House Report 107-732

82-254

2002
107TH CONGRESS 2d Session
HOUSE OF REPRESENTATIVES
Report

107-732

MAKING APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2003, AND FOR OTHER PURPOSES

CONFERENCE REPORT

TO ACCOMPANY

H.R. 5010

[Graphic image not available]

OCTOBER 9, 2002- Ordered to be printed

107TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

2d Session

107-732
MAKING APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2003, AND FOR OTHER PURPOSES


	October 9, 2002- Ordered to be printed

	Mr. LEWIS of California, from the committee of confernece, submitted the following
	CONFERENCE REPORT
	[To accompany H.R. 5010]

The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 5010) `making appropriations for the Department of Defense for the fiscal year ending September 30, 2003, 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, and agree to the same with an amendment, as follows:

In lieu of the matter stricken and inserted by said amendment, insert:

That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2003, for military functions administered by the Department of Defense, and for other purposes, namely:

TITLE I

MILITARY PERSONNEL

MILITARY PERSONNEL, ARMY

For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, for members of the Army on active duty (except members of reserve components provided for elsewhere), cadets, and aviation cadets; and for payments pursuant to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 note), and to the Department of Defense Military Retirement Fund, $26,855,017,000.

MILITARY PERSONNEL, NAVY

For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, for members of the Navy on active duty (except members of the Reserve provided for elsewhere), midshipmen, and aviation cadets; and for payments pursuant to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 note), and to the Department of Defense Military Retirement Fund, $21,927,628,000.

MILITARY PERSONNEL, MARINE CORPS

For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, for members of the Marine Corps on active duty (except members of the Reserve provided for elsewhere); and for payments pursuant to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 note), and to the Department of Defense Military Retirement Fund, $8,501,087,000.

MILITARY PERSONNEL, AIR FORCE

For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, for members of the Air Force on active duty (except members of reserve components provided for elsewhere), cadets, and aviation cadets; and for payments pursuant to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 note), and to the Department of Defense Military Retirement Fund, $21,981,277,000.

RESERVE PERSONNEL, ARMY

For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Army Reserve on active duty under sections 10211, 10302, and 3038 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent duty or other duty, and for members of the Reserve Officers' Training Corps, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund, $3,374,355,000.

RESERVE PERSONNEL, NAVY

For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Navy Reserve on active duty under section 10211 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent duty, and for members of the Reserve Officers' Training Corps, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund, $1,907,552,000.

RESERVE PERSONNEL, MARINE CORPS

For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Marine Corps Reserve on active duty under section 10211 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent duty, and for members of the Marine Corps platoon leaders class, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund, $553,983,000.

RESERVE PERSONNEL, AIR FORCE

For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Air Force Reserve on active duty under sections 10211, 10305, and 8038 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent duty or other duty, and for members of the Air Reserve Officers' Training Corps, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund, $1,236,904,000.

NATIONAL GUARD PERSONNEL, ARMY

For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Army National Guard while on duty under section 10211, 10302, or 12402 of title 10 or section 708 of title 32, United States Code, or while serving on duty under section 12301(d) of title 10 or section 502(f) of title 32, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing training, or while performing drills or equivalent duty or other duty, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund, $5,114,588,000.

NATIONAL GUARD PERSONNEL, AIR FORCE

For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Air National Guard on duty under section 10211, 10305, or 12402 of title 10 or section 708 of title 32, United States Code, or while serving on duty under section 12301(d) of title 10 or section 502(f) of title 32, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing training, or while performing drills or equivalent duty or other duty, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund, $2,125,161,000.

TITLE II

OPERATION AND MAINTENANCE

OPERATION AND MAINTENANCE, ARMY

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the operation and maintenance of the Army, as authorized by law; and not to exceed $10,818,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of the Army, and payments may be made on his certificate of necessity for confidential military purposes, $23,992,082,000: Provided, That of the funds appropriated in this paragraph, not less than $355,000,000 shall be made available only for conventional ammunition care and maintenance: Provided further, That of the funds made available under this heading, $2,500,000 shall be available for Fort Baker, in accordance with the terms and conditions as provided under the heading `Operation and Maintenance, Army', in Public Law 107-117.

OPERATION AND MAINTENANCE, NAVY

For expenses, not otherwise provided for, necessary for the operation and maintenance of the Navy and the Marine Corps, as authorized by law; and not to exceed $4,415,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of the Navy, and payments may be made on his certificate of necessity for confidential military purposes, $29,331,526,000.

OPERATION AND MAINTENANCE, MARINE CORPS

For expenses, not otherwise provided for, necessary for the operation and maintenance of the Marine Corps, as authorized by law, $3,585,759,000.

OPERATION AND MAINTENANCE, AIR FORCE

For expenses, not otherwise provided for, necessary for the operation and maintenance of the Air Force, as authorized by law; and not to exceed $7,902,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of the Air Force, and payments may be made on his certificate of necessity for confidential military purposes, $27,339,533,000: Provided, That notwithstanding any other provision of law, that of the funds available under this heading, $750,000 shall only be available to the Secretary of the Air Force for a grant to Florida Memorial College for the purpose of funding minority aviation training: Provided further, That of the amount provided under this heading, $2,000,000 may be obligated for the deployment of Air Force active and Reserve aircrews that perform combat search and rescue operations to operate and evaluate the United Kingdom's Royal Air Force EH-101 helicopter, to receive training using that helicopter, and to exchange operational techniques and procedures regarding that helicopter.

OPERATION AND MAINTENANCE, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the operation and maintenance of activities and agencies of the Department of Defense (other than the military departments), as authorized by law, $14,773,506,000, of which not to exceed $25,000,000 may be available for the CINC initiative fund account; and of which not to exceed $34,500,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of Defense, and payments may be made on his certificate of necessity for confidential military purposes: Provided, That notwithstanding any other provision of law, of the funds provided in this Act for Civil Military programs under this heading, $750,000 shall be available for a grant for Outdoor Odyssey, Roaring Run, Pennsylvania, to support the Youth Development and Leadership program and Department of Defense STARBASE program: Provided further, That none of the funds appropriated or otherwise made available by this Act may be used to plan or implement the consolidation of a budget or appropriations liaison office of the Office of the Secretary of Defense, the office of the Secretary of a military department, or the service headquarters of one of the Armed Forces into a legislative affairs or legislative liaison office: Provided further, That $4,675,000, to remain available until expended, is available only for expenses relating to certain classified activities, and may be transferred as necessary by the Secretary to operation and maintenance appropriations or research, development, test and evaluation appropriations, to be merged with and to be available for the same time period as the appropriations to which transferred: Provided further, That any ceiling on the investment item unit cost of items that may be purchased with operation and maintenance funds shall not apply to the funds described in the preceding proviso: Provided further, That the transfer authority provided under this heading is in addition to any other transfer authority provided elsewhere in this Act.

OPERATION AND MAINTENANCE, ARMY RESERVE

For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Army Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications, $1,970,180,000.

OPERATION AND MAINTENANCE, NAVY RESERVE

For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Navy Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications, $1,236,809,000.

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Marine Corps Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications, $187,532,000.

OPERATION AND MAINTENANCE, AIR FORCE RESERVE

For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Air Force Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications, $2,163,104,000.

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

For expenses of training, organizing, and administering the Army National Guard, including medical and hospital treatment and related expenses in non-Federal hospitals; maintenance, operation, and repairs to structures and facilities; hire of passenger motor vehicles; personnel services in the National Guard Bureau; travel expenses (other than mileage), as authorized by law for Army personnel on active duty, for Army National Guard division, regimental, and battalion commanders while inspecting units in compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau; supplying and equipping the Army National Guard as authorized by law; and expenses of repair, modification, maintenance, and issue of supplies and equipment (including aircraft), $4,261,707,000.

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

For operation and maintenance of the Air National Guard, including medical and hospital treatment and related expenses in non-Federal hospitals; maintenance, operation, repair, and other necessary expenses of facilities for the training and administration of the Air National Guard, including repair of facilities, maintenance, operation, and modification of aircraft; transportation of things, hire of passenger motor vehicles; supplies, materials, and equipment, as authorized by law for the Air National Guard; and expenses incident to the maintenance and use of supplies, materials, and equipment, including such as may be furnished from stocks under the control of agencies of the Department of Defense; travel expenses (other than mileage) on the same basis as authorized by law for Air National Guard personnel on active Federal duty, for Air National Guard commanders while inspecting units in compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau, $4,117,585,000.

OVERSEAS CONTINGENCY OPERATIONS TRANSFER ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

For expenses directly relating to Overseas Contingency Operations by United States military forces, $5,000,000, to remain available until expended: Provided, That the Secretary of Defense may transfer these funds only to military personnel accounts; operation and maintenance accounts within this title; the Defense Health Program appropriation; procurement accounts; research, development, test and evaluation accounts; and to working capital funds: Provided further, That the funds transferred shall be merged with and shall be available for the same purposes and for the same time period, as the appropriation to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation: Provided further, That the transfer authority provided in this paragraph is in addition to any other transfer authority contained elsewhere in this Act.

UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

For salaries and expenses necessary for the United States Court of Appeals for the Armed Forces, $9,614,000, of which not to exceed $2,500 can be used for official representation purposes.

ENVIRONMENTAL RESTORATION, ARMY

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $395,900,000, to remain available until transferred: Provided, That the Secretary of the Army shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of the Army, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Army, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, NAVY

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Navy, $256,948,000, to remain available until transferred: Provided, That the Secretary of the Navy shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of the Navy, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Navy, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, AIR FORCE

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Air Force, $389,773,000, to remain available until transferred: Provided, That the Secretary of the Air Force shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of the Air Force, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Air Force, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

For the Department of Defense, $23,498,000, to remain available until transferred: Provided, That the Secretary of Defense shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of Defense, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of Defense, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $246,102,000, to remain available until transferred: Provided, That the Secretary of the Army shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris at sites formerly used by the Department of Defense, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Army, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.

OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

For expenses relating to the Overseas Humanitarian, Disaster, and Civic Aid programs of the Department of Defense (consisting of the programs provided under sections 401, 402, 404, 2547, and 2551 of title 10, United States Code), $58,400,000, to remain available until September 30, 2004.

FORMER SOVIET UNION THREAT REDUCTION

For assistance to the republics of the former Soviet Union, including assistance provided by contract or by grants, for facilitating the elimination and the safe and secure transportation and storage of nuclear, chemical and other weapons; for establishing programs to prevent the proliferation of weapons, weapons components, and weapon-related technology and expertise; for programs relating to the training and support of defense and military personnel for demilitarization and protection of weapons, weapons components and weapons technology and expertise, and for defense and military contacts, $416,700,000, to remain available until September 30, 2005: Provided, That of the amounts provided under this heading, $10,000,000 shall be available only to support the dismantling and disposal of nuclear submarines and submarine reactor components in the Russian Far East.

SUPPORT FOR INTERNATIONAL SPORTING COMPETITIONS, DEFENSE

For logistical and security support for international sporting competitions (including pay and non-travel related allowances only for members of the Reserve Components of the Armed Forces of the United States called or ordered to active duty in connection with providing such support), $19,000,000, to remain available until expended.

