4) Require the status of persons who were last known alive to be   
   reviewed every 3 years for 30 years following initial report;           
       (5) Re-establish criminal penalties for the knowing and willful     
   withholding of information from a missing person's file;                
       (6) Restore the requirement that a status review board (when making 
   determinations of death) must provide a description of the location of  
   body, if recovered, and, if the body is not identifiable, a             
   certification by ``a practitioner of an appropriate forensic science    
   that the body recovered is that of the missing person;'' and            
       (7) Restore the ability of certain persons to request status reviews
   of a limited number of Korean War cases.                                
    The Senate amendment contained no similar provision.                   
    The Senate recedes with an amendment that would expand current law:    
       (1) Making it applicable to certain Department of Defense civilians 
   and contractors in direct support of or accompanying armed forces in the
   field;                                                                  
       (2) Require that an advisory copy of a missing person report be     
   provided to the theater component commander;                            
       (3) Require that if a body is recovered, and is not identifiable by 
   visual means, a certification by a forensic pathologist that the body   
   recovered is that of the missing person is required before the status   
   may be changed;                                                         
       (4) For pre-enactment cases, define ``new information'' as          
   information found or received by the primary next of kin, member of the 
   immediate family or a previously designated person or information that  
   is identified in records of the United States that is relevant to the   
   case of one or more unaccounted for persons, and require that such      
   information be credible before a new file is created;                   
       (5) Require that the identity of the counsel for the missing person 
   be made known to the primary next of kin or the previously designated   
   person, and permit the primary next of kin or the previously designated 
   person to provide information to the counsel of the missing person in   
   connection with the initial review board;                               
       (6) Require that an extract of any debriefing report be placed in   
   the file of every missing person mentioned in the report; require that  
   an extract of such debriefing reports be made available to family       
   members of missing persons, or if the reports are withheld, notify the  
   family that such information exists; and                                
       (7) Require that, if as allowed by law, classified information is   
   withheld from the file of a missing person, the notice of that          
   withholding be made reasonably available to the families of the missing 
   person.                                                                 
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
                      Time-in-grade requirements for reserve commissioned officers 
           retired during the drawdown period                                      
       The House bill contained a provision (sec. 514) that would authorize
   the secretaries of the military departments to reduce the required time 
   in grade for a reserve officer to retire in the highest grade held from 
   three to not less than two years.                                       
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Grade requirement for officers eligible to serve on          
           involuntary separation boards                                           
       The House bill contained a provision (sec. 516) that would reduce   
   the grade required for officer separation board members in the reserve  
   components from 0 6 and above to 0 5 and above.                         
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
           Study of new decorations for injury or death in line of duty            
       The House bill contained a provision (sec. 551) that would require  
   the Secretary of Defense, in cooperation with the secretaries of the    
   military departments and the Secretary of the Treasury with regard to   
   the Coast Guard, to determine the appropriate name, policy, award       
   criteria, and design for two new decorations.                           
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
           Suspension of temporary early retirement authority                      
       The House bill contained a provision (sec. 561) that would suspend  
   the authorization for the early retirement program during fiscal year   
   1998.                                                                   
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       Recognizing the savings that can be achieved by using this authority
   early in the year, the conferees reduced the amount authorized to be    
   appropriated to the Air Force for this program by $49.0 million.        
                      Treatment of educational accomplishments of National Guard   
           ChalleNGe program participants                                          
       The House bill contained a provision (sec. 562) that would deem a   
   general education diploma certificate achieved as a result of the       
   individual's participation in a National Guard ChalleNGe program the    
   same as a high school diploma for the purpose of determining the        
   eligibility of the person for enlistment in the armed forces.           
    The Senate amendment contained no similar provision                    
    The House recedes.                                                     
                      Repeal of certain staffing and safety requirements for the   
           Army Ranger Training Brigade                                            
       The Senate amendment contained a provision (sec. 524) that would    
   repeal section 4303 of title 10, United States Code, which specified    
   minimum manning levels for the Ranger Training Brigade and required the 
   establishment of training safety cells.                                 
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
                    TITLE VI--COMPENSATION AND OTHER PERSONNEL  BENEFITS          
                               LEGISLATIVE PROVISIONS ADOPTED                     
                               SUBTITLE A--PAY AND ALLOWANCES                     
           Increase in basic pay for fiscal year 1998 (sec. 601)                   
       The House bill contained a provision (sec. 601) that would provide a
   2.8 percent military pay raise as proposed in the President's budget    
   request.                                                                
       The Senate amendment contained a provision (sec. 601) that would    
   waive section 1009 of title 37, United States Code, and increase the    
   rates of basic pay for members of the uniformed services by 2.8 percent 
   effective January 1, 1998.                                              
    The Senate recedes with a clarifying amendment.                        
           Reform of basic allowance for subsistence (sec. 602)                    
       The House bill contained a provision (sec. 603) that would          
   re-engineer the basic allowance for subsistence (BAS) by providing the  
   Secretary of Defense greater flexibility to continue to pay BAS when    
   rations in kind are available; index the annual growth in the           
   subsistence allowance to increases in the cost of the moderate food plan
   of the U.S. Department of Agriculture; and repeal the current process of
   increasing the basic allowance for subsistence at the same rate as the  
   military pay raise.                                                     
       The Senate amendment contained three provisions (sec. 611 613) that 
   would reform the BAS for all members of the uniformed services by       
   linking the BAS for officers and enlisted members to the Department of  
   Agriculture food plan indexes; provide a transition period during which 
   annual increases in the current enlisted allowance would be limited to  
   one percent until such time as the transition period allowance equals   
   the new Department of Agriculture based allowance; and provide a new,   
   partial subsistence allowance for junior enlisted personnel who are not 
   currently eligible for any subsistence allowance.                       
       The House recedes with an amendment that would merge the provisions 
   into one.                                                               
                      Consolidation of basic allowance for quarters, variable      
           housing allowance, and overseas housing allowances (sec. 603)           
       The House bill contained a provision (sec. 604) that would          
   consolidate the basic allowance for quarters and the variable housing   
   allowance; would authorize $35.0 million to reduce out-of-pocket housing
   costs for individuals receiving Basic Allowance for Quarters; would     
   index the annual growth in housing allowances to increases in the       
   national average monthly cost of housing; repeal the current process of 
   increasing the basic allowance for quarters at the same rate as the     
   military pay raise; incorporate the authorities for overseas station    
   housing allowance and family separation housing allowance; and would    
   protect service members from reductions in the rate of overseas station 
   allowance not attributable to fluctuations in foreign currency rates, so
   long as the member's housing costs have not been reduced.               
       The Senate amendment contained six provisions (sec. 616, 617, 619   
   622) that would adopt a single, price-based housing allowance based on a
   national index of housing costs and authorize a housing allowance that  
   would vary with pay grade and dependency status and would be based on   
   local private sector housing costs.                                     
       The Senate recedes with an amendment that would merge the provisions
   into one, except that the conferees did not agree to authorize $35.0    
   million to reduce out-of-pocket housing costs.                          
                      Revision of authority to adjust compensation necessitated by 
           reform of subsistence and housing allowances (sec. 604)                 
       The Senate amendment contained a provision (sec. 626) that would    
   revise the authority to adjust compensation of uniformed services       
   personnel when federal civilian pay is adjusted.                        
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
       The conferees direct the Secretary of Defense to study the need for 
   and cost effectiveness of establishing a locality pay system for        
   military personnel that is comparable to the system in place for federal
   civilian employees, and to report the results of the study to the       
   Committee on Armed Services of the Senate and the Committee on National 
   Security of the House of Representatives, not later than March 31, 1998.
                      Protection of total compensation of members while performing 
           certain duty (sec. 605)                                                 
       The House bill contained a provision (sec. 602) that would repeal   
   the legislative link between military and federal civilian pay raises   
   and would require military pay raises to be independently calculated    
   using the Employment Cost Index and would ensure that total pay and     
   allowances of a service member will not be reduced when assigned to     
   field conditions at home station or temporary duty away from home       
   station.                                                                
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would ensure that the     
   total pay and allowances of a service member will not be reduced when   
   the service member is assigned to field duty at home station or to      
   temporary duty away from home station and would strike the remainder of 
   the provision.                                                          
                     SUBTITLE B--BONUSES AND SPECIAL AND INCENTIVE PAYS           
                      One-year extension of certain bonuses and special pay        
           authorities for reserve forces (sec. 611)                               
       The House bill contained a provision (sec. 611) that would extend   
   the authority for the selected reserve reenlistment bonus, the selected 
   reserve enlistment bonus, the selected reserve affiliation bonus, the   
   ready reserve enlistment and reenlistment bonus, and the prior service  
   enlistment bonus until September 30, 1999.                              
       The Senate amendment contained a provision (sec. 631) that would    
   extend the authority to pay the special pay for critically short wartime
   health specialists in the Selected Reserve, the Selected Reserve        
   reenlistment bonuses, the Selected Reserve enlistment bonuses, the      
   special pay for enlisted members assigned to certain high priority units
   in the Selected Reserve, the Selected Reserve affiliation bonus, the    
   Ready Reserve enlistment and reenlistment bonus, the repayment of loans 
   for certain health professionals who serve in the Selected Reserve, and 
   the prior service enlistment bonus until September 30, 1999.            
    The House recedes with a clarifying amendment.                         
                      One-year extension of certain bonuses and special pay        
           authorities for nurse officer candidates, registered nurses, and nurse  
           anesthetists (sec. 612)                                                 
       The House bill contained a provision (sec. 612) that would extend   
   the authority for the nurse officer candidate accession program, the    
   accession bonus for registered nurses, and the incentive special pay for
   nurse anesthetists until September 30, 1999.                            
       The Senate amendment contained a provision (sec. 632) that would    
   extend the authority to pay certain bonuses and special pays for nurse  
   officer candidates, registered nurses, and nurse anesthetists until     
   September 30, 1999.                                                     
    The Senate recedes.                                                    
                      One-year extension of authorities relating to payment of     
           other bonuses and special pays (sec. 613)                               
       The House bill contained a provision (sec. 613) that would extend   
   the authority for the aviation officer retention bonus, special pay for 
   health care professionals who serve in the selected reserve in          
   critically short wartime specialties, reenlistment bonus for active     
   members, enlistment bonuses for critical skills, special pay for        
   enlisted members of the selected reserve assigned to certain high       
   priority units, special pay for nuclear qualified officers extending the
   period of active service, and nuclear career accession bonus to         
   September 30, 1999. The provision would also extend the authority for   
   repayment of educational loans for certain health professionals who     
   serve in the selected reserve and the nuclear career annual incentive   
   bonus until October 1, 1999.                                            
       The Senate amendment contained a provision (sec. 633) that would    
   extend the authority to pay the aviation officer retention bonus, the   
   reenlistment bonus for active members, the enlistment bonuses for       
   critical skills, the special pay for nuclear qualified officers         
   extending the period of active service, the nuclear career accession    
   bonus, and the nuclear career annual incentive bonus until September 30,
   1999.                                                                   
    The Senate recedes with a clarifying amendment.                        
                      Increase in minimum monthly rate of hazardous duty incentive 
           pay for certain members (sec. 614)                                      
       The House bill contained a provision (sec. 614) that would increase 
   the amount paid to service members engaged in certain hazardous duties  
   to $150 a month; would increase the minimum amount paid to service      
   members engaged in non-aviator aircrew duties and air weapons controller
   aircrew duties to $150 a month; and would increase the amount paid to   
   service members engaged in free fall parachute jumping to $225 a month. 
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
       To provide for the increases, the conferees recommend an increase of
   $22.1 million in the military personnel accounts.                       
           Increase in aviation career incentive pay (sec. 615)                    
       The Senate amendment contained a provision (sec. 634) that would    
   increase the aviation career incentive pay for aviators with more than  
   14 years of service. The recommended provision would be effective       
          October 1, 1998.                                                        
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would change the effective 
   date to January 1, 1999.                                                
           Modification of aviation officer retention bonus (sec. 616)             
       The Senate amendment contained a provision (sec. 635) that increase 
   the maximum amount of the aviation officer continuation pay from $12,000
   to $25,000.                                                             
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would change the required  
   years of commitment to receive a bonus.                                 
                      Availability of multiyear retention bonus for dental officers
           (sec. 617)                                                              
       The House bill contained a provision (sec. 615) that would amend    
   section 301d of title 37, United States Code, to give the Secretary of  
   Defense discretionary authority to provide multi-year contracts to      
   dental officers, particularly critical specialists. These contracts     
   would obligate dentists for up to four years and would enhance retention
   and management of the dental corps. The provision would require that    
   dentists with a specialty in oral and maxillofacial surgery with at     
   least eight years of service be automatically eligible for these        
   contracts.                                                              
       The Senate amendment contained a provision (sec. 636) that would    
   authorize multiyear retention bonuses for dental officers similar to    
   those authorized for medical officers.                                  
    The Senate recedes.                                                    
                      Increase in variable and additional special pays for certain 
           dental officers (sec. 618)                                              
       The House bill contained a provision (sec. 616) that would amend    
   section 302b(a) of title 37, United States Code, to increase special pay
   for dental officers with eight or more years of service.                
       The Senate amendment contained a provision (sec. 637) that would    
   increase the amount of the special pay for dental officers of the armed 
   forces and modify the number of years of service required to qualify for
   certain levels of the special pay.                                      
    The Senate recedes.                                                    
                      Availability of special pay for duty at designated hardship  
           duty locations (sec. 619)                                               
       The House bill contained a provision (sec. 617) that would authorize
   a hardship duty pay for service members serving in locations that       
   present quality of life hardships up to a maximum of $300 per month.    
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
           Definition of sea duty for purposes of career sea pay (sec. 620)        
       The House bill contained a provision (sec. 651) that would authorize
   duty on a ship-based staff to be designated as sea duty for the purpose 
   of qualifying for career sea pay.                                       
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Modification of Selected Reserve reenlistment bonus (sec. 621)          
       The House bill contained a provision (sec. 618) that would          
   restructure the payment options available to the secretaries of the     
   military departments for the Selected Reserve reenlistment bonus, and   
   would extend the period of eligibility for the bonus from members with  
   less than 10 years total military service to members with less than 14  
   years service.                                                          
       The Senate amendment contained a provision (sec. 638) that would    
   provide service secretaries discretionary authority to determine the    
   annual payment amounts for reserve reenlistment bonuses. The initial    
   payment would be limited to not more than one-half of the total bonus.  
   The recommended provision would also permit a member to receive a bonus 
   when electing a three-year term of reenlistment twice in lieu of a      
   single six-year term.                                                   
    The House recedes with a clarifying amendment.                         
                      Modification of Selected Reserve enlistment bonus for former 
           enlisted members (sec. 622)                                             
       The House bill contained a provision (sec. 619) that would          
   restructure the payment options available to the secretaries of the     
   military departments for the Selected Reserve enlistment bonus for      
   former enlisted members, and would extend the period of eligibility for 
   the bonus from members with less than 10 years total military service to
   those with less than 14 years service.                                  
       The Senate amendment contained a provision (sec. 639) that would    
   modify the Selected Reserve prior service enlistment bonus to permit a  
   member to receive a bonus for a three-year term of enlistment and a     
   subsequent three-year reenlistment in lieu of a single six-year         
   enlistment option.                                                      
    The Senate recedes with a clarifying amendment.                        
                      Expansion of reserve affiliation bonus to include Coast Guard
           Reserve (sec. 623)                                                      
       The House bill contained a provision (sec. 623) that would extend   
   the authority to pay a bonus for separating active duty personnel who   
   agree to serve in a reserve unit to the Coast Guard Reserve.            
    The Senate amendment contained a similar provision.                    
    The House recedes with a clarifying amendment.                         
                      Increase in special pay and bonuses for nuclear-qualified    
           officers (sec. 624)                                                     
       The Senate amendment contained a provision (sec. 640) that would    
   increase the maximum authorized rate for three nuclear special pays and 
   bonuses for nuclear qualified officers of the Navy.                     
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Provision of bonuses in lieu of special pay for enlisted     
           members extending tours of duty at designated locations overseas (sec.  
           625)                                                                    
       The House bill contained a provision (sec. 620) that would authorize
   the payment of a bonus, as an alternative to a monthly special pay, to  
   enlisted members who extend their tours of duty overseas.               
       The Senate amendment contained a provision (sec. 641) that would    
   authorize the service secretaries to pay a lump sum payment of up to    
   $2,000 per year to qualified enlisted members who extend their duty at  
   designated overseas locations. The recommended provision:               
       (1) authorizes the service secretaries to fix the rate of payment as
   of the date of the extension agreement is accepted by the service;      
       (2) establishes the government's ability to recover payments for    
   which service agreements are not completed; and                         
       (3) removes the entitlement to such payment for those members who   
   elect to receive government-funded rest and recuperative absences or    
   transportation.                                                         
    The House recedes with a clarifying amendment.                         
           Increase in amount of family separation allowance (sec. 626)            
       The House bill contained a provision (sec. 621) that would increase 
   the amount of family separation allowance paid to service members to    
   $100 a month.                                                           
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
       To provide for the increase, the conferees agree to authorize an    
   increase of $25.0 million in the military personnel accounts.           
           Deadline for payment of Ready Reserve muster duty allowance (sec. 627)  
       The House bill contained a provision (sec. 622) that would authorize
   the payment of the muster duty allowance not later than 30 days after   
   the service member performs the duty.                                   
       The Senate amendment contained a provision (sec. 627) that would    
   repeal the requirement that members of the Ready Reserve be paid for    
   muster duty on or before the date on which they perform the duty, and   
   would require that the allowance be paid on or before, but not later    
   than 30 days following the date on which the duty is performed.         
    The Senate recedes with a clarifying amendment.                        
                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            
                      Travel and transportation allowances for dependents before   
           approval of member's court-martial sentence (sec. 631)                  
       The House bill contained a provision (sec. 631) that would remove   
   the restrictions on authorizing travel and transportation allowances to 
   a dependent of a service member who receives certain court-martial      
   sentences.                                                              
       The Senate amendment contained a provision (sec. 662) that would    
   permit the service secretaries to move family members when a crime has  
   been committed by the military sponsor.                                 
    The Senate recedes with a clarifying amendment.                        
           Dislocation allowance (sec. 632)                                        
       The House bill contained a provision (sec. 632) that would establish
   grade-based rates for dislocation allowances and would index the annual 
   growth of dislocation allowances to increases in the national average   
   monthly cost of housing.                                                
       The Senate amendment contained a provision (sec. 618) that would    
   establish the amount of the dislocation allowance for a service member  
   to be equal to 160 percent of the national average cost of housing      
   determined for members of the same grade and dependency status and for  
   those service members entitled to a second dislocation allowance, the   
   second allowance would be equal to 130 percent of the national average  
   cost of housing determined for members of the same grade and dependency 
   status.                                                                 
       The Senate recedes with an amendment that would merge the provisions
   into one.                                                               
               SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED MATTERS    
                      One-year opportunity to discontinue participation in Survivor
           Benefit Plan (sec. 641)                                                 
       The Senate amendment contained a provision (sec. 651) that would    
   permit a participant in the Survivor Benefit Plan to elect to           
   discontinue participation at any time during a one-year period beginning
   on the second year anniversary of the date on which the member retired. 
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Time in which change in survivor benefit coverage from former
           spouse to spouse may be made (sec. 642)                                 
       The House bill contained a provision (sec. 641) that would remove   
   the requirement that service members may change the beneficiary for the 
   Survivor Benefit Plan from a former spouse to a spouse within one year  
   of the date of remarriage.                                              
       The Senate amendment contained a provision (sec. 652) that would    
   permit a military retiree to change the beneficiary of his or her       
   Survivor Benefit Plan from a former spouse to a current spouse at any   
          time after the retiree remarries.                                       
    The House recedes with a clarifying amendment.                         
           Review of Federal former spouse protection laws (sec. 643)              
       The Senate amendment contained a provision (sec. 1039) that would   
   require the Secretary of Defense to conduct a comprehensive review of   
   the Uniformed Services Former Spouse Protection Act. The review would   
   include other laws affecting federal civil service retirement and       
   current civil practices regarding division of retirement pay or pensions
   in order to assess whether the Uniformed Services Former Spouse         
   Protection Act should be amended. The recommended provision requires the
   report to be provided to Congress by September 30, 1999.                
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would clarify the areas to 
   be considered during the review of the Uniformed Services Former Spouse 
   Protection Act.                                                         
           Annuities for certain military surviving spouses (sec. 644)             
       The Senate amendment contained a provision (sec. 654) that would    
   authorize an annuity of $165 a month for surviving spouses of former    
   active duty service members who died before March 21, 1974, and were    
   retired from active duty. The recommended provision would also apply to 
   surviving spouses of service members retired from the reserves between  
   September 21, 1972 and October 1, 1978. These surviving spouses, known  
   as ``Forgotten Widows,'' are the survivors of retired military personnel
   who died before any survivor benefit program was enacted.               
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Administration of benefits for so-called minimum income      
           widows (sec. 645)                                                       
       The conferees agree to include a provision that would clarify the   
   authority of the Secretary of Veterans Affairs to consolidate certain   
   annuities currently paid by the Secretary of Defense to the widows of   
   military retirees into a single payment.                                
                                  SUBTITLE E--OTHER MATTERS                       
                      Loan repayment program for commissioned officers in certain  
           health professions (sec. 651)                                           
       The House bill contained a provision (sec. 652) that would amend    
   chapter 109 of title 10, United States Code, to establish an education  
   loan repayment program for specific health professions.                 
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
                      Conformance of NOAA commissioned officers separation pay to  
           separation pay for members of other uniformed services (sec. 652)       
       The House bill contained a provision (sec. 653) that would remove   
   the limitations on the amount of separation pay that may be paid to     
   commissioned officers of the National Oceanic and Atmospheric           
   Administration (NOAA) and would exclude that portion of separation pay  
   withheld for income taxes from the amount that must be repaid before    
   becoming eligible for disability payments from the Department of        
   Veterans Affairs. This section would conform the separation pay         
   authority for NOAA commissioned officers with the separation pay        
   authority for members of the armed services.                            
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
                      Eligibility of Public Health Service officers and NOAA       
           commissioned corps officers for reimbursement of adoption expenses (sec.
           653)                                                                    
       The House bill contained a provision (sec. 654) that would authorize
   officers of the Commissioned Corps of the Public Health Service to      
   receive reimbursement for adoption expenses in the same manner as       
   members of the armed forces.                                            
       The Senate amendment contained a provision (sec. 663) that would    
   extend the authorization for reimbursement of adoption expenses in      
   effect for the armed forces to the Public Health Service and the        
   National Oceanic and Atmospheric Administration.                        
    The House recedes with a clarifying amendment.                         
                      Payment of back quarters and subsistence allowances to World 
           War II veterans who served as guerrilla fighters in the Philippines     
           (sec. 654)                                                              
       The House bill contained a provision (sec. 655) that would authorize
   the payment of quarters and subsistence allowances to qualified         
   individuals who served as guerilla fighters during the period from      
   January 1942 through February 1945.                                     
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Subsistence of members of the Armed Forces above the poverty 
           level (sec. 655)                                                        
       The House bill contained a provision (sec. 657) that would direct   
   the Secretary of Defense to conduct a study of members of the armed     
   forces and their dependents who subsist at, near, or below the poverty  
   line.                                                                   
    The Senate amendment contained a similar provision (sec. 664).         
    The House recedes with a clarifying amendment.                         
       The conferees do not intend that implementation of this provision   
   would cause current recipients of supplemental food benefits within the 
   United States to be removed from the program. The conferees encourage   
   the committees of jurisdiction to examine the need for a supplemental   
   food program for members of the armed services and eligible civilians   
   living overseas and provide the funding needed to operate the overseas  
   program while sustaining the program within the United States. The      
   conferees note that the Secretary of Defense may                        
                    use Department of Defense funds to conduct this program until 
          funding is received from the Secretary of Agriculture.                  
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
           Space available travel for members of Selected Reserve                  
       The House bill contained a provision (sec. 656) that would provide  
   authority for members of the Selected Reserve and their accompanying    
   dependents to receive transportation on Department of Defense aircraft  
   on a space available basis under the same terms and conditions that     
   apply to active duty members of the armed forces and their dependents.  
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Implementation of Department of Defense Supplemental Food    
           Program for military personnel outside the United States                
       The House bill contained a provision (sec. 658) that would authorize
   the Secretary of Defense to use operations and maintenance funding to   
   operate the program until funding is received from the Secretary of     
   Agriculture.                                                            
    The Senate amendment contained a similar provision within section 664. 
    The House recedes.                                                     
           Paid-up coverage under Survivor Benefit Plan                            
       The Senate amendment contained a provision (sec. 653) that would    
   terminate Survivor Benefit Plan payments following 30 years of payments 
   and attaining the age of 70.                                            
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
                             TITLE VII--HEALTH CARE PROVISIONS                    
                               LEGISLATIVE PROVISIONS ADOPTED                     
                              SUBTITLE A--HEALTH CARE SERVICES                    
                      Expansion of retiree dental insurance plan to include        
           surviving spouse and child dependents of certain deceased members (sec. 
           701)                                                                    
       The House bill contained a provision (sec. 701) that would amend    
   section 1076c(b)(4) of title 10, United States Code, to allow the       
   survivors of members who died while on active duty to participate in the
   retiree dental insurance plan.                                          
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Provision of prosthetic devices to covered beneficiaries (sec. 702)     
       The House bill contained a provision (sec. 702) that would amend    
   section 1077(a) of title 10, United States Code, to allow for prosthetic
   devices to be provided to CHAMPUS beneficiaries for significant         
   conditions, as determined by the Secretary of Defense.                  
    The Senate amendment contained a similar provision (sec. 707).         
    The Senate recedes.                                                    
           Study concerning the provision of comparative information (sec. 703)    
       The Senate amendment contained a provision (sec. 711) that would    
   require the Secretary of Defense to conduct a study concerning the      
   provision of information to TRICARE beneficiaries and report the results
   to the Congress.                                                        
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                                 SUBTITLE B--TRICARE PROGRAM                      
           Addition of definition of TRICARE program to title 10 (sec. 711)        
       The House bill contained a provision (sec. 711) that would amend    
   section 1072 of title 10, United States Code, to include a definition of
   the TRICARE Program.                                                    
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Plan for expansion of managed care option of TRICARE program (sec.  712)
       The House bill contained a provision (sec. 712) that would require  
   the Secretary of Defense to prepare a plan for expanding the managed    
   care option of TRICARE--TRICARE Prime--into areas located outside the   
   catchment areas of military treatment facilities where the Department   
   determines it is cost effective to do so.                               
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
                     SUBTITLE C--UNIFORMED SERVICES TREATMENT FACILITIES          
                      Implementation of designated provider agreements for         
           Uniformed Services Treatment Facilities (sec. 721)                      
       The House bill contained a provision (sec. 721) that would amend    
   section 722(c) of the National Defense Authorization Act for Fiscal Year
   1997 (Public Law 104 201) to clarify the implementation date of the     
   designated provider program of the Uniformed Services Treatment         
   Facilities (USTFs), and allow the USTFs to begin delivery of health care
   services as a designated provider within six months of signing the new  
   designated provider agreement with the Department of Defense, or upon   
   implementation of TRICARE in the USTFs region, whichever date is later. 
    The Senate amendment contained a provision (sec. 731) that would       
                    clarify the implementation date of the designated provider    
          program of the Uniformed Services Treatment Facilities (USTFs); allow   
          the USTFs to begin delivery of health care services as a designated     
          provider within six months of signing the new designated provider       
          agreement with the Department of Defense, or upon implementation of     
          TRICARE in the USTFs region, whichever date is later; require the       
          Secretary of Defense to submit to binding arbitration; impose limits on 
          contracting out primary care services and permit flexibility on the date
          on which the uniform benefit must be implemented.                       
    The Senate recedes.                                                    
           Continued acquisition of reduced-cost drugs (sec. 722)                  
       The House bill contained a provision (sec. 723) that would allow the
   Uniform Services Treatment Facilities to continue to purchase           
   pharmaceuticals under the preferred pricing levels applicable to        
   government agency purchases.                                            
    The Senate amendment contained a similar provision (sec. 733).         
    The House recedes.                                                     
           Limitation on total payments (sec. 723)                                 
       The House bill contained a provision (sec. 722) that would clarify  
   the limitation on total program payments established in section 726(b)  
   of the National Defense Authorization Act for Fiscal Year 1997 (Public  
   Law 104 201).                                                           
    The Senate amendment contained a similar provision (sec. 732).         
    The House recedes.                                                     
              SUBTITLE D--OTHER CHANGES TO EXISTING LAWS REGARDING HEALTH CARE    
                                   MANAGEMENT                                     
                      Improvements in health care coverage and access for members  
           assigned to certain duty locations far from sources of care (sec. 731)  
       The Senate amendment contained a provision (sec. 701) that would    
   make active duty service members assigned to certain remote duty        
   locations eligible for health care under the Civilian Health and Medical
   Program of the Uniformed Services (CHAMPUS), and would direct the       
   secretaries of the military departments to waive the annual fees,       
   deductibles, and copayments associated with CHAMPUS.                    
    The House bill contained no similar amendment.                         
       The House recedes with an amendment that would retain the Senate    
   provision and would direct the Secretary of Defense to improve the      
   supplemental care program consistent with the TRICARE program in order  
   to provide care to active duty personnel who are assigned to duty       
   locations more than 50 miles from a military treatment facility.        
                      Waiver or reduction of copayments under overseas dental      
           program (sec. 732)                                                      
       The House bill contained a provision (sec. 731) that would amend    
   section 1076a(h) of title 10, United States Code, to waive the dental   
   copayment requirements for family members of active-duty members        
   stationed overseas when they receive host-nation dental care under the  
   Overseas Dental Program.                                                
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Premium collection requirements for medical and dental       
           insurance programs; extension of deadline for implementation of dental  
           insurance program for military retirees (sec. 733)                      
       The House bill contained a provision (sec. 732) that would amend    
   section 1076b(b) and 1076c(c) of title 10, United States Code, to change
   the premium collection method prescribed for the Selected Reserve Dental
   Program and the Retiree Dental Program.                                 
    The Senate amendment contained a similar provision (sec. 705).         
       The Senate recedes with an amendment that would modify the date on  
   which the retiree dental plan must be effective.                        
       The conferees continue to insist that the Secretary of Defense      
   provide comprehensive dental insurance programs for the Selected Reserve
   and for retirees and their families at the lowest possible cost.        
       The conferees expect the Secretary of Defense to use the allotment  
   or payroll deduction process to the maximum extent possible for dental  
   insurance premium collection. The conferees urge the Secretary to review
   the feasibility of including electronic funds transfer as an alternative
   means of premium collection. The conferees expect the Secretary to      
   forward a legislative proposal if it is determined that electronic funds
   transfer is a viable alternative and that legislation is required to    
   facilitate that method of premium collection.                           
       The conferees urge the Secretary of Defense to develop a regional   
   premium similar to the common practices of the commercial insurance     
   industry to ensure that those who live in low-cost areas do not         
   subsidize those in higher cost areas. The conferees note that it is     
   common commercial practice to limit the availability of certain benefits
   for some period of time after the beneficiary enrolls in the program, or
   to require a minimum enrollment period. The conferees urge the Secretary
   of Defense to consider including these commercial practices in the      
   retiree dental plan.                                                    
                      Dental insurance plan coverage for retirees of the Public    
           Health Service and NOAA (sec. 734)                                      
       The Senate amendment contained a provision (sec. 706) that would    
   extend eligibility for the retiree dental plan of the Department of     
   Defense to retirees of the Public Health Service and the National       
   Oceanic and Atmospheric Administration.                                 
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Consistency between CHAMPUS and Medicare in payment rates for
           services (sec. 735)                                                     
       The House bill contained a provision (sec. 733) that would amend    
   section 1079(h) of title 10, United States Code, to provide for greater 
   consistency between CHAMPUS reimbursement rates for health care services
   and Medicare reimbursement rates.                                       
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Use of personal services contracts for provision of health   
           care services and legal protection for providers (sec. 736)             
       The House bill contained a provision (sec. 734) that would clarify  
   that personal services contract employees providing health care         
   services, including fee-basis physicians, are covered by the same       
   malpractice litigation rules as other Department of Defense health care 
   providers and would enable the Secretary of Defense the authority to    
   provide for reasonable attorney's fees in any litigation in which       
   government attorneys do not provide representation.                     
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would sunset the provision
   after one year, would require the Secretary of Defense to report to the 
   Congress on alternative methods to provide medical screening to the     
   Military Entrance and Processing stations, including use of the TRICARE 
   Managed Support contracts and outsourcing, and would extend the         
   authority to the Secretary of Transportation for the Coast Guard.       
                      Portability of State licenses for Department of Defense      
           health care professionals (sec. 737)                                    
       The House bill contained a provision (sec. 735) that would amend    
   section 1094 of title 10, United States Code, to authorize members of   
   the armed forces licensed to practice medicine and other health         
   professions to practice such professions in any state, the District of  
   Columbia, or a territory or possession of the United States while       
   performing authorized duties for the Department of Defense.             
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Standard form and requirements regarding claims for payment  
           for services (sec. 738)                                                 
       The House bill contained a provision (sec. 736) that would amend    
   section 1106 of title 10, United States Code, to eliminate the          
   requirement for non-participating providers who provide services to     
   Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) 
   beneficiaries to submit claims for payment for services on behalf of the
   beneficiary.                                                            
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
       The conferees believe that this provision will improve access to    
   health care by reducing the administrative burden on health care        
   providers which should make providing care under the CHAMPUS system more
   attractive to these providers. Increasing the number of CHAMPUS         
   providers, especially in rural and under served areas, should enhance   
   the health care options for Department of Defense health care           
   beneficiaries. Beneficiaries who elect to receive care from a           
   non-participating health care provider may have to file a claim for     
   reimbursement from the CHAMPUS system. The conferees note that          
   eliminating the requirement for non-participating providers to submit   
   claims for payment for services on behalf of the beneficiary does not   
   apply to health care providers who participate in the TRICARE network.  
           Chiropractic health care demonstration program (sec. 739)               
       The Senate amendment contained a provision (sec. 709) that would    
   increase the number of sites and extend the length of the chiropractic  
   health care demonstration authorized by the National Defense            
   Authorization Act for Fiscal Year 1995.                                 
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                                  SUBTITLE E--OTHER MATTERS                       
                      Continued admission of civilians as students in physician    
           assistant training program of Army Medical Department (sec. 741)        
       The House bill contained a provision (sec. 741) that would amend    
   chapter 407 of title 10, United States Code, to provide permanent       
   authority for a demonstration program established by the National       
   Defense Authorization Act for Fiscal Year 1995 (Public Law 103 337) to  
   allow students from civilian accredited institutions of higher education
   to attend physician assistant training at the Academy of Health Sciences
   at Fort Sam Houston, Texas, in return for the provision of certain      
   academic services from the respective civilian institutions.            
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
                      Payment for emergency health care overseas for military and  
           civilian personnel of the On-Site Inspection Agency (sec. 742)          
       The House bill contained a provision (sec. 742) that would amend    
   chapter 152 of title 10, United States Code, to authorize the Secretary 
   of Defense to pay for emergency health care services obtained by a      
   military member, civilian employee, or contractor employee of the       
   On-Site Inspection Agency while on permanent or temporary duty in a     
   former Soviet Union or former Warsaw Pact state.                        
       The Senate amendment contained a provision (sec. 702) that would    
   provide authority for the Secretary of Defense to pay for emergency     
   health care costs of military and civilian personnel assigned to the    
   On-Site Inspection Agency, while participating in arms control          
   inspections overseas, from funds available to the On-Site Inspection    
   Agency (OSIA).                                                          
    The House recedes with a clarifying amendment.                         
                      Authority for agreement for use of medical resource facility,
           Alamogordo, New Mexico (sec. 743)                                       
       The Senate amendment contained a provision (sec. 710) that would    
   permit the Secretary of the Air Force to enter into an agreement, the   
   contents of which are specified in the provision, with Gerald Champion  
   Hospital in Alamogordo, New Mexico in which the hospital would provide  
   health care services at a discount, provided that the facility is       
   constructed in part with funds provided by the Secretary of the Air     
   Force.                                                                  
    The House bill contained no similar amendment.                         
       The House recedes with an amendment that would retain the essence of
   the Senate provision but would require that the funds be provided from  
   Air Force Operations and Maintenance funds; would include additional    
   information in the agreement; and would require the Secretary of Defense
   to review the proposed agreement and provide comments to the Congress   
   before the agreement could be signed.                                   
                      Disclosures of cautionary information on prescription        
           medications (sec. 744)                                                  
       The Senate amendment contained a provision (sec. 703) that would    
   require that each prescription dispensed through the Military Health    
   Care System, including the TRICARE and CHAMPUS programs, be accompanied 
   by information containing cautions about use, possible side effects, and
   potential negative interaction with food or beverages.                  
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
           Competitive procurement of certain ophthalmic services (sec. 745)       
       The House bill contained a provision (sec. 1405) that would require 
   the Secretary of Defense to competitively procure, from the private     
   sector, all ophthalmic services unless it is more cost effective or is  
   necessary to meet readiness requirements to perform these services      
   within the armed services.                                              
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Comptroller General study of adequacy and effect of maximum  
           allowable charges for physicians under CHAMPUS (sec. 746)               
       The House bill contained a provision (sec. 743) that would require  
   the Comptroller General of the United States to study the adequacy of   
   the CHAMPUS reimbursement rates, and the effect of these rates on the   
   participation of physicians in the CHAMPUS program.                     