TITLE III

PROCUREMENT

AIRCRAFT PROCUREMENT, ARMY

For construction, procurement, production, modification, and modernization of aircraft, equipment, including ordnance, ground handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes, $2,285,574,000, to remain available for obligation until September 30, 2005: Provided, That of the funds made available under this heading, $39,100,000 shall be available only to support a restructured CH-47F helicopter upgrade program for the full fleet to facilitate increases in the planned production rate to an economically optimal rate by fiscal year 2005: Provided further, That funds in the immediately preceding proviso shall not be made available until the Secretary of the Army has certified to the congressional defense committees that the Army intends to budget for the upgrade of the entire CH-47 fleet required for the Objective Force at economically optimal production rates in order to complete this program within ten years after it is initiated.

MISSILE PROCUREMENT, ARMY

For construction, procurement, production, modification, and modernization of missiles, equipment, including ordnance, ground handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes, $1,096,548,000, to remain available for obligation until September 30, 2005.

PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

For construction, procurement, production, and modification of weapons and tracked combat vehicles, equipment, including ordnance, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes, $2,266,508,000, to remain available for obligation until September 30, 2005.

PROCUREMENT OF AMMUNITION, ARMY

For construction, procurement, production, and modification of ammunition, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including ammunition facilities authorized by section 2854 of title 10, United States Code, and the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes, $1,253,099,000, to remain available for obligation until September 30, 2005.

OTHER PROCUREMENT, ARMY

For construction, procurement, production, and modification of vehicles, including tactical, support, and non-tracked combat vehicles; the purchase of passenger motor vehicles for replacement only; and the purchase of 6 vehicles required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $180,000 per vehicle; communications and electronic equipment; other support equipment; spare parts, ordnance, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes, $5,874,674,000, to remain available for obligation until September 30, 2005.

AIRCRAFT PROCUREMENT, NAVY

For construction, procurement, production, modification, and modernization of aircraft, equipment, including ordnance, spare parts, and accessories therefor; specialized equipment; expansion of public and private plants, including the land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway, $8,812,855,000, to remain available for obligation until September 30, 2005.

WEAPONS PROCUREMENT, NAVY

For construction, procurement, production, modification, and modernization of missiles, torpedoes, other weapons, and related support equipment including spare parts, and accessories therefor; expansion of public and private plants, including the land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway, $1,868,517,000, to remain available for obligation until September 30, 2005.

PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

For construction, procurement, production, and modification of ammunition, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including ammunition facilities authorized by section 2854 of title 10, United States Code, and the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes, $1,165,730,000, to remain available for obligation until September 30, 2005.

SHIPBUILDING AND CONVERSION, NAVY

For expenses necessary for the construction, acquisition, or conversion of vessels as authorized by law, including armor and armament thereof, plant equipment, appliances, and machine tools and installation thereof in public and private plants; reserve plant and Government and contractor-owned equipment layaway; procurement of critical, long leadtime components and designs for vessels to be constructed or converted in the future; and expansion of public and private plants, including land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title, as follows:

Carrier Replacement Program, $90,000,000;

Carrier Replacement Program (AP), $403,703,000;

NSSN, $1,499,152,000;

NSSN (AP), $645,209,000;

SSGN, $404,305,000;

SSGN (AP), $421,000,000;

CVN Refuelings (AP), $221,781,000;

Submarine Refuelings, $435,792,000;

Submarine Refuelings (AP), $64,000,000;

DDG-51 Destroyer, $2,321,502,000;

LPD-17, $596,492,000;

LHD-8, $243,000,000;

LCAC Landing Craft Air Cushion, $89,638,000;

Mine Hunter SWATH, $7,000,000;

Prior year shipbuilding costs, $1,279,899,000;

Service Craft, $9,756,000; and

For outfitting, post delivery, conversions, and first destination transportation, $300,608,000;

In all: $9,032,837,000, to remain available for obligation until September 30, 2007: Provided, That additional obligations may be incurred after September 30, 2007, for engineering services, tests, evaluations, and other such budgeted work that must be performed in the final stage of ship construction: Provided further, That none of the funds provided under this heading for the construction or conversion of any naval vessel to be constructed in shipyards in the United States shall be expended in foreign facilities for the construction of major components of such vessel: Provided further, That none of the funds provided under this heading shall be used for the construction of any naval vessel in foreign shipyards.

OTHER PROCUREMENT, NAVY

For procurement, production, and modernization of support equipment and materials not otherwise provided for, Navy ordnance (except ordnance for new aircraft, new ships, and ships authorized for conversion); the purchase of passenger motor vehicles for replacement only, and the purchase of 3 vehicles required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $240,000 per unit for one unit and not to exceed $125,000 per unit for the remaining two units; expansion of public and private plants, including the land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway, $4,612,910,000, to remain available for obligation until September 30, 2005.

PROCUREMENT, MARINE CORPS

For expenses necessary for the procurement, manufacture, and modification of missiles, armament, military equipment, spare parts, and accessories therefor; plant equipment, appliances, and machine tools, and installation thereof in public and private plants; reserve plant and Government and contractor-owned equipment layaway; vehicles for the Marine Corps, including the purchase of passenger motor vehicles for replacement only; and expansion of public and private plants, including land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title, $1,388,583,000, to remain available for obligation until September 30, 2005.

AIRCRAFT PROCUREMENT, AIR FORCE

For construction, procurement, lease, and modification of aircraft and equipment, including armor and armament, specialized ground handling equipment, and training devices, spare parts, and accessories therefor; specialized equipment; expansion of public and private plants, Government-owned equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes including rents and transportation of things, $13,137,255,000, to remain available for obligation until September 30, 2005: Provided, That amounts provided under this heading shall be used for the advance procurement of 15 C-17 aircraft.

MISSILE PROCUREMENT, AIR FORCE

For construction, procurement, and modification of missiles, spacecraft, rockets, and related equipment, including spare parts and accessories therefor, ground handling equipment, and training devices; expansion of public and private plants, Government-owned equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes including rents and transportation of things, $3,174,739,000, to remain available for obligation until September 30, 2005.

PROCUREMENT OF AMMUNITION, AIR FORCE

For construction, procurement, production, and modification of ammunition, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including ammunition facilities authorized by section 2854 of title 10, United States Code, and the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes, $1,288,164,000, to remain available for obligation until September 30, 2005.

OTHER PROCUREMENT, AIR FORCE

For procurement and modification of equipment (including ground guidance and electronic control equipment, and ground electronic and communication equipment), and supplies, materials, and spare parts therefor, not otherwise provided for; the purchase of passenger motor vehicles for replacement only, and the purchase of 2 vehicles required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $232,000 per vehicle; lease of passenger motor vehicles; and expansion of public and private plants, Government-owned equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon, prior to approval of title; reserve plant and Government and contractor-owned equipment layaway, $10,672,712,000, to remain available for obligation until September 30, 2005.

PROCUREMENT, DEFENSE-WIDE

For expenses of activities and agencies of the Department of Defense (other than the military departments) necessary for procurement, production, and modification of equipment, supplies, materials, and spare parts therefor, not otherwise provided for; the purchase of passenger motor vehicles for replacement only; the purchase of 4 vehicles required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $250,000 per vehicle; expansion of public and private plants, equipment, and installation thereof in such plants, erection of structures, and acquisition of land for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; reserve plant and Government and contractor-owned equipment layaway, $3,444,455,000, to remain available for obligation until September 30, 2005.

NATIONAL GUARD AND RESERVE EQUIPMENT

For procurement of aircraft, missiles, tracked combat vehicles, ammunition, other weapons, and other procurement for the reserve components of the Armed Forces, $100,000,000, to remain available for obligation until September 30, 2005: Provided, That the Chiefs of the Reserve and National Guard components shall, not later than 30 days after the enactment of this Act, individually submit to the congressional defense committees the modernization priority assessment for their respective Reserve or National Guard component.

DEFENSE PRODUCTION ACT PURCHASES

For activities by the Department of Defense pursuant to sections 108, 301, 302, and 303 of the Defense Production Act of 1950 (50 U.S.C. App. 2078, 2091, 2092, and 2093), $73,057,000, to remain available until expended, of which, $5,000,000 may be used for a Processable Rigid-Rod Polymeric Material Supplier Initiative under title III of the Defense Production Act of 1950 (50 U.S.C. App. 2091 et seq.) to develop affordable production methods and a domestic supplier for military and commercial processable rigid-rod polymeric materials.

TITLE IV

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

For expenses necessary for basic and applied scientific research, development, test and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment, $13,946,085,000, to remain available for obligation until September 30, 2004: Provided, That funds appropriated in this paragraph which are available for the V-22 may be used to meet unique operational requirements of the Special Operations Forces.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

For expenses of activities and agencies of the Department of Defense (other than the military departments), necessary for basic and applied scientific research, development, test and evaluation; advanced research projects as may be designated and determined by the Secretary of Defense, pursuant to law; maintenance, rehabilitation, lease, and operation of facilities and equipment, $17,924,642,000, to remain available for obligation until September 30, 2004.

OPERATIONAL TEST AND EVALUATION, DEFENSE

For expenses, not otherwise provided for, necessary for the independent activities of the Director, Operational Test and Evaluation, in the direction and supervision of operational test and evaluation, including initial operational test and evaluation which is conducted prior to, and in support of, production decisions; joint operational testing and evaluation; and administrative expenses in connection therewith, $245,554,000, to remain available for obligation until September 30, 2004.

TITLE V

REVOLVING AND MANAGEMENT FUNDS

DEFENSE WORKING CAPITAL FUNDS

For the Defense Working Capital Funds, $1,784,956,000: Provided, That during fiscal year 2003, funds in the Defense Working Capital Funds may be used for the purchase of not to exceed 315 passenger carrying motor vehicles for replacement only for the Defense Security Service, and the purchase of not to exceed 7 vehicles for replacement only for the Defense Logistics Agency.

NATIONAL DEFENSE SEALIFT FUND

For National Defense Sealift Fund programs, projects, and activities, and for expenses of the National Defense Reserve Fleet, as established by section 11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744), and for the necessary expenses to maintain and preserve a U.S.-flag merchant fleet to serve the national security needs of the United States, $942,629,000, to remain available until expended: Provided, That none of the funds provided in this paragraph shall be used to award a new contract that provides for the acquisition of any of the following major components unless such components are manufactured in the United States: auxiliary equipment, including pumps, for all shipboard services; propulsion system components (that is; engines, reduction gears, and propellers); shipboard cranes; and spreaders for shipboard cranes: Provided further, That the exercise of an option in a contract awarded through the obligation of previously appropriated funds shall not be considered to be the award of a new contract: Provided further, That the Secretary of the military department responsible for such procurement may waive the restrictions in the first proviso on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made in order to acquire capability for national security purposes: Provided further, That, notwithstanding any other provision of law, $8,500,000 of the funds available under this heading shall be available in addition to other amounts otherwise available, only to finance the cost of constructing additional sealift capacity.

TITLE VI

OTHER DEPARTMENT OF DEFENSE PROGRAMS

DEFENSE HEALTH PROGRAM

For expenses, not otherwise provided for, for medical and health care programs of the Department of Defense, as authorized by law, $14,843,542,000, of which $14,100,386,000 shall be for Operation and maintenance, of which not to exceed 2 percent shall remain available until September 30, 2004; of which $284,242,000, to remain available for obligation until September 30, 2005, shall be for Procurement; of which $458,914,000, to remain available for obligation until September 30, 2004, shall be for Research, development, test and evaluation, and of which not less than $7,000,000 shall be available for HIV prevention educational activities undertaken in connection with U.S. military training, exercises, and humanitarian assistance activities conducted primarily in African nations.

CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY

For expenses, not otherwise provided for, necessary for the destruction of the United States stockpile of lethal chemical agents and munitions in accordance with the provisions of section 1412 of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521), and for the destruction of other chemical warfare materials that are not in the chemical weapon stockpile, $1,490,199,000, of which $974,238,000 shall be for Operation and maintenance to remain available until September 30, 2004, $213,278,000 shall be for Procurement to remain available until September 30, 2005, and $302,683,000 shall be for Research, development, test and evaluation to remain available until September 30, 2004.

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

(INCLUDING TRANSFER OF FUNDS)

For drug interdiction and counter-drug activities of the Department of Defense, for transfer to appropriations available to the Department of Defense for military personnel of the reserve components serving under the provisions of title 10 and title 32, United States Code; for Operation and maintenance; for Procurement; and for Research, development, test and evaluation, $881,907,000: Provided, That the funds appropriated under this heading shall be available for obligation for the same time period and for the same purpose as the appropriation to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation: Provided further, That the transfer authority provided under this heading is in addition to any other transfer authority contained elsewhere in this Act.

OFFICE OF THE INSPECTOR GENERAL

For expenses and activities of the Office of the Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $157,165,000, of which $155,165,000 shall be for Operation and maintenance, of which not to exceed $700,000 is available for emergencies and extraordinary expenses to be expended on the approval or authority of the Inspector General, and payments may be made on the Inspector General's certificate of necessity for confidential military purposes; and of which $2,000,000 to remain available until September 30, 2005, shall be for Procurement.

TITLE VII

RELATED AGENCIES

CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND

For payment to the Central Intelligence Agency Retirement and Disability System Fund, to maintain the proper funding level for continuing the operation of the Central Intelligence Agency Retirement and Disability System, $222,500,000.

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of the Intelligence Community Management Account, $163,479,000, of which $24,252,000 for the Advanced Research and Development Committee shall remain available until September 30, 2004: Provided, That of the funds appropriated under this heading, $34,100,000 shall be transferred to the Department of Justice for the National Drug Intelligence Center to support the Department of Defense's counter-drug intelligence responsibilities, and of the said amount, $1,500,000 for Procurement shall remain available until September 30, 2005 and $1,000,000 for Research, development, test and evaluation shall remain available until September 30, 2004: Provided further, That the National Drug Intelligence Center shall maintain the personnel and technical resources to provide timely support to law enforcement authorities and the intelligence community by conducting document and computer exploitation of materials collected in Federal, State, and local law enforcement activity associated with counter-drug, counter-terrorism, and national security investigations and operations.

PAYMENT TO KAHO'OLAWE ISLAND CONVEYANCE, REMEDIATION, AND ENVIRONMENTAL RESTORATION FUND

For payment to Kaho'olawe Island Conveyance, Remediation, and Environmental Restoration Fund, as authorized by law, $75,000,000, to remain available until expended.

NATIONAL SECURITY EDUCATION TRUST FUND

For the purposes of title VIII of Public Law 102-183, $8,000,000, to be derived from the National Security Education Trust Fund, to remain available until expended.

TITLE VIII

GENERAL PROVISIONS

SEC. 8001. No part of any appropriation contained in this Act shall be used for publicity or propaganda purposes not authorized by the Congress.

SEC. 8002. During the current fiscal year, provisions of law prohibiting the payment of compensation to, or employment of, any person not a citizen of the United States shall not apply to personnel of the Department of Defense: Provided, That salary increases granted to direct and indirect hire foreign national employees of the Department of Defense funded by this Act shall not be at a rate in excess of the percentage increase authorized by law for civilian employees of the Department of Defense whose pay is computed under the provisions of section 5332 of title 5, United States Code, or at a rate in excess of the percentage increase provided by the appropriate host nation to its own employees, whichever is higher: Provided further, That this section shall not apply to Department of Defense foreign service national employees serving at United States diplomatic missions whose pay is set by the Department of State under the Foreign Service Act of 1980: Provided further, That the limitations of this provision shall not apply to foreign national employees of the Department of Defense in the Republic of Turkey.

SEC. 8003. No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year, unless expressly so provided herein.

SEC. 8004. No more than 20 percent of the appropriations in this Act which are limited for obligation during the current fiscal year shall be obligated during the last 2 months of the fiscal year: Provided, That this section shall not apply to obligations for support of active duty training of reserve components or summer camp training of the Reserve Officers' Training Corps.

(TRANSFER OF FUNDS)

SEC. 8005. Upon determination by the Secretary of Defense that such action is necessary in the national interest, he may, with the approval of the Office of Management and Budget, transfer not to exceed $2,000,000,000 of working capital funds of the Department of Defense or funds made available in this Act to the Department of Defense for military functions (except military construction) between such appropriations or funds or any subdivision thereof, to be merged with and to be available for the same purposes, and for the same time period, as the appropriation or fund to which transferred: Provided, That such authority to transfer may not be used unless for higher priority items, based on unforeseen military requirements, than those for which originally appropriated and in no case where the item for which funds are requested has been denied by the Congress: Provided further, That the Secretary of Defense shall notify the Congress promptly of all transfers made pursuant to this authority or any other authority in this Act: Provided further, That no part of the funds in this Act shall be available to prepare or present a request to the Committees on Appropriations for reprogramming of funds, unless for higher priority items, based on unforeseen military requirements, than those for which originally appropriated and in no case where the item for which reprogramming is requested has been denied by the Congress: Provided further, That a request for multiple reprogrammings of funds using authority provided in this section must be made prior to May 31, 2003: Provided further, That section 8005 of the Department of Defense Appropriations Act, 2002 (Public Law 107-117) is amended by striking `$2,000,000,000', and inserting `$2,500,000,000'.

(TRANSFER OF FUNDS)

SEC. 8006. During the current fiscal year, cash balances in working capital funds of the Department of Defense established pursuant to section 2208 of title 10, United States Code, may be maintained in only such amounts as are necessary at any time for cash disbursements to be made from such funds: Provided, That transfers may be made between such funds: Provided further, That transfers may be made between working capital funds and the `Foreign Currency Fluctuations, Defense' appropriation and the `Operation and Maintenance' appropriation accounts in such amounts as may be determined by the Secretary of Defense, with the approval of the Office of Management and Budget, except that such transfers may not be made unless the Secretary of Defense has notified the Congress of the proposed transfer. Except in amounts equal to the amounts appropriated to working capital funds in this Act, no obligations may be made against a working capital fund to procure or increase the value of war reserve material inventory, unless the Secretary of Defense has notified the Congress prior to any such obligation.

SEC. 8007. Funds appropriated by this Act may not be used to initiate a special access program without prior notification 30 calendar days in session in advance to the congressional defense committees.

SEC. 8008. None of the funds provided in this Act shall be available to initiate: (1) a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any 1 year of the contract or that includes an unfunded contingent liability in excess of $20,000,000; or (2) a contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any 1 year, unless the congressional defense committees have been notified at least 30 days in advance of the proposed contract award: Provided, That no part of any appropriation contained in this Act shall be available to initiate a multiyear contract for which the economic order quantity advance procurement is not funded at least to the limits of the Government's liability: Provided further, That no part of any appropriation contained in this Act shall be available to initiate multiyear procurement contracts for any systems or component thereof if the value of the multiyear contract would exceed $500,000,000 unless specifically provided in this Act: Provided further, That no multiyear procurement contract can be terminated without 10-day prior notification to the congressional defense committees: Provided further, That the execution of multiyear authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement.

Funds appropriated in title III of this Act may be used for multiyear procurement contracts as follows:

C-130 aircraft;

FMTV; and

F/A-18E and F engine.

SEC. 8009. Within the funds appropriated for the operation and maintenance of the Armed Forces, funds are hereby appropriated pursuant to section 401 of title 10, United States Code, for humanitarian and civic assistance costs under chapter 20 of title 10, United States Code. Such funds may also be obligated for humanitarian and civic assistance costs incidental to authorized operations and pursuant to authority granted in section 401 of chapter 20 of title 10, United States Code, and these obligations shall be reported to the Congress as of September 30 of each year: Provided, That funds available for operation and maintenance shall be available for providing humanitarian and similar assistance by using Civic Action Teams in the Trust Territories of the Pacific Islands and freely associated states of Micronesia, pursuant to the Compact of Free Association as authorized by Public Law 99-239: Provided further, That upon a determination by the Secretary of the Army that such action is beneficial for graduate medical education programs conducted at Army medical facilities located in Hawaii, the Secretary of the Army may authorize the provision of medical services at such facilities and transportation to such facilities, on a nonreimbursable basis, for civilian patients from American Samoa, the Commonwealth of the Northern Mariana Islands, the Marshall Islands, the Federated States of Micronesia, Palau, and Guam.

SEC. 8010. (a) During fiscal year 2003, the civilian personnel of the Department of Defense may not be managed on the basis of any end-strength, and the management of such personnel during that fiscal year shall not be subject to any constraint or limitation (known as an end-strength) on the number of such personnel who may be employed on the last day of such fiscal year.

(b) The fiscal year 2004 budget request for the Department of Defense as well as all justification material and other documentation supporting the fiscal year 2004 Department of Defense budget request shall be prepared and submitted to the Congress as if subsections (a) and (b) of this provision were effective with regard to fiscal year 2004.

(c) Nothing in this section shall be construed to apply to military (civilian) technicians.

SEC. 8011. Notwithstanding any other provision of law, none of the funds made available by this Act shall be used by the Department of Defense to exceed, outside the 50 United States, its territories, and the District of Columbia, 125,000 civilian workyears: Provided, That workyears shall be applied as defined in the Federal Personnel Manual: Provided further, That workyears expended in dependent student hiring programs for disadvantaged youths shall not be included in this workyear limitation.

SEC. 8012. None of the funds made available by this Act shall be used in any way, directly or indirectly, to influence congressional action on any legislation or appropriation matters pending before the Congress.

SEC. 8013. None of the funds appropriated by this Act shall be available for the basic pay and allowances of any member of the Army participating as a full-time student and receiving benefits paid by the Secretary of Veterans Affairs from the Department of Defense Education Benefits Fund when time spent as a full-time student is credited toward completion of a service commitment: Provided, That this subsection shall not apply to those members who have reenlisted with this option prior to October 1, 1987: Provided further, That this subsection applies only to active components of the Army.