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Comptroller General study of Department of Defense pharmacy  
           programs (sec. 747)                                                     
    The House bill contained a provision (sec. 744) that would             
                    require the Comptroller General of the United States to       
          evaluate the pharmacy programs of the Department of Defense. The        
          required study would examine the merits and feasibility of establishing 
          a uniform formulary for military treatment facility pharmacies and      
          civilian contractor pharmacies.                                         
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require that the    
   study include a review of the merits and feasibility of using private   
   sector cost control mechanisms and the existence of any barriers to the 
   use of such mechanisms.                                                 
                      Comptroller General study of Navy graduate medical education 
           program (sec. 748)                                                      
       The House bill contained a provision (sec. 745) that would require  
   the Comptroller General of the United States to evaluate recommendations
   made by the Medical Education Policy Council of the Navy Bureau of      
   Medicine and Surgery to restructure the Navy's graduate medical         
   education program.                                                      
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Study of expansion of pharmaceuticals by mail program to     
           include additional Medicare-eligible covered beneficiaries (sec. 749)   
       The House bill contained a provision (sec. 746) that would require  
   the Secretary of Defense to provide a report to Congress, within six    
   months of enactment of this Act, on the feasibility, advisability and   
   cost of extending the current mail-order pharmacy program for           
   Medicare-eligible beneficiaries in areas affected by base closures to   
   all Medicare-eligible beneficiaries who do not reside near a military   
   medical treatment facility.                                             
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Comptroller General study of requirement for military medical
           facilities in the National Capital Region (sec. 750)                    
       The House bill contained a provision (sec. 747) that would require  
   the Comptroller General to conduct a study to evaluate the requirement  
   for Army, Navy, and Air Force medical facilities in the National Capital
   Region.                                                                 
    The Senate amendment contained no similar amendment.                   
    The Senate recedes.                                                    
                      Report on policies and programs to promote healthy lifestyles
           for members of the Armed Forces and their dependents (sec. 751)         
       The Senate amendment contained a provision (sec. 1042) that would   
   require the Secretary of Defense to report to the Congress on the       
   effectiveness of the policies and programs intended to promote healthy  
   lifestyles among members of the armed forces and their families.        
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
           Sense of Congress regarding quality health care for retirees (sec.  752)
       The Senate amendment contained a provision (sec. 708) that would    
   express the sense of the Congress that the United States has a moral    
   obligation to provide quality health care to military retirees and their
   families.                                                               
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                              SUBTITLE F--PERSIAN GULF ILLNESS                    
           Plan for health care services for Persian Gulf veterans (sec. 762)      
       The House bill contained a provision (sec. 752) that would require  
   the Secretary of Defense and the Secretary of Veterans Affairs to       
   prepare a joint plan to provide appropriate health care to Persian Gulf 
   veterans who suffer from a Gulf War illness.                            
    The Senate amendment contained a similar amendment (sec. 752).         
    The Senate recedes with a clarifying amendment.                        
                      Comptroller General study of revised disability criteria for 
           physical evaluation boards (sec. 763)                                   
       The House bill contained a provision (sec. 753) that would require  
   the Comptroller General to conduct a study evaluating the revisions made
   by the Secretary of Defense to the criteria used by Physical Evaluation 
   Boards to set disability ratings for members of the armed forces who are
   no longer medically qualified for continuaton on active duty.           
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
                      Medical care for certain reserves who served in Southwest    
           Asia during the Persian Gulf War (sec. 764)                             
       The Senate amendment contained a provision (sec. 704) that would    
   entitle a member of a reserve component who is a Persian Gulf War       
   veteran, registers a symptom or illness in the Persian Gulf War Veterans
   Health Surveillance System of the Department of Defense, and is not     
   otherwise entitled to medical and dental care from the Military Health  
   Care System to medical and dental care to the same extent and under the 
   same conditions as a member on active duty.                             
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would entitle a member of a
   reserve component who is a Persian Gulf War veteran, registers a symptom
   or illness in the Persian Gulf War Veterans Health Surveillance System  
   of the Department of Defense, and is not otherwise entitled to medical  
   and dental care from the Military Health Care System or the Veterans    
   Affairs medical system to medical care to the same extent and under the 
   same conditions as a member on active duty.                             
                      Improved medical tracking system for members deployed        
           overseas in contingency or combat operations (sec. 765)                 
       The House bill contained a provision (sec. 754) that would require  
   the Secretary of Defense to establish a system to assess the medical    
   condition of members of the armed forces who are deployed outside the   
   United States as part of a contingency operation.                       
    The Senate amendment contained a similar provision (sec. 753).         
    The Senate recedes with a clarifying amendment.                        
                      Notice of use of investigational new drugs or drugs          
           unapproved for their applied use (sec. 766)                             
       The House bill contained a provision (sec. 757) that would require  
   the Secretary of Defense to notify a member of the armed forces before  
   the member is administered an investigational new drug or a drug        
   unapproved for its applied use.                                         
    The Senate amendment contained a similar provision (sec. 756).         
    The Senate recedes with a clarifying amendment.                        
                      Sense of Congress regarding the deployment of specialized    
           units for detecting and monitoring chemical, biological, and similar    
           hazards in a theater of operations (sec. 768)                           
       The House bill contained a provision (sec. 756) that would require  
   the Secretary of Defense to submit a plan to the Congress regarding the 
   deployment of a specialized unit of the armed forces with the capability
   and expertise to detect and monitor the presence of chemical,           
   biological, and similar hazards.                                        
    The Senate amendment contained a similar provision (sec. 755).         
       The House recedes with an amendment that would express the Sense of 
   Congress that the Secretary of Defense, in conjunction with the Chairman
   of the Joint Chiefs of Staff, should take such actions as are necessary 
   to ensure that units of the armed forces deployed in a theater of       
   operations for a contingency operation include specialized units with   
   the capability to detect and monitor the presence of chemical,          
   biological, and similar hazards.                                        
           Sense of Congress concerning Gulf War illness (sec. 771)                
       The House bill contained a provision (sec. 760) that would express  
   the sense of the Congress that all promising technology and treatments  
   related to Gulf War illness should be fully explored and tested to      
   facilitate treatment for members of the armed forces who are stricken   
   with Persian Gulf illness.                                              
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
           Medical personnel conscience clause                                     
       The House bill contained a provision (sec. 737) that would require  
   the Secretary of Defense to establish a uniform policy with regard to a 
   conscience clause for abortion and family planning services. Under this 
   policy, medical personnel who, for moral, ethical, or religious reasons,
   object to performing an abortion or to providing family planning        
   services would not be required to perform such procedures unless their  
   refusal to do so poses life-threatening risks to the patient.           
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees believe that the service policies with regard to      
   conscience clauses should be uniform. The conferees note that the Army  
   has proposed a policy change that would make their policy consistent    
   with that of the other services. Once the change is promulgated, the    
   Secretary of the Army is directed to provide a copy of the regulation to
   the Committee on Armed Services of the Senate and the Committee on      
   National Security of the House of Representatives.                      
            TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED   
                                     MATTERS                                      
                        ITEMS OF SPECIAL INTEREST                        
           Cost accounting standards board                                         
       The conferees believe that much progress has been made over the past
   several years to bring needed reform and streamlining to the federal    
   acquisition process. However, the conferees note that concerns have been
   raised that the cost accounting standards governing the allocation of   
   direct and indirect costs on government contracts, as promulgated by the
   Cost Accounting Standards Board (CAS), are an impediment to acquisition 
   streamlining.                                                           
       The conferees endorse the House report (H. Rept. 105 132), which    
   requires the General Accounting Office (GAO) to conduct a study that    
   would analyze and assess the mission of the CAS Board. The conferees    
   believe that such a study, in which all views are represented, would    
   help the Congress to determine the best way to balance the interest of  
   taxpayers and the need for greater acquisition streamlining.            
                               LEGISLATIVE PROVISIONS ADOPTED                     
           SUBTITLE A--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 
                                 AND LIMITATIONS                                  
                      Expansion of authority to enter into contracts crossing      
           fiscal years to all severable service contracts not exceeding a year    
           (sec. 801)                                                              
       The House bill contained a provision (sec. 802) that would broaden  
   the current limited authority of the Department of Defense to expend    
   appropriated funds for severable service contracts that cross fiscal    
   years.                                                                  
    The Senate amendment contained a similar provision (sec. 803).         
       The House recedes with an amendment clarifying that the current     
   authority of the Coast Guard to expend funds for such contracts is      
   intended to be unaffected by the provision.                             
       The conferees direct that the Secretary of Defense review the       
   Department's operations under this provision and no later than 30 days  
   after the end of both fiscal years 1998 and 1999 submit reports to the  
   congressional defense committees containing the following information   
   for each fiscal year:                                                   
       (1) the total amount and sources of funds obligated under the       
   provision;                                                              
     (2) the types of services procured under the provision;               
     (3) when the services were ordered and when provided; and             
       (4) the reasons in each case why the authority under the section was
   required to be used.                                                    
       A copy of each report shall be provided simultaneously to the       
   Comptroller General.                                                    
       No later than 180 days after receipt of the report of the Department
   of Defense for fiscal year 1999, the Comptroller General shall submit a 
   report to the congressional defense committees addressing:              
       (1) any abuses of the provision, such as efforts to circumvent      
   year-end spending limitations; and                                      
       (2) recommendations for legislative or administrative changes to the
   authority under the section that the Comptroller General may believe to 
   be appropriate.                                                         
                      Vesting of title in the United States under contracts paid   
           under progress payment arrangements or similar arrangements (sec. 802)  
       The House bill contained a provision (sec. 803) that would establish
   in statute the title vesting provisions currently used by the Department
   of Defense in contractual agreements involving certain forms of contract
   financing.                                                              
    The Senate amendment contained a similar provision (sec. 812).         
    The House recedes.                                                     
           Restriction on undefinitized contract actions (sec. 803)                
       The House bill contained a provision (sec. 804) that would add      
   disaster relief, humanitarian, and peacekeeping operations to the types 
   of operations for which the head of an agency may waive limitations on  
   the use of undefinitized contracts.                                     
    The Senate amendment contained a similar provision (sec. 802).         
    The House recedes.                                                     
                      Limitation and report on payment of restructuring costs under
           defense contracts (sec. 804)                                            
       The House bill contained a provision (sec. 805) that would codify in
   title 10, United States Code, the policy restrictions in section 8115 of
   the Omnibus Appropriations Act for Fiscal Year 1997 (Public Law 104 208)
   relating to the allowability of restructuring costs under defense       
   contracts. The House provision would also consolidate the requirements  
   of section 818 of the National Defense Authorization Act for Fiscal Year
   1995 (Public 103 337) into a codifed provision.                         
       The Senate amendment contained a provision (sec. 841) that would    
   extend for two years the reporting requirements under section 818 and   
   would require a report from the General Accounting Office on the effects
   of defense business combinations on competition and on contract weapon  
   system prices.                                                          
    The House recedes with an amendment combining the two provisions.      
           Multiyear procurement contracts (sec. 806)                              
       The House bill contained a provision (sec. 807) that would provide  
   that no future multiyear procurement contract may be entered into by the
   Secretary of Defense unless such contract is specifically authorized by 
   law in an act other than an appropriations act. The House provision     
   would also codify various requirements that the Secretary of Defense    
   must meet in order to enter into or to terminate a multiyear procurement
   contract.                                                               
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would limit the           
   requirement that future multiyear procurement contracts be authorized in
   law to contracts in amounts over $500.0 million.                        
                      Audit of procurement of military clothing and                
           clothing-related items by military installations in the United States   
           (sec. 807)                                                              
       The House bill contained a provision (sec. 810) that would require  
   the Department of Defense Inspector General to carry out a random audit 
   of procurements of goods by the military installations in fiscal years  
   1996 and 1997 to determine the extent to which such installations       
   procured goods made in countries other than the United States.          
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would limit the audit to a
   determination of the extent to which military installations procured    
   military clothing and clothing-related items in procurements above      
   $2,500 in violation of the Buy American Act.                            
                      Limitation on allowability of compensation for certain       
           contractor personnel (sec. 808)                                         
       The Senate amendment contained a provision (sec. 804) that, for the 
   purpose of determining the allowability of costs under section 2324 of  
   title 10, United States Code, and section 306 of the Federal Property   
   and Administrative Services Act of 1949, would:                         
       (1) limit the reimbursement of senior executive salaries to the     
   median of salary of senior executives in all public corporations with   
   annual sales in excess of $50.0 million, regardless of the size of the  
   company;                                                                
       (2) define executive compensation to include the total amount of    
   wages, salary, bonuses, and deferred compensation that is recorded in   
   the contractor's cost accounting records for the year; and              
       (3) apply the limitations applicable to the five most highly-paid   
   executives of a contractor, or any division of a contractor.            
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would provide that the     
   limitation applies to costs incurred after January 1, 1998. In addition 
   to making other clarifying changes, the amendment would also provide    
   that no other limitation on the reimbursement of senior executive       
   salaries covered under this section shall apply after that date.        
           Elimination of certification requirement for grants (sec. 809)          
       The Senate amendment contained a provision (sec. 807) that would    
   eliminate the drug-free workplace certification requirements in relation
   to federal grants in a similar manner provided for federal contracts in 
   section 4301(a)(3) of the National Defense Authorization Act for Fiscal 
   Year 1996.                                                              
    The House bill contained no similar provision.                         
    The House recedes.                                                     
       The conferees strongly support the continued requirement that       
   persons accept and enforce the drug-free workplace laws as a condition  
   for the award of a contract or grant with a federal agency.             
           Repeal of limitation on adjustment of shipbuilding contracts (sec. 810) 
       The Senate amendment contained a provision (sec. 808) that would    
   repeal section 2405 of title 10, United States Code, and apply the      
   current six-year limitation for the submission of claims in the Contract
   Disputes Act as the sole limitation on shipbuilding claims.             
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Item-by-item and country-by-country waivers of domestic      
           source limitations (sec. 811)                                           
       The House bill contained a provision (sec. 801) that would require  
   the Secretary of Defense to apply the waiver authority with respect to  
   section 2534 of title 10, United States Code only on a case-by-case     
   basis on specific procurements.                                         
       The Senate amendment contained a provision (sec. 809) that would    
   provide the Secretary of Defense with blanket waiver authority for the  
   domestic source restrictions in section 2534.                           
       The Senate recedes with an amendment that would provide the         
   Secretary with the authority to grant waivers to the restrictions in    
   section 2534 for a particular item and a particular foreign country.    
   Each such waiver would be effective for up to one year, as determined by
   the Secretary. The provision would require the Secretary, 15 days before
   the effective date of a waiver, to notify the congressional defense     
   committees and to publish in the Federal Register a notice of the       
   determination to exercise the waiver.                                   
                         SUBTITLE B--ACQUISITION ASSISTANCE PROGRAMS              
           One-year extension of pilot mentor-prote AE1ge AE1 program (sec. 821)   
       The Senate amendment contained a provision (sec. 822) that would    
   extend the period in which mentor firms may incur costs for furnishing  
   developmental assistance under the Department of Defense mentor-prote   
   AE1ge AE1 program until September 30, 2000. The provision would also    
   extend the period during which new agreements under the program may be  
   entered into until September 30, 1999.                                  
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would require the General  
   Accounting Office to review the implementation of the mentor-prote AE1ge
   AE1 program and report on the extent to which the program is achieving  
   the purposes established under this section.                            
       The conferees intend to use the results of this report in           
   reassessing the long-term viability of the mentor-prote AE1ge AE1       
   program during the next legislative cycle.                              
                      Test program for negotiation of comprehensive subcontracting 
           plans (sec. 822)                                                        
       The Senate amendment contained a provision (sec. 823) that would    
   extend from September 30, 1998 to September 30, 2000 the expiration date
   for the current test program for negotiating comprehensive              
   subcontracting plans with Department of Defense (DOD) contractors. The  
   provision would also address participating contractors acting as        
   subcontractors under a DOD prime contract by allowing them to include   
   their major subcontracts within their subcontracting plans.             
    The House bill contained no similar provision.                         
    The House recedes.                                                     
       The conferees believe that the DOD should expand the program in a   
   manner that would encourage prime contractors to enter the program on a 
   plant or facility basis.                                                
                            SUBTITLE C--ADMINISTRATIVE PROVISIONS                 
                      Retention of expired funds during the pendency of contract   
           litigation (sec. 831)                                                   
       The Senate amendment contained a provision (sec. 831) that would    
   permit federal agencies to retain amounts collected pursuant to the     
   Contract Disputes Act of 1978 to satisfy a settlement reached between   
   parties or a judgment rendered in favor of a contractor through the     
   Federal Courts or the Armed Services Board of Contract Appeals. The     
   provision would also require the Comptroller of the Department of       
   Defense to provide an annual report to Congress on the amounts available
   for obligation under the authority of this provision.                   
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would limit the authority  
   under the provision to the military services and defense agencies, as   
   well as make other clarifying changes.                                  
           Protection of certain information from disclosure (sec. 832)            
       The Senate amendment contained a provision (sec. 832) that would    
   amend section 2371 of title 10, United States Code, to clarify that     
   certain information submitted by outside parties in transactions        
   governed by the authority under that section is protected from          
   disclosure under section 552 of title 5, United States Code.            
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Unit cost reports (sec. 833)                                            
       The Senate amendment contained a provision (sec. 834) that would    
   eliminate duplicative reporting requirements on unit costs of major     
   defense acquisition programs.                                           
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Plan for providing contracting information to general public 
           and small business (sec. 834)                                           
       The Senate amendment contained a provision (sec. 835) that would    
   require the Under Secretary of Defense (Acquisition and Technology) to  
   designate an official in his office to serve as a central point of      
   contact for persons seeking information about how and where to respond  
   to contract solicitations, procedures for being included on approved    
   suppliers lists, and other contracting information.                     
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would require the Secretary
   of Defense to develop a plan for improving the responsiveness of the    
   Department of Defense to persons from the general public and small      
   businesses seeking information on contracting and technology development
   opportunities with the Department of Defense. Such plan is to include an
   assessment of the designation of a single point of contact within the   
   Office of the Secretary of Defense for that purpose.                    
                      Two-year extension of crediting of certain purchases toward  
           meeting subcontracting goals (sec. 835)                                 
       The conferees agree to include a provision that would extend for an 
   additional two years the authority to credit purchases from qualified   
   nonprofit agencies for the blind or other severely handicapped toward   
   meeting subcontracting goals of defense contractors.                    
                                  SUBTITLE D--OTHER MATTERS                       
           Repeal of certain acquisition requirements and reports (sec. 841)       
       The House bill contained a provision (sec. 821) that would repeal a 
   number of miscellaneous acquisition reporting requirements.             
    The Senate amendment contained similar repeals (secs. 801 and 833).    
       The Senate recedes with an amendment that would combine certain     
   elements from both provisions.                                          
                      Use of major range and test facility installations by        
           commercial entities (sec. 842)                                          
       The House bill contained a provision (sec. 822) that would amend    
   section 2681 of title 10, United States Code, to delay for two years the
   expiration of existing authority allowing the Department of Defense test
   and evaluation facilities to make excess capacity available to the      
   commercial sector.                                                      
       The Senate amendment contained a similar provision (sec. 232) that  
   would delay the expiration of the authority in section 2681 for three   
   years.                                                                  
       The House recedes with an amendment that would delay the expiration 
   of the authority for four years.                                        
                      Requirement to develop and maintain list of firms not        
           eligible for defense contracts (sec. 843)                               
       The House bill contained a provision (sec. 823) that would amend    
   section 2327 of title 10, United States Code, to require the Secretary  
   of Defense to develop and maintain a list of all firms and subsidiaries 
   of firms that, for the preceding five years, have been prohibited from  
   entering into contracts with the Department of Defense because of       
   substantial ownership by a foreign government supporting acts of        
   international terrorism. The House provision would also prohibit defense
   contractors from providing any equipment, parts, or services to the     
   Department of Defense from such listed firms.                           
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would allow individuals to
   request the Secretary of Defense to have firms included on the list. The
   provision would also exclude listed firms from receiving subcontracts   
   under contracts with the Department of Defense in a manner similar to   
   firms that are suspended or debarred under subpart 9.4 of the Federal   
   Acquisition Regulation.                                                 
                      Sense of Congress regarding allowability of costs of employee
           stock ownership plans (sec. 844)                                        
       The House bill contained a provision (sec. 824) that would prohibit 
   the Secretary of Defense from making a determination of the allowability
   of costs of employee stock ownership plans (ESOP), in accordance with a 
   rule that had been proposed and withdrawn in prior years.               
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would express the sense of
   Congress that the Defense Contract Audit Agency (DCAA) should not       
   disallow interest costs associated with ESOPs incurred before January 1,
   1994. It also states that the Department of Defense should not disallow 
   costs related to ESOP debt, control premiums, or marketability discounts
   associated with the valuation of ESOP stock of closely held companies   
   that were incurred before January 1, 1995.                              
       The conferees have been informed that retroactive application of    
   changes to DCAA policy on these issues could have severe economic       
   consequences for ESOP defense contractors. Therefore, the conferees have
   included a provision that would address retroactivity. The provision is 
   not intended to pass judgment on the changes. The conferees do not      
   intend that the provision supercede any agreement that a contractor may 
   have entered into with the Department of Defense that provides for a    
   different treatment of ESOP costs.                                      
       The conferees understand that a number of other federal agencies may
   have an interest in the accounting rules applicable to ESOP costs. The  
   conferees direct the Secretary to consult with the Office of Management 
   and Budget, the General Accounting Office, and accounting experts in    
   such other federal agencies to determine whether a consistent,          
   government-wide approach to the relevant accounting and policy issues   
   can be developed. Any interagency process addressing these issues should
   provide for public comment.                                             
                      Expansion of personnel eligible to participate in            
           demonstration project relating to acquisition workforce (sec. 845)      
       The House bill contained a provision (sec. 825) that would expand   
   the personnel eligible to participate in the workforce demonstration    
   project authorized in section 4308 of the National Defense Authorization
   Act for Fiscal Year 1996 (Public Law 104 106).                          
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would limit to 95,000 the 
   total number of persons who may participate in the demonstration        
   project.                                                                
                      Time for submission of annual report relating to Buy American
           Act (sec. 846)                                                          
       The House bill contained a provision (sec. 826) that would reduce   
   the time for the Department of Defense to prepare and submit the annual 
   report relating to the Buy American Act required under section 827 of   
   the National Defense Authorization Act for Fiscal Year 1997 from 120 to 
   60 days after the end of each fiscal year.                              
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require a report 90 
   days after the end of each fiscal year.                                 
                      Repeal of requirement for contractor guarantees on major     
           weapon systems (sec. 847)                                               
       The House bill contained a provision (sec. 1503) that would repeal  
   section 2403 of title 10, United States Code, requiring the Secretary of
   Defense to obtain contractor guarantees on major weapon systems         
   contracts.                                                              
    The Senate amendment contained a provision (sec. 811) that would       
                    modify the requirements in section 2403 to provide flexibility
          to the Secretary of Defense and the secretaries of the military services
          to decide the appropriate use of such contractor guarantees.            
    The Senate recedes.                                                    
       The conferees direct the Secretary of Defense to issue regulations  
   to ensure that program managers actively and thoroughly examine the     
   value and utility of contractor guarantees on major systems and pursue  
   such guarantees where appropriate and cost effective.                   
           Requirements relating to micro-purchases (sec. 848)                     
       The House bill contained a provision (sec. 1504) that would require 
   the use of micro-purchase methods for contracts below the micro-purchase
   threshold unless a member of the Senior Executive Service or a general  
   or flag officer makes a written determination that such procedures      
   should not apply for specified reasons.                                 
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the         
   Secretary of Defense to ensure that 60 percent of all eligible purchases
   of goods or services for an amount less than the micro-purchase         
   threshold will be made through streamlined micro-purchase procedures by 
   October 1, 1998 and that 90 percent of such purchases be made through   
   streamlined procedures by October 1, 2000. The provision would require  
   the Secretary of Defense to define ``eligible purchases'' for the       
   purposes of this requirement and to exclude those categories of         
   purchases determined not to be appropriate or practicable for           
   streamlined micro-purchase procedures. The provision would also require 
   the Secretary of Defense to provide a plan implementing the requirements
   under this section by March 1, 1998, and to annually report through     
   March 1, 2001 on procurement actions by the Department of Defense for   
   amounts less than the micro-purchase threshold.                         
           Promotion rate for officers in an acquisition corps (sec. 849)          
       The Senate amendment contained a provision (sec. 843) that would    
   require the Under Secretary of Defense for Acquisition and Technology to
   report annually through October 1, 2000 on the extent to which each     
   military service is complying with promotion opportunity requirement in 
   section 1731(b) of title 10, United States Code.                        
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Use of electronic commerce in federal procurement (sec. 850)            
       The Senate amendment contained a provision (sec. 844) that would    
   allow federal agencies greater flexibility in implementing uniformly the
   electronic commerce capability requirements in the Federal Acquisition  
   Streamlining Act of 1994.                                               
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would require the heads of 
   agencies to give due consideration to the use or partial use of existing
   electronic commerce systems, such as the Federal Acquisition Computer   
   Network (FACNET), before developing new systems using this authority.   
   The amendment would also require the Administrator for Federal          
   Procurement Policy to submit annual reports to the Congress detailing   
   progress made in implementing this section.                             
                      Conformance of policy on performance based management of     
           civilian acquisition programs with policy established for defense       
           acquisition programs (sec. 851)                                         
       The Senate amendment contained a provision (sec. 845) that would    
   conform the policy on performance based management of civilian          
   acquisition programs with the similar policy applicable to defense      
   acquisition programs under the Federal Acquisition Streamlining Act of  
   1994 (Public Law 103 355).                                              
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Modification of process requirements for the solutions-based 
           contracting pilot program (sec. 852)                                    
       The Senate amendment contained a provision (sec. 846) that would    
   amend the solutions-based contracting pilot program established in      
   section 5312 of the National Defense Authorization Act for Fiscal Year  
   1996 (Public Law 104 106).                                              
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Guidance and standards for defense acquisition workforce     
           training requirements (sec. 853)                                        
       The Senate amendment contained a provision (sec. 847) that would    
   extend for an additional two years the authority of the Department of   
   Defense to use alternative fulfillment standards for purposes of the    
   training requirements in the Defense Acquisition Workforce Improvement  
   Act (title XII of Public Law 101 510).                                  
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would direct the Secretary 
   of Defense to develop appropriate guidance and standards to ensure that 
   the Department will continue to contract out the training of acquisition
   personnel in appropriate cases while maintaining necessary control over 
   the content and quality of such training.                               
                      Study and report to Congress assessing dependence on foreign 
           sources for resistors and capacitors (sec. 854)                         
       The House bill contained a provision (sec. 1061) that would require 
   the Secretary of Defense to conduct a study of the capacitor and        
   resistor industries in the United States to determine the importance of 
   the industry to national security and the impact on the industry of the 
   removal of tariffs under the Information Technology Agreement.          
    The Senate amendment contained a similar provision (sec. 1048).        
    The House recedes with an amendment.                                   
       The conferees believe that, in preparing the study, the Secretary of
   Defense should consider industries involved with the development and    
   manufacture of the full spectrum of capacitors and resistors, including 
   fixed resistors, wirewound resistors, film resistors, solid tantalum    
   capacitors, multi-layer ceramic capacitors, wet tantalum capacitors,    
   disc ceramic capacitors, aluminum electrolytic capacitors, film         
   capacitors, and oil-filled capacitors.                                  
                      Department of Defense and Federal Prison Industries joint    
           study (sec. 855)                                                        
       The Senate amendment contained a provision (sec. 848) that would    
   require the Department of Defense (DOD) and Federal Prison Industries   
   (FPI) to jointly conduct a study of the existing procedures that govern 
   procurement transactions between DOD and FPI, and to make               
   recommendations to improve the efficiency and reduce the cost of such   
   transactions.                                                           
    The House bill contained no similar provision.                         
    The House recedes with a technical amendment.                          
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
           Domestic source limitation amendments                                   
       The House bill contained a provision (sec. 808) that would amend    
   section 2534 of title 10, United States Code, to add shipboard work     
   stations to the list of naval vessel components required to be procured 
   from domestic sources. The provision would also make permanent the      
   expired requirement to procure certain valves and machine tools from    
   domestic sources.                                                       
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Repeal of expiration of domestic source limitation for       
           certain naval vessel propellers                                         
       The House bill contained a provision (sec. 809) that would amend    
   section 2534 of title 10, United States Code, to make the existing      
   limitation on the procurement of naval vessel propellers permanent.     
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
           Availability of simplified procedures to commercial item procurements   
       The House bill contained a provision (sec. 1505) that would revise  
   the authority in section 2304 of title 10, United States Code, and in   
   section 303 of title 41, United States Code, to test simplified         
   procedures for commercial item procurements. The provision would allow  
   such test procedures to be used in cases where a contracting officer    
   reasonably expects that offers will include other than commercial items.
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
           Price preference for small and disadvantaged businesses                 
       The Senate amendment contained a provision (sec. 824) that would    
   condition the use of the 10 percent price preference in section 2323 of 
   title 10, United States Code, on the failure of the Department of       
   Defense to meet in the prior fiscal year the five percent goal specified
   in section 2323.                                                        
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The Senate conferees intend to review the need for continuing the   
   price preference authority during hearings next year and may include in 
   a future defense bill a provision similar to that contained in the      
   Senate amendment.                                                       
                TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT       
                               LEGISLATIVE PROVISIONS ADOPTED                     
           SUBTITLE A--DEPARTMENT OF DEFENSE POSITIONS AND ORGANIZATIONS AND OTHER
                                 GENERAL MATTERS                                  
                      Assistants to the Chairman of the Joint Chiefs of Staff for  
           National Guard Matters and for Reserve Matters (sec. 901)               
       The Senate amendment contained a provision (sec. 905) that would    
   establish the position of Senior Representative of the National Guard   
   Bureau in the grade of general and would add this position as a member  
   of the Joint Chiefs of Staff.                                           
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would establish two        
   positions on the Joint Staff. There would be an Assistant to the        
   Chairman of the Joint Chiefs of Staff for National Guard Matters and an 
   Assistant to the Chairman of the Joint Chiefs of Staff for Reserve      
   Matters. These positions would be established in the grade of major     
   general, or in the case of the Navy, rear admiral. The provision would  
   establish the term of office as two years and incumbents may be         
   reappointed for one additional term. In time of war, the term limit     
   would be suspended.                                                     
       The provision would establish a procedure for appointing the        
   Assistant to the Chairman of the Joint Chiefs of Staff for National     
   Guard Matters in which the Governors would recommend National Guard     
   officers to fill the position. The conferees appreciate the necessity   
   for the Governors to participate in the selection process for this      
   important position. The procedure for appointing the Assistant to the   
   Chairman of the Joint Chiefs of Staff for Reserve Matters requires the  
   secretaries of the military departments to recommend officers from their
   respective reserve force. As in the case of the National Guard, the     
   conferees believe that the participation of the secretaries of the      
   military departments is an essential element of the selection process   
   for the Assistant to the Chairman of the Joint Chiefs of Staff for      
   Reserve Matters.                                                        
       The conferees recognize that there currently is a Reserve           
   Mobilization Assistant position, filled by a National Guard major       
   general, assigned to the Office of the Director of the Joint Staff. The 
   conferees established the two new positions in lieu of the current      
   position to ensure that the Chairman and the Joint Staff have the       
   benefit of the best advice with regard to all the reserve forces, in    
   particular as it pertains to their unique capabilities and requirements.
       The conferees urge the Chairman of the Joint Chiefs of Staff to     
   ensure that these assistants have access to the Joint Staff and that    
   they are included in discussions pertaining to resource matters,        
   employment of National Guard or reserve forces, and war plans. The      
   conferees expect that the Secretary of Defense and the Chairman of the  
   Joint Chiefs will ensure that these assistants are able to participate, 
   at the appropriate level, in the Defense Resources Board.               
       The provision would also require that the Secretary of Defense, in  
   consultation with the Chairman, develop appropriate guidance to ensure  
   that the level of reserve component officer representation on the Joint 
   Staff is commensurate to the significant and important role assigned to 
   reserve components in the total force. The conferees are convinced that 
   reserve component officers are an excellent resource of expertise and   
   experience that would add a valuable perspective to the increasingly    
   complex mission of the Joint Staff.                                     
       The conferees note that the requirements of this provision are      
   intended to be implemented within the clearly established principles of 
   the Goldwater-Nichols Department of Defense Reorganization Act of 1986  
   (Public Law 99 433), which vests the Chairman with unequivocal control  
   over the selection and management of all officers assigned to the Joint 
   Staff. While the conferees find it appropriate to establish these two   
   positions to ensure that advice on reserve component matters provided to
   the Chairman is of the highest quality and value, in no way are these   
   positions intended to operate independently from or in conflict with the
   direction of the Chairman.                                              
       The common purpose of protecting U.S. national security interests   
   must remain the paramount concern for all components of the total force.
   The mission must not be undermined by continued feuding over resources, 
   bureaucratic standing, and attempts to enhance political equities. The  
   conferees are dismayed and frustrated with the animosity and mistrust   
   that exists between the Army and the National Guard. The conferees      
   expect the Secretary of Defense, the Secretary of the Army, and the     
   Chief of Staff of the Army to work with the Chief of the National Guard 
   Bureau and The Adjutants General to resolve the divisive sentiments and 
   suspicion that exists on both sides. The Secretary of Defense must      
   ensure that the Secretary of the Army does not treat the National Guard 
   in a cavalier manner, ignoring valid requirements and intentionally     
   under-resourcing the National Guard, with the assumption that Congress  
   will make up the shortfalls. The National Guard must work within the    
   existing systems and processes to ensure that National Guard units are  
   able to complement the active force and are ready to meet the wartime or
   contingency requirements they may be deployed to meet.                  
           Use of CINC Initiative Fund for force protection (sec. 902)             
       The Senate amendment contained a provision (sec. 903) that would    
   provide the commanders-in-chief (CINCs) with the authority to utilize   
   funding from the CINC Initiative Fund to provide for any force          
   protection requirements that emerge in their respective areas of        
   operation.                                                              
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Revision to required frequency for provision of policy       
           guidance for contingency plans (sec. 903)                               
       The House bill contained a provision (sec. 906) that would amend    
   section 113(g)(2) of title 10, United States Code, to permit policy     
   guidance for contingency plans to be given every two years or more      
   frequently, as needed, rather than annually.                            
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Annual justification for Department of Defense advisory      
           committees (sec. 904)                                                   
       The House bill contained a provision (sec. 1508) that would         
   terminate existing advisory committees, would prohibit any future       
   advisory committee, board, or commission, unless established in law, and
   would require the Secretary of Defense to submit an annual report       
   justifying any advisory committee the Secretary proposes to support in  
   the next fiscal year.                                                   
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the         
   Secretary of Defense to submit an annual report justifying any advisory 
   committee the Secretary proposes to support in the next fiscal year.    
           Defense Airborne Reconnaissance Office (sec. 905)                       
       The House bill contained a provision (sec. 907) that would terminate
   the Defense Airborne Reconnaissance Office (DARO) and transfer its      
   oversight responsibilities to the Defense Intelligence Agency (DIA).    
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would transfer the        
   airborne reconnaissance systems acquisition and program management      
   responsibilities from the DARO and the unmanned aerial vehicle joint    
   program office (UAV JPO) back to the military services and retains      
   Office of the Secretary of Defense (OSD)-level oversight                
   responsibilities for airborne reconnaissance architecture determination 
   and systems interface requirements within the DARO. The conferees direct
   the Secretary of Defense to ensure that the Task Force on Defense Reform
   makes specific recommendations for the distribution of authority to     
   carry out legitimate management oversight responsibilities for airborne 
   reconnaissance programs within the OSD and the UAV JPO. The conferees do
   not intend to make any changes within the cruise missile activities of  
   the UAV JPO. The conferees                                              
                    understand that a principal focus of the Task Force is        
          ensuring that program management-like responsibilities within OSD are   
          shifted to the Service or Defense Agencies. The conferees expect that   
          the Task Force recommendations will address this specific issue, as well
          as the appropriate organizational relationships for overseeing airborne 
          reconnaissance programs within OSD.                                     
       The conferees agree with the concerns that led to the House         
   provision. The congressional defense committees have repeatedly stated  
   concerns with respect to both manned and unmanned airborne              
   reconnaissance, yet there has been little improvement noted. The        
   conferees note the Hicks & Associates report, which recommends that the 
   OSD should focus ``exclusively on top leadership and management tasks,  
   assigning program management and execution tasks and lower priority     
   tasks elsewhere in DOD.'' This report goes on to say that ``OSD is a    
   staff and advisory component . . .'' that should divest itself of       
   hands-on management. The conferees agree.                               
       The conferees believe there is a very different environment with    
   respect to joint operations and developments in the Pentagon today than 
   existed when the Congress first directed creation of the DARO in 1993.  
   The changes include: strengthened oversight by the Joint Requirements   
   Oversight Council (JROC); the Chairman of the JROC (or the Director for 
   Force Structure, Resources, and Assessment) participation as a member of
   the Defense Acquisition Board, and the Defense Airborne Reconnaissance  
   Steering Committee to monitor joint reconnaissance issues. The conferees
   believe this senior oversight can provide sufficient direction, control,
   and monitoring of service efforts to ensure joint interoperability of   
   reconnaissance systems.                                                 
       The conferees also believe that there should be a coordinating      
   management function within OSD specifically charged with oversight of   
   service airborne reconnaissance systems and their development. Whatever 
   the final repository of the airborne reconnaissance management oversight
   function within the OSD organization, the conferees intend that the     
   responsibilities of the position be limited to coordinating budget      
   developments, ensuring adherence to standards and interoperability      
   requirements, and avoiding unnecessary duplication of effort. The       
   conferees believe that:                                                 
       (1) a streamlined DARO can provide the proper OSD management        
   oversight, coupled with the necessary JROC requirements direction, while
   devolving the authorities and responsibilities for equipping the        
   military forces to the services; and                                    
       (2) legitimate management oversight does not include either         
   controlling execution year obligation of operations and maintenance     
   funding, or acting as the acquisition agent for airborne reconnaissance 
   systems.                                                                
       The conferees direct the Secretary of Defense to provide the        
   Congress with a plan to implement the directed reorganization and       
   transfers of authority, based on the Task Force report, no later than   
   March 1, 1998. The conferees direct the Secretary to complete           
   implementation of the plan not later than September 30, 1998.           
           Termination of Armed Services Patent Advisory Board (sec. 906)          
       The House bill contained a provision (sec. 1506) that would         
   terminate the Armed Services Patent Advisory Board and transfer the     
   functions of the board to the Defense Technology Security               
   Administration.                                                         
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
       The conferees direct the Department of Defense to provide adequate  
   staff resources to the Defense Technology Security Agency to support the
   functions of the agency including those transferred from the Armed      
   Services Patent Advisory Board under this provision.                    
                      Coordination of Department of Defense criminal investigations
           and audits (sec. 907)                                                   
       The House bill contained a provision (sec. 1507) that would create  
   two new statutory boards in the Department of Defense: a Board on       
   Criminal Investigations, consisting of the Assistant Secretary of       
   Defense for Command, Control, Communications, and Intelligence and the  
   heads of the three military criminal investigative organizations; and a 
   Board on Audits, consisting of the Under Secretary of Defense           
   (Comptroller), the Auditors General of the military departments, and the
   Director of the Defense Contract Audit Agency. The Department of Defense
   Inspector General would be a nonvoting member of both boards. These     
   boards would be charged with providing for cooperation among the        
   military departments' criminal investigative and audit organizations to 
   avoid duplication of effort and maximize resources.                     
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the heads of
   the military departments' criminal investigative and auditing           
   organizations to take such actions as may be practicable to conserve    
   limited resources by sharing personnel, expertise, infrastructure,      
   training, equipment, software, and other resources. These officials are 
   to meet on a regular basis to determine the manner and extent to which  
   such resources will be shared. The Secretary of Defense shall submit, by
   December 31, 1997, a plan to maximize the resources available to these  
   organizations.                                                          
       This provision is not intended to affect the responsibility of the  
   Under Secretary of Defense (Comptroller); the Assistant Secretary of    
   Defense for Command, Control, Communications, and Intelligence; or the  
   secretaries of the military departments for determining resource        
   allocation and related policies for audit and investigative             
   organizations in the Department of Defense. In addition, it is not      
   intended to affect the existing authority of the Inspector General of   
   the Department of Defense regarding the coordination of audit and       
   investigative functions within the Department of Defense.               
                   SUBTITLE B--DEPARTMENT OF DEFENSE PERSONNEL MANAGEMENT         
                      Reduction in personnel assigned to management headquarters   
           and headquarters support activities (sec. 911)                          
       The House bill contained a provision (sec. 1301) that would require 
   the Secretary of Defense to reduce the number of personnel assigned to  
   management headquarters and headquarters support activities by 25       
   percent over four years.                                                
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require a 25 percent
   reduction in the number of personnel assigned to management headquarters
   and headquarters support activities over five years, would direct a five
   percent reduction in the number of personnel assigned to management     
   headquarters and headquarters support activities during fiscal year     
   1998, would direct a five percent reduction in the number of personnel  
   assigned to management headquarters and headquarters support activities 
   within the United States Transportation Command during fiscal year 1998,
   and would direct the Secretary of Defense to require the Task Force on  
   Defense Reform to include an examination of the missions, functions, and
   responsibilities of various headquarters activities and management      
   headquarters support activities and to submit a report on the results of
   the examination by the Task Force on Defense Reform to the Congress not 
   later than March 1, 1998.                                               
       The conferees intend that the reductions in the United States       
   Transportation Command made during fiscal year 1998 count towards the   
   aggregate Department-wide reduction of five percent.                    
           Additional reduction in defense acquisition workforce (sec. 912)        
       The House bill contained a provision (sec. 1302) that would mandate 
   a reduction in the size of the defense acquisition workforce by 124,000 
   individuals by October 1, 2001. The provision would require a phased    
   implementation of the reduction and include a requirement to reduce the 
   size of the workforce by 40,000 individuals in fiscal year 1998.        
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require a reduction 
   of 25,000 in the number of defense acquisition personnel positions in   
   fiscal year 1998. The provision would provide authority for the         
   Secretary of Defense to waive up to 15,000 of that number based on a    
   determination that a greater reduction would be inconsistent with       
   cost-effective management of the defense acquisition system to obtain   
   best value equipment and would adversely affect military readiness. The 
   provision would also require a report on the reduction in the number of 
   acquisition positions in the Department of Defense since 1989 and a     
   definition of the defense acquisition workforce that can be uniformly   
   applied throughout the Department of Defense. With regard to the        
   definition, the conferees are encouraged by the foundational analysis of
   the issue recently completed for the Department of Defense by an outside
   contractor.                                                             
       The provision would also require a review of acquisition            
   organizations and functions by both the Secretary of Defense and the    
   Task Force on Defense Reform. The conferees expect that these reviews   
   will be conducted in a thorough manner and that the reports by the      
   Secretary of Defense on these reviews will be submitted to Congress in a
   timely fashion.                                                         
                    SUBTITLE C--DEPARTMENT OF DEFENSE SCHOOLS AND CENTERS         
           Professional military education schools (sec. 921)                      
       The House bill contained a provision (sec. 902) that would modify   
   the definition of the National Defense University by adding the         
   Information Resources Management College, and would also clarify the    
   authority of the Secretary of Defense to hire professors, lecturers, and
   instructors for the Information Resources Management College.           
       The Senate amendment contained a provision (sec. 902) that would    
   designate the Information Resources Management College as a component of
   the National Defense University. The recommended provision would also   
   make a technical change to the name of the Institute for National       
   Strategic Study to read the Institute for National Strategic Studies,   
   and would include the Marine Corps University among professional        
   military education schools.                                             
       The House recedes with an amendment that would meld the two         
   provisions into one.                                                    
           Center for Hemispheric Defense Studies (sec. 922)                       
       The Senate amendment contained a provision (sec. 906) that would    
   include the Center for Hemispheric Defense Studies as a component of the
   National Defense University.                                            
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Correction to reference to George C. Marshall European Center
           for Security Studies (sec. 923)                                         
       The Senate amendment contained a provision (sec. 1106) that would   
   permit employees of the George C. Marshall European Center for Security 
   Studies to qualify for naturalization by waiving the permanent residency
   requirements.                                                           
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would provide employees of 
   the George C. Marshall European Center for Security Studies the same    
   status as was provided for employees of the United States Army Russian  
   Institute, the former name of the George C. Marshall Center. The        
   amendment would not waive the permanent residency requirements.         
               SUBTITLE D--DEPARTMENT OF DEFENSE INTELLIGENCE-RELATED MATTERS     
                      Transfer of certain military department programs from TIARA  
           budget aggregation (sec. 931)                                           
       The Senate amendment contained a provision (sec. 904) that would    
   transfer specified programs from the Tactical Intelligence and Related  
                    Activities (TIARA) aggregation to other accounts of the       
          military services.                                                      
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would: (1) retain the      
   directed TIARA program transfers as specified in the original Senate    
   provision; (2) require an assessment by the Secretary of Defense as to  
   the adequacy and currency of current criteria for judging which programs
   belong in the TIARA aggregation; and (3) provide the Secretary with     
   discretion to defer any directed transfer based on the outcome of his   
   assessment.                                                             
                      Report on coordination of access of commanders and deployed  
           units to intelligence collected and analyzed by the intelligence        
           community (sec. 932)                                                    
       The Senate amendment contained a provision (sec. 1061) that would   
   require the Secretary of Defense to report to the Congress regarding the
   specific steps taken or that are being taken to ensure adequate         
   coordination of operational intelligence support for combatant          
   commanders and deployed units.                                          
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Protection of imagery, imagery intelligence, and geospatial  
           information and data (sec. 933)                                         
       The Senate amendment contained a provision (sec. 1062) that would   
   amend sections 455 and 467 of title 10, United States Code, to clarify  
   the authority of the Secretary of Defense to permit selective releases  
   of geospatial information representing little military value while      
   protecting the most sensitive information.                              
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
           POW/MIA intelligence analysis (sec. 934)                                
       The Senate amendment contained a provision (sec. 1067) that would   
   direct the Director of Central Intelligence, in consultation with the   
   Secretary of Defense, to provide intelligence analytical support on     
   matter concerning missing persons to all departments and agencies of the
   Federal Government involved in such matters.                            
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
                      Limitation on operation and support funds for the Office of  
           the Secretary of Defense                                                
       The House bill contained a provision (sec. 901) that would reduce   
   the funding associated with the operation and support activities of the 
   Office of the Secretary of Defense (OSD) by twenty percent, and would   
   restrict the obligation of ten percent of funding authorized in fiscal  
   year 1998 until the Department conforms to the requirements of section  
   901 of the National Defense Authorization Act for Fiscal Year 1996      
   (Public Law 104 106) and section 904 of the National Defense            
   Authorization Act for Fiscal Year 1997 (Public Law 104 201).            
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees remain concerned with the Department's non-compliance 
   with section 901 of the National Defense Authorization Act for Fiscal   
   Year 1996 (Public Law 104 106) that requires a report on specific plans 
   for improving organizational efficiency and effectiveness of the Office 
   of the Secretary (OSD). In addition, the conferees note that OSD failed 
   to implement personnel reductions at a rate sufficient to achieve the   
   statutory requirement by October 1, 1997, as specified in section 903 of
   the National Defense Authorization Act for Fiscal Year 1997 (Public Law 
   104 201).                                                               
           Center for the Study of Chinese Military Affairs                        
       The House bill contained a provision (sec. 904) that would require  
   the Department of Defense to establish a Center for the Study of Chinese
   Military Affairs.                                                       
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
           White House Communications Agency                                       
       The House bill contained a provision (sec. 905) that would limit    
   funding for the White House Communications Agency (WHCA) to $55.0       
   million, an amount slightly below fiscal year 1997 levels.              
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees believe that Department of Defense funds for WHCA     
   should only be spent on telecommunication support for the President, and
   the Department should be reimbursed for non-telecommunication support   
   services.                                                               
       The WHCA is staffed with approximately eight civilians and 908      
   military personnel. Of those 908 military positions, 103 are for the    
   provision of non-telecommunications support services. The conferees     
   believe that there is little justification to provide                   
   non-telecommunications support services to the President with military  
   personnel assigned to WHCA. In an era when the administration is calling
   for further reductions in military end-strength, the conferees believe  
   that the military billets dedicated to non-telecommunications support   
   for WHCA could be better used elsewhere within the Department of Defense
   to perform missions that are truly in support of national defense. The  
   conferees believe that non-telecommunications support services provided 
   by WHCA can, and should, be provided by civilian personnel.             
       Furthermore, the conferees note that the WHCA budget incorrectly    
   included the WHCA procurement items in the Operation and Maintenance    
   (O&M) budget request. Therefore, the conferees agree to transfer the    
   $7.2 million for WHCA procurement from the O&M account to the           
          procurement account.                                                    
           Personnel reductions in the United States Transportation Command        
       The House bill contained a provision (sec. 1304) that would mandate 
   a 1,000 person reduction in the United States Transportation Command    
   during fiscal year 1998.                                                
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees note that another section of the conference agreement 
   directs a reduction in the number of personnel assigned to management   
   headquarters and headquarters support activities within the United      
   States Transportation Command of five percent during fiscal year 1998.  
           Commission on Defense Organization and Streamlining                     
       The House bill contained a series of provisions (sec. 1601 1609)    
   that would establish a Commission on Defense Organization and           
   Streamlining. The purpose of the commission would be to examine the     
   missions, functions, and responsibilities of the Office of the Secretary
   of Defense, the management headquarters and headquarters support        
   activities of the military departments and defense agencies, and the    
   various acquisition organizations of the Department of Defense; to      
   propose alternative organizational structures; and to identify areas of 
   duplication and recommend options to eliminate the duplications.        
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees note that other provisions of the conference agreement
   direct the Secretary of Defense to require a Task Force on Defense      
   Reform to examine the missions, functions, and responsibilities of the  
   Department's acquisition organizations and its various headquarters     
   activities and management headquarters support activities; and to submit
   reports on the results of the examinations by the Task Force to the     
   Congress in early 1998.                                                 
                      Principal duty of Assistant Secretary of Defense for Special 
           Operations and Low Intensity Conflict                                   
       The Senate amendment contained a provision (sec. 901) that would    
   revise the original legislation concerning the principal duty of the    
   Assistant Secretary of Defense for Special Operations and Low Intensity 
   Conflict to put the emphasis on the Assistant Secretary's supervision of
   the budgetary, development, and acquisition activities of the Commander 
   in Chief of the Special Operations Command.                             
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees are aware that the Secretary of Defense has           
   established a Task Force on Defense Reform that is, inter alia, focusing
   on the reform of the Office of the Secretary of Defense (OSD). In       
   another section, the conference agreement would require the Secretary of
   Defense to submit the Task Force's report with the comments and         
   recommendations of the Secretary of Defense to the Committee on Armed   
   Services of the Senate and the Committee on National Security of the    
   House of Representatives. The conferees believe that any changes to the 
   duties of senior OSD officials should take into account the             
   recommendations contained in that report.                               
                                TITLE X--GENERAL PROVISIONS                       
                        ITEMS OF SPECIAL INTEREST                        
           Global Positioning System alternate master control station              
       The Global Positioning System (GPS) has become or soon will be fully
   integrated into most facets of U.S. military planning and operational   
   capabilities. GPS has also been integrated significantly into civil and 
   commercial navigation planning. As such, the conferees recognize the    
   expanding importance of GPS as a national asset, one that is critical to
   U.S. national security and economic interests. The conferees are aware  
   of potential command and control vulnerabilities associated with the GPS
   master control station at Falcon Air Force Base, Colorado. The conferees
   understand that GPS is the only critical national satellite system that 
   does not have an adequate, separate, and secure backup control station. 
   The conferees believe that the Department of Defense and the Air Force  
   should pursue, as an urgent priority, a secure backup GPS system        
   operations facility that is geographically separate from the existing   
   facility.                                                               
       Therefore, the conferees direct the Secretary of the Air Force to   
   proceed in fiscal year 1998 with the development of an alternate master 
   control station at a location outside the Colorado Springs area. The    
   conferees expect this new alternate master control station to be        
   operational by fiscal year 2001. The conferees further direct the       
   Secretary of the Air Force to submit a report to the congressional      
   defense committees on this issue not later than February 15, 1998.      
                               LEGISLATIVE PROVISIONS ADOPTED                     
                                SUBTITLE A--FINANCIAL MATTERS                     
           Transfer authority (sec. 1001)                                          
       The House bill contained a provision (sec. 1001) that would permit  
   the transfer of $2.0 billion of amounts made available in Division A of 
   the bill for any fiscal year to any other authorization made available  
   in Division A upon determination by the Secretary of Defense that such a
   transfer would be in the national interest.                             
       The Senate amendment contained a similar provision (sec. 1001) that 
   would authorize the budget request level of $2.5 billion in transfer    
   authority.                                                              
    The Senate recedes.                                                    
           Incorporation of classified annex (sec. 1002)                           
       The House bill contained a provision (sec. 1002) that would         
   incorporate the classified annex prepared by the Committee on National  
   Security into this act.                                                 
    The Senate amendment contained no similar provision.                   
       The Senate recedes with a technical amendment providing that the    
   classified annex prepared by the committee of conference is incorporated
   into this act.                                                          
                      Authority for obligation of unauthorized fiscal year 1997    
           defense appropriations (sec. 1003)                                      
       The House bill contained a provision (sec. 1003) that would         
   authorize fiscal year 1997 programs that received appropriations but no 
   authorization.                                                          
    Senate amendment contained a similar provision (sec. 1002).            
    The Senate recedes.                                                    
                      Authorization of prior emergency supplemental appropriations 
           for fiscal year 1997 (sec. 1004)                                        
       The House bill contained a provision (sec. 1004) that would extend  
   authorization to those items appropriated by the fiscal year 1997       
   emergency supplemental appropriations legislation.                      
    The Senate amendment contained a similar provision (sec. 1003).        
    The House recedes.                                                     
           Increase in fiscal year 1996 transfer authority (sec. 1005)             
       The House bill contained a provision (sec. 1005) that would provide 
   an increase in authorization transfer authority provided by section 1001
   of the National Defense Authorization Act for Fiscal Year 1996.         
    The Senate amendment contained a similar provision (sec. 1004).        
    House recedes with a technical amendment.                              
           Revision of authority for Fisher House trust funds (sec. 1006)          
       The Senate amendment contained a provision (sec. 1006) that would   
   amend section 914 of the National Defense Authorization Act for Fiscal  
   Year 1996 (Public Law 104 106) to require the Secretary of the Air Force
   to deposit an appropriate amount of funds to establish the corpus of the
   Fisher House Trust Fund, Department of the Air Force.                   
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Flexibility in financing closure of certain outstanding      
           contracts for which a small final payment is due (sec. 1007)            
       The House bill contained a provision (sec. 1007) that would permit  
   the Secretary of Defense to establish an account to transfer funds into 
   for the purpose of making small final payments on certain outstanding   
   contracts for which funds appropriated for that purpose have expired.   
    The Senate amendment contained no similar provision.                   
       The Senate recedes with a technical amendment that clarifies that   
   the total amount of all transfers into the account may not exceed $1.0  
   million without additional congressional authority.                     
           Biennial financial management improvement plan (sec. 1008)              
       The Senate amendment contained a provision (sec. 1005) that would   
   require a strategic financial management plan within the Department of  
   Defense to determine goals for improving and reengineering the finance  
   and accounting functions.                                               
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would clarify the intent of
   the report.                                                             
                      Estimates and requests for procurement and military          
           construction for the reserve components (sec. 1009)                     
       The House bill contained a provision (sec. 122) that would require  
   the Secretary of Defense to submit an annual report to Congress that    
   describes the measures taken within the Department of Defense to ensure 
   that the reserve components are appropriately funded and lists the major
   weapons and items of equipment provided for these components. The       
   section would also require the Secretary of Defense to display in all   
   future years defense program updates the amounts programmed for the     
   procurement of equipment for the reserve components.                    
       The Senate amendment contained a provision (sec. 1008) that would   
   require the Department of Defense to specify estimated expenditures and 
   proposed appropriations for reserve component modernization at the same 
   level of detail as the active forces in the annexes provided with the   
   Future Years Defense Program (FYDP).                                    
    The House recedes.                                                     
                      Sense of Congress regarding funding for reserve component    
           modernization not requested in the President's budget (sec. 1010)       
       The Senate amendment contained a provision (sec. 1059) that would   
   require the Congress, to the extent practicable, to consider            
   authorization of appropriation for reserve component modernization      
   activities not included in the budget request if certain criteria are   
   met:                                                                    
       (1) There is a Joint Requirements Oversight Council validated       
   requirement for the equipment;                                          
       (2) The equipment is included for reserve component modernization in
   the modernization plan of the military department concerned and is      
   incorporated into the future years defense program;                     
       (3) The equipment is consistent with the use of reserve component   
   forces; and                                                             
     (4) The funds can be obligated in the fiscal year.                    
       The provision also calls for Congress to obtain the views of the    
   Chairman, Joint Chiefs of Staff on whether equipment not included in    
                    the budget request is appropriate for the employment of       
          reserve component forces in Department of Defense warfighting plans.    
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Management of working-capital funds (sec. 1011)                         
       The Senate amendment contained a provision (sec. 370) that would    
   modify section 2208 of title 10, United States Code, the authority under
   which the working capital funds are now being managed, to make contract 
   authority available for obtaining capital assets. The Senate amendment  
   also contained a provision (Sec. 361) that would limit the use of       
   advance billing and establish procedures to notify the congressional    
   defense committees within 30 days of advance billings being posted to   
   the working capital funds.                                              
    The House bill contained no similar provisions.                        
       The House recedes with an amendment that would continue to restrict 
   the Department of the Navy and establish procedures for the Department  
   of Defense to notify the congressional defense committees in a timely   
   manner when advance billing occurs. The conferees are concerned that    
   excessive advance billing has continued, despite congressional guidance 
   and initiatives to limit the practice. Advance billing has become a     
   normal operating practice rather than an unusual exception. In the case 
   of Navy Working Capital Funds, advance billing is continually used      
   without any plans for significant reductions. Failure to properly budget
   for these activities and allowing these activities to operate by deficit
   spending each year is not consistent with good business practices and   
   puts the future force readiness at risk.                                
       The conferees further agree that the removal of activities from the 
   working capital funds, use of direct appropriations to fund these       
   activities, or allowing working capital activities to change rates in   
   the year of execution are not viable solutions to problems in the       
   working capital funds. Proper budgeting and the use of full costing     
   policies allow for the proper financial management of working capital   
   fund activities.                                                        
                      Authority of Secretary of Defense to settle claims relating  
           to pay, allowances, and other benefits (sec. 1012)                      
       The Senate amendment contained a provision (sec. 1060) that would   
   provide the Secretary of Defense authority, upon request of a secretary 
   of a military department, to waive the time limits in the case of a     
   claim for pay and allowances up to a maximum of $25,000. The recommended
   provision that would modify and clarify the authority granted by section
   607 of the National Defense Authorization Act for Fiscal Year 1997 to   
   ensure that the Department of Defense has adequate authority to address 
   these claims.                                                           
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Payment of claims by members for loss of personal property   
           due to flooding in Red River Basin (sec. 1013)                          
       The Senate amendment contained a provision (sec. 1081) that would   
   authorize the secretary of a military department to pay claims for loss 
   and damage to personal property suffered as a direct result of the      
   flooding in the Red River Basin during April and May 1997.              
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would add a requirement    
   that the Secretary of Defense report to the Congress on the Department's
   policy regarding the payment of claims for loss or damage to personal   
   property as a result of a natural disaster by members of the armed      
   forces who are not assigned to quarters of the United States.           
           Advances for payment of public services (sec. 1014)                     
       The House bill contained a provision (sec. 1509) that would allow   
   the Department of Defense to pay utility expenses on a budget billing   
   basis.                                                                  
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           United States Man and the Biosphere Program limitation (sec. 1015)      
       The House bill contained a provision (sec. 1008) that would prohibit
   the use of funds appropriated for fiscal year 1998 to support the United
   States Man and the Biosphere Program or any related project.            
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a technical amendment.                         
                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                
                      Procedures for sale of vessels stricken from the Naval Vessel
           Register (sec. 1021)                                                    
       The Senate amendment contained a provision (sec. 1012) that would   
   authorize the sale of vessels stricken from the Naval Vessel Register   
   using negotiation as an alternative to the sealed-bid process. This     
   authority would allow such issues as environmental concerns to be       
   addressed more effectively in the process of the sale.                  
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Authority to enter into a long-term charter for a vessel in  
           support of the Surveillance Towed-Array Sensor (SURTASS) program (sec.  
           1022)                                                                   
       The House bill contained a provision (sec. 1022) that would         
   authorize the Secretary of the Navy to enter into a contract in         
   accordance with section 2401 of title 10, United States Code, for the   
   charter of the vessel RV CORY CHOUEST through fiscal year 2003 in       
   support of the SURTASS program.                                         
       The Senate amendment contained a provision (sec. 1011) that would   
   authorize the Navy to enter into a long-term lease for a vessel to      
   support the surveillance towed array sensor and low frequency active    
   programs through fiscal year 2004.                                      
    The Senate recedes.                                                    
           Transfer of two specified obsolete tugboats of the Army (sec. 1023)     
       The House bill contained a provision (sec. 1023) that would allow   
   the Secretary of the Army to transfer two obsolete tugboats to the      
   Brownsville Navigation District, Brownsville, Texas.                    
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Congressional review period with respect to transfer of the  
           ex-U.S.S. Midway (CV 41) and ex-U.S.S. Hornet (CV 12) (sec. 1024)       
       The House bill contained a provision (sec. 1025) that would allow   
   for a 30 calendar day congressional review period with respect to the   
   transfer of the decommissioned aircraft carrier ex-U.S.S. Midway (CV    
   41).                                                                    
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would substitute 30 days  
   for 60 days of continuous session of Congress when applying section 7603
   of title 10 to ex-U.S.S. Midway (CV 41) and ex-U.S.S. Hornet (CV 12). If
   only one qualified entity applies for transfer of ex-U.S.S. Midway (CV  
   41) or ex-U.S.S. Hornet (CV 12), the amendment would also allow the     
   Secretary of the Navy to transfer the vessel after 10 days of continuous
   session of Congress                                                     
           Transfers of naval vessels to certain foreign countries (sec. 1025)     
       The Senate amendment contained a provision (sec. 1013) that would   
   transfer on a sale basis one Hunley class submarine tender, one Kaiser  
   class oiler, seven Knox class frigates, two Oliver Hazard Perry class   
   guided missile frigates, and three Newport class tank landing ships to  
   various countries.                                                      
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Reports relating to export of vessels that may contain       
           polychlorinated biphenyls (sec. 1026)                                   
       The House bill contained a provision (sec. 1021) that would amend   
   three sections of the United States Code in order to permit the sale of 
   obsolete vessels that contain polychlorinated biphenyl compounds:       
   section 7305 of title 10, to eliminate Toxic Substances Control Act     
   restrictions on export of vessels for disposal; section 7306a of title  
   10, to provide that a sinking of a military vessel does not qualify as a
   prohibited export or disposal under Toxic Substances Control Act; and   
   section 1160 of title 46 App., to resume the practice of selling ships  
   in approved foreign markets under the Merchant Marine Act of 1936.      
       The Toxic Substances Control Act (TSCA) (15 U.S.C. 1605(e))         
   prohibits the manufacture, processing, use, or distribution in commerce 
   of polychlorinated biphenyls (PCBs) that are not ``totally enclosed.''  
   The term ``totally enclosed'' means any manner that ensures             
   ``insignificant'' human health and environmental exposures to PCBs, as  
   determined by the Environmental Protection Agency (EPA). TSCA directed  
   the EPA to promulgate rules for the disposal of PCBs. In vessels        
   identified for sale, scrap, transfer, or sinking, the Navy has          
   discovered minute quantities of PCBs that the Navy has concluded are    
   bound and non-leachable. The existing EPA regulations make it difficult 
   for the Navy and the Maritime Administration to dispose of these        
   vessels.                                                                
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the         
   Secretary of the Navy, the Administrator of the Maritime Administration,
   and the Administrator of the EPA to report to Congress on the           
   implementation of an agreement that has been reached between the Navy   
   and the EPA on PCB vessel disposal issues. The conferees understand that
   this agreement is in effect and is not contingent upon a new rule to be 
   published later this year, which will incorporate the agreement between 
   the Navy and EPA. The amendment would also make technical modifications 
   to the provisions of the National Maritime Heritage Act of 1994 (16     
   U.S.C. 5405) that address the scrapping and sale of obsolete vessels.   
       The conferees understand that the purpose of section 9 of the       
   Shipping Act of 1916 (46 U.S.C. App. 808) is to enable the Maritime     
   Administration to manage the fleet of privately-owned United States-flag
   commercial vessels capable of meeting national security needs and not to
   enforce the environmental laws. The conferees expect that any agreement 
   between the Maritime Administration and the EPA concerning the export of
   such vessels for scrapping outside the United States will respect the   
   role of the Maritime Administration by not requiring it to play any     
   greater role in the enforcement of the environmental laws than it       
   currently plays. The conferees acknowledge that it may be appropriate   
   for the Maritime Administration to inform the EPA of export applications
   received pursuant to section 9(c) of the Shipping Act of 1916 (46 U.S.C.
   App. 808(3)).                                                           
       The provisions concerning the Maritime Administration, the disposal 
   of National Defense Reserve Fleet vessels, and the National Maritime    
   Heritage Act (16 U.S.C. 5404) were resolved through consultations among 
   the House and Senate conferees, the Committees on Commerce, Science, and
   Transportation of the Senate, and the Committees on Commerce,           
   Transportation and Infrastructure, and Resources of the House of        
   Representatives.                                                        
                      Conversion of defense capability preservation authority to   
           Navy shipbuilding capability preservation authority (sec. 1027)         
       The Senate amendment contained a provision (sec. 806) that would    
   amend section 808 of the National Defense Authorization Act for Fiscal  
   Year 1996 to restrict its application to shipbuilding and to vest the   
   Secretary of the Navy with the authority to enter into modified         
   capability preservation agreements. The provision would also limit      
                    applicability of the agreements to costs incurred after the   
          date of enactment of this Act for commercial contracts that became      
          effective on or after January 26, 1996.                                 
    The House bill contained no similar provision.                         
    The House recedes with a technical amendment.                          
                             SUBTITLE C--COUNTER-DRUG ACTIVITIES                  
       The budget request for drug interdiction and other counter-drug     
   activities of the Department of Defense totals $808.6 million. That     
   amount includes the $652.6 million in the drug interdiction account and 
   $156.0 million in the operating budgets of the military services for    
   authorized counter-drug operations. These amounts compare with the      
   $957.4 million authorized for these activities during fiscal year 1997; 
   $796.5 million for the drug interdiction account and $160.9 million in  
   the services' operating budgets. The reduction of $148.8 million equates
   to a real decline of 17.5 percent after accounting for inflation. The   
   conferees recommend an additional $14.3 million for the counter-drug    
   activities of the Department of Defense.                                
Drug Interdiction & Counter-drug Activities Operations and Maintenance  
          (In thousands of dollars; may not add due to rounding)                  
          Fiscal Year 1998 Drug and Counterdrug Request                $808,588
          Source Nation Support                183,031
          Detection and Monitoring                238,149
          Disruption of Drug Mafia Organizations                54,306
          Law Enforcement Agency                249,864
          Demand Reduction               83,238
    Increases:                                                             
          Riverine Interdiction Initiative                $4,200
          Gulf States Counterdrug Initiative                4,100
          Multi-Jurisdictional Task Force                1,000
          Southwest Border Fence Project                5,000
          Recommendation                 $822,888
           Ongoing initiatives                                                     
       In fiscal year 1997, the Congress authorized additional funding for 
   three counter-drug initiatives: the Mexico-Southwest Border Initiative; 
   the Caribbean and South American Initiative; and the Domestic           
   Counter-Narcotics Initiative. These initiatives were intended to provide
   enhanced capabilities to stem the flow of drugs into the United States  
   and disrupt narcotics operations within our own borders.                
       Although, the conferees are pleased with the initial progress that  
   has been made with these initiatives, the conferees are concerned about 
   the early difficulties in fulfilling some of the goals of the           
   Mexico-Southwest Border Initiative. Due to the delay caused by these    
   difficulties, the administration has requested an extension of the      
   authority to provide assistance to the Government of Mexico. That       
   authority was originally provided for a single year with the            
   understanding that future support would be provided from funds available
   to the Department of State pursuant to the Foreign Assistance Act of    
   1961. Unfortunately, the administration failed to provide the necessary 
   funds within the fiscal year 1998 budget request of the Department of   
   State. If it is the intent of the administration to turn such           
   international counter-drug activities of the United States over to the  
   Department of Defense for execution, the conferees believe that this    
   intent should be demonstrated within the budget request by shifting     
   funds from the State Department's counternarcotics budget to that of the
   Department of Defense. However, because the conferees understand the    
   value of this particular assistance and the need to explore all         
   available options to stem the flow of drugs across the Southwest border,
   the conferees agree to a provision (sec. 1032), that would extend for   
   one year the authority to provide additional support for counter-drug   
   activities of the government of Mexico. The total amount of support     
   provided pursuant to this authority would be limited to $8.0 million for
   the two year period from fiscal year 1997 to 1998. In providing this    
   support, the Secretary of Defense would be required to consult with the 
   Secretary of State.                                                     
       The conferees continue to support the Gulf States Counter-drug      
   Initiative (GSCI) and are pleased to note that the budget request       
   included $3.4 million for this program. However, the conferees are      
   concerned that this funding level does not adequately cover the costs   
   for required software maintenance, training, and network support.       
   Therefore, the conferees agree to authorize an increase of $4.1 million 
   to fund these activities.                                               
       The conferees agree to authorize an additional $1.0 million for the 
   Multi-Jurisdictional Task Force and an additional $5.0 million for      
   border fence construction.                                              
           Riverine interdiction initiative                                        
       The conferees agree to authorize an increase of $4.2 million to the 
   Department's counterdrug program for riverine operations and include a  
   provision (sec. 1033), that would grant a five year authorization to the
   Secretary of Defense, in consultation with the Secretary of State, to   
   assist the Peruvian and Colombian governments with the acquisition of   
   the requisite equipment to actively engage riverine counter-drug        
   activities. The amount of support that could be provided pursuant to    
   this authority would be limited to $9.0 million in fiscal year 1998 and 
   $20.0 million during any of the fiscal years 1999 through 2002. Funds   
   would be restricted from initial obligation until 60 days after the     
   Secretary of Defense, in consultation with the Secretary of State,      
   submits a detailed riverine counter-drug plan to congressional defense  
   committees. The Secretary would also be required to submit any revisions
   to this plan before obligating any funds for this initiative in the     
   subsequent years.                                                       
       The conferees direct the Department of Defense, in coordination with
   other federal agencies involved in counter-narcotic activities, to      
   develop an integrated regional plan to establish a riverine program that
   can be sustained by the source nations at the end of the five-year      
   period. The Department would be required to provide the details of this 
   plan to the Committees on Armed Services and Foreign Relations          
                    of the Senate and the Committees on National Security and     
          International Relations of the House of Representatives before any      
          assistance is provided pursuant to this authority. This plan would      
          provide details as to how the riverine program fits into the overall    
          national drug strategy.                                                 
                      Use of National Guard for State drug interdiction and        
           counterdrug activities (sec. 1031)                                      
       The House bill contained a provision (sec. 1031) that would amend   
   section 112 of title 32, United States Code, to prohibit the use of     
   counter-drug funding for National Guard Civil-Military Activities.      
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would ensure that National
   Guard participation in counter-drug activities is directly related to   
   military training and readiness in accordance with section 2012(d) of   
   title 10, United States Code, and could support youth and charitable    
   organizations designated as eligible to receive such support by section 
   508 of title 32, United States Code. In addition, the provision would   
   direct the Secretary of Defense to submit an annual report to           
   congressional defense committees regarding the assistance provided, and 
   activities conducted, under State drug interdiction and counter-drug    
   activities plan.                                                        
                      Authority to provide additional support for counter-drug     
           activities of the Government of Mexico (sec. 1032)                      
       The Senate amendment contained a provision (sec. 1021) that would   
   extend for one year the authority to provide additional support for     
   counterdrug activities of the Government of Mexico.                     
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would extend for one year  
   the authority to provide additional support for counter-drug activities 
   of the Government of Mexico. The total amount of support provided       
   pursuant to this authority would be limited to $8.0 million for the two 
   year period from fiscal year 1997 to 1998. In providing this support,   
   the Secretary of Defense would be required to consult with the Secretary
   of State.                                                               
                      Authority to provide additional support for counter-drug     
           activities of Peru and Colombia (sec. 1033)                             
       The Senate amendment contained a provision (sec. 1022) which would  
   grant a five year authorization to the Secretary of Defense to assist   
   the Peruvian and Colombian governments with the acquisition of the      
   requisite equipment to actively engage in the Riverine Operations.      
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would grant a five year    
   authorization to the Secretary of Defense, in consultation with the     
   Secretary of State, to assist the Peruvian and Colombian governments    
   with the acquisition of the requisite equipment to actively engage      
   riverine counter-drug activities. The amount of support that could be   
   provided pursuant to this authority would be limited to $9.0 million in 
   fiscal year 1998 and $20.0 million during any of the fiscal years 1999  
   through 2002.                                                           
                      Annual report on development and deployment of narcotics     
           detection technology (sec. 1034)                                        
       The House bill contained a provision (sec. 1033) that would require 
   the Director of the Office of National Drug Control Policy to submit a  
   report to the Congress and the President regarding the development and  
   deployment of narcotics detection technologies by federal agencies.     
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                  SUBTITLE D--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS       
           Repeal of miscellaneous reporting requirements (sec. 1041)              
       The House bill contained a provision (sec. 1041) that would repeal  
   certain obsolete reporting requirements imposed upon the Department of  
   Defense.                                                                
    The Senate amendment contained a similar provision (sec. 1031).        
    The House recedes with an amendment.                                   
           Study of transfer of modular airborne fire fighting system (sec. 1042)  
       The House bill contained a provision (sec. 1063) that would require 
   the Secretary of Defense to consult with the Secretary of Agriculture   
   and submit a report that would evaluate the feasibility of transferring 
   jurisdiction over units of modular firefighting equipment from the      
   Department of Agriculture to the Department of Defense.                 
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Overseas infrastructure requirements (sec. 1043)                        
       The Senate amendment contained a provision (sec. 1036) that would   
   require the Secretary of Defense to provide a report to the Committee on
   Armed Services of the Senate and the National Security Committee of the 
   House of Representatives outlining the current and future forward-basing
   requirements of the Department of Defense along with the international  
   agreements necessary to provide these facilities.                       
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Additional matters for annual report on activities of the    
           General Accounting Office (sec. 1044)                                   
    The Senate amendment contained a provision (sec. 1040) that would      
                    require the General Accounting Office to include within its   
          annual report to Congress the amount of work performed at the request of
          members of Congress, the amount of work performed to fulfill a specific 
          legislative requirement, and the amount of work initiated by the        
          Comptroller General in performance of his general responsibilities.     
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Eye safety at small arms firing ranges (sec. 1045)                      
       The Senate amendment contained a provision (sec. 1041) that would   
   require the Secretary of Defense to conduct a study of eye safety at    
   small arms firing ranges, and report to the Congress on the development 
   of a protocol for reporting eye injuries incurred during small arms     
   firing activities.                                                      
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would change the date on   
   which the study is to begin.                                            
                      Reports on Department of Defense procedures for investigating
           military aviation accidents and for notifying and assisting families of 
           victims (sec. 1046)                                                     
       The Senate amendment contained a provision (sec. 1044) that would   
   require the Secretary of Defense to provide a series of reports to the  
   Congress related to investigations of military aviation accidents;      
   assistance provided to families of casualties; and a review of the      
   Federal Aviation Administration and the National Transportation Safety  
   Board procedures for providing information and assistance to families of
   casualties of non-military aviation accidents.                          
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
       The conferees believe that military families deserve the best       
   possible care, attention, and information, especially at a time of      
   tragic personal loss. Breakdowns in the implementation of the           
   established family notification procedures that are applicable in case  
   of armed forces and Department of Defense civilian personnel casualties 
   can cause significant distress and mistrust. The conferees believe that 
   Department of Defense representatives involved in casualty notifications
   should have the training and experience to provide meaningful           
   information about any investigations. The notification personnel should 
   have access to persons qualified to provide effective grief counseling. 