SEC. 8014. None of the funds appropriated by this Act shall be available to convert to contractor performance an activity or function of the Department of Defense that, on or after the date of the enactment of this Act, is performed by more than 10 Department of Defense civilian employees until a most efficient and cost-effective organization analysis is completed on such activity or function and certification of the analysis is made to the Committees on Appropriations of the House of Representatives and the Senate: Provided, That this section and subsections (a), (b), and (c) of 10 U.S.C. 2461 shall not apply to a commercial or industrial type function of the Department of Defense that: (1) is included on the procurement list established pursuant to section 2 of the Act of June 25, 1938 (41 U.S.C. 47), popularly referred to as the Javits-Wagner-O'Day Act; (2) is planned to be converted to performance by a qualified nonprofit agency for the blind or by a qualified nonprofit agency for other severely handicapped individuals in accordance with that Act; or (3) is planned to be converted to performance by a qualified firm under 51 percent ownership by an Indian tribe, as defined in section 450b(e) of title 25, United States Code, or a Native Hawaiian organization, as defined in section 637(a)(15) of title 15, United States Code.

(TRANSFER OF FUNDS)

SEC. 8015. Funds appropriated in title III of this Act for the Department of Defense Pilot Mentor-Protege Program may be transferred to any other appropriation contained in this Act solely for the purpose of implementing a Mentor-Protege Program developmental assistance agreement pursuant to section 831 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301 note), as amended, under the authority of this provision or any other transfer authority contained in this Act.

SEC. 8016. None of the funds in this Act may be available for the purchase by the Department of Defense (and its departments and agencies) of welded shipboard anchor and mooring chain 4 inches in diameter and under unless the anchor and mooring chain are manufactured in the United States from components which are substantially manufactured in the United States: Provided, That for the purpose of this section manufactured will include cutting, heat treating, quality control, testing of chain and welding (including the forging and shot blasting process): Provided further, That for the purpose of this section substantially all of the components of anchor and mooring chain shall be considered to be produced or manufactured in the United States if the aggregate cost of the components produced or manufactured in the United States exceeds the aggregate cost of the components produced or manufactured outside the United States: Provided further, That when adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis, the Secretary of the service responsible for the procurement may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations that such an acquisition must be made in order to acquire capability for national security purposes.

SEC. 8017. None of the funds appropriated by this Act available for the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) or TRICARE shall be available for the reimbursement of any health care provider for inpatient mental health service for care received when a patient is referred to a provider of inpatient mental health care or residential treatment care by a medical or health care professional having an economic interest in the facility to which the patient is referred: Provided, That this limitation does not apply in the case of inpatient mental health services provided under the program for persons with disabilities under subsection (d) of section 1079 of title 10, United States Code, provided as partial hospital care, or provided pursuant to a waiver authorized by the Secretary of Defense because of medical or psychological circumstances of the patient that are confirmed by a health professional who is not a Federal employee after a review, pursuant to rules prescribed by the Secretary, which takes into account the appropriate level of care for the patient, the intensity of services required by the patient, and the availability of that care.

SEC. 8018. Notwithstanding any other provision of law, during the current fiscal year, the Secretary of Defense may, by executive agreement, establish with host nation governments in NATO member states a separate account into which such residual value amounts negotiated in the return of United States military installations in NATO member states may be deposited, in the currency of the host nation, in lieu of direct monetary transfers to the United States Treasury: Provided, That such credits may be utilized only for the construction of facilities to support United States military forces in that host nation, or such real property maintenance and base operating costs that are currently executed through monetary transfers to such host nations: Provided further, That the Department of Defense's budget submission for fiscal year 2004 shall identify such sums anticipated in residual value settlements, and identify such construction, real property maintenance or base operating costs that shall be funded by the host nation through such credits: Provided further, That all military construction projects to be executed from such accounts must be previously approved in a prior Act of Congress: Provided further, That each such executive agreement with a NATO member host nation shall be reported to the congressional defense committees, the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate 30 days prior to the conclusion and endorsement of any such agreement established under this provision.

SEC. 8019. None of the funds available to the Department of Defense may be used to demilitarize or dispose of M-1 Carbines, M-1 Garand rifles, M-14 rifles, .22 caliber rifles, .30 caliber rifles, or M-1911 pistols.

SEC. 8020. No more than $500,000 of the funds appropriated or made available in this Act shall be used during a single fiscal year for any single relocation of an organization, unit, activity or function of the Department of Defense into or within the National Capital Region: Provided, That the Secretary of Defense may waive this restriction on a case-by-case basis by certifying in writing to the congressional defense committees that such a relocation is required in the best interest of the Government.

SEC. 8021. In addition to the funds provided elsewhere in this Act, $8,000,000 is appropriated only for incentive payments authorized by Section 504 of the Indian Financing Act of 1974 (25 U.S.C. 1544): Provided, That a prime contractor or a subcontractor at any tier that makes a subcontract award to any subcontractor or supplier as defined in 25 U.S.C. 1544 or a small business owned and controlled by an individual defined under 25 U.S.C. 4221(9) shall be considered a contractor for the purposes of being allowed additional compensation under section 504 of the Indian Financing Act of 1974 (25 U.S.C. 1544) whenever the prime contract or subcontract amount is over $500,000 and involves the expenditure of funds appropriated by an Act making Appropriations for the Department of Defense with respect to any fiscal year: Provided further, That notwithstanding 41 U.S.C. Sec. 430, this section shall be applicable to any Department of Defense acquisition of supplies or services, including any contract and any subcontract at any tier for acquisition of commercial items produced or manufactured, in whole or in part by any subcontractor or supplier defined in 25 U.S.C. 1544 or a small business owned and controlled by an individual defined under 25 U.S.C. 4221(9).

SEC. 8022. None of the funds appropriated by this Act shall be available to perform any cost study pursuant to the provisions of OMB Circular A-76 if the study being performed exceeds a period of 24 months after initiation of such study with respect to a single function activity or 48 months after initiation of such study for a multi-function activity.

SEC. 8023. Funds appropriated by this Act for the American Forces Information Service shall not be used for any national or international political or psychological activities.

SEC. 8024. Notwithstanding any other provision of law or regulation, the Secretary of Defense may adjust wage rates for civilian employees hired for certain health care occupations as authorized for the Secretary of Veterans Affairs by section 7455 of title 38, United States Code.

SEC. 8025. (a) Of the funds for the procurement of supplies or services appropriated by this Act, qualified nonprofit agencies for the blind or other severely handicapped shall be afforded the maximum practicable opportunity to participate as subcontractors and suppliers in the performance of contracts let by the Department of Defense.

(b) During the current fiscal year, a business concern which has negotiated with a military service or defense agency a subcontracting plan for the participation by small business concerns pursuant to section 8(d) of the Small Business Act (15 U.S.C. 637(d)) shall be given credit toward meeting that subcontracting goal for any purchases made from qualified nonprofit agencies for the blind or other severely handicapped.

(c) For the purpose of this section, the phrase `qualified nonprofit agency for the blind or other severely handicapped' means a nonprofit agency for the blind or other severely handicapped that has been approved by the Committee for the Purchase from the Blind and Other Severely Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-48).

SEC. 8026. During the current fiscal year, net receipts pursuant to collections from third party payers pursuant to section 1095 of title 10, United States Code, shall be made available to the local facility of the uniformed services responsible for the collections and shall be over and above the facility's direct budget amount.

SEC. 8027. During the current fiscal year, the Department of Defense is authorized to incur obligations of not to exceed $350,000,000 for purposes specified in section 2350j(c) of title 10, United States Code, in anticipation of receipt of contributions, only from the Government of Kuwait, under that section: Provided, That upon receipt, such contributions from the Government of Kuwait shall be credited to the appropriations or fund which incurred such obligations.

SEC. 8028. Of the funds made available in this Act, not less than $21,188,000 shall be available for the Civil Air Patrol Corporation, of which $19,688,000 shall be available for Civil Air Patrol Corporation operation and maintenance to support readiness activities which includes $1,500,000 for the Civil Air Patrol counterdrug program: Provided, That funds identified for `Civil Air Patrol' under this section are intended for and shall be for the exclusive use of the Civil Air Patrol Corporation and not for the Air Force or any unit thereof.

SEC. 8029. (a) None of the funds appropriated in this Act are available to establish a new Department of Defense (department) federally funded research and development center (FFRDC), either as a new entity, or as a separate entity administrated by an organization managing another FFRDC, or as a nonprofit membership corporation consisting of a consortium of other FFRDCs and other non-profit entities.

(b) No member of a Board of Directors, Trustees, Overseers, Advisory Group, Special Issues Panel, Visiting Committee, or any similar entity of a defense FFRDC, and no paid consultant to any defense FFRDC, except when acting in a technical advisory capacity, may be compensated for his or her services as a member of such entity, or as a paid consultant by more than one FFRDC in a fiscal year: Provided, That a member of any such entity referred to previously in this subsection shall be allowed travel expenses and per diem as authorized under the Federal Joint Travel Regulations, when engaged in the performance of membership duties.

(c) Notwithstanding any other provision of law, none of the funds available to the department from any source during fiscal year 2003 may be used by a defense FFRDC, through a fee or other payment mechanism, for construction of new buildings, for payment of cost sharing for projects funded by Government grants, for absorption of contract overruns, or for certain charitable contributions, not to include employee participation in community service and/or development.

(d) Notwithstanding any other provision of law, of the funds available to the department during fiscal year 2003, not more than 6,321 staff years of technical effort (staff years) may be funded for defense FFRDCs: Provided, That of the specific amount referred to previously in this subsection, not more than 1,050 staff years may be funded for the defense studies and analysis FFRDCs.

(e) The Secretary of Defense shall, with the submission of the department's fiscal year 2004 budget request, submit a report presenting the specific amounts of staff years of technical effort to be allocated for each defense FFRDC during that fiscal year.

(f) Notwithstanding any other provision of this Act, the total amount appropriated in this Act for FFRDCs is hereby reduced by $74,200,000.

SEC. 8030. None of the funds appropriated or made available in this Act shall be used to procure carbon, alloy or armor steel plate for use in any Government-owned facility or property under the control of the Department of Defense which were not melted and rolled in the United States or Canada: Provided, That these procurement restrictions shall apply to any and all Federal Supply Class 9515, American Society of Testing and Materials (ASTM) or American Iron and Steel Institute (AISI) specifications of carbon, alloy or armor steel plate: Provided further, That the Secretary of the military department responsible for the procurement may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made in order to acquire capability for national security purposes: Provided further, That these restrictions shall not apply to contracts which are in being as of the date of the enactment of this Act.

SEC. 8031. For the purposes of this Act, the term `congressional defense committees' means the Armed Services Committee of the House of Representatives, the Armed Services Committee of the Senate, the Subcommittee on Defense of the Committee on Appropriations of the Senate, and the Subcommittee on Defense of the Committee on Appropriations of the House of Representatives.

SEC. 8032. During the current fiscal year, the Department of Defense may acquire the modification, depot maintenance and repair of aircraft, vehicles and vessels as well as the production of components and other Defense-related articles, through competition between Department of Defense depot maintenance activities and private firms: Provided, That the Senior Acquisition Executive of the military department or defense agency concerned, with power of delegation, shall certify that successful bids include comparable estimates of all direct and indirect costs for both public and private bids: Provided further, That Office of Management and Budget Circular A-76 shall not apply to competitions conducted under this section.

SEC. 8033. (a)(1) If the Secretary of Defense, after consultation with the United States Trade Representative, determines that a foreign country which is party to an agreement described in paragraph (2) has violated the terms of the agreement by discriminating against certain types of products produced in the United States that are covered by the agreement, the Secretary of Defense shall rescind the Secretary's blanket waiver of the Buy American Act with respect to such types of products produced in that foreign country.