   Procedures for civilian family notification that have been adopted by   
   the Federal Aviation Administration and National Transportation Safety  
   Board might serve as a useful model for improvements to Department of   
   Defense procedures.                                                     
       The requirement for the report on aviation accident investigation   
   procedures is not intended to create the perception that the current    
   procedures are inadequate. Rather the requirement is an opportunity to  
   assess proposals to combine the two investigations into a single, public
   investigation process in order to clarify possible misconceptions or    
   misunderstandings related to the current Department of Defense          
   procedures. The conferees recognize that, although the Department of    
   Defense provides much needed logistical support, including              
   transportation and care of remains, survivor counseling, and other      
   benefits for tragedies like the crash of the C 130 aircraft on November 
   22, 1996, this support may be insufficient to meet the immediate        
   emotional and personal needs of affected family members. It is important
   that the flow of information to surviving family members be accurate and
   timely, and, to the extent possible, be provided to family members in   
   advance of media reports. Therefore, the conferees believe the          
   Department of Defense should give a high priority, to the extent        
   practicable, to providing family members with all relevant information  
   about an accident as soon as it becomes available, consistent with the  
   national security interests of the United States, and to allowing the   
   family members full access to any public hearings or public meetings    
   about the accident.                                                     
                          SUBTITLE E--MATTERS RELATING TO TERRORISM               
                      Oversight of counterterrorism and antiterrorism programs and 
           activities of the United States (sec. 1051)                             
       The House bill contained a provision (sec. 1064) that would direct  
   the Office of Management and Budget to establish a reporting system and 
   collect information from executive agencies on their counterterrorism   
   and antiterrorism programs, activities, budgets, and expenditures; to   
   provide a report on executive branch activities and programs from 1995  
   through 1997 and submit the information to Congress. The provision would
   also require an annual report to Congress on this information.          
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would modify the          
   requirement to report to Congress on executive branch activities and    
   programs from 1995 through 1997, and require an annual report on        
   prospective U.S. government counterterrorism and antiterrorism          
   activities, programs, budgets, and expenditures.                        
                      Report on policies and practices relating to the protection  
           of members of the armed forces abroad from terrorist attack (sec. 1052) 
       The House bill contained a provision (sec. 1043) that would require 
   the Secretary of Defense to report on antiterrorism activities and      
   programs of the Department of Defense, to include a description of the  
   various programs, deficiencies in the programs, and actions taken by the
   Secretary to improve implementation of those programs.                  
       The Senate amendment contained two provisions regarding the policies
   and practices of the Department of Defense (DOD) in protecting members  
   of the armed forces against terrorist attack; one provision (sec. 1043) 
   that would require the Secretary of Defense to submit a report to       
   Congress that would assess the policies and practices of the Department 
   to protect U.S. Armed Forces from terrorist attack and assess the       
   procedures for determining accountability in the chain of command in the
   event a terrorist                                                       
                    incident results in loss of life at a U.S. military facility  
          abroad; another provision (sec. 1053) that would direct the Secretary of
          Defense to take appropriate actions to ensure that units of the U.S.    
          Armed Forces engaged in peace operations have adequate troop protection 
          equipment for such operations.                                          
       The conferees agree to a single provision that would direct the     
   Secretary of Defense to take appropriate actions to ensure that U.S.    
   Armed Forces engaged in peace operations have the necessary equipment to
   adequately protect themselves; would direct the Secretary to designate a
   DOD official with responsibility for oversight of troop protection      
   equipment; would require the Secretary of Defense to submit a report to 
   Congress on antiterrorism programs and actions conducted by DOD, and the
   roles of the chain of command in providing force protection guidance and
   support to U.S. Armed Forces deployed overseas before and after the two 
   terrorist bombings against U.S. Armed Forces in Saudi Arabia in 1995 and
   1996.                                                                   
                      SUBTITLE F--MATTERS RELATING TO DEFENSE PROPERTY            
                      Lease of nonexcess personal property of the military         
           departments (sec. 1061)                                                 
       The House bill contained a provision (sec. 1058) that would require 
   the military departments to compete any lease in excess of one year for 
   personal property valued over $100,000 and notify the Congress 45 days  
   prior to entering into such a lease.                                    
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a technical amendment.                         
           Lease of nonexcess property of defense agencies (sec. 1062)             
       The Senate amendment contained a provision (sec. 842) that would    
   extend to the directors of defense agencies authority currently granted 
   to the service secretaries to lease nonexcess property under certain    
   circumstances.                                                          
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would incorporate portions 
   in the Senate provision regarding fair market value and competition     
   requirements for such lease agreements.                                 
                      Donation of excess chapel property to churches damaged or    
           destroyed by arson or other acts of terrorism (sec. 1063)               
       The Senate amendment contained a provision (sec. 1078) that would   
   allow the Department of Defense to donate excess Army chapel property to
   churches that were destroyed or damaged by an act of arson or terrorism.
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would expand the authority 
   to apply to all excess chapel property within the Department of Defense.
                      Authority of the Secretary of Defense concerning disposal of 
           assets under cooperative agreements on air defense in Central Europe    
           (sec. 1064)                                                             
       The Senate amendment contained a provision (sec. 1089) that would   
   provide authority for the Secretary of Defense, pursuant to amendments  
   to the European air defense agreements agreed to on December 6, 1983 and
   July 12, 1984, to provide defense articles owned and acquired by the    
   United States to the Federal Republic of Germany.                       
    The House bill contained no similar provision.                         
    The House recedes.                                                     
       The conferees note that pursuant to amendments to the European Air  
   Defense Agreements agreed to on December 6, 1983 and July 12, 1984, the 
   Patriot-Roland Cooperative Agreement (section 1007, Public Law 98 525,  
   and section 132, Public Law 99 83) enabled the United States and the    
   Federal Republic of Germany to enhance central European air defenses by 
   utilizing Patriot batteries and the Roland short range air defense      
   systems, which are owned by the United States but operated by the       
   Federal Republic of Germany.                                            
       Since January 1996, negotiations between the United States and the  
   Federal Republic of Germany have been underway to modify and extend the 
   current agreement. The Department of Defense (DOD) has informed the     
   conferees that the current proposal would allow the transfer of         
   ownership for 12 Patriot batteries and 27 Roland short range air defense
   systems to the Federal Republic of Germany in exchange for equitable    
   compensation. The DOD has further informed the conferees that modifying 
   the current agreements to provide for this transfer of ownership would  
   be an equitable solution with regard to the assets involved in the      
   original agreement, and would enable continued cooperation in the air   
   defense mission area. The conferees understand that legislation is      
   necessary to accomplish these transfers as the original agreements do   
   not provide the required transfer authority and this particular transfer
   would fall outside of the coverage of the more traditional authorities  
   contained in the Arms Export Control Act, 22 U.S.C. 2751.               
       The conferees direct the Secretary of Defense to provide a report to
   Congress on the status of the negotiations on the Patriot-Roland        
   Follow-On Implementing Agreement (FOIA). The conferees further direct   
   that prior to the transfer of title for any Patriot or Roland systems,  
   the Secretary of Defense shall provide the congressional defense        
   committees with a report on the financial and non-financial benefits to 
   the United States of the transfer of the equipment, the mission value of
   the FOIA compensation components, the terms of the equipment transfer   
   (including the use of mission value as compensation), the ability of the
   United States to meet its NATO obligations, and any potential obstacles 
   to the performance of FOIA missions.                                    
                      Sale of excess, obsolete, or unserviceable ammunition and    
           ammunition components (sec. 1065)                                       
       The Senate amendment contained a provision (sec. 365) that would    
   authorize the Secretary of the Army to competitively sell excess,       
   obsolete, or unserviceable ammunition and ammunition components to      
   licensed manufacturers that have the capability to modify, reclaim,     
                    transport, and either store or sell ammunition or ammunition  
          components. The ammunition or ammunition components purchased under this
          authority would be required to be demilitarized or used in such a way as
          the Secretary of the Army determines is consistent with the public      
          interest.                                                               
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would require all receipts 
   to be deposited into the Federal Treasury and would require an Army     
   Audit Agency report during the first three years on the effect of this  
   authorization.                                                          
           Transfer of B 17 aircraft to museum (sec. 1066)                         
       The Senate amendment contained a provision (sec. 1070) that would   
   authorize the Secretary of the Air Force to transfer the B 17 aircraft  
   known as Picadilly Lilly to the Planes of Fame Museum in Chino,         
   California. The provision would require that the plane be demilitarized 
   and that the cost of the demilitarization be paid by the museum.        
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
       The conferees note that the particular circumstances surrounding    
   this case, including the museum's possession of a bill of sale          
   transferring this plane from the Federal Government to the museum, are  
   unique and that this provision does not establish any precedent         
   regarding the transfer of aircraft.                                     
           Report on disposal of excess and surplus materials (sec. 1067)          
       The Senate amendment contained a provision (sec. 1038) that would   
   require the Secretary of Defense to submit a report to the Congress     
   outlining the actions required to ensure that the Department better     
   manages the Defense Reutilization and Marketing System so as to         
   eliminate, or at least minimize, the problems.                          
    The House bill contained no similar provision.                         
       The House recedes with a clarifying amendment that would incorporate
   the reporting requirements contained in the House report language       
   regarding this issue.                                                   
                                  SUBTITLE G--OTHER MATTERS                       
                      Authority for special agents of the Defense Criminal         
           Investigative Service to execute warrants and make arrests (sec. 1071)  
       The House bill contained a provision (sec. 1051) that would grant   
   the Secretary of Defense authority to authorize special agents of the   
   Defense Criminal Investigative Service (DCIS) to execute and serve      
   warrants and other process issued under the authority of the United     
   States, and to authorize them to make warrantless arrests in certain    
   situations. The authority of a special agent under this provision could 
   only be exercised in accordance with guidelines prescribed by the       
   Attorney General.                                                       
    The Senate amendment contained a similar provision (sec. 1065).        
    The Senate recedes with a clarifying amendment.                        
       Since the authority granted by this provision is to be exercised in 
   accordance with guidelines prescribed by the Inspector General of the   
   Department of Defense and approved by the Attorney General, proposed    
   guidelines should be submitted by the Inspector General to the Attorney 
   General as expeditiously as possible.                                   
                      Study of investigative practices of military criminal        
           investigative organizations relating to sex crimes (sec. 1072)          
       The House bill contained a provision (sec. 1052) that would require 
   the Secretary of Defense to commission from the National Academy of     
   Public Administration an independent study of the policies, procedures, 
   and practices of the military criminal investigative organizations in   
   investigating sex crimes and other criminal sexual misconduct in the    
   armed forces.                                                           
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Technical and clerical amendments (sec. 1073)                           
       The House bill contained a provision (sec. 1053) that would make    
   various technical and clerical amendments to existing law.              
       The Senate amendment contained a provision (sec. 556) that would    
   make a technical correction to a cross-reference in section 14317(d) of 
   title 10, United States Code.                                           
       The conferees agree to a provision that would incorporate portions  
   of these technical amendments.                                          
           Sustainment and operation of the Global Positioning System (sec.   1074)
       The Senate amendment contained a provision (sec. 1064) that would   
   endorse and enact into law the presidential policy on the sustainment   
   and operation of the Global Positioning System (GPS) issued in March    
   1996.                                                                   
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would provide that the     
   Interagency GPS Executive Board, established pursuant to the            
   presidential GPS policy, be the forum for interagency review of any     
   proposed international agreement on the civil use of GPS. The amendment 
   would also direct the Secretary of Defense not to accept any restriction
   on the GPS system proposed by the head of any other department or agency
   in the exercise of that official's regulatory authority that would      
   adversely affect the military potential of GPS.                         
                      Protection of safety-related information voluntarily provided
           by air carriers (sec. 1075)                                             
       The House bill contained a provision (sec. 1056) that would protect 
   from disclosure certain air safety information voluntarily submitted to 
   the Department of Defense by an air carrier providing charter air       
   transportation to the Department.                                       
    The Senate amendment contained a similar provision (sec. 1063).        
    The Senate recedes with an amendment.                                  
                      National Guard ChalleNGe Program to create opportunities for 
           civilian youth (sec. 1076)                                              
       The House bill contained a provision (sec. 1057) that would provide 
   the Secretary of Defense, acting through the Chief of the National Guard
   Bureau, authority to conduct a program known as the National Guard      
   ChalleNGe Program and would authorize the Department of Defense to      
   provide up to $50.0 million in funding to support the program. The      
   section would also limit the Department of Defense share of the costs of
   operating a program in each state to 75 percent in fiscal year          
   1998--with that share decreasing by 5 percent each year, to 60 percent  
   in fiscal year 2001. Finally, the section would increase by $30.0       
   million the $20.0 million included in the budget request. To pay for the
   increase, the committee would reallocate to the ChalleNGe program the   
   $15.0 million that it had intended to add to the Army National Guard    
   military personnel accounts for initial entry and military skill        
   training. In addition, the committee recommends a reduction in the      
   amounts requested in the President's budget for Army and Air National   
   Guard operations and maintenance funding by $7.5 million each.          
       The Senate amendment contained a provision (sec. 1052) that would   
   extend the authorization for the National Guard Civilian Youth          
   Opportunities Pilot Program until September 30, 1998. The provision     
   would limit the number of programs to 15, would limit the amount which  
   may be obligated in support of the program during fiscal year 1998 to   
   $20.0 million, and would require non-Federal funding to match the       
   Federal Government contribution to the program in each state.           
    The Senate recedes.                                                    
                      Disqualification from certain burial-related benefits for    
           persons convicted of capital crimes (sec. 1077)                         
       The House bill contained a provision (sec. 1060) that would prohibit
   the Secretary of Defense from providing military honors at the funeral  
   of a person who has been convicted of a crime under state or federal law
   for which death is a possible punishment and for which the person was   
   sentenced to death or life imprisonment without parole.                 
       The Senate amendment contained a provision (sec. 1076) that would   
   disqualify persons convicted of a capital offense under Federal law from
   burial in cemeteries administered by the Secretary of Defense and the   
   Secretary of Veterans Affairs and would prohibit such a person from     
   receiving other burial benefits prescribed by federal law.              
       The House recedes with an amendment that would incorporate the House
   provision and would prohibit a person convicted of a capital offense    
   from being buried in any cemetery administered by the Secretary of      
   Defense, as well as Arlington National Cemetery.                        
                      Restrictions on the use of human subjects for testing of     
           chemical or biological agents (sec. 1078)                               
       The Senate amendment contained a provision (sec. 1086) that would   
   prohibit the United States government from using human subjects for     
   chemical or biological tests or experiments. The provision would not    
   apply to research, tests, or experiments related to medical,            
   therapeutic, pharmaceutical, agricultural, and industrial activities, or
   research, tests, or experiments directly related to protection against  
   toxic chemicals, or to protection against chemical or biological agents,
   U.S. military purposes not related to the use of chemical weapons, and  
   law enforcement activities, including domestic riot control and the     
   imposition of capital punishment. The provision would also require the  
   Department of Defense to report to Congress annually on the conduct of  
   chemical and biological tests involving human subjects, with a          
   certification by the Secretary of Defense that informed consent was     
   obtained from each subject, prior to testing, and would repeal section  
   808 of the Department of Defense Appropriation Authorization Act for    
   Fiscal Year 1978 (50 U.S.C. 1520).                                      
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would prohibit the         
   Secretary of Defense, either directly or by contract, from conducting   
   tests or experiments using chemical or biological agents on human       
   subjects and would require the Secretary of Defense to report to        
   Congress thirty days prior to date that the Department of Defense       
   intends to conduct a chemical or biological test or experiment involving
   human subjects.                                                         
           Treatment of military flight operations (sec. 1079)                     
       The Senate amendment contained a provision (sec. 1072) that would   
   modify section 303(c) of title 49, United States Code, the Department of
   Transportation Act of 1966. Section 303(c) currently requires the       
   Department of Transportation to review transportation programs or       
   projects that use parks, refuges, or historic sites and to determine    
   that no alternative to the public land use is available and that harm to
   the public land is minimized. The Senate provision specifies that a     
   military airspace proposal for national security-related activities is  
   not a ``transportation program or project'' to which section 303(c)     
   applies.                                                                
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Naturalization of certain foreign nationals who serve        
           honorably in the Armed Forces during a period of conflict (sec. 1080)   
       The Senate amendment contained a provision (sec. 1073) that would   
   modify the Immigration and Naturalization Act, title 8, United States   
   Code, to permit foreign national service members who reenlist on board  
   U.S. public vessels to qualify for naturalization without regard to the 
   location of the vessel. The effective date of the provision would be    
   retroactive to cover those foreign nationals who reenlisted on board    
   U.S. vessels since January 1, 1990.                                     
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would remove a portion of  
   the Senate provision waiving certain provisions of the Immigration      
          Act of 1990 pertaining to processing applications for naturalization.   
                      Applicability of certain pay authorities to members of       
           specified independent study organizations (sec. 1081)                   
       The Senate amendment contained a provision (sec. 1069) that would   
   exempt retired federal employees and retired military personnel who have
   been appointed as members of the Commission on Servicemembers and       
   Veterans Transition Assistance from limitations pertaining to receiving 
   federal pay while concurrently receiving a federal retirement annuity.  
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would exempt retired       
   Federal employees and retired military personnel who have been appointed
   as members of the National Defense Panel as well as those appointed to  
   the Commission on Servicemembers and Veterans Transition Assistance.    
           Display of POW/MIA flag (sec. 1082)                                     
       The House bill contained a provision (sec. 1054) that would expand  
   the dates on which the POW/MIA flag must be flown, as well as the       
   locations where it must be flown on the prescribed dates. In addition,  
   the section would repeal existing law that terminates the requirement to
   display the POW/MIA flag upon the President's determination that the    
   fullest possible accounting has been made of all members of the armed   
   forces and civilian employees of the United States who have been        
   identified as prisoner of war or missing in action in Southeast Asia.   
    The Senate amendment contained a similar provision (sec. 1077).        
    The Senate recedes with a clarifying amendment.                        
                      Program to commemorate 50th anniversary of the Korean        
           conflict (sec. 1083)                                                    
       The House bill contained a provision (sec. 374) that would authorize
   the Secretary of Defense, to begin to plan, coordinate, and execute a   
   program to commemorate the 50th anniversary of the Marshall Plan and the
   Korean Conflict.                                                        
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would authorize the       
   Department of Defense to expend up to $100,000 for the planning,        
   coordination, and execution of a program to commemorate the 50th        
   anniversary of the Korean conflict.                                     
                      Commendation of members of the Armed Forces and Government   
           civilian personnel who served during the cold war; certificate of       
           recognition (sec. 1084)                                                 
       The House bill contained a provision (sec. 1059) that would         
   recognize the service and sacrifices of military and civilian personnel 
   who served during the Cold War era.                                     
       The Senate amendment contained a provision (sec. 536) that would    
   authorize the secretaries of the military departments to award a medal  
   to military personnel who served honorably during the Cold War era.     
       The Senate recedes with an amendment that would require the         
   Secretary of Defense to develop a certificate recognizing service during
   the Cold War era and to make the certificate available upon request by  
   qualified personnel.                                                    
                      Sense of Congress on granting of statutory Federal charters  
           (sec. 1085)                                                             
       The conferees agree to include a provision that would express the   
   sense of Congress that no statutory federal charter should be enacted   
   unless the charter is approved by the Congress upon a favorable report  
   by the committees of jurisdiction of the respective houses.             
           Sense of Congress regarding military voting rights (sec. 1086)          
       The Senate amendment contained three provisions (sec. 541 543) that 
   would establish a short title of ``Military Voting Rights Act of 1997'',
   amend the Soldiers' and Sailors' Civil Relief Act of 1940 to preclude a 
   military member from losing a claim to State residency for the purpose  
   of voting in federal and state elections because of absence due to      
   military orders, and amend the Uniformed and Overseas Citizens Absentee 
   Voting Act to require each State to permit absent military voters to use
   absentee registration procedures and to vote by absentee ballot in      
   elections for state and local offices, in addition to federal offices as
   provided in current law.                                                
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would substitute the sense 
   of Congress that would affirm the absolute right of military members to 
   vote in federal, state, and local elections; state that a military      
   member's extended absence from a place of residency or domicile due to  
   military orders would not be grounds for loss or change of residency or 
   domicile; and call for legislation to confirm the voting rights of      
   military personnel following a review of the need for legislation and   
   the impact of such legislation on the right of states to set voter      
   registration requirements.                                              
       The conferees are concerned that, in the absence of legislation that
   would guarantee military voting rights in state and local elections,    
   such rights are subject to challenge. Accordingly, the conferees direct 
   that the Secretary of Defense, in consultation with the Attorney        
   General, study the issue, determine the need for legislation, assess the
   consequences of such legislation for the right of states to set voter   
   registration requirements, and recommend a course of action for the     
   Congress, to include proposed legislation, if appropriate. The conferees
   direct that a report on the matters outlined above be submitted to the  
   Committee on Armed Services of the Senate and the Committee on National 
   Security of the House of Representatives not later than March 1, 1998.  
   The conferees anticipate that both Committees will hold hearings to     
   consider the need for such legislation in the coming year.              
                      Designation of Bob Hope as an honorary veteran of the Armed  
           Forces of the United States (sec. 1087)                                 
       The Senate amendment contained a provision (sec. 1074) that would   
   designate Mr. Bob Hope as an honorary veteran of the Armed Forces of the
   United States.                                                          
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
       The conferees recognize that Bob Hope has contributed many years of 
   service to enhancing the morale and welfare of members of the Armed     
   Forces of the United States. He has traveled to virtually every post,   
   camp, and station where military personnel are assigned overseas,       
   including those in war zones, bringing entertainment, laughter, cheer,  
   and a touch of home, sometimes at great personal risk.                  
    Thanks for the memories, Bob.                                          
           Five-year extension of aviation insurance program (sec. 1088)           
       The Senate amendment contained a provision (sec. 1071) that would   
   extend through September 30, 2002 the aviation insurance program        
   authorized in section 44310 of title 49, United States Code.            
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
           Naming of a DDG 51 class destroyer the U.S.S. Thomas F. Connolly        
       The House bill contained a provision (sec. 1024) that would express 
   the sense of Congress that the Secretary of the Navy should name one of 
   the ships of the DDG 51 class of destroyers the U.S.S. Thomas F.        
   Connolly in honor of Vice Admiral Connolly.                             
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Assignment of Department of Defense personnel to assist      
           immigration and naturalization service and custom service               
       The House bill contained a provision (sec. 1032) that would         
   authorize the Secretary of Defense to assign up to 10,000 U.S. military 
   personnel to assist the Immigration and Naturalization Service and the  
   U.S. Customs Service in their border enforcement duties at the request  
   of the Attorney General or the Secretary of the Treasury.               
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Repeal of annual report requirement relating to training of  
           special operations forces with friendly foreign forces                  
       The House bill contained a provision (sec. 1042) that would amend   
   section 2011 of title 10, United States Code, to repeal the requirement 
   that the Department of Defense prepare an annual report relating to     
   training of U.S. Special Operations Forces with the forces              
          of friendly foreign governments.                                        
    The Senate bill contained no similar provision.                        
    The House recedes.                                                     
           Armament retooling and manufacturing support initiative                 
       The House bill contained a provision (sec. 1065) that would expand  
   the purpose of the Armament Retooling and Manufacturing Support         
   Initiative to allow for the use of ammunition manufacturing facilities  
   by other entities for the purpose of modernization, development, and    
   restoration of the facilities. The authority would also allow the       
   government to enter into 99 year leases with private entities that want 
   to operate on these facilities.                                         
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Long-term charter contracts for acquisition of auxiliary     
           vessels for the Department of Defense                                   
       The House bill contained a provision (sec. 1501) that would         
   authorize the Secretary of the Navy to enter into long-term lease       
   agreements for the procurement of combat logistics force (CLF) ships.   
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Availability of certain fiscal year 1991 funds for payment of
           contract claim                                                          
       The Senate amendment contained a provision (sec. 1007) that would   
   authorize the Secretary of the Army to reimburse the Treasury judgment  
   fund out of a certain fiscal year 1991 appropriation for any judgment   
   against the United States that might be rendered in the case Appeal of  
   McDonnell Douglas Company, Number 48029, presently before the Armed     
   Services Board of Contract Appeals.                                     
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
           Psychotherapist-patient privilege in the Military Rules of Evidence     
       The Senate amendment contained a provision (sec. 1051) that would   
   require the Secretary of Defense to submit to the President, for        
   consideration for promulgation under article 36 of the Uniform Code of  
   Military Justice (10 U.S.C. 836), a recommended amendment to the        
   Military Rules of Evidence that would recognize a testimonial privilege 
   regarding disclosure by a psychotherapist of confidential communications
   with a patient. The privilege was to be applicable to patients who are  
   not subject to the Uniform Code of Military Justice and, upon a         
   determination by the Secretary of Defense, to individuals subject to the
   Code.                                                                   
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees note that the Department of Defense has already made  
   significant progress toward drafting a recommended amendment to the     
   Military Rules of Evidence incorporating the above-described privilege. 
   The conferees urge the Department of Defense to submit the proposed     
   amendment to the President at the earliest opportunity.                 
                      Acceptance and use of landing fees for use of overseas       
           military airfields by civil aircraft                                    
       The Senate amendment contained a provision (sec. 1055) that would   
   authorize a military service to accept and retain fees for the use of   
   foreign-based military airfields by civil aircraft.                     
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
                      Protection of employees from retaliation for certain         
           disclosures of classified information                                   
       The Senate amendment contained a provision (sec. 1068) that would   
   amend the Whistleblower Protection Act to protect certain government    
   employees from reprisal for disclosing classified information to certain
   members or employees of Congress in the course of providing evidence of 
   violations of law or other wrongdoing.                                  
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees note that existing law prohibits reprisals against    
   covered employees for disclosing information--whether classified or     
   not--to the Congress, if that information relates to violations of law  
   or regulation, gross mismanagement or waste, abuses of authority, or    
   dangers to public health or safety. The conferees direct the Secretary  
   of Defense to report to the Committee on Armed Services of the Senate   
   and the Committee on National Security of the House of Representatives  
   not later than March 1, 1998, on the following:                         
       (1) the mechanisms presently in law or regulation under which       
   federal or contractor employees may report violations of law, fraud,    
   waste, or abuse to the Congress or within the executive branch where    
   classified information is involved;                                     
       (2) the steps the Department of Defense has taken to ensure that    
   such employees are aware of those mechanisms; and                       
       (3) the protections in effect in law or regulation to ensure that   
   the employees who use these mechanisms are protected against reprisal.  
                      Criminal prohibition on the distribution of certain          
           information relating to explosives, destructive devices, and weapons of 
           mass destruction                                                        
       The Senate amendment contained a provision (sec. 1075) that would   
   amend section 842 of title 18, United States Code, to make it a crime   
   for a person to teach, demonstrate the making of explosives, destructive
   devices or weapons of mass destruction, or to distribute information on 
   the manufacture or use of explosives, destructive devices, and weapons  
   of mass destruction.                                                    
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
                      Restrictions on quantities of alcoholic beverages available  
           for personnel overseas through Department of Defense sources            
       The Senate amendment contained a provision (sec. 1090) that would   
   require the Secretary of Defense to prescribe regulations relative to   
   the quantity of alcoholic beverages that are available to service       
   members assigned overseas through the Department of Defense, including  
   alcoholic beverages available through nonappropriated fund              
   instrumentalities. The regulations would be required to be consistent   
   with the goal of preventing the blackmarket sale of American alcoholic  
   beverages at overseas locations.                                        
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees remain concerned about the problem of the blackmarket 
   resale of American products overseas, particularly alcoholic beverages  
   in countries such as Korea. However, the conferees understand that the  
   Department of the Army has taken administrative steps to reduce the     
   opportunities for black marketing of alcoholic beverages in Korea and   
   other overseas locations. Therefore, the conferees direct the Secretary 
   of Defense to submit to the Committee on Armed Services of the Senate   
   and the Committee on National Security of the House of Representatives a
   report that would describe the rules that govern the quantities of      
   alcoholic beverages available to service members overseas and the       
   administrative actions taken by each of the military departments to     
   control the illegal resale of alcoholic beverages at overseas military  
   installations. The report shall identify circumstances that contribute  
   to the problem of blackmarket resale of products sold in exchanges in   
   South Korea, and shall include an assessment of the extent to which     
   South Korean trade restrictions on beer and other products are a        
   contributing factor. The report should be submitted no later than March 
   31, 1998.                                                               
                     TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL           
                               LEGISLATIVE PROVISIONS ADOPTED                     
                      Use of prohibited constraints to manage Department of Defense
           personnel (sec. 1101)                                                   
       The Senate amendment contained a provision (sec. 1101) that would   
   require the secretaries of the military departments and heads of defense
   agencies to certify directly to the Committee on Armed Services of the  
   Senate and the Committee on National Security of the House of           
   Representatives that the civilian workforce under their jurisdiction is 
   not and has not during the preceding six months been the subject of any 
   constraint or limitation in terms of man years, full-time equivalent    
   positions, or maximum number of employees.                              
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would change the reporting 
   requirement to an annual report.                                        
                      Veterans' preference status for certain veterans who served  
           on active duty during the Persian Gulf War (sec. 1102)                  
       The House bill contained a provision (sec. 323) that would permit   
   veterans preference to be awarded to military personnel who served on   
   active duty during the Persian Gulf War.                                
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Repeal of deadline for placement consideration of            
           involuntarily separated military reserve technicians (sec. 1103)        
       The Senate amendment contained a provision (sec. 1104) that would   
   eliminate the time limitation within which involuntarily separated      
   military reserve technicians would be given priority placement          
   consideration.                                                          
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Rate of pay of Department of Defense overseas teachers upon  
           transfer to General Schedule position (sec. 1104)                       
       The House bill contained a provision (sec. 321) that would provide  
   the Secretary of Defense authority to adjust a Department of Defense    
   Dependents Schools educator's salary up to 20 percent when that person  
   is moved from a position under the Teaching Position (TP) pay system to 
   a position under the General Schedule (GS) pay system.                  
       The Senate amendment contained a provision (sec. 1105) that would   
   authorize the Secretary of Defense to prescribe regulations to control  
   the amount of salary increase awarded to certain overseas professional  
   educators who transfer from positions compensated under the ``Teaching  
   Pay'' system to positions compensated under the ``General Schedule'' pay
   system.                                                                 
       The House recedes with an amendment that would clarify the Senate   
   provision.                                                              
           Garnishment and involuntary allotment (sec. 1105)                       
       The Senate amendment contained a provision (sec. 1107) that would   
   restore the requirement that the cost of garnishment or involuntary     
   allotments be borne by the federal employee.                            
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Extension and revision of voluntary separation incentive pay 
           authority (sec. 1106)                                                   
       The Senate amendment contained a provision (sec. 1103) that would   
   extend the authority for the Voluntary Separation Incentive Pay Program 
   for the Department of Defense until September 30, 2001.                 
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Use of approved fire-safe accommodations by Government       
           employees on official business (sec. 1107)                              
       The House bill contained a provision (sec. 322) that would require  
   that each government agency ensure that not less than 90 percent of the 
   commercial-lodging room nights for employees of that agency be booked at
   approved accommodations and would require that each government agency   
   establish explicit procedures to meet this requirement.                 
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would retain the 90       
   percent standard; require the Federal Emergency Management Agency to    
   prepare an accurate fire-safe hotel list; and require the General       
   Services Administration to submit a one-time report on implementation of
   the requirements.                                                       
                      Navy higher education pilot program regarding administration 
           of business relationships between Government and private sector (sec.   
           1108)                                                                   
       The Senate amendment contained a provision (sec. 1108) that would   
   establish a pilot program of higher education at the Naval Undersea     
   Warfare Center and would authorize $2.5 million to be appropriated to   
   fund the program.                                                       
    The House bill contained no similar amendment.                         
       The House recedes with an amendment that would provide the Secretary
   of the Navy the authority to establish and fund a pilot program of      
   higher education available to employees of the Naval Undersea Warfare   
   Center, employees of the Naval Sea Systems Command, and employees of the
   Acquisition Center for Excellence of the Navy.                          
                      Authority for Marine Corps University to employ civilian     
           faculty members (sec. 1109)                                             
       The House bill contained a provision (sec. 903) that would authorize
   the Secretary of the Navy to employ civilian professors at any of the   
   seven colleges within the Marine Corps University whose principal course
   of instruction is 10-months or more long.                               
    The Senate amendment contained a similar provision (sec. 1102).        
    The Senate recedes with a clarifying amendment.                        
                        TITLE XII--MATTERS RELATING TO OTHER NATIONS              
                               LEGISLATIVE PROVISIONS ADOPTED                     
              SUBTITLE A--UNITED STATES ARMED FORCES IN BOSNIA AND HERZEGOVINA    
                      Limitation on the use of funds for the deployment of U.S.    
           forces in Bosnia beyond June 30, 1998 (secs. 1201 1206)                 
       The House bill contained provisions (secs. 1201, 1210 1212) on      
   Bosnia that would require the Secretary of Defense to submit a report to
   Congress identifying the non-military tasks performed by U.S. armed     
   forces participating in the NATO Stabilization Force (SFOR) in Bosnia;  
   would direct the President to report on the political and military      
   conditions in Bosnia and the costs associated with the continued        
   presence of U.S. armed forces in Bosnia, and would limit the expenditure
   of a portion of the fiscal year 1998 defense funds authorized and       
   appropriated for operations in Bosnia until such time as the report is  
   submitted to Congress. In addition, a provision in the House bill would 
   limit the use of fiscal year 1998 defense funds for the deployment of   
   U.S. armed forces in Bosnia after June 30, 1998.                        
       The Senate amendment contained a provision (sec. 1083) that would   
   express the sense of the Senate that U.S. ground combat forces should be
   withdrawn from Bosnia by June 30, 1998 and should not participate in a  
   follow-on force; that a Western European Union-led, or a NATO-led, force
   without U.S. ground combat forces are suitable for a follow-on force    
   after June 30; that, if necessary, the United States may appropriately  
   provide support, including command and control, intelligence, logistics 
   and, if required, a ready reserve force in the region; and that the     
   President should inform European allies of the views expressed by the   
   Congress, strongly urging them to take appropriate steps to prepare a   
   follow-on force to maintain peace in Bosnia, and consult with Congress  
   on any support provided by the United States to a WEU-led or NATO-led   
   follow-on force after June 30, 1998.                                    
       The conferees agree to a series of provisions that would express    
   findings of the Congress regarding the deployment of U.S. armed forces  
   in Bosnia and express the sense of Congress that a WEU-led or NATO-led  
   force without participation of U.S. ground combat forces may be suitable
   for a follow-on force to the SFOR, and that the United States may decide
   to provide appropriate support to such a follow-on force. Another       
   provision would limit the use of fiscal year 1998 funds authorized for  
   the Department of Defense after June 30, 1998 for the deployment of U.S.
   ground combat forces in Bosnia, unless the President certifies to the   
   Congress that the continued presence of U.S. ground combat forces is in 
   the national security interests, and that it will remain the policy of  
   the United States that U.S. ground forces will not be used as civil     
   police in Bosnia. Concurrent with this certification, the President     
   would be required to submit a report on the rationale for a continued   
   U.S. armed forces presence, the number of U.S. military personnel to be 
   deployed in and around Bosnia, the expected duration of the deployment, 
   the mission and objectives of the U.S. armed forces deployed in and     
   around Bosnia after June 30, 1998, the exit strategy and incremental    
   costs associated with the deployment of the U.S. military in and around 
   Bosnia after June 30, 1998, and other issues associated with extending  
   the presence of the U.S. military forces in and around Bosnia. In       
   addition, the conferees agree to a provision that would require the     
   President to submit concurrently with the certification and report, a   
   supplemental appropriations request for such amounts as are necessary to
   continue the deployment of U.S. military forces in and around Bosnia    
   after June 30, 1998.                                                    
    Another provision (sec. 1204) would require the Secretary of           
                    Defense to submit two reports to Congress regarding activities
          and tasks carried out by U.S. forces assigned to the Stabilization Force
          (SFOR), or any successor force to SFOR.                                 
       Lastly, the conferees agree to a provision (sec. 1205) that would   
   require the President to submit a report to Congress by February 1, 1998
   on the political and military conditions in Bosnia, that would include, 
   but not be limited to, an assessment of progress made in implementing   
   the Dayton Peace Agreement, other matters related to a follow-on force  
   to SFOR, the possible involvement of U.S. military forces supporting    
   peacekeeping activities in Bosnia following the withdrawal of U.S.      
   ground combat forces from Bosnia, and a detailed explanation and        
   timetable for withdrawing U.S. ground combat forces from Bosnia by June 
   30, 1998.                                                               
                  SUBTITLE B--EXPORT CONTROLS ON HIGH PERFORMANCE COMPUTERS       
           Export controls on high performance computers (secs. 1211 1215)         
       The House bill contained provisions (secs. 1231 1234) that would    
   express concerns about recent reports that United States-origin         
   supercomputers were obtained by countries of proliferation concern for  
   possible use in weapons-related activities and that these countries have
   refused to allow the United States to conduct post-shipment verification
   of the supercomputers to ensure that they are not being used for        
   military purposes. The provision would prohibit the export, or          
   re-export, of supercomputers with a composite theoretical performance of
   more than 2,000 millions of theoretical operations per second (MTOPS) to
   any Tier III country without the prior written approval of the Secretary
   of Commerce, the Secretary of Defense, the Secretary of Energy, the     
   Secretary of State, and the Director of the Arms Control and Disarmament
   Agency. It would also require the President to report to Congress on all
   supercomputers with a computational capability of over 2,000 MTOPS that 
   have been exported to all countries since January 1996. Finally, it     
   would require post-shipment verification of U.S. origin supercomputers  
   that exceed 2,000 MTOPS that have been exported to Tier III countries   
   and require a report on the results of post-shipment verification.      
       The Senate amendment contained a provision (sec. 1080) that would   
   require the General Accounting Office (GAO) to conduct a study on the   
   national security risks of selling supercomputers with a computational  
   capability of 2,000 7,000 MTOPS to end-users in Tier III countries and  
   to conduct an assessment of foreign availability of supercomputers in   
   the 2,000 7,000 MTOPS range. The provision would require the Secretary  
   of Commerce to publish a list of military and nuclear end-users and     
   establish procedures by which U.S. exporters may seek information on    
   questionable end-users.                                                 
       The conferees agree to a series of provisions. One provision (sec.  
   1211) would require that no computer with a composite theoretical       
   performance of more than 2,000 MTOPS, or such other composite           
   theoretical performance level established by the President, may be      
   exported or re-exported to covered countries without a license if the   
   sale without a license is objected to in writing by the Secretary of    
   Commerce, the Secretary of Defense, the Secretary of Energy, the        
   Secretary of State, or the Director of the Arms Control and Disarmament 
   Agency. Such objection would have to be made within ten days of         
   receiving the notice of proposed export, or re-export. The provision    
   would allow the President, after consultation with the same department  
   and agency heads, to change the threshold of the composite theoretical  
   performance levels that would require the aforementioned ten day review 
   before being exported without license to covered countries. However, the
   provision would delay implementation of such a threshold adjustment for 
   180 days after receipt by Congress of a report that justifies the change
   of the threshold. In addition, the provision would allow the President  
   to add or delete countries from the list of covered countries, after    
   consultation with the same department and agency heads, but would delay 
   implementation of deletions from the list for 120 days after receipt by 
   Congress of a report that justifies the deletion, and would preclude the
   deletion of certain countries of proliferation concern from this list.  
   Another provision (sec. 1212) would require a report to Congress on the 
   sales of high performance computers to Tier III countries since January 
   1996. The conferees also agree to a provision (sec. 1213) that would    
   require post-shipment verification of high performance computers sold to
   covered countries and an annual report on the results of post-shipment  
   verification. Lastly, the conferees direct the GAO to study the national
   security risks of exporting high performance computers to Tier III      
   countries and to provide an analysis of the foreign availability of high
   performance computers (sec. 1214).                                      
                                  SUBTITLE C--OTHER MATTERS                       
                      Temporary use of general purpose vehicles and nonlethal      
           military equipment under acquisition and cross servicing agreements     
           (sec. 1222)                                                             
       The House bill contained a provision (sec. 1204) that would amend   
   section 2350(1) of title 10, United States Code, to clarify the         
   conditions under which the Department of Defense may enter into         
   acquisition and cross servicing agreements, and define certain          
   provisions of the United States Munitions List to apply under those     
   conditions in order to permit the Department of Defense to use general  
   purpose vehicles and nonlethal military equipment in contingency        
   military operations.                                                    
    The Senate amendment contained no similar provision.                   
       The conferees direct the Secretary of Defense to provide a report to
   the congressional defense committees by May 1, 1998 on the Department's 
   use of this authority to enter acquisition and cross servicing          
   agreements that would permit the temporary use of general purpose       
   vehicles and nonlethal military equipment in contingency military       
   operations.                                                             
                      Sense of Congress and reports regarding financial costs of   
           enlargement of the North Atlantic Treaty Organization (sec. 1223)       
       The House bill contained a provision (sec. 1207) that would limit   
   the amount spent by the United States on enlarging the membership of the
   North Atlantic Treaty Organization (NATO) to ten percent of the cost of 
   expansion, or a total of $2.0 billion, whichever is less, for fiscal    
   years 1998 through 2010.                                                
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would include findings on 
   the differing assessments of the costs of enlarging NATO in reports     
   submitted to Congress by the Department of Defense, the Congressional   
   Budget Office and the RAND Corporation, and the General Accounting      
   Office; would express the sense of Congress that the costs associated   
   with enlarging the Alliance will be major factors during Senate         
   consideration of the instruments of ratification, and the congressional 
   authorization and appropriation of funds. The provision would require   
   the Secretary of Defense to provide to Congress by March 31, 1998, an   
   assessment of the NATO analysis of the military requirements and the    
   estimated financial costs to the Alliance of integrating Poland, the    
   Czech Republic, and Hungary into NATO. In addition, the provision would 
   require the Secretary of Defense to submit with the fiscal year 1999    
   budget a report on the costs of NATO enlargement reflected in the       
   Department of Defense budget and with appropriate detail in the budget  
   justification materials submitted to Congress.                          
                      Sense of Congress regarding expansion of the North Atlantic  
           Treaty Organization (sec. 1224)                                         
       The Senate amendment contained a provision (sec. 1087) that would   
   express the sense of the Senate commending the North Atlantic Treaty    
   Organization (NATO) for its commitment to review the prospect of further
   enlarging the Alliance in 1999, and for its recognition of progress made
   by Romania and Slovenia in meeting the guidelines for prospective       
   membership in NATO.                                                     
    The House bill contained no similar provision.                         
    The House recedes with a technical and clarifying amendment.           
                      Sense of the Congress relating to level of United States     
           military personnel in the East Asia and Pacific region (sec. 1225)      
       The House bill contained a provision (sec. 1208) that would express 
   the sense of Congress that the United States should maintain at least   
   approximately 100,000 U.S. military personnel in the East Asia-Pacific  
   region to ensure stability in that critical area.                       
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
                      Report on future military capabilities and strategy of the   
           People's Republic of China (sec. 1226)                                  
       The House bill contained a provision (sec. 1203) that would require 
   the Department of Defense to prepare an assessment of the               
                    future military capabilities and strategy of the People's     
          Republic of China.                                                      
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
                      Sense of Congress on need for Russian openness on the        
           Yamantau Mountain Project (sec. 1227)                                   
       The House bill contained a provision (sec. 1209) that would express 
   the sense of Congress for the need for more openness on the part of the 
   Russian government on the purpose of a massive underground facility at  
   Yamantau Mountain.                                                      
    The Senate amendment did not contain a similar provision.              
    The Senate recedes with a clarifying amendment.                        
       The United States and Russia have been working to establish a new   
   strategic relationship based on cooperation and openness, which has     
   resulted in the conclusion of several far-reaching arms control         
   agreements designed to further reduce bilateral threats and to limit the
   proliferation of weapons of mass destruction. Despite good faith efforts
   on both sides to comply with the letter and spirit of these agreements, 
   the conferees are concerned about reports that a massive underground    
   facility is currently under construction at Yamantau Mountain. In       
   seeking answers to questions about the purpose of the project at        
   Yamantau Mountain, it appears that the Russian Federation has           
   deliberately misled the United States about the purpose of this facility
   on a number of occasions. The facility appears to be designed to survive
   a nuclear war and appears to exceed reasonable defense requirements.    
       The Russian Federation has offered numerous stories about the       
   construction activities at Yamantau Mountain and the city of Mezhgorye  
   and the purpose of such activities. In 1991 and 1992, the commandant of 
   Beloretsk-15 and Beloretsk-16, People's Deputy Leonid A. Tskirkunov told
   two stories about these activities. First, he said they were building a 
   mining and ore-processing complex. Later, he changed that explanation to
   one of constructing an underground food and clothing warehouse. In 1992,
   a former communist official in the region, M.Z. Shakiorov, alleged that 
   the Russian Federation was building a shelter for its national          
   leadership, in case of war.                                             
       In 1996, sources from the Russian newspaper Segodnya claimed that   
   the facility was associated with a nuclear retaliatory command and      
   control system for strategic missiles known as ``Dead Hand.'' This claim
   was denied by General Igor Sergeyev, the Commander-in-Chief of the      
   Strategic Rocket Forces. In that same year, a Deputy of the State       
   Assembly, R. Zhukov, claimed the facility at Yamantau Mountain belonged 
   to the ``atomic scientists.''                                           
       The United States has learned that Russia's 1997 budget lists the   
   Yamantau Mountain project as a Ministry of Defense installation on a    
   closed territory. However, First Deputy of Defense Andre Kokoshin denied
   Ministry of Defense involvement with the activity.                      
       The conferees are concerned that the Russian Federation should be   
   more forthcoming in providing the United States with more information on
   the Yamantau Mountain Project. The sense of Congress expressed the need 
   for the Federation to provide the United States with a detailed         
   explanation of the purpose of the Yamantau Mountain Project, and that   
   the Russian Government allow the United States Delegations to visit the 
   facility, and facilities in the southern and northern settlements       
   located near Yamantau.                                                  
                      Assessment of the Cuban threat to United States national     
           security (sec. 1228)                                                    
       The Senate amendment contained a provision (sec. 1046) that would   
   require the Department of Defense to submit a report on an assessment of
   the threat posed by Cuba to U.S. national security.                     
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
           Report on Helsinki Joint Statement (sec. 1229)                          
       The Senate amendment contained a provision (sec. 1045) that would   
   require the President to submit a report to Congress on the agreement   
   reached by the United States and the Russian Federation on future       
   reductions in nuclear forces and the United States approach to          
   implementing the Helsinki Joint Statement, to include verification      
   implications.                                                           
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Commendation of Mexico on free and fair elections (sec. 1230)           
       The Senate amendment contained a provision (sec. 3601) that would   
   express a sense of Congress that Mexico is to be commended for its      
   holding of free and fair elections on July 6, 1997.                     
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Sense of Congress regarding Cambodia (sec. 1231)                        
       The Senate amendment contained a provision (sec. 3602) that would   
   express a sense of Congress that the conditions that existed in Cambodia
   prior to the actions of Hun Sen, who ousted his democratically-elected  
   co-Prime Minister Prince Ranariddh, should be restored, and that        
   assistance by the United States and other donor nations to Cambodia     
   should be suspended until that time.                                    
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
           Congratulating Governor Christopher Patten of Hong Kong (sec. 1232)     
       The Senate amendment contained a provision (sec. 3603) that would   
   express a sense of Congress that Christopher Patten, British governor of
   Hong Kong until the time the British colony was turned over to the      
   People's Republic of China, is to be commended for his leadership of    
   Hong Kong under British rule.                                           
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                        TITLE XIII--ARMS CONTROL AND RELATED MATTERS              
                               LEGISLATIVE PROVISIONS ADOPTED                     
                      Presidential report concerning detargeting of Russian        
           strategic missiles (sec. 1301)                                          
       The House bill contained a provision (sec. 1206) that would require 
   the President to certify to Congress by January 1, 1998 whether the     
   United States is able to verify by technical means that Russian         
   intercontinental ballistic missiles (ICBMs) are not targeted at the     
   United States; the length of time it would take for a detargeted Russian
   ICBM to be retargeted against a site in the United States; and whether a
   detargeted Russian ICBM would be automatically retargeted against a site
   in the United States in the event of an accidental launch.              
    The Senate amendment contained no similar provision.                   
       The conferees note that the Secretary of Defense was directed in the
   House report on H.R. 3230 (H. Rept. 104 563), the National Defense      
   Authorization Act for Fiscal Year 1997, to provide a report on the      
   verifiability and military significance of the Moscow Declaration of    
   January 14, 1994. On May 16, 1997, the Secretary submitted a report to  
   Congress which stated that the United States could not independently    
   verify that Russian intercontinental ballistic missiles were no longer  
   targeted at the United States and that detargeted Russian ICBMs could be
   quickly retargeted within minutes. With regard to detargeted U.S. ICBMs,
   the report stated that these missiles could be retargeted in a short    
   time.                                                                   
       The conferees believe that efforts between the United States and the
   Russian Federation to lower the threat of a massive nuclear exchange are
   laudable goals and encourage measures that would make a substantive     
   contribution toward enhancing strategic stability. The conferees agree  
   that it is important to have a full understanding of what particular    
   agreements mean relative to achieving those goals. The conferees support
   a careful analysis of the advantages and limitations of the missile     
   detargeting agreement. Therefore, the conferees agree to a provision    
   that would require the President to submit a report to Congress that    
   addresses issues regarding the detargeting of Russian strategic         
   missiles.                                                               
                      Limitation on retirement or dismantlement of strategic       
           nuclear delivery systems (sec. 1302)                                    
       The Senate amendment contained a provision (sec. 1054) that would   
   preclude the reduction of certain strategic delivery systems unless the 
   START II Treaty enters into force and the President waives this         
   prohibition. The provision would also prohibit substantial early        
   deactivation of strategic nuclear delivery systems, such as warhead     
   removal, unless the Secretary of Defense meets certain requirements, as 
   specified in the provision. Finally, the provision would require the    
   Secretary of Defense to prepare a plan for the contingency sustainment  
   of a START I force beyond 1998, should START II not enter into force by 
   2004.                                                                   
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would prohibit the         
   obligation of funds available to the Department of Defense during fiscal
   year 1998 to implement an agreement that results in substantial early   
   deactivations of U.S. strategic forces until the President makes certain
   determinations.                                                         
                      Assistance for facilities subject to inspection under the    
           Chemical Weapons Convention (sec. 1303)                                 
       The Senate amendment contained a provision (sec. 1057) that would   
   allow the Department of Defense (DOD), through the On-Site Inspection   
   Agency (OSIA), to provide technical assistance to companies that are    
   subject to routine or challenge inspection under the terms of the       
   Chemical Weapons Convention (CWC), provided that OSIA is reimbursed for 
   such assistance by the U.S. National Authority established under the    
   CWC.                                                                    
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
       The conferees note that the CWC imposes new obligations on private  
   U.S. companies that may lead them to seek assistance from DOD in        
   preparing their facilities for inspections to be carried out under the  
   Convention's terms. The conferees recognize that the On-Site Inspection 
   Agency possesses the technical experience to assist companies in this   
   process. However, this is not part of OSIA's mission and the DOD would  
   incur significant costs in providing such assistance. To this end, the  
   conferees agree that DOD may not provide any CWC-related assistance to  
   private companies unless the Secretary of Defense determines that the   
   Department will be reimbursed for the costs incurred in providing such  
   assistance.                                                             
       The conferees note that the CWC implementing legislation passed by  
   the Senate contains a similar provision. The conferees expect DOD to    
   adhere to the additional requirements that govern the process by which  
   the Department is to be reimbursed.                                     
                      Transfers of authorizations for high-priority                
           counterproliferation programs (sec. 1304)                               
       The Senate amendment contained a provision (sec. 217) that would    
   authorize the Secretary of Defense to transfer up to $50.0 million from 
   funds authorized in fiscal year 1998 for the Department of Defense to   
   conduct counterproliferation programs, projects, and activities that are
   identified as a high priority by the Counterproliferation Review        
   Committee.                                                              
    The House bill contained no similar provision.                         
    The House recedes with a technical amendment.                          
                      Advice to the President and Congress regarding the safety,   
           security, and reliability of United States nuclear weapons stockpile    
           (sec. 1305)                                                             
    The Senate amendment contained a provision (sec. 1084) that would      
                    extend to the directors of Department of Energy nuclear       
          weapons laboratories, the Commander in Chief of the U.S. Strategic      
          Command, and any member of the Joint Nuclear Weapons Council protection 
          against adverse action by employees of the Federal Government in cases  
          where those individuals gave advice or opinions to the President or     
          Congress relating to a safety, security, or reliability issue with the  
          nuclear weapons stockpile.                                              
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would modify section       
   3159(b) of the National Defense Authorization Act for Fiscal Year 1997  
   (Public Law 104 201) to require that reports on problems with the       
   nuclear weapons stockpile prepared by the directors of the nuclear      
   weapons laboratories be submitted to the President, in addition to      
   Congress, and to extend protection to the Department of Energy nuclear  
   weapons production plant managers. Section 3159(b) would be modified to 
   require the Department of Energy Assistant Secretary for Defense        
   Programs to forward any such reports in their entirety, with any        
   comments the Assistant Secretary deems appropriate, within ten days.    
       The conferees note that the Congress has frequently expressed its   
   view that the stewards of the nuclear weapons stockpile must freely give
   their best advice on the safety and reliability of the stockpile. The   
   conferees note that earlier legislation has provided for reports on such
   advice.                                                                 
                      Reconstitution of Commission to Assess the Ballistic Missile 
           Threat to the United States (sec. 1306)                                 
       The conferees agree to include a provision that would extend by one 
   year the time for the Commission to Assess the Ballistic Missile Threat 
   to the United States, established pursuant to Subtitle B of Title XIII  
   of the National Defense Authorization Act for Fiscal Year 1997 (Public  
   Law 104 201), to complete its original charter.                         
                      Sense of Congress regarding the relationship between         
           environmental laws and United States obligations under the Chemical     
           Weapons Convention (sec. 1307)                                          
       The Senate amendment contained a provision (sec. 1058) that would   
   express the sense of the Senate that the President should use the       
   authority available under existing law to ensure that the United States 
   is able to construct and operate the facilities necessary to destroy the
   United States stockpile of lethal chemical agents and munitions within  
   the time allowed by the Chemical Weapons Convention (CWC) and that the  
   President should encourage negotiations between appropriate Federal     
   Government officials and officials of the State and local governments   
   concerned to attempt to meet their concerns about the actions being     
   taken to carry out the obligations of the United States under the       
   convention.                                                             
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would modify the provision 
   to express the sense of Congress regarding obligations of the United    
   States under the CWC and would add findings from a February 1997 General
   Accounting Office study regarding matters that affect the schedule and  
   costs of the chemical demilitarization program.                         
                      Extension of counterproliferation authorities for support of 
           United Nations Special Commission on Iraq (sec. 1308)                   
       The House bill contained a provision (sec. 1202) that would extend  
   the authority through fiscal year 1998 for the Department of Defense    
   (DOD) to continue to provide support to the United Nations Special      
   Commission on Iraq (UNSCOM).                                            
    The Senate amendment contained a similar provision (sec. 1056).        
    The Senate recedes with a technical amendment.                         
       The conferees support the extension of this authority given ongoing 
   concerns over Iraq's continued possession of weapons of mass destruction
   and missile delivery systems. However, the conferees are concerned that 
   the DOD role in providing assistance has transitioned from a short-term 
   requirement to a semi-permanent element of the effort to contain Iraq.  
       Pursuant to United Nations Security Council Resolutions 986 and     
   1111, which took effect December 10, 1996 and June 8, 1997,             
   respectively, Iraq is authorized to sell limited quantities of oil with 
   most of the proceeds going to pay for humanitarian needs and to support 
   UNSCOM activities. In addition, UNSCOM activities are also funded by    
   frozen Iraqi assets and from direct and indirect contributions from     
   other nations. The conferees would note that the Department of Defense  
   is the primary source of U.S. government funding for the UNSCOM mission,
   providing specialized equipment and services otherwise unavailable to   
   UNSCOM.                                                                 
       The conferees believe that continued vigilance is warranted to      
   ensure that Iraq does not acquire or maintain proscribed military       
   capabilities. However, the conferees do not believe that the costs of   
   providing specialized support to UNSCOM should be permanently borne by  
   the Department of Defense. To this end, the conferees support efforts by
   the Department to seek reimbursement for expenses incurred in providing 
   support to UNSCOM and encourage the administration to negotiate formal  
   agreements to this effect.                                              
                      Annual report on moratorium on use by Armed Forces of        
           antipersonnel landmines (sec. 1309)                                     
       The House bill contained a provision (sec. 1055) that would require 
   the Secretary of Defense, after consultation with the Chairman of the   
   Joint Chiefs of Staff, to certify to Congress prior to the              
   implementation of any moratorium by law on the use of antipersonnel     
   landmines (APL) by U.S. Armed Forces, that any such moratorium would not
   adversely affect the ability of U.S. Armed Forces to defend themselves, 
   until such time as effective substitutes exist to replace antipersonnel 
   landmines.                                                              
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would contain findings    
   describing the actions and decisions by the President relating to U.S.  
   policy regarding antipersonnel landmines and the status of current law; 
   express the sense of Congress regarding implementation of a landmine    
   moratorium and support for development of alternatives to               
                    antipersonnel landmines. The provision would also require the 
          Secretary of Defense to submit an annual report describing the military 
          utility of the continued U.S. deployment of antipersonnel landmines,    
          progress in developing and fielding systems that are effective          
          substitutes for antipersonnel landmines, their costs and an estimated   
          timetable for developing and fielding those systems, the number and type
          of pure antipersonnel and mixed anti-tank mine systems, the cost and    
          effect of the elimination of the former and the impact of their         
          elimination on the deterrence and warfighting ability of U.S. forces,   
          and the benefits to U.S. military and civilian personnel of an          
          international treaty banning the production, use, transfer and          
          stockpiling of antipersonnel landmines.                                 
       The conferees endorse the President's September 17, 1997 pledge to  
   increase U.S. support for worldwide demining efforts.                   
       Further, the conferees believe that international support, and      
   increased funding, for practical efforts such as clearing landmines and 
   providing medical assistance and rehabilitation to the wounded, could be
   highly effective in reducing the landmine casualty count and reclaiming 
   land for its intended use.                                              
            TITLE XIV--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET  
                                      UNION                                       
                                   LEGISLATIVE PROVISIONS ADOPTED                 
           Cooperative threat reduction (CTR) program (secs. 1401 1410)            
       The budget request included $382.2 million for the Cooperative      
   Threat Reduction (CTR) program.                                         
       The House bill contained provisions (secs. 1101 1111) that would:   
   authorize $284.7 million for the Cooperative Threat Reduction (CTR)     
   program, a $97.5 million reduction to the budget request; specify CTR   
   programs; allocate fiscal year 1998 funding for the various CTR programs
   and activities; prohibit the use of CTR funds for specific purposes;    
   prohibit the obligation of CTR funds until various reports,             
   notifications, and certifications are submitted to the Congress; make   
   prior year unobligated CTR balances available for three fiscal years;   
   and make fiscal year 1998 CTR funds available for three fiscal years.   
   The House bill would also add funds for the Department of Energy (DOE)  
   budget to carry out nuclear reactor core conversion activities in Russia
   under the auspices of the CTR program.                                  
       The Senate amendment contained provisions (secs. 1009 and 1085) that
   would authorize the budget request of $382.2 million; would make funds  
   authorized in fiscal year 1997 for international border security        
   activities available for three years; and would provide the Secretary of
   Defense authority to exceed the sublimits established in fiscal years   
   1996 and 1997 for CTR activities. The provisions would also limit the   
   obligation or expenditure of certain fiscal year 1998 funds until       
   receipt of either a certification by the President regarding Russian    
   progress in solving outstanding compliance issues under bilateral       
   chemical weapons agreements, or a presidential certification that U.S.  
   national security interests would be undermined if CTR chemical weapons 
   destruction activities were not carried out.                            
       The conferees agree to a series of provisions that would authorize  
   $382.2 million for the CTR program, establish sublimits for CTR         
   activities and would provide the Secretary of Defense with authority to 
   exceed the established sublimits in fiscal years 1996, 1997, and 1998   
   for strategic elimination activities in Russia and Ukraine. The         
   obligation of fiscal year 1998 CTR funds is contingent upon the         
   submission of various reports, notifications, and certifications to the 
   Congress. The use of the word ``agreements'' in these provisions does   
   not preclude the possibility that the conditions set forth can be met by
   the implementing agreements routinely entered into between the          
   Department of Defense (DOD) and the CTR partner for specific projects.  
       The conferees reiterate their traditional support for CTR assistance
   in the elimination of strategic nuclear weapons systems in Russia and   
   Ukraine. However, given the economic and financial conditions in Russia,
   the conferees are concerned about Russia's willingness to contribute its
   share of the costs of eliminating its strategic offensive arms and its  
   declared stockpile of chemical weapons. As noted in recent U.S.         
   resolutions of ratification of arms control agreements, the U.S.        
   believes that Russia must contribute its share of the costs of complying
   with its arms control commitments.                                      
       The conferees note that the Department of Defense is seeking        
   congressional approval of fiscal year 1998 funds for certain projects   
   where fiscal year 1997 funds have not yet been fully obligated because  
   of the lack of the necessary implementing agreements. As a general      
   management principle, the conferees believe that fiscal year 1998 funds 
   should not be obligated for those projects until the fiscal year 1997   
   CTR funds have been obligated.                                          
       The conferees are also concerned about recent reports that Russia   
   has applied taxes, duties, overhead charges, and other arbitrary        
   assessments on U.S. assistance. The conferees agree to a provision that 
   would require the Secretary of Defense to report to the Congress on the 
   impact of these charges on the CTR program, and what can be done to     
   reduce or eliminate such charges.                                       
       Finally, the conferees maintain their belief that the proliferation 
   of weapons of mass destruction, delivery systems, components, materials,
   and related technologies, represents a growing threat to the United     
   States and to U.S. interests. In this regard, the conferees note that   
   section 1424 of the National Defense Authorization Act for Fiscal Year  
   1997 (Public Law 104 201) authorized $15.0 million of CTR funds for     
   international border security. This program would provide assistance to 
   customs officials and border guard officials in the independent states  
   of the former Soviet Union, such as Azerbaijan, Armenia, Georgia, the   
   Baltic states, and other countries in Eastern Europe. The conferees     
   understand that funds authorized for this activity have not been        
   obligated or expended. The conferees note the continued congressional   
   support for this activity and direct the Department to take appropriate 
   actions to establish this activity and to obligate the funds available  
   as soon as possible. These activities provide an early line of defense  
   by improving the detection and interdiction of such weapons, materials, 
   and technologies before they cross international borders.               
                   TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS          
                               LEGISLATIVE PROVISIONS ADOPTED                     
                      Federal Charter for the Air Force Sergeants Association      
           (secs. 1501 1516)                                                       
       The Senate amendment contained a series of provisions (sec. 1201    
   1216) that would grant a federal charter for the Air Force Sergeants    
   Association.                                                            
    The House bill contained no similar provision.                         
    The House recedes.                                                     
       The leadership of the Committee on Armed Services of the Senate and 
   the Committee on National Security of the House of Representatives      
   recognize the current moratorium on granting of federal charters and    
   agree that, in the future, amendments to the National Defense           
   Authorization Bill that would grant a federal charter should not be     
   included in a conference agreement unless favorably recommended by the  
   committees of jurisdiction.                                             
                      DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS            
                                 OVERVIEW                                
       The budget request for fiscal year 1998 included $8,383,248,000 for 
   military construction and family housing.                               
       The House bill would authorize $9,123,748,000 for military          
   construction and family housing.                                        
    The Senate amendment would provide $9,077,061,000 for this purpose.    
       The conferees recommend authorization of appropriations of          
   $9,173,748,000 for military construction and family housing, including  
   general reductions and termination of prior year projects.              
   Offset Folios 1399 to 1416 insert here                                  
                           FY 1998/1999 BUDGET ESTIMATES--FY 1998 BRAC MILITARY CONSTRUCTION PROJECTS                           
                                                    [In thousands of dollars]                                                   
State and installation/location                       Description                                                            Amount  
    Army: BRAC III Construction, Fiscal Year 1998                                                                                        
 Texas:                                               Repair Aircraft Hanger (46865) III                                      3,650  
                                                                                                                         ----------  
                                                          Subtotal Army Texas                                                    3,650  
                                                         Total for Army BRAC III Construction, FY 1998                           3,650  
    Army BRAC IV Construction, Fiscal Year 1998                                                                                          
 Alaska:                                              Missile Test Facility (46159) IV                                          600  
                                                                                                                         ----------  
                                                          Subtotal Army Alaska                                                     600  
 California:                                          Army Reserve Center Facility (46206) IV                                 9,500  
                                                                                                                         ----------  
                                                          Subtotal Army California                                              12,650  
 Colorado:                                            Sanitary Sewer (46341) IV                                               2,100  
                                                                                                                         ----------  
                                                          Subtotal Army Colorado                                                 4,600  
 District of Columbia:                                Nurse Training Facility (463342)                                        1,500  
                                                                                                                         ----------  
                                                          Subtotal Army District of Columbia                                     1,500  
 Maryland:                                            Health Clinic (46329) IV                                                  650  
                                                                                                                         ----------  
                                                          Subtotal Army Maryland                                                 6,950  
 Michigan:                                            Storage Facility (46300) IV                                             5,900  
                                                                                                                         ----------  
                                                          Subtotal Army Michigan                                                 5,900  
 Missouri:                                            Range Modifications (46094) IV                                         17,500  
                                                         Military Operations in Urbanized Terrain Facility (45892) IV            6,900  
                                                                                                                         ----------  
                                                          Subtotal Army Missouri                                                24,400  
 New York:                                            Storage Facility (46258) IV                                             1,900  
                                                                                                                         ----------  
                                                          Subtotal Army New York                                                 1,900  
 Nevada:                                              Warehouse (46217) IV                                                    1,550  
                                                                                                                         ----------  
                                                          Subtotal Army Nevada                                                   5,400  
 South Carolina:                                      DoD Polygraph Instructional Fac (45839) IV                              4,600  
                                                                                                                         ----------  
                                                          Subtotal Army South Carolina                                           4,600  
 Virginia:                                            Reserve Center Building (46354) IV                                      3,100  
                                                                                                                         ----------  
                                                          Subtotal Army Virginia                                                 3,100  
 Washington:                                          CHPPM Ctr for Health Promotion (46354) IV                               3,150  
                                                                                                                         ----------  
                                                          Subtotal Army Washington                                               3,150  
Various Locations                                     Program Management IV                                                   3,750  
                                                         Total for Army BRAC IV Construction, FY 1998                           78,500  
    Navy BRAC III Construction, FY 1998                                                                                                  
 California:                                          Administrative Office (186T) III                                        2,586  
                                                                                                                         ----------  
                                                          Subtotal Navy California                                              57,572  
 Florida:                                             Administrative Building (220T) III                                      5,074  
                                                                                                                         ----------  
                                                          Subtotal Navy Florida                                                111,143  
 Georgia:                                             Marine Reserve Training Facility (906T) III                             9,053  
                                                                                                                         ----------  
                                                          Subtotal Navy Georgia                                                  9,053  
 Hawaii:                                              Ordnance Facilities (297T) III                                            612  
                                                         Utilities Upgrade (504T) III                                            2,168  
                                                         Ordnance Facilities (508T) III                                          1,160  
                                                                                                                         ----------  
                                                          Subtotal Navy Hawaii                                                   7,928  
 Virginia:                                            Administrative Facility (360T) III                                        995  
                                                                                                                         ----------  
                                                          Subtotal Navy Virginia                                                   995  
 Washington:                                          Outpatient Clinic (019T) III                                           10,409  
                                                                                                                         ----------  
                                                          Subtotal Navy Washington                                              10,409  
 Wisconsin:                                           Equipment Maintenance Facility (701T) III                               2,295  
                                                                                                                         ----------  
                                                          Subtotal Navy Wisconsin                                                2,295  
                                                         Total for Navy BRAC III Construction, FY 1998                          99,395  
    Navy BRAC IV Construction, Fiscal Year 1998                                                                                          
 California:                                          Administrative/Training Spaces (020U) IV                                1,403  
                                                         Intermediate Maintenance Facility (822U) IV                             1,273  
                                                                                                                         ----------  
                                                          Subtotal Navy California                                              31,426  
 District of Columbia:                                Naval Sea Systems Cmd Hdq Relocation (088U) IV                         86,045  
                                                                                                                         ----------  
                                                          Subtotal Navy District of Columbia                                    86,045  
 Florida:                                             Medical/Dental Additions (231U) IV                                      2,985  
                                                         S 3 Naval Maintenance Trng Grp Mods (239U) IV                           1,329  
                                                                                                                         ----------  
                                                          Subtotal Navy Florida                                                  4,314  
 Guam:                                                Building Renovation (416U) IV                                             597  
                                                                                                                         ----------  
                                                          Subtotal Navy Guam                                                       597  
 Pennsylvania:                                        Accoustics R&D Facility (185U) IV                                       6,151  
                                                                                                                         ----------  
                                                          Subtotal Navy Pennsylvania                                             6,151  
 Virginia:                                            Flight Simulator Building Addition (160U) IV                            8,998  
                                                         Corrosion Control Hangar (576U) IV                                      4,775  
                                                         Hangar Utilities Improvements (165U) IV                                 1,244  
                                                         F/A 18 Aviation Maintenance Additions (164U) IV                         2,686  
                                                         Renovate/Addition Training Facility (161U) IV                           5,671  
                                                         Cargo Staging Area (029U) IV                                            1,443  
                                                                                                                         ----------  
                                                          Subtotal Navy Virginia                                                27,254  
                                                          Total Navy BRAC IV Construction, FY 1998                             155,787  
    Air Force BRAC III Construction, Fiscal Year 1998                                                                                    
 California:                                          Land Purchase (XDAT973300) III                                          2,055  
                                                         Total for Air Force BRAC III Construction, FY 1998                      2,055  
    Air Force BRAC III Family Housing, FY 1998                                                                                           
 California:                                          Improve Family Housing (XDAT950000) III                                46,010  
                                                         Total for Air Force BRAC III Family Housing, FY 1998                   46,010  
    Air Force BRAC IV Construction, FY 1998                                                                                              
 California:                                          Dining Facility (PRJ891009R1) IV                                        2,100  
                                                         938 Engineering Install Sqd (PRJY911023R2) IV                           8,100  
                                                         Enlisted Dormitory (PRJY93103R2) IV                                     9,000  
                                                         Add to Child Development Center (PRJY95301R1) IV                        2,100  
                                                         Vehicle Maintenance Facility (PRJY953009R1) IV                          1,450  
                                                         Air Force Res KC 135 Flight Sim (PRJY953046R1) IV                       1,700  
                                                                                                                         ----------  
                                                          Subtotal Air Force California                                         25,030  
 Colorado:                                            Satellite Control Facility (GLEN973008A) IV                            16,000  
                                                         Add to Dining Facility (GLEN973009) IV                                    500  
                                                         Technical Support Facility (GLEN973010) IV                              6,400  
                                                         Alter Operations Support Facility (GLEN973020) IV                         760  
                                                         Add to Fitness Center (GLEN983023) IV                                     300  
                                                                                                                         ----------  
                                                          Subtotal Air Force Colorado                                           25,160  
 New York:                                            Vehicle OPS Heated Parking (WOXG959613) IV                              1,700  
                                                         Add to Fire Station (FPBB969510) IV                                       300  
                                                                                                                         ----------  
                                                          Subtotal Air Force New York                                            2,000  
 Ohio:                                                Renovte QLA Support Facility (PRJY921012R1) IV                          2,500  
                                                                                                                         ----------  
                                                          Subtotal Air Force Ohio                                                2,500  
 Oklahoma:                                            Add to Child Development Center (XTLF983303) IV                           330  
                                                                                                                         ----------  
                                                          Subtotal Air Force Oklahoma                                              330  
 Texas:                                               Add/Alter YAD/textile Laboratory (CNBC993000) IV                        3,900  
                                                         Child Development Center (MBPB993209R2) IV                                480  
                                                         Add to Auto Hobby Shop (MBPB993222R1) IV                                1,100  
                                                                                                                         ----------  
                                                          Subtotal Air Force Texas                                              16,530  
Various Locations                                     Planning and Design (BCL98RD4) IV                                       4,157  
                                                         Total for Air Force BRAC IV Construction, FY 1998                      75,707  
    Air Force BRAC IV Family Housing, FY 1998                                                                                            
 Texas:                                               General Officers Quarters (MBPB993203R2) IV                               790  
                                                         Total for Air Force BRAC IV Family Housing, FY 1998                       790  
       DLA and DISA had no projects relating to any BRAC round requested in
   FY 1998.                                                                
                                      TITLE XXI--ARMY                             
                                      FISCAL YEAR 1998                            
           Overview                                                                
       The House bill would authorize $2,055,364,000 for Army military     
   construction and family housing programs for fiscal year 1998.          
    The Senate amendment would authorize $1,951,478,000 for this purpose.  
       The conferees recommend authorization of appropriations of          
   $2,010,466,000 for Army military construction and family housing for    
   fiscal year 1998.                                                       
       The conferees agree to a general reduction of $36,600,000 in the    
   authorization of appropriations for the Army military construction      
   account. The general reduction is to be offset by savings from          
   adjustments to foreign currency exchange rates for military construction
   projects and the support of military family housing outside the United  
   States. The general reduction shall not cancel any military construction
   authorized by of this Act.                                              
                        ITEMS OF SPECIAL INTEREST                        
           Planning and design, Army                                               
       The Senate report on S. 924 (S. Rept. 105 29) directed that, of the 
   amount authorized for appropriations for Army planning and design, not  
   more than $1,000,000 may be directed toward the design of the gymnasium 
   at the United States Military Academy, New York.                        
       The conferees direct that from the funds authorized for             
   appropriations for planning and design, the Secretary of the Army may   
   use funds as necessary to initiate planning and design activities for   
   the renovation of the gymnasium at the United States Military Academy,  
   New York and authorize $3,100,000 for planning and design activities for
   the construction of the National Ground Intelligence Center,            
   Charlottesville, Virginia.                                              
           Improvements of military family housing, Army                           
       The conferees recommend that, within authorized amounts for         
   improvements of military family housing and facilities, the Secretary of
   the Army execute the following projects: $9,600,000 for Whole           
   Neighborhood Revitalization (52 units) at Fort Richardson, Alaska;      
   $8,300,000 for Whole Neighborhood Revitalization (32 units) at Fort     
   Wainwright, Alaska; $7,000,000 for Whole Neighborhood Revitalization    
   (106 units) at Fort Riley, Kansas; $6,000,000 for Whole Neighborhood    
   Revitalization, Phase IV (60 units) at Fort Campbell, Kentucky;         
   $5,400,000 for Whole Neighborhood Revitalization (56 units) at the      
   United States Military Academy, New York; and $5,000,000 for Whole      
   Neighborhood Revitalization (48 units) at Fort Belvoir, Virginia.       
                               LEGISLATIVE PROVISIONS ADOPTED                     
                      Correction in authorized uses of funds, Fort Irwin,          
           California (sec. 2105)                                                  
       The Senate amendment contained a provision (sec. 2105) that would   
   authorize the Secretary of the Army to construct a heliport at Fort     
   Irwin, California, using funds authorized and appropriated in fiscal    
   years 1995 and 1996 for construction of the National Training Center    
   Airfield, Fort Irwin, California. The provision would make available    
   $20.0 million for the construction of the heliport.                     
    The House bill contained a similar provision (sec. 2105).              
    The House recedes with a technical amendment.                          
                                      TITLE XXII--NAVY                            
           Overview                                                                
       The House bill would authorize $2,053,025,000 for Navy military     
   construction and family housing programs for fiscal year 1998.          
    The Senate amendment would authorize $1,898,924,000 for this purpose.  