(2) An agreement referred to in paragraph (1) is any reciprocal defense procurement memorandum of understanding, between the United States and a foreign country pursuant to which the Secretary of Defense has prospectively waived the Buy American Act for certain products in that country.

(b) The Secretary of Defense shall submit to the Congress a report on the amount of Department of Defense purchases from foreign entities in fiscal year 2003. Such report shall separately indicate the dollar value of items for which the Buy American Act was waived pursuant to any agreement described in subsection (a)(2), the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or any international agreement to which the United States is a party.

(c) For purposes of this section, the term `Buy American Act' means title III of the Act entitled `An Act making appropriations for the Treasury and Post Office Departments for the fiscal year ending June 30, 1934, and for other purposes', approved March 3, 1933 (41 U.S.C. 10a et seq.).

SEC. 8034. Appropriations contained in this Act that remain available at the end of the current fiscal year as a result of energy cost savings realized by the Department of Defense shall remain available for obligation for the next fiscal year to the extent, and for the purposes, provided in section 2865 of title 10, United States Code.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8035. Amounts deposited during the current fiscal year to the special account established under 40 U.S.C. 485(h)(2) and to the special account established under 10 U.S.C. 2667(d)(1) are appropriated and shall be available until transferred by the Secretary of Defense to current applicable appropriations or funds of the Department of Defense under the terms and conditions specified by 40 U.S.C. 485(h)(2)(A) and (B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to be available for the same time period and the same purposes as the appropriation to which transferred.

SEC. 8036. The President shall include with each budget for a fiscal year submitted to the Congress under section 1105 of title 31, United States Code, materials that shall identify clearly and separately the amounts requested in the budget for appropriation for that fiscal year for salaries and expenses related to administrative activities of the Department of Defense, the military departments, and the defense agencies.

SEC. 8037. Notwithstanding any other provision of law, funds available for `Drug Interdiction and Counter-Drug Activities, Defense' may be obligated for the Young Marines program.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8038. During the current fiscal year, amounts contained in the Department of Defense Overseas Military Facility Investment Recovery Account established by section 2921(c)(1) of the National Defense Authorization Act of 1991 (Public Law 101-510; 10 U.S.C. 2687 note) shall be available until expended for the payments specified by section 2921(c)(2) of that Act.

SEC. 8039. (a) IN GENERAL- Notwithstanding any other provision of law, the Secretary of the Air Force may convey at no cost to the Air Force, without consideration, to Indian tribes located in the States of North Dakota, South Dakota, Montana, and Minnesota relocatable military housing units located at Grand Forks Air Force Base and Minot Air Force Base that are excess to the needs of the Air Force.

(b) PROCESSING OF REQUESTS- The Secretary of the Air Force shall convey, at no cost to the Air Force, military housing units under subsection (a) in accordance with the request for such units that are submitted to the Secretary by the Operation Walking Shield Program on behalf of Indian tribes located in the States of North Dakota, South Dakota, Montana, and Minnesota.

(c) RESOLUTION OF HOUSING UNIT CONFLICTS- The Operation Walking Shield program shall resolve any conflicts among requests of Indian tribes for housing units under subsection (a) before submitting requests to the Secretary of the Air Force under subsection (b).

(d) INDIAN TRIBE DEFINED- In this section, the term `Indian tribe' means any recognized Indian tribe included on the current list published by the Secretary of the Interior under section 104 of the Federally Recognized Indian Tribe Act of 1994 (Public Law 103-454; 108 Stat. 4792; 25 U.S.C. 479a-1).

SEC. 8040. During the current fiscal year, appropriations which are available to the Department of Defense for operation and maintenance may be used to purchase items having an investment item unit cost of not more than $100,000.

SEC. 8041. (a) During the current fiscal year, none of the appropriations or funds available to the Department of Defense Working Capital Funds shall be used for the purchase of an investment item for the purpose of acquiring a new inventory item for sale or anticipated sale during the current fiscal year or a subsequent fiscal year to customers of the Department of Defense Working Capital Funds if such an item would not have been chargeable to the Department of Defense Business Operations Fund during fiscal year 1994 and if the purchase of such an investment item would be chargeable during the current fiscal year to appropriations made to the Department of Defense for procurement.

(b) The fiscal year 2004 budget request for the Department of Defense as well as all justification material and other documentation supporting the fiscal year 2004 Department of Defense budget shall be prepared and submitted to the Congress on the basis that any equipment which was classified as an end item and funded in a procurement appropriation contained in this Act shall be budgeted for in a proposed fiscal year 2004 procurement appropriation and not in the supply management business area or any other area or category of the Department of Defense Working Capital Funds.

SEC. 8042. None of the funds appropriated by this Act for programs of the Central Intelligence Agency shall remain available for obligation beyond the current fiscal year, except for funds appropriated for the Reserve for Contingencies, which shall remain available until September 30, 2004: Provided, That funds appropriated, transferred, or otherwise credited to the Central Intelligence Agency Central Services Working Capital Fund during this or any prior or subsequent fiscal year shall remain available until expended: Provided further, That any funds appropriated or transferred to the Central Intelligence Agency for agent operations and for covert action programs authorized by the President under section 503 of the National Security Act of 1947, as amended, shall remain available until September 30, 2004.

SEC. 8043. Notwithstanding any other provision of law, funds made available in this Act for the Defense Intelligence Agency may be used for the design, development, and deployment of General Defense Intelligence Program intelligence communications and intelligence information systems for the Services, the Unified and Specified Commands, and the component commands.

SEC. 8044. Of the funds appropriated to the Department of Defense under the heading `Operation and Maintenance, Defense-Wide', not less than $10,000,000 shall be made available only for the mitigation of environmental impacts, including training and technical assistance to tribes, related administrative support, the gathering of information, documenting of environmental damage, and developing a system for prioritization of mitigation and cost to complete estimates for mitigation, on Indian lands resulting from Department of Defense activities.

SEC. 8045. Of the funds made available in this Act, not less than $68,900,000 shall be available to maintain an attrition reserve force of 18 B-52 aircraft, of which $3,700,000 shall be available from `Military Personnel, Air Force', $40,000,000 shall be available from `Operation and Maintenance, Air Force', and $25,200,000 shall be available from `Aircraft Procurement, Air Force': Provided, That the Secretary of the Air Force shall maintain a total force of 94 B-52 aircraft, including 18 attrition reserve aircraft, during fiscal year 2003: Provided further, That the Secretary of Defense shall include in the Air Force budget request for fiscal year 2004 amounts sufficient to maintain a B-52 force totaling 94 aircraft.

SEC. 8046. (a) None of the funds appropriated in this Act may be expended by an entity of the Department of Defense unless the entity, in expending the funds, complies with the Buy American Act. For purposes of this subsection, the term `Buy American Act' means title III of the Act entitled `An Act making appropriations for the Treasury and Post Office Departments for the fiscal year ending June 30, 1934, and for other purposes', approved March 3, 1933 (41 U.S.C. 10a et seq.).

(b) If the Secretary of Defense determines that a person has been convicted of intentionally affixing a label bearing a `Made in America' inscription to any product sold in or shipped to the United States that is not made in America, the Secretary shall determine, in accordance with section 2410f of title 10, United States Code, whether the person should be debarred from contracting with the Department of Defense.

(c) In the case of any equipment or products purchased with appropriations provided under this Act, it is the sense of the Congress that any entity of the Department of Defense, in expending the appropriation, purchase only American-made equipment and products, provided that American-made equipment and products are cost-competitive, quality-competitive, and available in a timely fashion.

SEC. 8047. None of the funds appropriated by this Act shall be available for a contract for studies, analysis, or consulting services entered into without competition on the basis of an unsolicited proposal unless the head of the activity responsible for the procurement determines--

(1) as a result of thorough technical evaluation, only one source is found fully qualified to perform the proposed work;

(2) the purpose of the contract is to explore an unsolicited proposal which offers significant scientific or technological promise, represents the product of original thinking, and was submitted in confidence by one source; or

(3) the purpose of the contract is to take advantage of unique and significant industrial accomplishment by a specific concern, or to insure that a new product or idea of a specific concern is given financial support:

Provided, That this limitation shall not apply to contracts in an amount of less than $25,000, contracts related to improvements of equipment that is in development or production, or contracts as to which a civilian official of the Department of Defense, who has been confirmed by the Senate, determines that the award of such contract is in the interest of the national defense.

SEC. 8048. (a) Except as provided in subsections (b) and (c), none of the funds made available by this Act may be used--

(1) to establish a field operating agency; or

(2) to pay the basic pay of a member of the Armed Forces or civilian employee of the department who is transferred or reassigned from a headquarters activity if the member or employee's place of duty remains at the location of that headquarters.

(b) The Secretary of Defense or Secretary of a military department may waive the limitations in subsection (a), on a case-by-case basis, if the Secretary determines, and certifies to the Committees on Appropriations of the House of Representatives and Senate that the granting of the waiver will reduce the personnel requirements or the financial requirements of the department.

(c) This section does not apply to field operating agencies funded within the National Foreign Intelligence Program.

SEC. 8049. Notwithstanding section 303 of Public Law 96-487 or any other provision of law, the Secretary of the Navy is authorized to lease real and personal property at Naval Air Facility, Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for commercial, industrial or other purposes: Provided, That notwithstanding any other provision of law, the Secretary of the Navy may remove hazardous materials from facilities, buildings, and structures at Adak, Alaska, and may demolish or otherwise dispose of such facilities, buildings, and structures.

(RESCISSIONS)

SEC. 8050. Of the funds appropriated in Department of Defense Appropriations Acts, the following funds are hereby rescinded from the following accounts and programs in the specified amounts:

`Procurement of Weapons and Tracked Combat Vehicles, Army, 2001/2003', $9,500,000;

`Procurement of Ammunition, Army, 2001/2003', $4,000,000;

`Other Procurement, Army, 2001/2003', $8,000,000;

`Other Procurement, Navy, 2001/2003', $5,000,000;

`Missile Procurement, Air Force, 2001/2003', $93,600,000;

`Missile Procurement, Army, 2002/2004', $37,650,000;

`Procurement of Ammunition, Army, 2002/2004', $19,000,000;

`Other Procurement, Army, 2002/2004', $21,200,000;

`Missile Procurement, Air Force, 2002/2004', $114,600,000;

`Research, Development, Test and Evaluation, Navy, 2002/2003', $1,700,000;

`Research, Development, Test and Evaluation, Air Force, 2002/2003', $69,000,000; and

`Research, Development, Test and Evaluation, Defense-Wide, 2002/2003', $19,500,000.

SEC. 8051. None of the funds available in this Act may be used to reduce the authorized positions for military (civilian) technicians of the Army National Guard, the Air National Guard, Army Reserve and Air Force Reserve for the purpose of applying any administratively imposed civilian personnel ceiling, freeze, or reduction on military (civilian) technicians, unless such reductions are a direct result of a reduction in military force structure.

SEC. 8052. None of the funds appropriated or otherwise made available in this Act may be obligated or expended for assistance to the Democratic People's Republic of North Korea unless specifically appropriated for that purpose.