       The conferees recommend authorization of appropriations of          
   $2,027,339,000 for Navy military construction and family housing for    
   fiscal year 1998.                                                       
       The conferees agree to a general reduction of $17,163,000 in the    
   authorization of appropriations for the Navy military construction      
   account. $8,463,000 of the reduction is to be offset by savings from    
   favorable bids, reduction in overhead costs, and cancellation of        
   projects due to force structure changes. $8,700,000 of the reduction is 
   to be offset by savings from adjustments to foreign currency exchange   
   rates for military construction projects and the support of military    
   family housing outside the United States. The general reduction shall   
   not cancel any military construction authorized by title XXII of this   
   Act.                                                                    
                        ITEMS OF SPECIAL INTEREST                        
           Improvements of military family housing, Navy                           
       The conferees recommend that, within authorized amounts for         
   improvements to military family housing and facilities, the Secretary of
   the Navy execute the following projects: $4,193,000 for Whole House     
   Revitalization (120 units) at Naval Air Warfare Center China Lake,      
   California; $7,700,000 for Whole House Revitalization (64 units) at     
   Public Works Center Great Lakes, Illinois; $9,000,000 for Whole House   
   Revitalization (90 units) at Naval Air Warfare Center Patuxent River,   
   Maryland; $2,863,000 for Whole House Revitalization (37 units) at Camp  
   Lejeune, North Carolina; and $6,000,000 for Whole House Revitalization  
   (83                                                                     
          units) at Marine Corps Air Station Cherry Point, North Carolina.        
                               LEGISLATIVE PROVISIONS ADOPTED                     
                      Authorization of military construction project at Naval      
           Station, Pascagoula, Mississippi, for which funds have been appropriated
           (sec. 2205)                                                             
       The House bill contained a provision (sec. 2205) that would         
   authorize $4,900,000 to extend the west quaywall at Naval Station,      
   Pascagoula, Mississippi, for which funds were previously appropriated   
   pursuant to the Military Construction Appropriations Act for Fiscal Year
   1997 (Public Law 104 196).                                              
    The Senate amendment contained a similar provision (sec. 2205).        
    The Senate recedes with a technical amendment.                         
                      Increase in authorization for military construction projects 
           at Naval Station Roosevelt Roads, Puerto Rico (sec. 2206)               
       The Senate amendment contained a provision (sec. 2206) that would   
   amend section 2201(b) of the Military Construction Act for Fiscal Year  
   1997 (Division B of Public Law 104 201) to increase the authorization   
   for the construction of a barracks at Naval Station Roosevelt Roads,    
   Puerto Rico from $23.6 million to $24.1 million. The section would also 
   make certain conforming changes.                                        
    The House bill contained no similar provision.                         
    The House recedes with a technical amendment.                          
                                   TITLE XXIII--AIR FORCE                         
                                      FISCAL YEAR 1998                            
           Overview                                                                
       The House bill would authorize $1,810,120,000 for Air Force military
   construction and family housing programs for fiscal year 1998.          
    The Senate amendment would authorize $1,793,949,000 for this purpose.  
       The conferees recommend authorization of appropriations of          
   $1,791,640,000 for Air Force military construction and family housing   
   for fiscal year 1998.                                                   
       The conferees agree to a general reduction of $36,158,000 in the    
   authorization of appropriations for the Air Force military construction 
   account. $23,858,000 of the reduction is to be offset by savings from   
   favorable bids, reduction in overhead costs, and cancellation of        
   projects due to force structure changes. $12,300,000 of the reduction is
   to be offset by savings from adjustments to foreign currency exchange   
   rates for military construction projects and the support of military    
   family housing outside the United States. The general reduction shall   
   not cancel any military construction authorized by title XXIII of this  
   Act.                                                                    
                        ITEMS OF SPECIAL INTEREST                        
           Improvements of military family housing, Air Force                      
       The conferees recommend that, within authorized amounts for         
   improvements of military family housing and facilities, the Secretary of
   the Air Force execute the following projects: $5,000,000 for family     
   housing improvements (72 units) at Cannon Air Force Base, New Mexico;   
   $4,600,000 for family housing improvements (60 units) at Tinker Air     
   Force Base, Oklahoma; $7,000,000 for family housing improvements (78    
   units) at Charleston Air Force Base, South Carolina; and $5,000,000 for 
   family housing improvements (50 units) at Shaw Air Force Base, South    
   Carolina.                                                               
                               LEGISLATIVE PROVISIONS ADOPTED                     
                      Authorization of military construction project at McConnell  
           Air Force Base, Kansas, for which funds have been appropriated (sec.    
           2305)                                                                   
       The House bill contained a provision (sec. 2305) that would         
   authorize $6,700,000 for a consolidated education center at McConnell   
   Air Force Base, Kansas, for which funds were previously appropriated    
   pursuant to the Military Construction Appropriations Act, 1997 (Public  
   Law 104 196).                                                           
    The Senate amendment contained a similar provision (sec. 2305).        
    The House recedes with a technical amendment.                          
                                TITLE XXIV--DEFENSE AGENCIES                      
                                      FISCAL YEAR 1998                            
           Overview                                                                
       The House bill would authorize $650,907,000 for Defense Agencies    
   military construction and family housing programs for fiscal year 1998. 
    The Senate amendment would authorize $717,677,000 for this purpose.    
       The conferees recommend authorization of appropriations of          
   $684,016,000 for Defense Agencies military construction and family      
   housing for fiscal year 1998. The conferees agree to a general reduction
   of $1,200,000 in the authorization of appropriations for the Defense    
   Agencies military construction account. The general reduction is to be  
   offset by savings from adjustments to foreign currency exchange rates   
   for military construction projects and the support of military family   
   housing outside the United States. The general reduction shall not      
   cancel any military constructions authorized by title XXIV of this Act. 
                               LEGISLATIVE PROVISIONS ADOPTED                     
                      Clarification of authority relating to fiscal year 1997      
           project at Naval Station, Pearl Harbor, Hawaii (sec. 2406)              
       The Senate amendment contained a provision (sec. 2406) that would   
   amend the table in section 2401(a) of the Military Construction         
   Authorization Act for Fiscal Year 1997 (Division B of Public Law 104    
   201), to change the location of the Special Operations Command military 
   construction project from Ford Island, Pearl Harbor, Hawaii, to Naval   
   Station, Pearl City Peninsula, Pearl Harbor, Hawaii.                    
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Correction in authorized uses of funds, McClellan Air Force  
           Base, California (sec. 2407)                                            
       The Senate amendment contained a provision (sec. 2407) that would   
   authorize the Secretary of Defense to use funds appropriated and        
   authorized in fiscal year 1995 for life saving improvements at McClellan
   Air Force Base Hospital. The funds would be authorized for use in the   
   following manner: (1) $3.7 million for the construction of an addition  
   to the Aeromedical Clinic, Anderson Air Force Base, Guam; and (2) $6.5  
   million for the construction of an occupational health clinic, Tinker   
   Air Force Base, Oklahoma.                                               
    The House bill contained a similar provision (sec. 2406).              
    The House recedes with a technical amendment.                          
                      Modification of authority to carry out fiscal year 1995      
           projects (sec. 2408)                                                    
       The Senate amendment contained a provision (sec. 2408) that would   
   amend section 2401 of the Military Construction Authorization Act for   
   Fiscal Year 1995, as amended. The provision would authorize an increase 
   of funding for the construction of the Chemical Demilitarization        
   Facilities at Pine Bluff Arsenal, Arkansas, from $115.0 million to      
   $134.0 million, and at Umatilla Army Depot, from $186.0 million to      
   $187.0 million, due to cost increases resulting from a delay in         
   receiving the appropriate permits.                                      
    The House bill contained a similar provision (sec. 2407).              
    The House recedes with a technical amendment.                          
             TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT    
                                     PROGRAM                                      
                                      FISCAL YEAR 1998                            
           Overview                                                                
       The House bill would authorize $166,300,000 for the U.S.            
   contribution to the NATO Security Investment Program for fiscal year    
   1998.                                                                   
    The Senate amendment would authorize $152,600,000 for this purpose.    
       The conferees agree to authorize $152,600,000 for the United States 
   contribution to the NATO Security Investment Program.                   
                      TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES             
                                      FISCAL YEAR 1998                            
           Overview                                                                
       The House bill would authorize $327,208,000 for military            
   construction and land acquisition for fiscal year 1998 for the Guard and
   Reserve components.                                                     
    The Senate amendment would authorize $507,279,000 for this purpose.    
       The conferees recommend authorization of appropriations of          
   $448,033,000 for military construction and land acquisition for fiscal  
   year 1998. This authorization would be distributed as follows:          
          Army National Guard            $113,750,000
          Army Reserve                   66,267,000
          Naval/Marine Corps Reserve                47,329,000
          Air National Guard             190,444,000
          Air Force Reserve              30,243,000
       The conferees agree to a general reduction of $7,900,000 in the     
   authorization of appropriations for the Air Force Reserve military      
   construction account. The general reduction is to be offset by savings  
   from favorable bids, reduction in overhead costs, and cancellation of   
   projects due to force structure changes. The general reduction shall not
   cancel any military constructions authorized by title XXVI of this Act. 
                        ITEMS OF SPECIAL INTEREST                        
           Reserve construction project, Oakdale, Pennsylvania                     
       The conference agreement provides $6.0 million for phase I          
   construction of a reserve center with an organizational maintenance shop
   and area maintenance support center at Oakdale, Pennsylvania to support 
   the Army Reserve. The conferees urge the Secretary of the Army to make  
   every effort to include the appropriate level of funding for the        
   remaining phases of construction in the fiscal year 1999 budget request.
                               LEGISLATIVE PROVISIONS ADOPTED                     
                      Authorization of military construction projects for which    
           funds have been appropriated (sec. 2602)                                
       The House bill contained a provision (sec. 2602) that would         
   authorize $5,900,000 for the Army National Guard for additions and      
   alterations to an aviation support facility at Hilo, Hawaii, and        
                    $4,800,000 for the Naval Reserve for a bachelor enlisted      
          quarters at Naval Air Station, New Orleans, Louisiana, for which funds  
          were previously appropriated pursuant to the Military Construction      
          Appropriations Act, 1997 (Public Law 104 196).                          
    The Senate amendment contained a similar provision (sec. 2602).        
    The Senate recedes.                                                    
           Army Reserve construction project, Camp Williams, Utah (sec. 2603)      
       The House bill contained a provision (sec. 2603) that would         
   authorize the Secretary of the Army to accept financial or in-kind      
   contributions from the State of Utah for land acquisition, site         
   preparation, and relocation, in connection with the construction of a   
   reserve center and organization maintenance shop in Salt Lake City,     
   Utah.                                                                   
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the         
   Secretary and the State to enter into an agreement under which the State
   would provide financial or in-kind contributions for land acquisition,  
   site preparation, relocation, and other costs in connection with the    
   construction of a reserve center and organization maintenance shop at   
   Camp Williams, Utah.                                                    
                  TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS         
                               LEGISLATIVE PROVISIONS ADOPTED                     
                      Extension of authorizations of certain fiscal year 1995      
           projects (sec. 2702)                                                    
       The House bill contained a provision (sec. 2702) that would provide 
   for selected extension of certain fiscal year 1994 military construction
   authorizations until October 1, 1998, or the date of the enactment of   
   the Act authorizing funds for military construction for fiscal year     
   1999, whichever is later.                                               
    The Senate amendment contained a similar provision (sec. 2702).        
    The House recedes with a technical amendment.                          
                      Extension of authorizations of certain fiscal year 1994      
           projects (sec. 2703)                                                    
       The Senate amendment contained a provision (sec. 2703) that would   
   provide for selected extension of certain fiscal year 1994 military     
   construction authorizations until October 1, 1998, or the date of the   
   enactment of the Act authorizing funds for military construction for    
   fiscal year 1998, whichever is later.                                   
    The House bill contained a similar provision (sec. 2703).              
    The House recedes with a technical amendment.                          
                      Extension of authorizations of certain fiscal year 1993      
           projects (sec. 2704)                                                    
       The House bill contained a provision (sec. 2704) that would provide 
   for selected extension of certain fiscal year 1993 military construction
   authorizations until October 1, 1998, or the date of the enactment of   
   the Act authorizing funds for military construction for fiscal year     
   1999, whichever is later.                                               
    The Senate amendment contained a similar provision (sec. 2704).        
    The Senate recedes.                                                    
                      Extension of availability of funds for construction of       
           relocatable over-the-horizon radar, Naval Station Roosevelt Roads,      
           Puerto Rico (sec. 2706)                                                 
       The House bill contained a provision (sec. 2706) that would provide 
   for an extension of authority to construct a relocatable                
   over-the-horizon radar at Naval Station Roosevelt Roads, Puerto Rico    
   authorized by the Defense Appropriations Act, 1995 (Public Law 103 335) 
   until October 1, 1998, or the date of the enactment of the Act          
   authorizing funds for military construction for fiscal year 1999,       
   whichever is later.                                                     
    The Senate amendment contained a similar provision (sec. 2409).        
    The Senate recedes with a technical amendment.                         
                              TITLE XXVIII--GENERAL PROVISIONS                    
                               LEGISLATIVE PROVISIONS ADOPTED                     
           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  
                                     CHANGES                                      
                      Use of mobility enhancement funds for unspecified minor      
           construction (sec. 2801)                                                
       The House bill contained a provision (sec. 2801) that would         
   authorize the use of funds made available for mobility enhancement for  
   unspecified minor construction. Under the provision, mobility           
   enhancement funds could not be used for unspecified minor construction  
   if the cost of the construction project would exceed $1,500,000.        
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Limitation on the use of operation and maintenance funds for 
           facility repair projects (sec. 2802)                                    
       The House bill contained a provision (sec. 2802) that would clarify 
   the definition of repair of facilities using operations and maintenance 
   funds.                                                                  
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Leasing of military family housing, United States Southern   
           Command, Miami, Florida (sec. 2803)                                     
       The House bill contained a provision (sec. 2803) that would amend   
   section 2828 of title 10, United States Code, to authorize the Secretary
   of the Army to lease not more than eight housing units in the vicinity  
   of Miami, Florida, for key and essential personnel of United States     
   Southern Command, as determined by the Secretary, for which the annual  
   rental of such units would exceed the expenditure limitations           
   established by law. This section would establish certain new expenditure
   limitations related to such housing units.                              
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Use of financial incentives provided as part of energy       
           savings and water conservation activities (sec. 2804)                   
       The Senate amendment contained a provision (sec. 2804) that would   
   amend section 2865 of title 10, United States Code, to authorize the    
   Secretary of Defense to credit financial incentives received from gas or
   electric utilities to an appropriation designated by the Secretary. The 
   impact of this authority would be reflected in the Secretary's annual   
   energy report. The provision would also include a conforming amendment. 
    The House bill contained a similar provision (sec. 2804).              
    The House recedes with a technical amendment.                          
                      Congressional notification requirements regarding use of     
           Department of Defense housing funds for investments in nongovernmental  
           entities (sec. 2805)                                                    
       The House bill contained a provision (sec. 2805) that would provide 
   for a 30-day notice-and-wait requirement on requests to use funds       
   appropriated or otherwise made available under the authority of         
   subchapter IV of chapter 169 of title 10, United States Code, as a cash 
   contribution by the Department of Defense toward the investment cost in 
   any project entered into under those authorities.                       
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        
           Increase in ceiling for minor land acquisition projects (sec. 2811)     
       The House bill contained a provision (sec. 2811) that would increase
   the maximum limit for minor land acquisitions from $200,000 to $500,000.
    The Senate amendment contained a similar provision (sec. 2801).        
    The Senate recedes.                                                    
           Permanent authority regarding conveyance of utility systems (sec. 2812) 
       The House bill contained a provision (sec. 1423) that would         
   authorize the secretary of a military department to convey, with or     
   without consideration, a utility system, or part of a utility system, to
   a municipal, private, regional, district, or cooperative utility company
   or other entity. Such utility systems could include electrical          
   generation and supply systems, water supply and treatment systems, waste
   water collection and treatment system, steam, hot or chilled water      
   generation and supply systems, natural gas supply systems, and sanitary 
   landfills or lands to be used for sanitary fills. The provision would   
   require the secretary concerned to submit a 21-day notice-and-wait      
   announcement, to include a report containing an economic analysis of the
   proposed conveyance, to Congress prior to entering into any agreement to
   convey a utility.                                                       
       The Senate amendment contained a provision (sec. 2802) that would   
   authorize the service secretaries to convey all or part of government   
   utility systems located on military installations to commercial or      
   public utilities. The utilities that may be conveyed include, but are   
   not limited to: electrical generation and supply; water treatment; water
   supply; wastewater collection and treatment; steam, hot, chilled water  
   generation and supply, and natural gas supply. The conveyance would be  
   for fair market value, either as a lump-sum payment or as a reduction in
   utility charges, consistent with applicable Federal and State laws or   
   regulations, for a period sufficient to amortize the monetary value of  
   the utility system, including any conveyed real property. Any lump sum  
   payment received would be credited to an appropriation available for the
   purchase of like utility services or to an appropriation for the        
   construction of energy and water conservation projects or improvements  
   to other utility systems at the installation. The provision would waive 
   the cost comparison study between civilian and government workers       
   required by chapter 146 of title 10, United States Code. The secretaries
   would not be authorized to enter an agreement to convey until 21 days   
   after the service secretaries submit an economic analysis to the        
   congressional defense committees.                                       
       The House recedes with an amendment that would strike the waiver of 
   a cost comparison study between civilian and government workers required
   by chapter 146 of title 10, United States Code. The amendment would add 
   the authority to convey a system for the transmission of                
   telecommunications and would require that if the payment for the utility
   is in the form of reduced utility rates, that these rates be consistent 
   with Federal and state regulations. The amendment would also make       
   certain technical corrections.                                          
                      Administrative expenses for certain real property            
           transactions (sec. 2813)                                                
       The House bill contained a provision (sec. 2812) that would         
   authorize the secretary of a military department to accept reimbursement
   from non-federal entities for the cost of certain real estate services  
   and transactions, including real estate exchanges, grants, and licenses,
   done at the request of, and for the benefit of, those entities.         
    The Senate amendment contained a similar provision (sec. 2803).        
       The Senate recedes with an amendment that would delete the          
   conveyances of real property as a transaction covered by this authority.
                      Screening of real property to be conveyed by the Department  
           of Defense (sec. 2814)                                                  
       The Senate amendment contained a provision (sec. 2805) that would   
   require the Administrator of the General Services Administration (GSA)  
   to screen for federal interest any real property whose conveyance is    
   authorized by the Congress. The Administrator would be required to      
   complete a screen of the property within 30 days of enactment. If the   
   Administrator establishes a federal interest, the property would be     
   conveyed pursuant to the Federal Property and Administrative Services   
   Act of 1949. If it is determined that there is no other federal interest
   and the property is surplus to the United States Government, the        
   Secretary of the appropriate military department would be authorized to 
   transfer the real property to the designated recipient.                 
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would require the          
   Administrator to screen the property authorized for conveyance for      
   federal interest. Upon notification by the Administrator of the interest
   of a Federal agency in the property, the Secretary concerned would be   
   required to notify the Committee on Armed Services of the Senate and the
   Committee on National Security of the House of Representatives. The     
   notification shall include the name of the agency, the proposed use of  
   the property, and the estimated fair market value of the property and   
   improvements. The Secretary shall take no further action for 180 days.  
   If, after that period, the Congress has not rescinded the conveyance,   
   the Secretary may convey the property as specified in the legislation.  
   This requirement would apply to any conveyances of real property enacted
   in any legislation after December 31, 1997.                             
                      Disposition of proceeds from sale of Air Force Plant 78,     
           Brigham City, Utah (sec. 2815)                                          
       The Senate amendment contained a provision (sec. 2831) that would   
   authorize the Secretary of the Air Force to use the funds deposited by  
   the Administrator of General Services in the account established under  
   section 204(h)(2)(A) of the Federal Property and Administrative Services
   Act of 1949 from the sale of Air Force Plant 78, Brigham City, Utah, for
   maintenance and repair of facilities, or environmental restoration, at  
   other industrial plants of the Air Force.                               
    The House bill contained a similar provision (sec. 2813).              
    The House recedes with a technical amendment.                          
                      Fire protection and hazardous materials protection at Fort   
           Meade, Maryland (sec. 2816)                                             
       The Senate amendment contained a provision (sec. 1047) that would   
   require the Secretary of the Army to submit a plan to the congressional 
   defense committees outlining requirements for fire protection services  
   and hazardous materials protection services at Fort Meade, Maryland. The
   report would also outline a schedule for the implementation of the plan 
   and a detailed list of the funding options available.                   
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      SUBTITLE C--DEFENSE BASE CLOSURE AND REALIGNMENT            
                      Consideration of military installations as sites for new     
           Federal facilities (sec. 2821)                                          
       The House bill contained a provision (sec. 2821) that would require 
   the head of a federal agency to consult with the Secretary of Defense on
   the availability of federal property or facilities at military          
   installations to be closed or realigned prior to acquiring non-federal  
   real property.                                                          
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the head of 
   the federal agency to consult with and obtain the concurrence of the    
   redevelopment authority regarding the availability and suitability of a 
   former military installation as the location for a new or replacement   
   federal facility. This requirement would expire on July 31, 2001.       
                      Adjustment and diversification assistance to enhance         
           performance of military family support services by private sector       
           sources (sec. 2822)                                                     
       The Senate amendment contained a provision (sec. 368) that would    
   amend section 2391(b)(5) of title 10, United States Code, to authorize  
   the Secretary of Defense, through the Office of Economic Development, to
   make grants, conclude cooperative agreements, and supplement other      
   federal funds to assist state or local governments in supporting the    
   efforts of the Department of Defense in privatizing family support      
   activities. These support services would include, but would not be      
   limited to, privatization and outsourcing of military family housing,   
   family housing referrals, child development centers, and library        
   services.                                                               
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Security, fire protection, and other services at property    
           formerly associated with Red River Army Depot, Texas (sec. 2823)        
       The Senate amendment contained a provision (sec. 1088) that would   
   authorize the Secretary of the Army to enter into an agreement to       
   provide the local redevelopment authority at Red River Army Depot, fire,
   security, and hazardous material response services on a reimbursable    
   basis.                                                                  
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Report on closure and realignment of military installations (sec. 2824) 
       The Senate amendment contained a provision (sec. 2832) that would   
   require the Secretary of Defense to submit to the congressional defense 
   committees a report on the costs and savings attributable to the four   
   base closure rounds conducted under the base closure laws and on the    
   need, if any, for additional base closure rounds. The report would have 
   to be submitted not later than the fiscal year 2000 budget. The         
   Congressional Budget Office and the Comptroller General would be        
   required to conduct a review of the report. The provision would express 
   a sense of Congress urging the Secretary to develop a system to quantify
   costs and savings attributable to the closure and realignment of        
   military installations under the base closure process.                  
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would include an assessment
   of the effect of previous base closure rounds on the military           
   capabilities and the ability of the Armed Forces to fulfill the National
   Military Strategy. The amendment would also make certain technical      
   corrections.                                                            
                      Sense of Senate regarding utilization of savings derived from
           base closure process (sec. 2825)                                        
       The Senate amendment contained a provision (sec. 2833) that would   
   make it the sense of the Senate that the savings identified from base   
   closure be made available to the Department of Defense solely for the   
   purpose of modernization of weapons systems.                            
    The House bill contained no similar provision.                         
    The House recedes with a technical amendment.                          
                      Prohibition against conveyance of property at Long Beach     
           Naval Station to China Ocean Shipping Company (sec. 2826)               
       The House bill contained a provision (sec. 2822) that would prohibit
   the Secretary of Defense from conveying, by sale, lease, or other       
   method, any portion of real property to be disposed under the Defense   
   Base Closure and Realignment Act of 1990 (part A of title XXIX of Public
   Law 101 510) to a state-owned shipping company. The section would also  
   preclude the Secretary, as a condition on each conveyance of real       
   property, from subsequently conveying the property to a state-owned     
   shipping company. The section would provide for a reversionary interest 
   of the United States in such property in the event of a conveyance to,  
   or use by, a state-owned shipping company.                              
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would specify that the    
   Secretary of Navy may not convey property at the former Naval Station,  
   Long Beach, California under the Defense Base Closure and Realignment   
   Act of 1990 (part A of title XXIX of Public Law 101 510) to the China   
   Ocean Shipping Company (COSCO) or any successor of the company. The     
   section would also preclude the Secretary, as a condition on each       
   conveyance of real property, from subsequently conveying that property  
   to that company. The section would provide for a reversionary interest  
   of the United States in such property in the event of a conveyance to,  
   or use by, COSCO. The provision would require the Secretary of Defense  
   and the Director of the Federal Bureau of Investigations to separately  
   prepare a report on the potential national security implications of     
   transferring the property to COSCO. It would also include the authority 
   for the President to waive the restriction if it is determined that the 
   transfer would not adversely impact national security or significantly  
   increase the counter intelligence burden on the United States           
   intelligence community. The waiver would be effective 30 days after the 
   President notifies the Speaker of the House and the President of the    
   Senate.                                                                 
                                SUBTITLE D--LAND CONVEYANCES                      
                                  PART I--ARMY CONVEYANCES                        
           Land conveyance, Army Reserve Center, Greensboro, Alabama (sec. 2831)   
       The Senate amendment contained a provision (sec. 2820) that would   
   authorize the Secretary of the Army to convey, without consideration, to
   Hale County, Alabama approximately 5.17 acres located at the Army       
   Reserve Center, Greensboro, Alabama. The property was conveyed to the   
   United States by warranty deed dated September 12, 1988, for the purpose
   of constructing a reserve center which is no longer required.           
    The House bill amendment contained no similar provision.               
    The House recedes.                                                     
                      Land Conveyance, James T. Coker Army Reserve Center, Durant, 
           Oklahoma (sec. 2832)                                                    
       The House bill contained a provision (sec. 2831) that would         
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of real property with improvements in Durant, Oklahoma to Big    
   Five Community Services, Incorporated. The property is to be used for   
   educational purposes. The cost of any surveys necessary for the         
   conveyance shall be borne by Big Five Community Services, Incorporated. 
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Land conveyance, Gibson Army Reserve Center, Chicago,        
           Illinois (sec. 2833)                                                    
       The House bill contained a provision (sec. 2838) that would         
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of real property with improvements in Chicago, Illinois, to the  
   Lawndale Business and Local Development Corporation. The cost of any    
   surveys necessary for the conveyance shall be borne by the Lawndale     
   Business and Local Development.                                         
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would make the conveyance 
   subject to the condition that the corporation use the property conveyed 
   for economic development purposes.                                      
           Land conveyance, Fort A.P. Hill, Virginia (sec. 2834)                   
       The House bill contained a provision (sec. 2832) that would         
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of unimproved real property at Fort A.P. Hill, Virginia, to      
   Caroline County, Virginia. The property is to be used for a waste       
   transfer station. The costs of any surveys necessary for the conveyance 
   shall be borne by the County.                                           
    The Senate amendment contained no similar provision.                   
       The Senate recedes with a clarifying amendment that would specify   
   that the County shall permit the Army, at no cost, to dispose of not    
   less than 1,800 tons of solid waste annually at the facility established
   on the conveyed property.                                               
           Land conveyances, Fort Dix, New Jersey (sec. 2835)                      
       The House bill contained a provision (sec. 2839) that would         
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of real property with improvements at Fort Dix, New Jersey, to   
   the Borough of Wrightstown, New Jersey and a parcel with improvements to
   the Board of Education of New Hanover, New Jersey. The property is to be
   used for educational and economic purposes. The cost of any surveys     
   necessary for the conveyance shall be borne by the Borough.             
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would include a           
   reversionary clause in the event the Secretary determines that the      
   conveyed property is not being utilized in accordance with the          
   conditions and purposes of the conveyance.                              
           Land conveyances, Fort Bragg, North Carolina (sec. 2836)                
       The House bill contained a provision (sec. 2837) that would         
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of unimproved real property at Fort Bragg, North Carolina, to the
   Town of Spring Lake, North Carolina. The property is to be used for     
   improved access to a waste treatment facility and to permit economic    
   development. The cost of any surveys necessary for the conveyance shall 
   be borne by the Town.                                                   
       The Senate amendment contained a provision (sec. 2823) that would   
   authorize the conveyance, without consideration, of 157 acres of land at
   Fort Bragg, North Carolina to Harnett County, North Carolina for        
   educational and economic development purposes. The provision would also 
   authorize the conveyance, at fair market value, of a parcel of land in  
   the amount of 137 acres at Fort Bragg, North Carolina to Harnett County.
   The provisions would explicitly transfer any environmental liability    
   from the United States government to the county.                        
       The conference agreement includes both provisions. The Senate       
   recedes with an amendment that would require the real property conveyed 
   to the Town of Spring Lake be subject to the reversionary clause        
   contained in the Senate provision. The House recedes with an amendment  
   that would strike the transfer of liability from the United             
                    States government to the county. The conferees understand that
          this transfer is not required.                                          
                      Land conveyance, Hawthorne Army Ammunition Depot, Mineral    
           County, Nevada (sec. 2837)                                              
       The Senate amendment contained a provision (sec. 2813) that would   
   authorize the Secretary of the Army to convey, without reimbursement, to
   Mineral County, Nevada, approximately 33.1 acres of real property and   
   improvements that constitute the Schweer Drive Housing Area. The        
   conveyance would be contingent upon the County's acceptance of the      
   property subject to such easements or rights of way as the Secretary    
   considers appropriate. The provision would also require the County to   
   reimburse the United States in the event the property is sold within 10 
   years. The reimbursement would be equal to the lesser of the amount of  
   the sale of the property sold, or the fair market value of the property 
   sold, excluding the value of any improvements made by the County.       
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Expansion of land conveyance authority, Indiana Army         
           Ammunition Plant, Charlestown, Indiana (sec. 2838)                      
       The House bill contained a provision (sec. 2833) that would amend   
   section 2858 of the Military Construction Authorization Act for Fiscal  
   Year 1996 (division B of Public Law 104-106) to provide for the         
   additional conveyance of 500 acres of real property to the State of     
   Indiana.                                                                
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Modification of land conveyance, Lompoc, California (sec. 2839)         
       The House bill contained a provision (sec. 2834) that would modify  
   the purpose of the conveyance authorized by section 834(b)(1) of the    
   Military Construction Authorization Act, 1985 (Public Law 98-407). The  
   modification would permit the real property to be conveyed by the       
   Secretary of the Army to the City of Lompoc, California, to be used for 
   educational or recreational purposes.                                   
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Modification of land conveyance, Rocky Mountain Arsenal,     
           Colorado (sec. 2840)                                                    
       The House bill contained a provision (sec. 2835) that would permit  
   the Administrator of General Services to enter into a negotiated sale of
   815 acres of real property at Rocky Mountain Arsenal, Colorado, to      
   Commerce City, Colorado.                                                
       The Senate amendment contained a provision (sec. 2819) that would   
   authorize the conveyance of the 815 acres at fair market value, as      
   determined jointly by the Administrator and Commerce City.              
    The House recedes with a clarifying amendment.                         
                      Correction of land conveyance authority, Army Reserve Center,
           Anderson, South Carolina (sec. 2841)                                    
       The House bill contained a provision (sec. 2836) that would correct 
   the name of the conveyee in the conveyance authorized by section 2824 of
   the Military Construction Authorization Act for Fiscal Year 1997        
   (division B of Public Law 104-201). The correction would permit the     
   conveyance to be made by the Secretary of the Army to the Board of      
   Education, Anderson County, South Carolina.                             
    The Senate amendment contained a similar provision (sec. 2812).        
    The House recedes with a technical amendment.                          
                                  PART II--NAVY CONVEYANCES                       
                      Land conveyance, Topsham Annex, Naval Air Station, Brunswick,
           Maine (sec. 2851)                                                       
       The Senate amendment contained a provision (sec. 2815) that would   
   authorize the Secretary of the Navy to convey, without consideration, to
   the Maine School Administrative District No. 75, Topsham, Maine, a      
   parcel of real property, consisting of approximately 40 acres located at
   the Topsham Annex, Navy Air Station, Brunswick, Maine. The provision    
   would require the district to use the conveyed property for educational 
   purposes. It would further provide for an interim lease of the property 
   until the property is conveyed. As compensation for the lease, the      
   district would provide security and maintenance.                        
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Land conveyance, Naval Weapons Industrial Reserve Plant No.  
           464, Oyster Bay, New York (sec. 2852)                                   
       The Senate amendment contained a provision (sec. 2816) that would   
   authorize the Secretary of the Navy to convey, without consideration, to
   the County of Nassau, New York, all right, title, and interest of the   
   United States in and to a parcel of real property consisting of         
   approximately 110 acres and improvements comprising the Naval Weapons,  
   Industrial Reserve Plant No. 464, Oyster Bay, New York. The purpose of  
   the conveyance would be for economic development and would include      
   equipment, fixtures, and other personal property located on the parcel  
   as the Secretary determines not to be required by the Navy. The         
   provision would authorize the Navy to enter into an interim lease with  
   the County. The County would provide security services, fire protection,
   and maintenance work, as specified by the Secretary. The provision would
   specify that, if the Secretary determines within a 5-year period after  
   the conveyance that the property is not used in accordance with the     
   condition of the conveyance, the property would revert to the United    
   States.                                                                 
    The House amendment contained no similar provision.                    
    The House recedes with a clarifying amendment.                         
                      Correction of lease authority, Naval Air Station, Meridian,  
           Mississippi (sec. 2853)                                                 
       The House bill contained a provision (sec. 2851) that would change  
   the name of the conveyee in the conveyance authorized by section 2837 of
   the Military Construction Authorization Act for Fiscal Year 1997        
   (division B of Public Law 104 201). The correction would permit the     
   conveyance to be made by the Secretary of the Navy to the County of     
   Lauderdale, Mississippi.                                                
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                               PART III--AIR FORCE CONVEYANCES                    
           Land transfer, Eglin Air Force Base, Florida (sec. 2861)                
       The House bill contained a provision (sec. 2861) that would         
   authorize the Secretary of Transportation to transfer, without          
   reimbursement, to the administrative jurisdiction of the Secretary of   
   the Air Force a parcel of real property with improvements at Cape San   
   Blas, Gulf County, Florida, previously withdrawn for use as the location
   of a lighthouse. The Secretary of the Air Force would incorporate the   
   property as part of Eglin Air Force Base, Florida.                      
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
           Land conveyance, March Air Force Base, California (sec. 2862)           
       The House bill contained a provision (sec. 2863) that would         
   authorize the Secretary of the Air Force to convey a parcel of real     
   property at March Air Force Base, California, to Air Force Village West,
   Incorporated, of Riverside, California. As consideration for the parcel 
   to be conveyed, the Corporation shall pay to the United States an amount
   equal to the fair market value of the real property, as determined by   
   the Secretary. The section would also make technical modifications to   
   section 835 of the Military Construction Authorization Act, 1985 (Public
   Law 98 407).                                                            
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a technical amendment.                         
           Land conveyance, Hancock Field, Syracuse, New York (sec. 2864)          
       The Senate amendment contained a provision (sec. 2821) that would   
   authorize the conveyance, without consideration, of approximately 15    
   acres of excess real property located at Hancock Field, Syracuse, New   
   York. The provision would include a reversionary clause in the event the
   property is not used for economic redevelopment.                        
    The House bill contained no similar provision.                         
    The House recedes with a technical amendment.                          
                      Land conveyance, Havre Air Force Station, Montana, and Havre 
           Training Site, Montana (sec. 2865)                                      
       The Senate amendment contained a provision (sec. 2822) that would   
   authorize the Secretary of the Air Force to convey, without             
   consideration, two parcels of real property in the amount of 94 acres   
   comprising the former Havre Air Force Station and the former Havre      
   Training Site, Montana. The purpose of the conveyance would be for      
   housing and economic development.                                       
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Land conveyance, Charleston Family Housing Complex, Bangor,  
           Maine (sec. 2866)                                                       
       The Senate amendment contained a provision (sec. 2817) that would   
   authorize the Secretary of the Air Force to convey, without             
   consideration, to the City of Bangor, Maine, a parcel of real property  
   consisting of approximately 19 acres and improvements located in Bangor,
   Maine and known as the Charleston Family Housing Complex. The purpose of
   the conveyance would be for economic development. The provision would   
   require the city to reimburse the United States in the event the        
   property is sold within 10 years. The reimbursement would be equal to   
   the lesser of the amount of the sale of the property sold, or, the fair 
   market value of the property sold excluding the value of any            
   improvements made by the city.                                          
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                      Study of land exchange options, Shaw Air Force Base, South   
           Carolina (sec. 2867)                                                    
       The House bill contained a provision (sec. 2862) that would amend   
   section 2874 of the Military Construction Authorization Act for Fiscal  
   Year 1996 (division B of Public Law 104 106) to require the Secretary of
   the Air Force to conduct a study to identify real property suitable for 
   exchange to affect the land exchange at Shaw Air Force Base, South      
   Carolina, authorized pursuant to that law.                              
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                                  SUBTITLE E--OTHER MATTERS                       
           Repeal of requirement to operate Naval Academy Dairy Farm (sec. 2871)   
       The House bill contained a provision (sec. 2881) that would repeal  
   section 810 of the Military Construction Authorization Act of 1968      
   (Public Law 90 110), which prohibits the Department of the Navy from    
   taking any action to close, dispose, or phase out the operation of the  
   Naval Academy Dairy Farm.                                               
    The Senate amendment contained a similar provision (sec. 1066).        
    The Senate recedes with a clarifying amendment.                        
           Long-term lease of property, Naples, Italy (sec. 2872)                  
    The House bill contained a provision (sec. 2882) that would            
                    permit the Secretary of the Navy to enter into a long-term    
          lease, not to exceed twenty years, for structures and real property     
          relating to a regional hospital complex in Naples, Italy, that the      
          Secretary determines to be necessary for purposes of the Naples         
          Improvements Initiative.                                                
    The Senate amendment contained a similar provision (sec. 2814).        
    The Senate recedes.                                                    
                      Designation of military family housing at Lackland Air Force 
           Base, Texas, in honor of Frank Tejeda, a former Member of the House of  
           Representatives (sec. 2873)                                             
       The House bill contained a provision (sec. 2883) that would         
   authorize the Secretary of the Air Force to designate military family   
   housing developments to be constructed at Lackland Air Force Base,      
   Texas, in honor of the late Frank Tejeda, a Representative in Congress  
   from the State of Texas.                                                
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a technical amendment.                         