SEC. 8053. During the current fiscal year, funds appropriated in this Act are available to compensate members of the National Guard for duty performed pursuant to a plan submitted by a Governor of a State and approved by the Secretary of Defense under section 112 of title 32, United States Code: Provided, That during the performance of such duty, the members of the National Guard shall be under State command and control: Provided further, That such duty shall be treated as full-time National Guard duty for purposes of sections 12602(a)(2) and (b)(2) of title 10, United States Code.

SEC. 8054. Funds appropriated in this Act for operation and maintenance of the Military Departments, Combatant Commands and Defense Agencies shall be available for reimbursement of pay, allowances and other expenses which would otherwise be incurred against appropriations for the National Guard and Reserve when members of the National Guard and Reserve provide intelligence or counterintelligence support to Combatant Commands, Defense Agencies and Joint Intelligence Activities, including the activities and programs included within the National Foreign Intelligence Program (NFIP), the Joint Military Intelligence Program (JMIP), and the Tactical Intelligence and Related Activities (TIARA) aggregate: Provided, That nothing in this section authorizes deviation from established Reserve and National Guard personnel and training procedures.

SEC. 8055. During the current fiscal year, none of the funds appropriated in this Act may be used to reduce the civilian medical and medical support personnel assigned to military treatment facilities below the September 30, 2002 level: Provided, That the Service Surgeons General may waive this section by certifying to the congressional defense committees that the beneficiary population is declining in some catchment areas and civilian strength reductions may be consistent with responsible resource stewardship and capitation-based budgeting.

SEC. 8056. (a) LIMITATION ON PENTAGON RENOVATION COSTS- Not later than the date each year on which the President submits to Congress the budget under section 1105 of title 31, United States Code, the Secretary of Defense shall submit to Congress a certification that the total cost for the planning, design, construction, and installation of equipment for the renovation of wedges 2 through 5 of the Pentagon Reservation, cumulatively, will not exceed four times the total cost for the planning, design, construction, and installation of equipment for the renovation of wedge 1.

(b) ANNUAL ADJUSTMENT- For purposes of applying the limitation in subsection (a), the Secretary shall adjust the cost for the renovation of wedge 1 by any increase or decrease in costs attributable to economic inflation, based on the most recent economic assumptions issued by the Office of Management and Budget for use in preparation of the budget of the United States under section 1104 of title 31, United States Code.

(c) EXCLUSION OF CERTAIN COSTS- For purposes of calculating the limitation in subsection (a), the total cost for wedges 2 through 5 shall not include--

(1) any repair or reconstruction cost incurred as a result of the terrorist attack on the Pentagon that occurred on September 11, 2001;

(2) any increase in costs for wedges 2 through 5 attributable to compliance with new requirements of Federal, State, or local laws; and

(3) any increase in costs attributable to additional security requirements that the Secretary of Defense considers essential to provide a safe and secure working environment.

(d) CERTIFICATION COST REPORTS- As part of the annual certification under subsection (a), the Secretary shall report the projected cost (as of the time of the certification) for--

(1) the renovation of each wedge, including the amount adjusted or otherwise excluded for such wedge under the authority of paragraphs (2) and (3) of subsection (c) for the period covered by the certification; and

(2) the repair and reconstruction of wedges 1 and 2 in response to the terrorist attack on the Pentagon that occurred on September 11, 2001.

(e) DURATION OF CERTIFICATION REQUIREMENT- The requirement to make an annual certification under subsection (a) shall apply until the Secretary certifies to Congress that the renovation of the Pentagon Reservation is completed.

SEC. 8057. Notwithstanding any other provision of law, that not more than 35 percent of funds provided in this Act for environmental remediation may be obligated under indefinite delivery/indefinite quantity contracts with a total contract value of $130,000,000 or higher.

SEC. 8058. (a) None of the funds available to the Department of Defense for any fiscal year for drug interdiction or counter-drug activities may be transferred to any other department or agency of the United States except as specifically provided in an appropriations law.

(b) None of the funds available to the Central Intelligence Agency for any fiscal year for drug interdiction and counter-drug activities may be transferred to any other department or agency of the United States except as specifically provided in an appropriations law.

(TRANSFER OF FUNDS)

SEC. 8059. Appropriations available in this Act under the heading `Operation and Maintenance, Defense-Wide' for increasing energy and water efficiency in Federal buildings may, during their period of availability, be transferred to other appropriations or funds of the Department of Defense for projects related to increasing energy and water efficiency, to be merged with and to be available for the same general purposes, and for the same time period, as the appropriation or fund to which transferred.

SEC. 8060. None of the funds appropriated by this Act may be used for the procurement of ball and roller bearings other than those produced by a domestic source and of domestic origin: Provided, That the Secretary of the military department responsible for such procurement may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate, that adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made in order to acquire capability for national security purposes: Provided further, That this restriction shall not apply to the purchase of `commercial items', as defined by section 4(12) of the Office of Federal Procurement Policy Act, except that the restriction shall apply to ball or roller bearings purchased as end items.

SEC. 8061. Notwithstanding any other provision of law, funds available to the Department of Defense shall be made available to provide transportation of medical supplies and equipment, on a nonreimbursable basis, to American Samoa, and funds available to the Department of Defense shall be made available to provide transportation of medical supplies and equipment, on a nonreimbursable basis, to the Indian Health Service when it is in conjunction with a civil-military project.

SEC. 8062. None of the funds in this Act may be used to purchase any supercomputer which is not manufactured in the United States, unless the Secretary of Defense certifies to the congressional defense committees that such an acquisition must be made in order to acquire capability for national security purposes that is not available from United States manufacturers.

SEC. 8063. Notwithstanding any other provision of law, the Naval shipyards of the United States shall be eligible to participate in any manufacturing extension program financed by funds appropriated in this or any other Act.

SEC. 8064. Notwithstanding any other provision of law, each contract awarded by the Department of Defense during the current fiscal year for construction or service performed in whole or in part in a State (as defined in section 381(d) of title 10, United States Code) which is not contiguous with another State and has an unemployment rate in excess of the national average rate of unemployment as determined by the Secretary of Labor, shall include a provision requiring the contractor to employ, for the purpose of performing that portion of the contract in such State that is not contiguous with another State, individuals who are residents of such State and who, in the case of any craft or trade, possess or would be able to acquire promptly the necessary skills: Provided, That the Secretary of Defense may waive the requirements of this section, on a case-by-case basis, in the interest of national security.

SEC. 8065. (a) None of the funds made available in this or any other Act may be used to pay the salary of any officer or employee of the Department of Defense who approves or implements the transfer of administrative responsibilities or budgetary resources of any program, project, or activity financed by this Act to the jurisdiction of another Federal agency not financed by this Act without the express authorization of Congress: Provided, That this limitation shall not apply to transfers of funds expressly provided for in Defense Appropriations Acts, or provisions of Acts providing supplemental appropriations for the Department of Defense.

(b) None of the funds in this or any other Act may be used to dismantle national memorials commemorating United States participation in World War I.

SEC. 8066. (a) LIMITATION ON TRANSFER OF DEFENSE ARTICLES AND SERVICES- Notwithstanding any other provision of law, none of the funds available to the Department of Defense for the current fiscal year may be obligated or expended to transfer to another nation or an international organization any defense articles or services (other than intelligence services) for use in the activities described in subsection (b) unless the congressional defense committees, the Committee on International Relations of the House of Representatives, and the Committee on Foreign Relations of the Senate are notified 15 days in advance of such transfer.

(b) COVERED ACTIVITIES- This section applies to--

(1) any international peacekeeping or peace-enforcement operation under the authority of chapter VI or chapter VII of the United Nations Charter under the authority of a United Nations Security Council resolution; and

(2) any other international peacekeeping, peace-enforcement, or humanitarian assistance operation.

(c) REQUIRED NOTICE- A notice under subsection (a) shall include the following:

(1) A description of the equipment, supplies, or services to be transferred.

(2) A statement of the value of the equipment, supplies, or services to be transferred.

(3) In the case of a proposed transfer of equipment or supplies--

(A) a statement of whether the inventory requirements of all elements of the Armed Forces (including the reserve components) for the type of equipment or supplies to be transferred have been met; and

(B) a statement of whether the items proposed to be transferred will have to be replaced and, if so, how the President proposes to provide funds for such replacement.

SEC. 8067. To the extent authorized by subchapter VI of chapter 148 of title 10, United States Code, the Secretary of Defense may issue loan guarantees in support of United States defense exports not otherwise provided for: Provided, That the total contingent liability of the United States for guarantees issued under the authority of this section may not exceed $15,000,000,000: Provided further, That the exposure fees charged and collected by the Secretary for each guarantee shall be paid by the country involved and shall not be financed as part of a loan guaranteed by the United States: Provided further, That the Secretary shall provide quarterly reports to the Committees on Appropriations, Armed Services, and Foreign Relations of the Senate and the Committees on Appropriations, Armed Services, and International Relations in the House of Representatives on the implementation of this program: Provided further, That amounts charged for administrative fees and deposited to the special account provided for under section 2540c(d) of title 10, shall be available for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under subchapter VI of chapter 148 of title 10, United States Code.

SEC. 8068. None of the funds available to the Department of Defense under this Act shall be obligated or expended to pay a contractor under a contract with the Department of Defense for costs of any amount paid by the contractor to an employee when--

(1) such costs are for a bonus or otherwise in excess of the normal salary paid by the contractor to the employee; and

(2) such bonus is part of restructuring costs associated with a business combination.

SEC. 8069. (a) None of the funds appropriated or otherwise made available in this Act may be used to transport or provide for the transportation of chemical munitions or agents to the Johnston Atoll for the purpose of storing or demilitarizing such munitions or agents.

(b) The prohibition in subsection (a) shall not apply to any obsolete World War II chemical munition or agent of the United States found in the World War II Pacific Theater of Operations.

(c) The President may suspend the application of subsection (a) during a period of war in which the United States is a party.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8070. During the current fiscal year, no more than $30,000,000 of appropriations made in this Act under the heading `Operation and Maintenance, Defense-Wide' may be transferred to appropriations available for the pay of military personnel, to be merged with, and to be available for the same time period as the appropriations to which transferred, to be used in support of such personnel in connection with support and services for eligible organizations and activities outside the Department of Defense pursuant to section 2012 of title 10, United States Code.

SEC. 8071. During the current fiscal year, in the case of an appropriation account of the Department of Defense for which the period of availability for obligation has expired or which has closed under the provisions of section 1552 of title 31, United States Code, and which has a negative unliquidated or unexpended balance, an obligation or an adjustment of an obligation may be charged to any current appropriation account for the same purpose as the expired or closed account if--

(1) the obligation would have been properly chargeable (except as to amount) to the expired or closed account before the end of the period of availability or closing of that account;

(2) the obligation is not otherwise properly chargeable to any current appropriation account of the Department of Defense; and

(3) in the case of an expired account, the obligation is not chargeable to a current appropriation of the Department of Defense under the provisions of section 1405(b)(8) of the National Defense Authorization Act for Fiscal Year 1991, Public Law 101-510, as amended (31 U.S.C. 1551 note): Provided, That in the case of an expired account, if subsequent review or investigation discloses that there was not in fact a negative unliquidated or unexpended balance in the account, any charge to a current account under the authority of this section shall be reversed and recorded against the expired account: Provided further, That the total amount charged to a current appropriation under this section may not exceed an amount equal to 1 percent of the total appropriation for that account.