                      Fiber-optics based telecommunications linkage of military    
           installations (sec. 2874)                                               
       The House bill contained a provision (sec. 1502) that would require 
   the Department of Defense to install a fiber-optics based               
   telecommunications network to link the military installations in a      
   metropolitan area.                                                      
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would provide sufficient  
   time for the competition of such a contract and would allow the         
   Department to tailor the network to its requirements. The conferees note
   that the Secretary could build on and expand ongoing Department of the  
   Navy initiatives to meet these requirements. The conferees also         
   encourage the Secretary to have a signed contract to implement this     
   provision by December 1, 1998.                                          
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
                      Modification of authority for disposal of certain real       
           property, Fort Belvoir, Virginia                                        
       The Senate amendment contained a provision (sec. 2811) that would   
   repeal section 2821 of the Military Construction Act for Fiscal Years   
   1990 and 1991, as amended by section 2854 of the Military Construction  
   Authorization Act for Fiscal Year 1996. These provisions would have     
   authorized the conveyance of the parcel of real property, including     
   improvements thereon, at Fort Belvoir, Virginia, consisting of          
   approximately 820 acres known as the Engineer Proving Ground.           
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees direct the Secretary of the Army to provide to the    
   Committee on Armed Services of the Senate and the Committee on National 
   Security of the House of Representatives a report on the status of the  
   conveyance and redevelopment of the Engineer Proving Ground. The report 
   shall be coordinated with the appropriate officials in Fairfax County   
   and shall be submitted six months after enactment of this Act and       
   annually thereafter until the redevelopment is completed.               
                             TITLE XXIX--SIKES ACT IMPROVEMENT                    
           Sikes Act Improvement (secs. 2901 2914)                                 
       The House bill contained several provisions (secs. 2901 2914) that  
   would amend and reauthorize the Sikes Act, which was last amended in    
   1986, and had an authorization that expired in 1993. In its current     
   form, the Sikes Act authorizes the Secretary of Defense to enter into   
   cooperative plans with the Secretary of Interior and the appropriate    
   State fish and wildlife agencies. The House provisions would require the
   secretary of each military department to develop a more comprehensive   
   integrated natural resources plan for each military installation. Each  
   plan must be consistent with the use of military lands to ensure        
   military preparedness, and cannot result in any net loss in the         
   capability to support the military mission.                             
       The Senate amendment (secs. 381 392) and the House bill (secs. 2901 
   2914) contained similar provisions. However, the Senate amendment (sec. 
   383) would require the completion of integrated natural resources       
   management plans three years after the date of the initial report to    
   Congress, rather than the two years provided for in the House bill (sec.
   2905). There is also a difference between the House bill (sec. 2911) and
   the Senate amendment (sec. 386) reference to the funds underlying       
   cooperative agreements. The House bill provides for the use of ``funds  
   appropriated'' and the Senate amendment provides for the use of ``funds 
   made available'' for the cost of goods and services covered under       
   cooperative agreements.                                                 
       The House recedes with an amendment that would require the          
   completion of integrated natural resources management plans three years 
   following the submission of the initial report to Congress. The         
   provision would specify that goods and services provided under a        
   cooperative agreement would be paid for with ``funds appropriated.'' The
   provision would also include minor legislative drafting modifications.  
       The conferees note that the reauthorization of the Sikes Act would  
   directly affect the nearly 25 million acres managed by the Department of
   Defense. The conferees agree that reauthorization of the Sikes Act is   
   not intended to expand the management authority of the U.S. Fish and    
   Wildlife Service or the State fish and wildlife agencies in relation to 
   military lands. Moreover, it is expected that integrated natural        
   resources management plans shall be prepared to facilitate installation 
   commanders' conservation and rehabilitation efforts that support the use
   of military lands for readiness and training of the armed forces.       
       The conferees note that the military departments will have completed
   approximately 60 percent of the required integrated natural resources   
   management plans by October 1, 1997. The conferees understand that most 
   of these plans have been prepared consistent with the criteria          
   established under this provision. In addition, the conferees note the   
   significant investment made by the military departments in the          
   completion of current integrated natural resources management plans. The
   conferees intend that the plans that meet the criteria established under
   this provision should not be subject to renegotiation and               
   reaccomplishment.                                                       
       Finally, the conferees understand that approximately $5.0 million is
   programmed for the preparation of integrated natural resources          
   management plans on an annual basis. The conferees have been assured by 
   the Department of Defense that the reauthorization of the Sikes Act will
   not result in increased funds for the plans. Based on the Department's  
   assurances as to the programmed funding level, the conferees expect that
   each of the military departments will have sufficient funds in fiscal   
   year 1998 and subsequent fiscal years to complete plans by the statutory
   deadline.                                                               
           DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND  
                              OTHER AUTHORIZATIONS                                
                TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY  PROGRAMS      
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $13,597.6 million for the Defense Nuclear Activities. The House bill 
   would authorize $10,951.9 million. The Senate amendment would authorize 
   $11,204.4 million. The conferees recommended an authorization of        
   $11,502.8 million. Unless noted explicitly in the statement of managers,
   all changes are made without prejudice.                                 
   Offset Folios 1446 to 1465 Insert here                                  
                               LEGISLATIVE PROVISIONS ADOPTED                     
                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         
           Weapons activities (sec. 3101)                                          
       The House bill contained a provision (sec. 3101) that would         
   authorize $4.0 billion for the Department of Energy (DOE) weapons       
   activities.                                                             
       The Senate amendment contained a similar provision (sec. 3101) that 
   would authorize $4.0 billion for DOE weapons activities.                
       The Senate recedes with an amendment that would authorize $4.1      
   billion for this account for the following activities: $1.9 billion for 
   stockpile stewardship; $2.0 billion for stockpile management; and $250.0
   million for program direction. The authorization includes a general     
   reduction of $22.6 million. The conferees recommend a reduction of $53.5
   million to the budget request for program direction. The conferees note 
   that recent independent assessments from the Institute for Defense      
   Analysis and the General Accounting Office have identified a number of  
   recommendations regarding how best to streamline the management         
   structure within the Office of Defense Programs. The conferees believe  
   that implementing such recommendations would reduce management costs and
   increase the effectiveness of the Department's weapons programs.        
       The budget request included $15.7 million for the incremental       
   component of the construction upgrades at the Chemistry and Metallurgy  
   Research Facility at Los Alamos National Laboratory. Because of cost    
   overruns and pending the outcome of the Department's ongoing review into
   this project, the conferees recommend $5.0 million for this activity.   
   The conferees adopt this position, without prejudice.                   
       The conferees recommend $217.0 million, the amount requested, for   
   the inertial confinement fusion operating program. Within the total     
   amount authorized for this activity, the conferees recommend that $26.1 
   million be made available for the University of Rochester's Laboratory  
   for Laser Energetics, an increase of $2.5 million.                      
       The conferees recommend an additional $10.0 million for a surety    
   program to improve waste minimization efforts related to the            
   Department's stockpile management program and an additional $8.0 million
   to continue tritium facility upgrades initiated in fiscal year 1997 at  
   the Savannah River Site.                                                
       The conferees recommend $65.3 million for technology transfer and   
   education. Of this amount, the conferees recommend that $10.0 million be
   made available for the American Textiles Partnership program.           
           Environmental restoration and waste management (sec. 3102)              
       The House bill contained a provision (sec. 3102) that would         
   authorize $5.3 billion for Department of Energy (DOE) environmental     
   restoration and waste management activities.                            
       The Senate amendment contained a similar provision (sec. 3102) that 
   would authorize $5.1 billion for DOE environmental restoration and waste
   management activities. The Senate amendment authorized $274.7 million   
   for Defense Environmental Management Privatization projects in a        
   separate provision.                                                     
       The Senate recedes with an amendment that would authorize $5.5      
   billion for Environmental Management activities, including: $1.0 billion
   for environmental restoration; $1.6 billion for waste management; $220.0
   million for technology development; $1.3 billion for nuclear material   
   and facility stabilization; $20.0 million for policy and management;    
   $55.0 million for the Environmental Management science program; $875.0  
   million for closure projects; $345.8 million for program direction; and 
   $224.7 million for defense Environmental Management privatization. The  
   authorization includes a general reduction of $50.0 million.            
       The conferees recommend an additional $10.0 million for             
   environmental restoration. Of this increase, the conferees recommend an 
   additional $5.0 million to accelerate closure of the Hanford 100 Area in
   Richland, Washington.                                                   
       The conferees recommend an additional $35.3 million for waste       
   management. Of the funds available for waste management, the conferees  
   recommend an additional $12.0 million for the Savannah River site to    
   increase production at the Defense Waste Processing Facility (DWPF) and 
   $8.2 million to support high-level waste research and development work  
   at the Idaho National Engineering and Environmental Laboratory. The     
   conferees direct the Department to make available an additional $25.0   
   million to allow the consolidated incineration facility to operate at   
   full capacity, as originally intended, to assure that the DWPF operates 
   at its designed capacity, and that the site has sufficient funds to     
   accelerate the disposal of transuranic waste.                           
       The conferees urge the Department to assess the cost savings that   
   may be available if it is able to develop a successful spent fuel or    
   high level waste storage cask system using high density concrete. Of the
   waste management funds authorized in section 3102 of this title, no more
   than $3.0 million may be made available for this demonstration project. 
       The conferees recommend an increase of $58.0 million to nuclear     
   material and facility stabilization to be allocated as follows: $47.0   
   million for nuclear material stabilization operations at the F- and     
   H-canyon facilities and $11.0 million for the National Spent Fuel       
   Program.                                                                
       The conferees recommend $220.0 million for technology development, a
   $37.9 million reduction. This reduction reflects the Department's       
   proposed reduction to the Technology Deployment Initiative and greater  
   cost-sharing with technology user organizations within the Department.  
   The conferees are supportive of the Office of Science and Technology's  
   efforts to move technologies from the late stages of research and       
   development into use. The conferees believe that Environmental          
   Management line organizations should place a greater emphasis on        
   innovative technical approaches when executing records of decision,     
   meeting tri-party agreement milestones, or selecting clean up and waste 
   management approaches. The Department has a poor record in deploying    
   DOE-developed cleanup and waste management technologies. The conferees  
   believe that senior management attention will be required if the        
   Department is to benefit from those                                     
                    technologies that have already been developed by the          
          Department, but have not been applied at DOE facilities.                
       The conferees recommend $55.0 million for the Environmental         
   Management science program, an increase of $5.0 million.                
       The conferees recommend $20.0 million for the Office of Policy, a   
   $3.1 million reduction.                                                 
       The conferees recommend $345.8 million for program direction, a     
   $42.5 million reduction.                                                
       The conferees recommend $875.0 million for the project closure      
   account, an increase of $860.0 million. The increase to this account has
   been derived from the following sources: a transfer of $743.6 million   
   from environmental restoration, a transfer of $45.2 million from the    
   operations and maintenance account within the stockpile management      
   program, and an additional $71.2 million. The conferees recommend       
   allocating closure project account funds as follows: $648.4 million for 
   the Rocky Flats Environmental Technology Site and $226.6 million for the
   Fernald Environmental Management Project. The conferees strongly support
   the efforts of the adjacent communities to close these two sites within 
   the next ten years.                                                     
       The transfer of $45.2 million from stockpile management represents  
   the costs associated with the provision of security at the Rocky Flats  
   Site and the Fernald Site. The conferees are aware that this transfer of
   funds will also require the Office of Environmental Management to accept
   custodial responsibility of weapons grade special nuclear material,     
   which constitutes a change in current practice.                         
           Other defense activities (sec. 3103)                                    
       The budget request included $1.606 billion for Other Defense        
   Activities of the Department of Energy (DOE) for fiscal year 1998.      
       The House bill contained a provision (sec. 3103) that would         
   authorize $1.5 billion for Other Defense Activities, a reduction of     
   $93.4 million to the budget request.                                    
       The Senate amendment contained a provision (sec. 3103) that would   
   authorize $1.6 billion for Other Defense Activities, an increase of     
   $28.0 million to the budget request.                                    
       The conferees agree to a provision that would authorize $1.636      
   billion for Other Defense Activities.                                   
           Verification and control technology                                     
       The conferees agree to authorize $478.2 million for verification and
   control technology.                                                     
       The conferees are concerned by recent reports that a substantial    
   portion of the aid intended for Russian scientists under the Initiatives
   for Proliferation Prevention (IPP) program is being siphoned off by     
   duties, regional taxes, overhead charges and other assessments by       
   Russian entities. The conferees direct the Secretary of Energy to report
   to the Congress by March 31, 1998 on the impact of these charges on the 
   program and to provide detailed recommendations on how these problems   
   can be corrected.                                                       
       To close gaps identified in DOE's nuclear smuggling program, the    
   conferees agree to provide $16.0 million for nuclear smuggling          
   activities, a $3.0 million increase, from funds available in            
   verification and control technology, to enhance further and accelerate  
   the Department's nuclear forensic analytical capability. The conferees  
   have been supportive of efforts by the Department of Defense (DOD) and  
   DOE to respond to any domestic terrorist use of weapons of mass         
   destruction. From the funds authorized for verification and control     
   technology, $2.0 million is available for training and related          
   activities to prepare federal, state, and local first responders to work
   effectively as part of the domestic emergency response program. The     
   conferees understand that nuclear training curriculum for local first   
   responders has been prepared by the DOE defense programs, and that this 
   program is coordinated with the DOD, the agency responsible for         
   preparing the chemical and biological training and exercise programs. In
   order to maximize the number of participants in the exercises, and to   
   take advantage of cost savings, the conferees recommend that DOE        
   continue to coordinate the activities of its exercises with the         
   executive agent and program manager for the DOD domestic emergency      
   preparedness program in order to integrate mixed scenarios of chemical, 
   biological and nuclear incidents in the exercises.                      
       The Secretary of Energy was directed in the statement of managers   
   accompanying the conference report for the National Defense             
   Authorization Act for Fiscal Year 1997 (Public Law 102 201) to provide  
   an annual evaluation to the Congress of the expected powers and expected
   limits that define the extent to which science and technology can aid   
   the nonproliferation effort. The conferees direct the Secretary to      
   submit the first annual report on February 1, 1998. The conferees       
   continue to believe that advances in science and technology will improve
   the ability to detect the presence, transportation, and use of weapons  
   of mass destruction. The ability of such advanced technologies to be    
   developed and used may, however, be impeded or otherwise affected by    
   regional powers and interests. The evaluation to be conducted should    
   include an analysis of regional and local situations, requirements, and 
   power structures that can either aid or deter deployment of new         
   technology for nonproliferation efforts.                                
           International nuclear safety                                            
       The conferees agree to provide $47.0 million for nuclear energy,    
   including $35.0 million for international nuclear safety activities.    
       The conferees were recently notified that the DOE fiscal year 1999  
   funding for these activities will not be included in DOE national       
   security programs. The conferees appreciate the administration's intent 
   to comply with congressional guidance and to seek funding for these     
   activities from sources other than the defense accounts.                
           Naval reactors                                                          
       The conferees recommend an increase of $44.5 million to the budget  
   request for naval reactors to expedite decommissioning and              
   decontamination activities at surplus training facilities.              
       The conferees consider the naval reactors program to be a critical  
   defense activity. The conferees are concerned that the DOE              
                    has demonstrated a pattern of consistently underestimating    
          funding requirements for this program in budget requests. The conferees 
          strongly encourage the Department to request adequate funding for this  
          program in future fiscal year budget requests to allow this program to  
          accomplish the stated objectives in an efficient manner.                
           Declassification productivity initiative                                
       The conferees continue to support the Declassification Productivity 
   Initiative. The conferees are concerned that the Department of Energy   
   lacks both the appropriate technical personnel and integrating          
   components required to carry out successfully this program. Recognizing 
   the complexities surrounding the development of a computer-aided system 
   to improve the efficiency and security of the declassification process, 
   the conferees are concerned that the limited funds provided to this     
   program are being allocated among numerous laboratories, universities,  
   and industry without clear technical direction or coordination by the   
   Department. The conferees direct the Director of the Office of          
   Declassification to begin to develop a management and integration       
   strategy to coordinate and streamline the various initiatives carried   
   out within the Declassification Productivity Initiative. In addition,   
   the conferees strongly discourage any shifting of funds from the        
   Declassification Productivity Initiative to other declassification      
   activities.                                                             
           Environment, safety and health                                          
       The conferees recommend $94.0 million for environment, safety and   
   health (ES&H) activities, an increase of $40.0 million to the budget    
   request. Of the amount authorized, the conferees recommend $20.0 million
   for ES&H program direction. The conferees believe that costs associated 
   with implementing and conducting oversight of the ES&H program should be
   reflected in the same programmatic activity.                            
           Independent cost assessment                                             
       The conferees recommend $15.0 million to be used by the Department  
   of Energy to provide for external reviews of the Department's individual
   construction and privatization projects. The conferees direct the       
   Secretary of Energy to provide the congressional defense committees with
   all reports generated in the process of conducting this assessment, and 
   to consult with the committees regarding all aspects of this review,    
   including contractor selection.                                         
                          SUBTITLE B--RECURRING GENERAL PROVISIONS                
           Limits on general plant projects (sec. 3122)                            
       The House bill contained a provision (sec. 3122) that would         
   authorize the Secretary of Energy to carry out any construction project 
   authorized under general plant projects if the total estimated cost     
   would not exceed $2.0 million. The provision would require the Secretary
   to submit a report to Congress if the cost of the project is revised to 
   exceed $2.0 million. The report would fully explain the reasons for the 
   cost variation.                                                         
       The Senate amendment contained a similar provision (sec. 3122) that 
   would authorize a construction project as a general plant project if the
   current estimated cost for that project would exceed $5.0 million. If   
   the Secretary of Energy determines that the estimated cost of any       
   project will exceed $5.0 million, the congressional defense committees  
   must be notified of the reasons for the cost variation.                 
    The House recedes.                                                     
       The conferees note that the report required by section 3122 of the  
   National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 
   201) to support increasing the threshold for general plant projects was 
   submitted late. The conferees urge the Department to submit reports on  
   or before the required due dates in the future.                         
           Fund transfer authority (sec. 3124)                                     
       The House bill contained a provision (sec. 3124) that would permit  
   funds authorized by the bill to be transferred to other agencies of the 
   government for performance of work for which the funds were authorized  
   and appropriated. The provision would permit the merger of such funds   
   with the authorizations of the agency to which they are transferred.    
   This provision would also limit, to no more than five percent, the      
   amount of such funds that may be transferred between authorization      
   accounts in the Department of Energy that were authorized pursuant to   
   this act.                                                               
    The Senate amendment contained a similar provision (sec. 3124).        
    The Senate recedes with a clarifying amendment.                        
           Authority for conceptual and construction design (sec. 3125)            
       The House bill contained a provision (sec. 3125) that would limit   
   the Secretary of Energy's authority to request construction funding     
   until the Secretary certifies that a conceptual design has been         
   completed, except in the case of emergencies. This limitation would     
   apply to construction projects with a total estimated cost in excess of 
   $2.0 million. If the estimated cost of the design exceeds $3.0 million, 
   the provision would require the Secretary to request funds for the      
   design before requesting funds for the construction project. The        
   provision would also require the Secretary to submit to Congress a      
   report on each conceptual design completed under this paragraph.        
       The Senate amendment contained a similar provision (sec. 3125) that 
   would apply to construction projects with a total estimated cost in     
   excess of $5.0 million.                                                 
       The Senate recedes with an amendment that would limit the           
   Secretary's authority to request construction funding for projects with 
   an estimated cost in excess of $5.0 million until the Secretary has     
   certified a conceptual design has been completed, except in emergencies.
           Availability of funds (sec. 3128)                                       
       The Senate amendment contained a provision (sec. 3128) that would   
   authorize amounts appropriated for operating expenses or for plant and  
   capital equipment to remain available until expended.                   
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would direct that funds    
   authorized to be appropriated for program direction activities in fiscal
   year 1998 would be available to be expended until the end of fiscal year
   2000.                                                                   
           Transfers of defense environmental management funds (sec. 3129)         
       The House bill contained a provision (sec. 3128) that would provide 
   the manager of each field office of the Department of Energy (DOE) with 
   the limited authority to transfer fiscal year 1998 defense environmental
   management funds from one program or project under the jurisdiction of  
   the office to another such program or project, once in the fiscal year. 
       The Senate amendment contained a similar provision (sec. 3137) that 
   would extend and make permanent the limited authority to transfer       
   defense environmental management funds originally authorized in section 
   3139 of the National Defense Authorization Act for Fiscal Year 1997.    
    The Senate recedes with a clarifying amendment.                        
              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   
                      Memorandum of understanding for use of national laboratories 
           for Ballistic Missile Defenses programs (sec. 3131)                     
       The House bill contained a provision (sec. 3131) that would         
   establish a program within the Department of Energy weapons laboratories
   for the purpose of assisting the Department of Defense in the testing   
   and development of a ballistic missile defense program.                 
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would direct the Secretary
   of Energy and the Secretary of Defense to enter into a memorandum of    
   understanding as to how the Department of Energy national laboratories  
   could be utilized more fully to support the ballistic missile defense   
   program.                                                                
           Defense environmental management privatization projects (sec. 3132)     
       The Senate amendment contained a provision (sec. 3131) that would   
   establish criteria for the initiation of Department of Energy Defense   
   Environmental Management Privatization contracts.                       
       The provision would prohibit the Department from incurring any      
   contractual obligations for a privatization contract until 30 days after
   the date on which the Department submits to the congressional defense   
   committees a report on that privatization project that describes the    
   Department's anticipated contractual commitments for such project, the  
   cost of the proposed project versus the baseline cost, any assumptions  
   underlying cost savings estimates, and a discussion of the Department's 
   plans to maintain financial and programmatic accountability under such  
   contracts.                                                              
       The provision would direct the Department to report on the          
   Secretary's ability to enter into privatization contracts in the absence
   of sufficient appropriations to meet obligations under such contracts.  
       The House bill contained a provision (sec. 3145) that would place   
   similar restrictions on the tank waste remediation system project.      
       The House recedes with an amendment that would provide the Secretary
   discretionary authority to use a privatization contract to carry out a  
   project for which funds are authorized pursuant to section 3102 of this 
   Act. The provision would also require the Department of Energy to       
   provide a detailed justification and analysis of the comparative costs  
   to the United States of constructing two nuclear waste vitrification    
   plants under the tank waste remediation system project, should the      
   Secretary of Energy choose to do so.                                    
       The conferees direct the Secretary of Energy to examine and report  
   to the congressional defense committees on the Department's authority to
   create an escrow account to offset any reasonably foreseeable costs to  
   the government that may arise if any privatization contracts are        
   canceled or terminated for the convenience of the government. The report
   should also recommend any legislation needed to eliminate any potential 
   conflicts arising from the anti-deficiency provisions found in section  
   3191 of title 31, United States Code.                                   
           International cooperative stockpile stewardship programs (sec. 3133)    
       The Senate amendment contained a provision (sec. 3132) that would   
   prohibit the Department of Energy (DOE) from pursuing cooperative       
   stockpile stewardship and management activities with certain nations.   
    The House bill contained no similar provision.                         
    The House recedes.                                                     
       The conferees remain concerned that initiation of an ongoing        
   international cooperative stockpile stewardship and management program  
   could have unintended detrimental effects on U.S. national security     
   interests. This provision would extend for one year the prohibition     
   established by section 3138 of the National Defense Authorization Act   
   for Fiscal Year 1997. The intent of this provision is to prohibit       
   establishment of a permanent program of international cooperative       
   stockpile stewardship, with an exception for activities that might be   
   undertaken with the United Kingdom and France. The provision would not  
   apply to activities carried out by DOE under cooperative threat         
   reduction programs with nations of the former Soviet Union, or to the   
   Department of Energy materials protection, control, and accounting or   
   the initiatives for proliferation prevention programs. The prohibition  
   would apply to all other DOE activities, including but not limited to   
   laboratory directed research and development funds.                     
       The conferees do not intend this prohibition to prevent the         
   President's ability to respond to developments which might threaten the 
   national security of the United States. The conferees believe that the  
   President has sufficient flexibility to address such specific           
                    incidents should they arise and the provision would not       
          prohibit such action.                                                   
           Modernization of enduring nuclear weapons complex (sec. 3134)           
       The House bill contained a provision (sec. 3101) that would provide 
   an increase of $85.0 million for the Department of Energy's (DOE)       
   stockpile management program to be used for weapons production plants   
   infrastructure upgrades and the Stockpile Life Extension, Enhanced      
   Surveillance, and Advanced Development Programs carried out at DOE      
   production plants.                                                      
       The Senate amendment contained a provision (sec. 3133) that would   
   provide an additional $15.0 million to support modernization efforts    
   being carried out at the Department of Energy's four nuclear weapons    
   production plants (Pantex, Kansas City, Y 12, and Savannah River). The  
   provision would require the Department to submit, not later than 30 days
   after enactment of this provision, a report describing the Department's 
   plans to allocate the funds authorized by this section and the relevance
   of each allocation to implementing the decisions in the Final           
   Programmatic Environmental Impact Statement for Stockpile Stewardship   
   and Management. The funds authorized for this activity could not be     
   obligated until 30 days after the congressional defense committees      
   receive the Department's proposed allocation report as required by this 
   provision.                                                              
       The House recedes with an amendment that would increase funding for 
   the stockpile management account to provide an additional $85.0 million 
   for these activities.                                                   
       The conferees direct that the funds be allocated as follows: $25.0  
   million for the Pantex Plant for basic infrastructure needs including   
   roof repair, electric power service upgrades, steam and condensate      
   piping upgrades, fire enunciation systems, and Enhanced Surveillance    
   Program activities; $25.0 million for the Kansas City Plant for basic   
   infrastructure needs including roof repair, installation of advanced    
   manufacturing equipment, and Advanced Manufacturing Program activities; 
   and $35.0 million for the Y 12 plant for basic infrastructure needs, W  
   87 work load requirements, Advanced Manufacturing Program activities,   
   and Stockpile Life Extension Program activities. Of the amounts made    
   available by this provision, not more than five percent shall be        
   allocated collectively to management overhead, program direction, and   
   technical budgetary, accounting, and other analytical support to the    
   DOE. The remainder shall be expended by the four production plants      
   exclusively for the programs described.                                 
       The conferees concur with the Department's goal to implement        
   advanced manufacturing technology at DOE plants and laboratories to     
   improve production efficiencies and maintain core competencies within   
   the DOE nuclear weapons production complex. The conferees understand    
   that such modernization upgrades will require coordination among the    
   four production plants and the three design laboratories.               
       The conferees remain concerned with the Department's plans to       
   maintain the capability and capacity to refurbish and, when necessary,  
   remanufacture nuclear weapons components in the Nation's nuclear weapons
   stockpile. The committee is concerned that the Department may be overly 
   relying on new, ``science-based'' stockpile stewardship and management  
   approaches at the risk of losing manufacturing capabilities and         
   expertise.                                                              
       The conferees are deeply troubled that the Department has failed to 
   meet fully the intent of section 3137 of the National Defense           
   Authorization Act for Fiscal Year 1996 and section 3132 of the National 
   Defense Authorization Act for Fiscal Year 1997 calling for modernization
   of the four nuclear weapons production plants.                          
       The conferees believe that the Department did not fully meet the    
   requirements or intent of these sections and related guidance provided  
   in conference reports accompanying these Acts and the 1996 and 1997     
   Energy and Water Development Appropriations Acts. The conferees note    
   that the General Accounting Office has identified certain Nuclear       
   Weapons Stockpile Memorandum requirements that may not be met by the    
   Department due to insufficient resources being allocated to the four    
   traditional production plants. The conferees believe that the           
   manufacturing facilities must be modernized as directed in the National 
   Defense Authorization Act for Fiscal Year 1996 and the National Defense 
   Authorization Act for Fiscal Year 1997, or these problems will continue.
           Tritium production (sec. 3135)                                          
       The Senate amendment contained a provision (sec. 3134) that would   
   make available $262.0 million for the Department of Energy (DOE) tritium
   production program. The provision would require DOE to select a tritium 
   production technology not later than June 30, 1998. The provision would 
   also prohibit the Department from obligating funds appropriated or      
   otherwise made available pursuant to this Act for exploration of any    
   tritium production technology option, other than those being examined   
   under the Department's ``dual track'' approach, until July 30, 1998, or 
   30 days after such time that the Department selects a preferred         
   technology option, whichever comes later. The provision would also      
   require the Secretary of Energy to submit a report describing for each  
   technology option any regulatory barriers, licensing difficulties,      
   potential for production rate variability, scientific benefits, revenue 
   generation and other ancillary benefits.                                
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would require the          
   Department of Energy to select a tritium production technology not later
   than December 31, 1998.                                                 
       The conferees continue to believe that the Department can move      
   faster to select a preferred technology option and acquire a permanent  
   new tritium production source capable of meeting the requirements of the
   Nuclear Weapons Stockpile Memorandum, which identifies a new tritium    
   production date in the year 2005 in the case a reactor option is        
   selected and 2007 if an accelerator option is selected. While the       
   conferees recognize that future tritium requirements could change if the
   United States enters into treaties that reduce the numbers of strategic 
   and tactical nuclear weapons, the production capacity that the United   
   States will need to maintain at START I and START II levels will remain 
   essentially constant.                                                   
                      Processing, treatment, and disposition of spent nuclear fuel 
           rods and other legacy nuclear materials at the Savannah River Site (sec.
           3136)                                                                   
       The Senate amendment contained a provision (sec. 3135) that would   
   make available an additional $47.0 million above the budget request for 
   the F-canyon and H-canyon facilities to accelerate the stabilization of 
   legacy materials at the Savannah River Site. The provision would further
   require that the Secretary of Energy maintain a high state of readiness 
   of the F-canyon and H-canyon facilities.                                
    The House bill contained no similar provision.                         
    The House recedes.                                                     
       The conferees note that the House bill recommended $41.0 million for
   similar activities.                                                     
                      Limitations on use of funds for laboratory directed research 
           and development purposes (sec. 3137)                                    
       The Senate amendment contained a provision (sec. 3136) that would   
   modify section 3136 of the National Defense Authorization Act for Fiscal
   Year 1997 by requiring the annual report on uses of Laboratory Directed 
   Research and Development (LDRD) funds be provided to the congressional  
   defense committees not later than February 1 of each year. The provision
   would also prohibit the Department of Energy (DOE) from obligating more 
   than 30 percent of the funds appropriated or otherwise made available to
   the DOE in fiscal year 1998 for LDRD programs until the Department      
   submits the annual report for fiscal year 1997.                         
       The provision would limit the use of funds appropriated or otherwise
   made available to the DOE under section 3101 of this Act to LDRD and    
   technology transfer activities that support the weapons activities of   
   the Department. The provision would similarly limit use of funds        
   appropriated or otherwise made available to the DOE under section 3102  
   of this Act to those activities that support the environmental          
   restoration, waste management, or materials stabilization activities of 
   the Department.                                                         
       The provision would require the Department to include in the fiscal 
   year 1998 annual report an assessment of the funding required to carry  
   out an effective LDRD program, including any recommendations for the    
   percentage of funds that should be provided to the National Laboratories
   for LDRD activities by the Federal Government.                          
    The House bill contained no similar provision.                         
    The House recedes.                                                     
       The conferees recognize that programs such as LDRD are essential to 
   maintaining the core competencies of the National Laboratories. The     
   conferees will assess the Department's recommendations regarding the    
   appropriate percentage of funds to be provided to this program in       
   conjunction with any existing or future restrictions that might be      
   considered for this program.                                            
                      Pilot program relating to use of proceeds of disposal or     
           utilization of certain Department of Energy assets (sec. 3138)          
    The Senate amendment contained a provision (sec. 3140) that would      
                    permit the Secretary of Energy to establish a pilot program to
          promote the sale of certain real and personal property surplus to the   
          needs of the Federal government and allow the Department of Energy (DOE)
          to retain in the DOE defense Environmental Restoration and Waste        
          Management accounts 50 percent of the net proceeds from such sales. The 
          retained funds would be available for use, subject to appropriation     
          acts, in the Environmental Restoration and Waste Management programs.   
          The provision would authorize the Department to initiate six asset      
          disposition pilots and would permit the Department to deduct costs      
          associated with preparing the asset for sale prior to calculating the   
          net proceeds from the sale.                                             
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would make clear that all  
   net proceeds from sales under the pilot program would not be retained by
   the Department of Energy, but instead would be returned to the Treasury 
   as miscellaneous receipts.                                              
                      Modification and extension of authority relating to          
           appointment of certain scientific, engineering, and technical personnel 
           (sec. 3139)                                                             
       The House bill contained a provision (sec. 3144) that would extend  
   through fiscal year 1999 the authority of the Secretary of Energy to    
   appoint certain scientific, engineering, and technical personnel to     
   positions within the Department without regard to the provisions        
   governing the appointments in the competitive service, and General      
   Schedule classification schedules and pay rates contained in title 5,   
   United States Code.                                                     
       The Senate amendment contained a similar provision (sec. 3152) that 
   would also repeal the requirement for the Administrator of the          
   Environmental Protection Agency to submit a report to Congress on the   
   effects of this hiring authority on the cleanup carried out at sites    
   listed on the National Priorities List (also known as ``Superfund''     
   sites).                                                                 
    The House recedes.                                                     
                      Limitation on use of funds for subcritical nuclear weapons   
           tests (sec. 3140)                                                       
       The House bill contained a provision (sec. 3146) that would require 
   the submission of a detailed report on the manner in which funds        
   available to the Secretary of Energy for fiscal years 1996 and 1997 to  
   conduct subcritical experiments were used. The provision would prohibit 
   the Secretary from using any funds authorized in fiscal year 1998 to    
   conduct subcritical experiments until 30 days after receipt of such     
   report.                                                                 
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would allow the Secretary 
   to conduct subcritical experiments prior to submittal of the report, if 
   the Secretary determines that it is in the national security interests  
   of the United States to do so. While the conferees strongly support     
   these tests, they are concerned that over $100.0 million has apparently 
   been spent with only two tests completed.                               
                      Limitation on use of certain funds until future use plans are
           submitted (sec. 3141)                                                   
       The House bill contained a provision (sec. 3147) that would limit   
   the ability of the Secretary of Energy to spend funds authorized for the
   Office of Policy and Management within the defense environmental        
   management program until the draft future use plans and the final future
   use plans required under section 3153(f) of the National Defense        
   Authorization Act for Fiscal Year 1997 (Public Law 104 201) are         
   submitted.                                                              
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would allow the Secretary 
   to identify an alternative date for individual site plans if the        
   Secretary finds that a site cannot meet the current due date of March   
   15, 1998 for submittal of its final future use plan.                    
                                  SUBTITLE D--OTHER MATTERS                       
                      Plan for stewardship, management, and certification of       
           warheads in the nuclear weapons stockpile (sec. 3151)                   
       The House bill contained a provision (sec. 3141) that would require 
   the Secretary of Energy to report annually on the Department of Energy  
   (DOE) plan for the Stockpile Stewardship and Management Program. The    
   report would describe the status and condition of the U.S. nuclear      
   weapons stockpile, based on the requirements set forth in the Nuclear   
   Weapons Stockpile Memorandum. This report would be submitted in both a  
   classified and unclassified form and would be provided in lieu of a     
   number of other reporting requirements which have been superseded and   
   would be repealed by this section.                                      
    The Senate amendment contained a similar provision (sec. 3153).        
       The Senate recedes with an amendment that would consolidate the     
   repeal of obsolete reporting requirements in a separate section in Title
   XXXI of this Act.                                                       
           Repeal of obsolete reporting requirements (sec. 3152)                   
       The House bill contained a provision (sec. 3142) that would repeal a
   number of obsolete reporting requirements.                              
    The Senate amendment contained a similar provision (sec. 3155).        
    The House recedes.                                                     
                      Study and funding relating to implementation of workforce    
           restructuring plans (sec. 3153)                                         
       The House bill contained a provision (sec. 3143) that would modify  
   and repeal selected provisions of section 3161 of the National Defense  
   Authorization Act for Fiscal Year 1993 (Public Law 102 484). The        
   provision would eliminate the authority of the Department of Energy     
   (DOE) to make assistance grants without approval by the Secretary of    
   Commerce and the Secretary of Labor, as appropriate; reduce from 120    
   days, to 90 days the applicable notice periods provided to employees to 
   be separated; allow DOE to fund the program                             
                    from available unobligated balances; and require a study by an
          outside auditor to assess the costs and benefits provided by this       
          program since its inception.                                            
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would change the date of  
   the required report from January 1, 1998 to March 31, 1998; restore the 
   direction in current law for a 120-day waiting period prior to          
   implementation of a separation plan; modify the requirement for the     
   Secretaries of Commerce and Labor to approve grants; and eliminate the  
   use of uncosted balances to offset the fiscal year 1998 budget for      
   worker transition activities.                                           
       The conferees note that the direction found in section 3161 of the  
   National Defense Authorization Act for Fiscal Year 1993 (Public Law 102 
   484) to give contract employees at DOE sites a 120-day waiting period   
   prior to separations of large numbers of employees is a target only. The
   conferees further note current law mandates only a 60-day waiting period
   prior to large separations. The conferees encourage the Secretary of    
   Energy and the Secretary of Defense to identify and seek to make        
   available to the auditing firm conducting the study any relevant        
   documents in the possession of other federal agencies. In encouraging   
   access to all relevant documents, the conferees do not anticipate any   
   document that could interfere with or jeopardize any ongoing            
   investigation of the DOE Office of Inspector General or other federal   
   agencies would be made available.                                       
           Plan for external oversight of national laboratories (sec. 3154)        
       The House bill contained a provision (sec. 3148) that would require 
   the Secretary of Energy to develop a plan for the external oversight of 
   the national laboratories. The plan would provide for the establishment 
   of an external oversight committee comprised of representatives of      
   industry and academia for the purpose of making recommendations to the  
   Secretary of Energy and to the congressional defense committees on the  
   productivity of the laboratories and on the excellence, relevance, and  
   appropriateness of the research conducted at the laboratories. The plan 
   also would provide for the establishment of a competitive peer review   
   process for funding basic research at the laboratories.                 