SEC. 8072. Funds appropriated in title II of this Act and for the Defense Health Program in title VI of this Act for supervision and administration costs for facilities maintenance and repair, minor construction, or design projects may be obligated at the time the reimbursable order is accepted by the performing activity: Provided, That for the purpose of this section, supervision and administration costs includes all in-house Government cost.

SEC. 8073. During the current fiscal year and hereafter, the Secretary of Defense may waive reimbursement of the cost of conferences, seminars, courses of instruction, or similar educational activities of the Asia-Pacific Center for Security Studies for military officers and civilian officials of foreign nations if the Secretary determines that attendance by such personnel, without reimbursement, is in the national security interest of the United States: Provided, That costs for which reimbursement is waived pursuant to this section shall be paid from appropriations available for the Asia-Pacific Center.

SEC. 8074. (a) Notwithstanding any other provision of law, the Chief of the National Guard Bureau may permit the use of equipment of the National Guard Distance Learning Project by any person or entity on a space-available, reimbursable basis. The Chief of the National Guard Bureau shall establish the amount of reimbursement for such use on a case-by-case basis.

(b) Amounts collected under subsection (a) shall be credited to funds available for the National Guard Distance Learning Project and be available to defray the costs associated with the use of equipment of the project under that subsection. Such funds shall be available for such purposes without fiscal year limitation.

SEC. 8075. Using funds available by this Act or any other Act, the Secretary of the Air Force, pursuant to a determination under section 2690 of title 10, United States Code, may implement cost-effective agreements for required heating facility modernization in the Kaiserslautern Military Community in the Federal Republic of Germany: Provided, That in the City of Kaiserslautern such agreements will include the use of United States anthracite as the base load energy for municipal district heat to the United States Defense installations: Provided further, That at Landstuhl Army Regional Medical Center and Ramstein Air Base, furnished heat may be obtained from private, regional or municipal services, if provisions are included for the consideration of United States coal as an energy source.

SEC. 8076. None of the funds appropriated in title IV of this Act may be used to procure end-items for delivery to military forces for operational training, operational use or inventory requirements: Provided, That this restriction does not apply to end-items used in development, prototyping, and test activities preceding and leading to acceptance for operational use: Provided further, That this restriction does not apply to programs funded within the National Foreign Intelligence Program: Provided further, That the Secretary of Defense may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that it is in the national security interest to do so.

SEC. 8077. None of the funds made available in this Act may be used to approve or license the sale of the F-22 advanced tactical fighter to any foreign government.

SEC. 8078. (a) The Secretary of Defense may, on a case-by-case basis, waive with respect to a foreign country each limitation on the procurement of defense items from foreign sources provided in law if the Secretary determines that the application of the limitation with respect to that country would invalidate cooperative programs entered into between the Department of Defense and the foreign country, or would invalidate reciprocal trade agreements for the procurement of defense items entered into under section 2531 of title 10, United States Code, and the country does not discriminate against the same or similar defense items produced in the United States for that country.

(b) Subsection (a) applies 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 (a).

(c) Subsection (a) does not apply to a limitation regarding construction of public vessels, ball and roller bearings, food, and clothing or textile materials as defined by section 11 (chapters 50-65) of the Harmonized Tariff Schedule and products classified under headings 4010, 4202, 4203, 6401 through 6406, 6505, 7019, 7218 through 7229, 7304.41 through 7304.49, 7306.40, 7502 through 7508, 8105, 8108, 8109, 8211, 8215, and 9404.

SEC. 8079. Funds made available to the Civil Air Patrol in this Act under the heading `Drug Interdiction and Counter-Drug Activities, Defense' may be used for the Civil Air Patrol Corporation's counterdrug program, including its demand reduction program involving youth programs, as well as operational and training drug reconnaissance missions for Federal, State, and local government agencies; and for equipment needed for mission support or performance: Provided, That the Department of the Air Force should waive reimbursement from the Federal, State, and local government agencies for the use of these funds.

SEC. 8080. (a) PROHIBITION- None of the funds made available by this Act may be used to support any training program involving a unit of the security forces of a foreign country if the Secretary of Defense has received credible information from the Department of State that the unit has committed a gross violation of human rights, unless all necessary corrective steps have been taken.

(b) MONITORING- The Secretary of Defense, in consultation with the Secretary of State, shall ensure that prior to a decision to conduct any training program referred to in subsection (a), full consideration is given to all credible information available to the Department of State relating to human rights violations by foreign security forces.

(c) WAIVER- The Secretary of Defense, after consultation with the Secretary of State, may waive the prohibition in subsection (a) if he determines that such waiver is required by extraordinary circumstances.

(d) REPORT- Not more than 15 days after the exercise of any waiver under subsection (c), the Secretary of Defense shall submit a report to the congressional defense committees describing the extraordinary circumstances, the purpose and duration of the training program, the United States forces and the foreign security forces involved in the training program, and the information relating to human rights violations that necessitates the waiver.

SEC. 8081. The Secretary of Defense, in coordination with the Secretary of Health and Human Services, may carry out a program to distribute surplus dental equipment of the Department of Defense, at no cost to the Department of Defense, to Indian Health Service facilities and to federally-qualified health centers (within the meaning of section 1905(l)(2)(B) of the Social Security Act (42 U.S.C. 1396d(l)(2)(B))).

SEC. 8082. The total amount appropriated in this Act is hereby reduced by $338,000,000 to reflect savings from favorable foreign currency fluctuations, to be derived as follows:

`Military Personnel, Army', $80,000,000;

`Military Personnel, Navy', $6,500,000;

`Military Personnel, Marine Corps', $11,000,000;

`Military Personnel, Air Force', $29,000,000;

`Operation and Maintenance, Army', $102,000,000;

`Operation and Maintenance, Navy', $21,500,000;

`Operation and Maintenance, Marine Corps', $2,000,000;

`Operation and Maintenance, Air Force', $46,000,000; and

`Operation and Maintenance, Defense-Wide', $40,000,000.

SEC. 8083. None of the funds appropriated or made available in this Act to the Department of the Navy shall be used to develop, lease or procure the T-AKE class of ships unless the main propulsion diesel engines and propulsors are manufactured in the United States by a domestically operated entity: Provided, That the Secretary of Defense may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made in order to acquire capability for national security purposes or there exists a significant cost or quality difference.

SEC. 8084. None of the funds appropriated or otherwise made available by this or other Department of Defense Appropriations Acts may be obligated or expended for the purpose of performing repairs or maintenance to military family housing units of the Department of Defense, including areas in such military family housing units that may be used for the purpose of conducting official Department of Defense business.

SEC. 8085. Notwithstanding any other provision of law, funds appropriated in this Act under the heading `Research, Development, Test and Evaluation, Defense-Wide' for any advanced concept technology demonstration project may only be obligated 30 days after a report, including a description of the project and its estimated annual and total cost, has been provided in writing to the congressional defense committees: Provided, That the Secretary of Defense may waive this restriction on a case-by-case basis by certifying to the congressional defense committees that it is in the national interest to do so.

SEC. 8086. Notwithstanding any other provision of law, for the purpose of establishing all Department of Defense policies governing the provision of care provided by and financed under the military health care system's case management program under 10 U.S.C. 1079(a)(17), the term `custodial care' shall be defined as care designed essentially to assist an individual in meeting the activities of daily living and which does not require the supervision of trained medical, nursing, paramedical or other specially trained individuals: Provided, That the case management program shall provide that members and retired members of the military services, and their dependents and survivors, have access to all medically necessary health care through the health care delivery system of the military services regardless of the health care status of the person seeking the health care: Provided further, That the case management program shall be the primary obligor for payment of medically necessary services and shall not be considered as secondarily liable to title XIX of the Social Security Act, other welfare programs or charity based care.

SEC. 8087. During the current fiscal year, refunds attributable to the use of the Government travel card, refunds attributable to the use of the Government Purchase Card and refunds attributable to official Government travel arranged by Government Contracted Travel Management Centers may be credited to operation and maintenance accounts of the Department of Defense which are current when the refunds are received.

SEC. 8088. (a) REGISTERING FINANCIAL MANAGEMENT INFORMATION TECHNOLOGY SYSTEMS WITH DOD CHIEF INFORMATION OFFICER- None of the funds appropriated in this Act may be used for a mission critical or mission essential financial management information technology system (including a system funded by the defense working capital fund) that is not registered with the Chief Information Officer of the Department of Defense. A system shall be considered to be registered with that officer upon the furnishing to that officer of notice of the system, together with such information concerning the system as the Secretary of Defense may prescribe. A financial management information technology system shall be considered a mission critical or mission essential information technology system as defined by the Under Secretary of Defense (Comptroller).

(b) CERTIFICATIONS AS TO COMPLIANCE WITH FINANCIAL MANAGEMENT MODERNIZATION PLAN-

(1) During the current fiscal year, a financial management major automated information system may not receive Milestone A approval, Milestone B approval, or full rate production, or their equivalent, within the Department of Defense until the Under Secretary of Defense (Comptroller) certifies, with respect to that milestone, that the system is being developed and managed in accordance with the Department's Financial Management Modernization Plan. The Under Secretary of Defense (Comptroller) may require additional certifications, as appropriate, with respect to any such system.

(2) The Chief Information Officer shall provide the congressional defense committees timely notification of certifications under paragraph (1).

(c) CERTIFICATIONS AS TO COMPLIANCE WITH CLINGER-COHEN ACT- (1) During the current fiscal year, a major automated information system may not receive Milestone A approval, Milestone B approval, or full rate production approval, or their equivalent, within the Department of Defense until the Chief Information Officer certifies, with respect to that milestone, that the system is being developed in accordance with the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.). The Chief Information Officer may require additional certifications, as appropriate, with respect to any such system.

(2) The Chief Information Officer shall provide the congressional defense committees timely notification of certifications under paragraph (1). Each such notification shall include, at a minimum, the funding baseline and milestone schedule for each system covered by such a certification and confirmation that the following steps have been taken with respect to the system:

(A) Business process reengineering.

(B) An analysis of alternatives.

(C) An economic analysis that includes a calculation of the return on investment.

(D) Performance measures.

(E) An information assurance strategy consistent with the Department's Global Information Grid.

(d) DEFINITIONS- For purposes of this section:

(1) The term `Chief Information Officer' means the senior official of the Department of Defense designated by the Secretary of Defense pursuant to section 3506 of title 44, United States Code.

(2) The term `information technology system' has the meaning given the term `information technology' in section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

(3) The term `major automated information system' has the meaning given that term in Department of Defense Directive 5000.1.

SEC. 8089. During the current fiscal year, none of the funds available to the Department of Defense may be used to provide support to another department or agency of the United States if such department or agency is more than 90 days in arrears in making payment to the Department of Defense for goods or services previously provided to such department or agency on a reimbursable basis: Provided, That this restriction shall not apply if the department is authorized by law to provide support to such department or agency on a nonreimbursable basis, and is providing the requested support pursuant to such authority: Provided further, That the Secretary of Defense may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that it is in the national security interest to do so.