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the         
   Secretary to prepare a report on existing and potential new external    
   oversight practices at the national laboratories. The report would be   
   due not later than July 1, 1999, and would include any recommendations  
   from the Secretary and a plan to implement such recommendations.        
           University-based research collaboration program (sec. 3155)             
       The House bill contained a provision (sec. 3149) that would require 
   the Secretary of Energy to establish a university-based research center 
   to coordinate the collaboration among national laboratories,            
   universities and industry in support of scientific and engineering      
   advancement in key Department of Energy defense program areas.          
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the         
   Secretary to establish a university-based collaborative program to      
   coordinate national laboratory, university, and industry cooperation in 
   support of scientific and engineering advancement in key Department of  
   Energy defense program areas.                                           
           Stockpile stewardship program (sec. 3156)                               
       The House bill contained a provision (sec. 3150) that would provide 
   that, as a matter of U.S. policy, the Department of Energy stockpile    
   stewardship program shall be conducted in conformity with the           
   Non-Proliferation Treaty and the Comprehensive Test Ban Treaty, if and  
   when that treaty enters into force. The provision would also state that 
   it is the policy of the United States to conduct a stockpile stewardship
   and management program to ensure the safety, security, effectiveness,   
   and reliability of the U.S. nuclear weapons stockpile, consistent with  
   U.S. national security requirements.                                    
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
                      Reports on advanced supercomputer sales to certain foreign   
           nations (sec. 3157)                                                     
       The House bill contained a provision (sec. 3151) that would require 
   companies that participate in the Department of Energy Accelerated      
   Strategic Computing Initiative (ACSI) program to report to the Secretary
   of Energy and the Secretary of Defense, on a quarterly basis, the sale  
   of each computer that exceeds an operating speed of 2,000 million       
   theoretical operations per seconds (MTOPs) in which a Tier III country  
   is the purchaser. The provision would require the Secretary of Energy to
   provide an annual report to Congress on the sales of computers in excess
   of 2,000 MTOPs by companies participating in the ACSI program the       
   preceding year.                                                         
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Transfers of real property at certain Department of Energy   
           facilities (sec. 3158)                                                  
       The House bill contained a provision (sec. 3152) that would direct  
   the Secretary of Energy to issue guidelines for the sale or lease of    
   real or personal property at Department of Energy (DOE) defense nuclear 
   facilities. The provision would also provide the Secretary discretionary
   authority to grant indemnification for damage to real or personal       
   property from certain activities by DOE on the land to be transferred.  
    The Senate contained no similar provision.                             
       The Senate recedes with an amendment that would direct the Secretary
   to issue regulations governing the sale or transfer of land at DOE      
   defense nuclear facilities that is excess to DOE needs. The regulations 
   should address when it is appropriate for the Department to transfer or 
   lease real property below fair market value or at fair                  
                    market value. The DOE should look for guidance from the       
          regulations issued by the Department of Defense governing transfers at  
          closing military bases.                                                 
       Such leases and transfers would take place to enhance economic      
   redevelopment and reuse activities in the local communities surrounding 
   DOE defense facilities. As the DOE downsizes and closes facilities, many
   of the local communities in the vicinity of a DOE facility will need    
   assistance to transition away from a local economy focused largely on   
   DOE activities, to one based on private sector or other, non-DOE,       
   federal activities.                                                     
       The amendment would also provide discretionary authority to the     
   Secretary to indemnify transferees of real property at DOE defense      
   nuclear facilities. This provision would establish procedures that are  
   similar to authorities provided to the Secretary of Defense at closing  
   military bases by section 330 of the National Defense Authorization Act 
   for Fiscal Year 1993. The conferees urge the Secretary to exercise the  
   discretionary authority provided under this title only when it is deemed
   essential for the purposes of facilitating local reuse or redevelopment.
                      Requirement to delegate certain authorities to site manager  
           of Hanford Reservation (sec. 3159)                                      
       The House bill contained a provision (sec. 3153) that would modify  
   section 3173(b) of the National Defense Authorization Act for Fiscal    
   Year 1997 by making delegation of authority to the manager of the       
   Hanford Reservation in Richland, Washington, described in that section, 
   mandatory rather than discretionary.                                    
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would limit the mandatory 
   transfer of authority to a period of one year.                          
           Submittal of biennial waste management reports (sec. 3160)              
       The Senate amendment contained a provision (sec. 3154) that would   
   amend section 3153 of the National Defense Authorization Act for Fiscal 
   Year 1994 (Public Law 104 360) by changing the future date for the next 
   biennial Baseline Environmental Management Report to 1999, rather than  
   1997.                                                                   
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Board on security functions of Department of Energy (sec. 3161)         
       The Senate amendment contained a provision (sec. 3156) that would   
   establish a commission to review the sufficiency of Department of Energy
   (DOE) nuclear weapons and materials safeguards and security programs.   
   This commission would review threat determinations and assumptions,     
   relevant DOE orders, and other requirements governing safeguards and    
   security of nuclear weapons, weapons components, nuclear materials, and 
   sensitive nuclear weapons information at DOE facilities. The commission 
   would report its findings and any recommendations to the Secretary of   
   Energy and congressional defense committees not later than February 15, 
   1998.                                                                   
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would create a permanent   
   Department of Energy Safeguards and Security Oversight Board to review  
   and assess the DOE safeguards and security program. The Board would be  
   comprised of the DOE Secretary, Assistant Secretary for Defense         
   Programs, Assistant Secretary of Environment, Safety and Health,        
   Director of Non-proliferation and National Security, Director of Field  
   Management, and five additional members, who are not employees of the   
   Department of Energy or its contractors, to be appointed as follows:    
   three by the Secretary of Defense, one by the Director of Central       
   Intelligence, and one by the Director of the Federal Bureau of          
   Investigation.                                                          
                      Submittal of annual report on status of security functions at
           nuclear weapons facilities (sec. 3162)                                  
       The Senate amendment contained a provision (sec. 3156) that would   
   establish a commission to review the sufficiency of Department of Energy
   nuclear weapons and materials safeguards and security programs. The     
   provision would require the commission to report annually to the        
   Congress on its activities and findings.                                
    The House bill contained no similar provision.                         
       The conferees agree to include a new provision that would direct the
   Secretary of Energy to submit to the congressional defense committees   
   the annual report to the President on the Status of Safeguards and      
   Security of Domestic Nuclear Weapons Facilities. For fiscal years 1998  
   through 2000, the Secretary would include with the annual report any    
   comments from individual members of the Department of Energy Safeguards 
   and Security Oversight Board.                                           
                      Modification of authority on commission on maintaining United
           States nuclear weapons expertise (sec. 3163)                            
       The Senate amendment contained a provision (sec. 3157) that would   
   extend by one year the due date for the report to be prepared by the    
   Commission on Maintaining United States Nuclear Weapons Expertise. The  
   provision would amend section 3162 of the National Defense Authorization
   Act for Fiscal Year 1997, which established the Commission. The         
   provision would permit the Senate Majority Leader to designate a        
   chairman of the Commission, after consultation with the Speaker of the  
   House of Representatives, upon appointment of the fifth member of the   
   Commission. The provision would allow the Commission to begin its work  
   when a chairman is appointed. The provision would also extend the due   
   date for the Commission's report from March 15, 1998 to March 15, 1999. 
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would permit the Majority  
   Leader of the Senate to appoint a chairman after January 1, 1998.       
           Land transfer, Bandelier National Monument (sec. 3164)                  
       The Senate amendment contained a provision (sec. 3158) that would   
   direct the Secretary of Energy to transfer ownership of approximately   
   4.5 acres of land at the Department of Energy's Los Alamos National     
   Laboratory site in Los Alamos County, New Mexico, to the Department of  
   the Interior.                                                           
    The House bill contained no similar provision.                         
    The House recedes.                                                     
       The Department of the Interior constructed and manages sewage       
   lagoons on this parcel of land. The transfer would allow the Department 
   of the Interior to manage the lagoons in a more efficient manner.       
                      Final settlement of Department of Energy community assistance
           obligations with respect to Los Alamos National Laboratory, New Mexico  
           (sec. 3165)                                                             
       The Senate amendment contained a provision (sec. 3160) that would   
   require the Department of Energy (DOE) to identify and transfer to the  
   County of Los Alamos and the Secretary of the Interior, in trust for the
   Pueblo San Ildefonso, those lands that are part of the Los Alamos       
   National Laboratory that are surplus to the needs of the Federal        
   government. The provision establishes time deadlines for DOE to identify
   and report to Congress on the recommended parcels of land to be         
   transferred, to conduct title searches on the parcels, to complete      
   environmental impact assessments, and to transfer title or              
   administrative control of the land. The provision would prohibit the    
   Department from making any further assistance payments under sections 91
   and 94 of the Atomic Energy Community Act of 1955 to county or city     
   governments in the vicinity of the Los Alamos National Laboratory.      
    The House bill contained no similar provision.                         
    The House recedes with clarifying amendments.                          
                      Sense of Congress regarding the Y 12 Plant in Oak Ridge,     
           Tennessee (sec. 3166)                                                   
       The Senate amendment contained a provision (sec. 3161) that would   
   designate the Department of Energy Y 12 plant in Oak Ridge, Tennessee as
   the National Prototype Center.                                          
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would express a sense of   
   Congress that the Y 12 plant should serve as a national prototype       
   center.                                                                 
                      Support for public education in the vicinity of Los Alamos   
           National Laboratory, New Mexico (sec. 3167)                             
       The Senate amendment contained a provision (sec. 3162) that would   
   authorize the Department of Energy (DOE) to make a $5.0 million payment 
   to a not-for-profit education foundation in the area around the Los     
   Alamos National Laboratory to enrich educational activities of the local
   school system. DOE contributions to this foundation would be used to    
   establish a fund, the corpus of which would remain in trust and the     
   annual revenue used to support the local school system.                 
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would require the DOE to   
   report on how such payments would be terminated not later than September
   2002 and how such payments will satisfy the Department's full obligation
   to provide education assistance to the local school system.             
       The conferees expect that the Secretary of Energy will make no more 
   than five total annual payments to this fund for a total contribution of
   $25.0 million. The conferees further expect that upon completion of the 
   final payment, all such DOE assistance to the local school system will  
   have been provided.                                                     
           Improvements to Greenville Road, Livermore, California (sec. 3168)      
       The Senate amendment contained a provision (sec. 3163) that would   
   authorize the Department of Energy to pay $3.5 million and $3.8 million 
   in fiscal years 1998 and 1999, respectively, for improvements to        
   Greenville Road, a road which abuts the Lawrence Livermore National     
   Laboratory in Livermore, California.                                    
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would decrease the payment 
   authorized to be made in fiscal year 1999 from $3.8 million to $3.3     
   million, consistent with the Department's request.                      
       The conferees agree with the Department's proposal to collect these 
   funds from indirect charges at the two laboratories located at the      
   Livermore Site, Lawrence Livermore National Laboratory and Sandia       
   National Laboratory-Livermore. These payments will constitute the final 
   contribution from the Department of Energy to this project.             
           Report on alternative system for availability of funds (sec. 3169)      
       The Senate amendment contained a provision (sec. 3128) that would   
   authorize amounts appropriated for operating expenses or for plant and  
   capital equipment to remain available until expended.                   
    The House bill contained no similar provision.                         
       The conferees agree to include a new provision that would direct the
   Secretary of Energy to submit to the congressional defense committees a 
   report setting forth a proposal to bring the Department of Energy (DOE) 
   more closely into line with other federal agencies. In preparing the    
   report, the Secretary is instructed to look carefully at all of the DOE 
   national security program funds and determine the length of time, by    
   account, the funds should be available for obligation. The conferees    
   expect the plan would be incorporated into the President's budget       
   request for fiscal year 2000.                                           
                      Report on remediation under the Formerly Utilized Sites      
           Remedial Action Program (sec. 3170)                                     
       The Senate amendment contained a provision (sec. 3138) that would   
   require the Secretary of Energy to prepare a report on the progress,    
   costs, and liability issues associated with remediation activities      
   carried out pursuant to the Formerly Utilized Sites Remedial Action     
   Program. The report would be due not later than March 1, 1998.          
    The House bill contained no similar provision.                         
    The House recedes.                                                     
                    LEGISLATIVE PROVISIONS NOT ADOPTED                   
           Report on proposed contract for Hanford tank waste vitrification project
       The House bill contained a provision (sec. 3145) that would require 
   prior notice to the congressional defense committees before entering    
   into a contract for the Hanford tank waste vitrification project. The   
   provision would also require the submission of a detailed report        
   describing the activities to be carried out under the contract, the     
   contractual and financial aspects of the contract, and an analysis of   
   the cost to the United States of the proposed contract over the life of 
   the project.                                                            
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees agree to include the substance of this provision in   
   another section in Title XXXI of this Act dealing with defense          
   environmental management privatization projects.                        
           Defense environmental management privatization                          
       The Senate amendment contained a provision (sec. 3104) that would   
   authorize $274.0 million for the Defense Environmental Management       
   Privatization program.                                                  
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees agree to authorize funding for these projects in      
   section 3102 of this Act.                                               
           Tritium production in commercial facilities                             
       The Senate amendment contained a provision (sec. 3139) that would   
   amend section 91 of the Atomic Energy Act (AEA) to authorize the        
   Secretary of Energy to produce tritium for defense-related purposes in a
   commercial nuclear power reactor.                                       
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       Tritium gas, an isotope of hydrogen, is an essential ingredient in  
   all modern nuclear weapons. Tritium has a radioactive half life of 12.3 
   years, and decays at a rate of five percent per year. As a result, the  
   tritium in weapons in the U.S. nuclear weapons stockpile must be        
   replaced periodically. Based on current projections of the size of the  
   U.S. nuclear weapons stockpile, recycling tritium from weapons          
   eliminated from the stockpile cannot fulfill this requirement.          
       In December 1995, the Department of Energy announced its dual-track 
   strategy for new tritium production. Utilizing the dual-track strategy  
   since that time, the Department has been pursuing the two most promising
   tritium production technologies: (1) the purchase of an operating or    
   partially complete commercial light-water reactor, or lease of a        
   completed reactor, or the purchase of irradiation services from the     
   owner or operator of such a reactor; and (2) the design, construction,  
   and testing of critical components of a proton accelerator system for   
   the production of tritium. The dual-track strategy will enable the      
   Department to select a primary option for tritium production by December
   1998, consistent with current Department of Defense and nuclear weapons 
   stockpile requirements, policy, and life-cycle cost budgetary           
   considerations. The option not selected would serve as a backup         
   capability in the event of technical or other difficulties.             
       Over the last 19 months, DOE has gained increased confidence in the 
   abilities of both options to produce an assured supply of tritium.      
       The accelerator program has made significant advances through the   
   use of superconducting and other design concepts to reduce the cost and 
   technical risks that have been identified in conjunction with the       
   accelerator. The commercial light water reactor program has also made   
   significant progress in designing and producing tritium target rods. In 
   the fall of 1997, DOE will place these tritium target rods in a         
   commercial reactor in an effort to demonstrate the safety and           
   reliability of tritium production in a light water reactor.             
       Each track has additional uncertainties that must be addressed and  
   answered to enable the Department to make its primary tritium production
   decision by December 1998.                                              
       The conferees agreed to withdraw the proposed amendment to the AEA  
   in order to allow a full and robust debate on the policy and legal      
   implications of producing tritium for nuclear weapons in a commercial   
   nuclear facility. While questions exist as to whether or not current law
   prohibits production of tritium in a commercial facility, and because   
   concerns have been raised regarding the effect that a decision to       
   produce tritium in this manner would have on U.S. non-proliferation     
   strategy, the conferees believe the policy, legal, and regulatory issues
   that have been raised must be addressed in a comprehensive manner prior 
   to passage of any amendments to facilitate such a choice.               
       The commercial reactor track contains many sub-options for tritium  
   production. As a practical matter, each of the different reactor        
   sub-options has different legal and policy issues associated with it.   
   The conferees believe that it would be helpful to the effort to secure  
   necessary legislative changes if DOE could identify the preferred       
   commercial reactor sub-option in advance of the final tritium production
   technology decision, preferably by March 1, 1998.                       
       The conferees believe that it is essential for DOE to identify and  
   assess any policy issues associated with the various reactor sub-options
   in conjunction with other federal agencies including the Nuclear        
   Regulatory Commission, the Department of Defense, and the Department of 
   State arms control offices. The conferees direct the Secretary of Energy
   to utilize a senior level, interagency process to review and assess the 
   issues associated with the commercial reactor option. This assessment   
   should be completed before DOE identifies a preferred reactor           
   sub-option.                                                             
       The conferees request the DOE propose to the Committee on Armed     
   Services of the Senate and the Committee on National Security of the    
   House of Representatives, by March 15, 1998, any legislation necessary  
   to resolve the issues associated with either of the dual-track          
   production technologies. This would allow the legislation to be in      
                    place in advance of the DOE's final decision in December 1998.
          The conferees expect the Secretary of Energy to include full funding to 
          continue to evaluate each tritium production technology in the          
          dual-track strategy. The conferees will continue to work closely with   
          DOE to gain the knowledge necessary to address and resolve issues       
          associated with the dual-track tritium production technologies in order 
          to allow the Department to select the tritium production option that    
          best meets U.S. policy, national security and budgetary requirements.   
           Administration of certain Department of Energy activities               
       The Senate amendment contained a provision (sec. 3151) that would   
   amend sections 501 and 624 of the Department of Energy Organization Act 
   and repeal section 17 of the Federal Energy Act. This provision would   
   bring the Department of Energy (DOE) under the full scope of the Federal
   Advisory Committee Act and would bring DOE under the full scope of the  
   Administrative Procedure Act when issuing regulations dealing with      
   public property, loans, grants, or contracts.                           
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees note that this provision was enacted into law by ``The
   Department of Energy Standardization Act of 1997'' (Public Law 105 28). 
                      Participation of the national security activities in Hispanic
           Outreach Initiative of the Department of Energy                         
       The Senate amendment contained a provision (sec. 3159) that would   
   direct the Secretary of Energy to ensure the adequate participation of  
   the Department of Energy (DOE) national security activities in the      
   National Hispanic Outreach Initiative.                                  
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The Secretary of Energy has established, for each DOE program       
   element, participation goals to utilize Hispanic and other predominately
   or historically minority institutions, in carrying out DOE missions. The
   defense programs have not participated in a meaningful way in the       
   Hispanic portions of the initiative.                                    
       The initiative was announced by the DOE with much fanfare and yet,  
   particularly in northern New Mexico, there has been little indication   
   that DOE is working to fulfill its promises to utilize more fully       
   Hispanic institutions in carrying out defense program missions. The     
   conferees encourage the Secretary of Energy to seek uniform             
   participation in this initiative.                                       
                   TTITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD          
           Overview                                                                
       The budget request for fiscal year 1998 contained an authorization  
   of $17.5 million for the Defense Nuclear Facilities Safety Board. The   
   House bill would authorize $17.5 million. The Senate amendment would    
   authorize $17.5 million. The conferees recommended an authorization of  
   $17.5 million. Unless noted explicitly in the statement of managers, all
   changes are made without prejudice.                                     
                      LEGISLATIVE PROVISIONS ADOPTED                     
           Report on external regulation of defense nuclear facilities (sec. 3202) 
       The House bill contained a provision (sec. 3202) that would require 
   the Defense Nuclear Facilities Safety Board (DNFSB) to develop a plan,  
   in consultation with the Secretary of Energy and the Nuclear Regulatory 
   Commission (NRC), for the transfer of DNSFB's functions to the NRC.     
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would require the Board to
   submit a report recommending which facilities should be retained under  
   the jurisdiction of the Board and which facilities should be transferred
   to an external regulatory agency; require the Board to assess regulatory
   requirements and jurisdictional issues surrounding the defense          
   environmental management privatization initiative and the proposed      
   commercial light water reactor option for tritium production; remove the
   repeal of section 210 of the Department of Energy National Security and 
   Military Applications of Nuclear Energy Authorization Act of 1981 (42   
   U.S.C. 7272); and require the Board to submit an interim report within 6
   months of the date of enactment of this section and a final report      
   within 12 months.                                                       
                          TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                
                      LEGISLATIVE PROVISIONS ADOPTED                     
           Definitions (sec. 3301)                                                 
       The Senate amendment contained a provision (sec. 3301) defining the 
   National Defense Stockpile and National Defense Stockpile Transaction   
   Fund as those which are established under the Strategic and Critical    
   Materials Stock Piling Act.                                             
    The House bill contained no similar provision.                         
    The House recedes.                                                     
           Authorized uses of stockpile funds (sec. 3302)                          
       The House bill contained a provision (sec. 3301) that would         
   authorize $73.0 million from the National Defense Stockpile Transaction 
   Fund for the operation and maintenance of the National Defense Stockpile
   for fiscal year 1998. This provision would also permit the use of       
   additional funds for extraordinary or emergency conditions after a      
   notification to Congress.                                               
       The Senate amendment contained a provision (sec. 3302) that would   
   authorize the Stockpile Manager to obligate $60.0 million from the      
   National Defense Stockpile Transfer Fund during fiscal year 1998 for the
   authorized uses of funds under section 9(b)(2) of the Strategic and     
   Critical Materials Stockpiling Act.                                     
    The Senate recedes.                                                    
                      Disposal of beryllium copper master alloy in National Defense
           Stockpile (sec. 3303)                                                   
       The House bill contained a provision (sec. 3302) that would         
   authorize the Department of Defense to dispose of all beryllium copper  
   master alloy from the National Defense Stockpile, contingent upon       
   certification by the National Defense Stockpile Manager that any        
   disposal of this material will not adversely affect the strategic and   
   critical material needs of the United States.                           
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Disposal of titanium sponge in the National Defense Stockpile
           (sec. 3304)                                                             
       The House bill contained a provision (sec. 3303) that would         
   authorize the Department of Defense to dispose of 34,800 short tons of  
   titanium sponge in the National Defense Stockpile.                      
       The Senate amendment contained a provision (sec. 3303) that would   
   authorize the disposal of several materials from the National Defense   
   Stockpile including titanium sponge.                                    
    The Senate recedes.                                                    
           Disposal of cobalt in National Defense Stockpile (sec. 3305)            
       The Senate amendment contained a provision (sec. 3303) that would   
   authorize the Department of Defense to dispose of 20 materials from the 
   National Defense Stockpile and would establish specific revenue targets 
   that the Secretary of Defense must meet in the disposal of these        
   materials.                                                              
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would authorize the        
   disposal of up to 14,058,014 pounds of cobalt, beginning in fiscal year 
   2003, and would require specific revenue targets for this disposal each 
   year until fiscal year 2007 in order to offset direct spending          
   provisions elsewhere in this Act.                                       
                      Required procedures for disposal of strategic and critical   
           materials (sec. 3306)                                                   
       The House bill contained a provision (sec. 3306) that would amend   
   section 6(b) of the Strategic and Critical Materials Stock Piling Act   
   (50 U.S.C. 98e(b)) to clarify the procedures used by the Department of  
   Defense for the sale of materials from the National Defense Stockpile.  
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Return of surplus platinum from the Department of the        
           Treasury (sec. 3307)                                                    
       The House bill contained a provision (sec. 3304) that would         
   establish conditions for the transfer of platinum contained in the      
   National Defense Stockpile to the United States Treasury for minting of 
   platinum coins.                                                         
       The Senate amendment contained a provision (sec. 3304) that would   
   require any platinum contained within the National Defense Stockpile and
   loaned by the Department of Defense to the Department of Treasury to be 
   made available to the Department of Defense upon request of the         
   Secretary of Defense.                                                   
       The House recedes with an amendment that would preclude the         
   expenditure of any funds available to the Department of Defense for the 
   transfer of any platinum to the Treasury.                               
                    LEGISLATIVE PROVISIONS NOT ADOPTED                   
           Restrictions on disposal of certain manganese ferro                     
       The House bill contained a provision (sec. 3305) that would repeal  
   section 3304 of the National Defense Authorization Act for Fiscal Year  
   1996 (Public Law 104 106), which placed restrictions on the disposal of 
   Manganese Ferro from the National Defense Stockpile.                    
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                           TITLE XXXIV--NAVAL PETROLEUM RESERVES                  
                      LEGISLATIVE PROVISIONS ADOPTED                     
                      Price requirement on sale of certain petroleum during fiscal 
           year 1998 (sec. 3402)                                                   
       The House bill contained a provision (sec. 3402) that would require 
   the Secretary of Energy to sell petroleum produced for the Naval        
   Petroleum Reserves at not less than 90 percent of established prices.   
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                      Repeal of requirement to assign Navy officers to Office of   
           Naval Petroleum and Oil Shale Reserves (sec. 3403)                      
       The House bill contained a provision (sec. 3403) that would repeal  
   section 2 of Public Law 96 137, which requires the Secretary of the Navy
   to assign naval officers to the office of Naval Petroleum and Oil Shale 
   Reserves.                                                               
    The Senate amendment contained a similar provision (sec. 3403).        
    The House recedes.                                                     
                      Transfer of jurisdiction, Naval Oil Shale Reserves numbered 1
           and 3 (sec. 3404)                                                       
       The House bill contained a provision (sec. 3404) that would transfer
   the jurisdiction of the Naval Oil Shale Reserves Numbered one and three 
   to the Department of the Interior and for lease pursuant to             
                    the provisions of the Mineral Leasing Act, which would provide
          for the sharing of the revenues between the State of Colorado and the   
          Federal Treasury.                                                       
       The Senate amendment contained a similar provision (sec. 3402) that 
   would authorize the lease of these reserves through the Department of   
   Energy, which would allow 100 percent of the proceeds to be returned to 
   the Federal Treasury.                                                   
       The Senate recedes with an amendment that would require that the    
   Federal Treasury be reimbursed for all costs incurred by the Federal    
   Government related to these reserves, including costs associated with   
   capital improvements and environmental cleanup, prior to the sharing of 
   any revenues with the State of Colorado.                                
                            TITLE XXXV--PANAMA CANAL COMMISSION                   
            Panama Canal Commission (secs. 3501 3550)                              
       The House bill contained provisions (secs. 3501 3504) that would    
   authorize the expenditure of funds by the Panama Canal Commission to    
   cover its operating, maintenance, administrative, and capital           
   improvement expenses, and to purchase vehicles built in the United      
   States. The House bill also contained provisions (secs. 3511 3550) that 
   would give the Commission certain authorities to facilitate the         
   transition of the Canal to Panamanian control in December 1999.         
       The Senate amendment contained identical provisions (secs. 3501,    
   3502, 3504 3512, 3523, 3524, 3526, and 3528 3550) and similar provisions
   (3503, 3521, 3522, 3525, and 3527).                                     
       The conferees agree to include a series of provisions that would    
   authorize the operations of the Panama Canal Commission. The provision  
   in the House bill relating to the purchase of vehicles (sec. 3503)      
   required that the vehicles purchased be built in the United States,     
   while the provision in the Senate amendment (sec. 3503) had no such     
   requirement. The provisions in the House bill and Senate amendment      
   relating to the administrator of the Panama Canal Authority (sec. 3521  
   in both), post-transfer personnel authorities (sec. 3522 in both),      
   recruitment and retention authorities (sec. 3525 in both) and           
   labor-management relations (sec. 3527 in both) differed only            
   technically.                                                            
       The House recedes with respect to the provision relating to the     
   purchase of vehicles (sec. 3503). The conferees note, however, that the 
   Commission has in the past purchased only vehicles built in the United  
   States and encourage the continuation of that practice.                 
       The House recedes with respect to the provision relating to the     
   administrator of the Panama Canal Authority (sec. 3521), and recedes    
   with technical amendments with respect to the provisions relating to    
   post-transfer personnel authorities (sec. 3522) and labor-management    
   relations (sec. 3527). The Senate recedes with a technical amendment    
   with respect to the provision relating to enhanced recruitment and      
   retention authorities (sec. 3525).                                      
                            TITLE XXXVI--MARITIME ADMINISTRATION                  
       Title XXXVI of the House bill contained a number of provisions that 
   would provide authorization for the Maritime Administration and related 
   matters. The conferees resolved these matters through extensive         
   consultations between the House and Senate conferees and the Senate     
   Committee on Commerce, Science, and Transportation, which would normally
   exercise jurisdiction within the Senate on these matters.               
                      LEGISLATIVE PROVISIONS ADOPTED                     
            Authorization of appropriations for fiscal year 1998 (sec. 3601)       
       The House bill contained a provision (sec. 3601) that would         
   authorize $109.0 million for fiscal year 1998, as requested in the      
   President's budget, for the United States Maritime Administration.      
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
                       Repeal of obsolete annual report requirement concerning     
           relative cost of shipbuilding in the various coastal districts of the   
           United States (sec. 3602)                                               
       The House bill contained a provision (sec. 3602) that would repeal  
   the obsolete requirement for an annual report on the relative cost of   
   shipbuilding in the various coastal districts contained in section 213  
   of the Merchant Marine Act, 1936, as amended (46 U.S.C. App. 1123).     
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
            Provisions relating to maritime security fleet program (sec. 3603)     
       The House bill contained a provision (sec. 3603) that would amend   
   section 656(b) of the Merchant Marine Act, 1936, as amended (46 U.S.C.  
   App. 1187e(b)) to make clear that it does not restrict the operation or 
   entry of U.S. flag self-propelled tankers in the domestic trades. This  
   provision would also amend section 652(c) of the Merchant Marine Act,   
   1936, to eliminate the 3-year delay in eligibility to carry certain     
   preference cargoes of vessels that are reflagged as U.S. flag vessels in
   order to participate in the Maritime Security Fleet Program.            
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would amend section 652(c)
   of the Act to exempt a vessel from the restrictions concerning the      
   building, rebuilding, or documentation of a vessel in a foreign country 
   referred to in section 901(b) of the Act, 1936 (46 U.S.C. App. 1187a(c))
   for any day the operator of the vessel is receiving payments under an   
   operating agreement under the subtitle.                                 
            Authority to utilize replacement vessels and capacity (sec. 3604)      
       The House bill contained a provision (sec. 3604) that would amend   
   section 653(d) of the Merchant Marine Act, 1936, as amended (46 U.S.C.  
   App. 1187b(d)(1)), to authorize a U.S. flag operator to utilize a       
   foreign flag replacement vessel for a U.S. flag vessel that is activated
   by the Secretary of Defense under the terms of an Emergency Preparedness
   Agreement or other primary sealift readiness program approved by the    
   Secretary of Defense.                                                   
    The Senate amendment contained no similar provision.                   
    The Senate recedes.                                                    
            Authority to convey National Defense Reserve Fleet vessel (sec. 3605)  
       The House bill contained a provision (sec. 3605) that would         
   authorize the Secretary of Transportation to convey a surplus National  
   Defense Reserve Fleet vessel to the Artship Foundation, a non-profit    
   organization located in Oakland, California.                            
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would add two required    
   conditions to the terms of conveyance.                                  
                       Determination of gross tonnage for purposes of tank vessel  
           double hull requirements (sec. 3606)                                    
       The House bill contained a provision (sec. 3606) that would stop an 
   industry practice of reducing the gross tonnage of single-hull tank     
   vessels in order to delay the phase-out date of the vessels under the   
   Oil Pollution Act of 1990.                                              
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would clarify the         
   circumstances under which the House provision would apply.              
      From the Committee on National Security, for consideration of the    
   House bill and the Senate amendment, and modifications committed to     
   conference:                                                             
    Floyd Spence,                                                           
    Bob Stump,                                                              
    Duncan Hunter,                                                          
    John R. Kasich,                                                         
    Herbert H. Bateman,                                                     
    James V. Hansen,                                                        
    Curt Weldon,                                                            
    Joel Hefley,                                                            
    Jim Saxton,                                                             
    Steve Buyer,                                                            
    Tillie K. Fowler,                                                       
    John M. McHugh,                                                         
    James M. Talent,                                                        
    Terry Everett,                                                          
     (except for sections 355, 356, and 358 367),                            
    Roscoe G. Bartlett,                                                     
    Howard ``Buck'' McKeon,                                                 
    Ron Lewis,                                                              
    J.C. Watts,  Jr.,                                                       
    Saxby Chambliss,                                                        
    Bob Riley,                                                              
    Ike Skelton,                                                            
    Norman Sisisky,                                                         
    John M. Spratt,  Jr.,                                                   
          (except for the increase over the President's request for research 
     and development of a space-based laser and the statement of managers on 
     this program),                                                          
    Solomon P. Ortiz,                                                       
    Owen Pickett,                                                           
    Gene Taylor,                                                            
    Neil Abercrombie,                                                       
    Martin T. Meehan,                                                       
    Jane Harman,                                                            
    Paul McHale,                                                            
    Patrick J. Kennedy,                                                     
    Rod Blagojevich,                                                        
    Vic Snyder,                                                             
      As additional conferees from the Permanent Select Committee on       
   Intelligence, for consideration of matters within the jurisdiction of   
   that committee under clause 2 of rule XLVIII:                           
    Porter J. Goss,                                                         
    Jerry Lewis,                                                            
    Norm Dicks,                                                             
      As additional conferees from the Committee on Commerce for           
   consideration of sections 344, 601, 654, 735, 1021, 3143, 3144, 3201,   
   3202, 3402, and 3404 of the House bill, and sections 338, 601, 663, 706,
   1064, 2823, 3136, 3140, 3151, 3160, 3201, and 3402 of the Senate        
   amendment, and modifications committed to conference:                   
    Tom  Bliley,                                                            
    Dan Schaefer,                                                           
      Provided that Mr. Oxley is appointed in lieu of Mr. Dan Schaefer of  
   Colorado for consideration of sections 344 and 1021 of the House bill   
   and section 2823 of the Senate amendment:                               
    Michael G. Oxley,                                                       
      Provided that Mr. Bilirakis is appointed in lieu of Mr. Dan Schaefer 
   of Colorado for consideration of sections 601, 654, and 735 of the House
   bill, and sections 338, 601, 663, and 706 of the Senate amendment:      
    Mike Bilirakis,                                                         
      Provided that Mr. Tauzin is appointed in lieu of Mr. Dan Schaefer of 
   Colorado for consideration of section 1064 of the Senate amendment:     
    Billy Tauzin,                                                           
      As additional conferees from the Committee on Education and the      
   Workforce, for consideration of sections 374, 658, and 3143 of the House
   bill, and sections 664 of the Senate amendment, and modifications       
   committed to conference:                                                
    Bill Goodling,                                                          
    Harris W. Fawell,                                                       
    Loretta Sanchez,                                                        
      Provided that Mr. Riggs is appointed in lieu of Mr. Fawell for       
   consideration of section 658 of the House bill and section 664 of the   
   Senate amendment:                                                       
    Frank Riggs,                                                            
      As additional conferees from the Committee on Government Reform and  
   Oversight, for consideration of sections 322 and 3527 of the House bill,
   and sections 1068, 1107, 2811, and 3527 of the Senate amendment, and    
   modifications committed to conference:                                  
    Dan Burton,                                                             
    Stephen Horn,                                                           
      As additional conferees from the Committee on House Oversight, for   
   consideration of section 543 of the Senate amendment, and modifications 
   committed to conference:                                                
    William M. Thomas,                                                      
    Bob Ney,                                                                
      As additional conferees from the Committee on the Judiciary, for     
   consideration of sections 374, 1057, 3521, 3522, and 3541 of the House  
   bill, and sections 831, 1073, 1075, 1106, and 1201 1216 of the Senate   
   amendment, and modifications committed to conference:                   
    Henry J. Hyde,                                                          
    Lamar Smith,                                                            
      As additional conferees from the Committee on Resources for          
   consideration of sections 214, 601, 653, 1021, 2835, 2901 2914 and 3404 
   of the House bill, and sections 234, 381 392, 601, 706, 2819, and 3158  
   of the Senate amendment, and modifications committed to conference:     
    Don Young,                                                              
    Billy Tauzin,                                                           
      Provided that Mr. Delahunt is appointed in lieu of Mr. Miller of     
   California for consideration of sections 2901 2914 of the House bill,   
   and sections 381 392 of the Senate amendment:                           
    William Delahunt,                                                       
      As additional conferees from the Committee on Science for            
   consideration of sections 214 and 3148 of the House bill, and sections  
   234 and 1064 of the Senate amendment, and modifications committed to    
   conference:                                                             
    F. James Sensenbrenner,  Jr.,                                           
    Ken Calvert,                                                            
    George E. Brown,  Jr.,                                                  
       Provided that Mr. Rohrabacher is appointed in lieu of Mr. Calvert   
   for consideration of section 1064 of the Senate amendment:              
    Dana Rohrabacher,                                                       
      As additional conferees from the Committee on Transportation and     
   Infrastructure for consideration of sections 345, 563, 601, 1021, 2861, 
   and 3606 of the House bill, and section 601 of the Senate amendment, and
   modifications committed to conference:                                  
    Bud Shuster,                                                            
    Wayne T. Gilchrest,                                                     
    Robert A. Borski,                                                       
      As additional conferees from the Committee on Veterans' Affairs for  
   consideration of sections 751, 752, and 759 of the House bill, and      
   sections 220, 542, 751, 752, 758, 1069, 1074, and 1076 of the Senate    
   amendment, and modifications committed to conference:                   
    Christopher H. Smith,                                                   
    Mike Bilirakis,                                                         
    Joseph P. Kennedy,                                                      
        Managers on the Part of the House.                                      
    Strom Thurmond,                                                         
    John Warner,                                                            
    John McCain,                                                            
    Dan Coats,                                                              
    Bob Smith,                                                              
    Dirk Kempthorne,                                                        
    Jim Inhofe,                                                             
    Rick Santorum,                                                          
    Olympia Snowe,                                                          
    Pat Roberts,                                                            
    Carl Levin,                                                             
    Ted Kennedy,                                                            
    Jeff Bingaman,                                                          
    John Glenn,                                                             
    Robert C. Byrd,                                                         
    Chuck Robb,                                                             
    Joe Lieberman,                                                          
    Max Cleland,                                                            
        Managers on the Part of the Senate.                                     



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