SEC. 8090. None of the funds provided in this Act may be used to transfer to any nongovernmental entity ammunition held by the Department of Defense that has a center-fire cartridge and a United States military nomenclature designation of `armor penetrator', `armor piercing (AP)', `armor piercing incendiary (API)', or `armor-piercing incendiary-tracer (API-T)', except to an entity performing demilitarization services for the Department of Defense under a contract that requires the entity to demonstrate to the satisfaction of the Department of Defense that armor piercing projectiles are either: (1) rendered incapable of reuse by the demilitarization process; or (2) used to manufacture ammunition pursuant to a contract with the Department of Defense or the manufacture of ammunition for export pursuant to a License for Permanent Export of Unclassified Military Articles issued by the Department of State.

SEC. 8091. Notwithstanding any other provision of law, the Chief of the National Guard Bureau, or his designee, may waive payment of all or part of the consideration that otherwise would be required under 10 U.S.C. 2667, in the case of a lease of personal property for a period not in excess of 1 year to any organization specified in 32 U.S.C. 508(d), or any other youth, social, or fraternal non-profit organization as may be approved by the Chief of the National Guard Bureau, or his designee, on a case-by-case basis.

SEC. 8092. None of the funds appropriated by this Act shall be used for the support of any nonappropriated

funds activity of the Department of Defense that procures malt beverages and wine with nonappropriated funds for resale (including such alcoholic beverages sold by the drink) on a military installation located in the United States unless such malt beverages and wine are procured within that State, or in the case of the District of Columbia, within the District of Columbia, in which the military installation is located: Provided, That in a case in which the military installation is located in more than one State, purchases may be made in any State in which the installation is located: Provided further, That such local procurement requirements for malt beverages and wine shall apply to all alcoholic beverages only for military installations in States which are not contiguous with another State: Provided further, That alcoholic beverages other than wine and malt beverages, in contiguous States and the District of Columbia shall be procured from the most competitive source, price and other factors considered.

SEC. 8093. During the current fiscal year and hereafter, under regulations prescribed by the Secretary of Defense, the Center of Excellence for Disaster Management and Humanitarian Assistance may also pay, or authorize payment for, the expenses of providing or facilitating education and training for appropriate military and civilian personnel of foreign countries in disaster management, peace operations, and humanitarian assistance.

SEC. 8094. (a) The Department of Defense is authorized to enter into agreements with the Department of Veterans Affairs and federally-funded health agencies providing services to Native Hawaiians for the purpose of establishing a partnership similar to the Alaska Federal Health Care Partnership, in order to maximize Federal resources in the provision of health care services by federally-funded health agencies, applying telemedicine technologies. For the purpose of this partnership, Native Hawaiians shall have the same status as other Native Americans who are eligible for the health care services provided by the Indian Health Service.

(b) The Department of Defense is authorized to develop a consultation policy, consistent with Executive Order No. 13084 (issued May 14, 1998), with Native Hawaiians for the purpose of assuring maximum Native Hawaiian participation in the direction and administration of governmental services so as to render those services more responsive to the needs of the Native Hawaiian community.

(c) For purposes of this section, the term `Native Hawaiian' means any individual who is a descendant of the aboriginal people who, prior to 1778, occupied and exercised sovereignty in the area that now comprises the State of Hawaii.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8095. Of the amounts appropriated in this Act under the heading `Research, Development, Test and Evaluation, Defense-Wide', $136,000,000 shall be made available for the Arrow missile defense program: Provided, That of this amount, $66,000,000 shall be available for the purpose of continuing the Arrow System Improvement Program (ASIP), and $70,000,000 shall be available for the purpose of producing Arrow missile components in the United States and Arrow missile components and missiles in Israel to meet Israel's defense requirements, consistent with each nation's laws, regulations and procedures: Provided further, That funds made available under this provision for production of missiles and missile components may be transferred to appropriations available for the procurement of weapons and equipment, to be merged with and to be available for the same time period and the same purposes as the appropriation to which transferred: Provided further, That the transfer authority provided under this provision is in addition to any other transfer authority contained in this Act.

SEC. 8096. Funds available to the Department of Defense for the Global Positioning System during the current fiscal year may be used to fund civil requirements associated with the satellite and ground control segments of such system's modernization program.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8097. Of the amounts appropriated in this Act under the heading, `Operation and Maintenance, Defense-Wide', $68,000,000 shall remain available until expended: Provided, That notwithstanding any other provision of law, the Secretary of Defense is authorized to transfer such funds to other activities of the Federal Government.

SEC. 8098. Section 8106 of the Department of Defense Appropriations Act, 1997 (titles I through VIII of the matter under subsection 101(b) of Public Law 104-208; 110 Stat. 3009-111; 10 U.S.C. 113 note) shall continue in effect to apply to disbursements that are made by the Department of Defense in fiscal year 2003.

SEC. 8099. In addition to amounts provided in this Act, $1,700,000 is hereby appropriated for `Defense Health Program', to remain available for obligation until expended: Provided, That notwithstanding any other provision of law, these funds shall be available only for a grant to the Fisher House Foundation, Inc., only for the construction and furnishing of additional Fisher Houses to meet the needs of military family members when confronted with the illness or hospitalization of an eligible military beneficiary.

SEC. 8100. Notwithstanding any other provision of this Act, the total amount appropriated in this Act is hereby reduced by $850,000,000, to reflect savings to be achieved from business process reforms, management efficiencies, and procurement of administrative and management support, to be distributed as follows:

`Operation and Maintenance, Army', $26,000,000;

`Operation and Maintenance, Navy', $60,300,000;

`Operation and Maintenance, Marine Corps', $8,400,000;

`Operation and Maintenance, Air Force', $91,200,000;

`Operation and Maintenance, Defense-Wide', $199,000,000;

`Operation and Maintenance, Army Reserve', $5,900,000;

`Operation and Maintenance, Marine Corps Reserve', $900,000;

`Operation and Maintenance, Air Force Reserve', $1,000,000;

`Operation and Maintenance, Army National Guard', $4,300,000;

`Operation and Maintenance, Air National Guard', $2,600,000;

`Aircraft Procurement, Army', $3,700,000;

`Missile Procurement, Army', $1,100,000;

`Procurement of Weapons and Tracked Combat Vehicles, Army', $3,100,000;

`Other Procurement, Army', $17,700,000;

`Aircraft Procurement, Navy', $22,800,000;

`Weapons Procurement, Navy', $4,800,000;

`Procurement of Ammunition, Navy and Marine Corps', $1,000,000;

`Shipbuilding and Conversion, Navy', $15,700,000;

`Other Procurement, Navy', $7,200,000;

`Procurement, Marine Corps', $2,600,000;

`Aircraft Procurement, Air Force', $9,700,000;

`Missile Procurement, Air Force', $6,200,000;

`Other Procurement, Air Force', $6,200,000;

`Procurement, Defense-Wide', $1,200,000;

`Research, Development, Test and Evaluation, Army', $23,500,000;

`Research, Development, Test and Evaluation, Navy', $55,700,000;

`Research, Development, Test and Evaluation, Air Force', $66,200,000;

`Research, Development, Test and Evaluation, Defense-Wide', $154,000,000;

`Operational Test and Evaluation, Defense', $5,000,000;

`National Defense Sealift Fund', $1,000,000;

`Defense Health Program', $12,000,000;

`Chemical Agents and Munitions Destruction, Army', $20,000,000; and

`Drug Interdiction and Counter-Drug Activities, Defense', $10,000,000:

Provided, That these reductions shall be applied proportionally to each budget activity, activity group and subactivity group and each program, project, and activity within each appropriation account: Provided further, That none of the funds provided in this Act may be used for consulting and advisory services for legislative affairs and legislative liaison functions.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8101. Of the amounts appropriated in this Act under the heading `Shipbuilding and Conversion, Navy', $1,279,899,000 shall be available until September 30, 2003, to fund prior year shipbuilding cost increases: Provided, That upon enactment of this Act, the Secretary of the Navy shall transfer such funds to the following appropriations in the amounts specified: Provided further, That the amounts transferred shall be merged with and be available for the same purposes as the appropriations to which transferred:

To:

Under the heading, `Shipbuilding and Conversion, Navy, 1996/03':

LPD-17 Amphibious Transport Dock Ship Program, $300,681,000;

Under the heading, `Shipbuilding and Conversion, Navy, 1998/03':

DDG-51 Destroyer Program, $76,100,000;

New SSN, $190,882,000;

Under the heading, `Shipbuilding and Conversion, Navy, 1999/03':

DDG-51 Destroyer Program, $93,736,000;

LPD-17 Amphibious Transport Dock Ship Program, $82,000,000;

New SSN, $135,800,000;

Under the heading, `Shipbuilding and Conversion, Navy, 2000/03':

DDG-51 Destroyer Program, $51,724,000;

LPD-17 Amphibious Transport Dock Ship Program, $187,000,000;

Under the heading, `Shipbuilding and Conversion, Navy, 2001/03':

DDG-51 Destroyer Program, $63,976,000; and

Under the heading, `Shipbuilding and Conversion, Navy, 2002/03':

DDG-51 Destroyer Program, $98,000,000.

SEC. 8102. The Secretary of the Navy may settle, or compromise, and pay any and all admiralty claims under 10 U.S.C. 7622 arising out of the collision involving the U.S.S. GREENEVILLE and the EHIME MARU, in any amount and without regard to the monetary limitations in subsections (a) and (b) of that section: Provided, That such payments shall be made from funds available to the Department of the Navy for operation and maintenance.

SEC. 8103. The total amount appropriated in title II of this Act is hereby reduced by $97,000,000, to reflect savings attributable to improved supervision in determining appropriate purchases to be made using the Government purchase card, to be derived as follows:

`Operation and Maintenance, Army', $24,000,000;

`Operation and Maintenance, Navy', $29,000,000;

`Operation and Maintenance, Marine Corps', $3,000,000;

`Operation and Maintenance, Air Force', $27,000,000; and

`Operation and Maintenance, Defense-Wide', $14,000,000.

SEC. 8104. Funds provided for the current fiscal year or hereafter for Operation and maintenance for the Armed Forces may be used, notwithstanding any other provision of law, for the purchase of ultralightweight camouflage net systems as unit spares.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8105. During the current fiscal year and for fiscal years 2004 and 2005, notwithstanding any other provision of law, the Secretary of Defense may transfer not more than $20,000,000 of unobligated balances remaining in a Research, Development, Test and Evaluation, Army appropriation account during the last fiscal year before the account closes under section 1552 of title 31 United States Code, to a current Research, Development, Test and Evaluation, Army appropriation account to be used only for the continuation of the Venture Capital Fund demonstration, as originally approved in Section 8150 of Public Law 107-117, to pursue high payoff technology and innovations in science and technology: Provided, That any such transfer shall be made not later than July 31 of each year: Provided further, That funds so transferred shall be merged with and shall be available for the same purposes and for the same time period as the appropriation to which transferred: Provided further, That the transfer authority provided in this section is in addition to any other transfer authority available to the Department of Defense: Provided further, That no funds for programs, projects, or activities designated as special congressional interest items in DD Form 1414 shall be eligible for transfer under the authority of this section: Provided further, That any unobligated balances transferred under this authority may be restored to the original appropriation if required to cover unexpected upward adjustments: Provided further, That the Secretary of the Army shall provide an annual report to the House and Senate Appropriations Committees no later than 15 days prior to the annual transfer of funds under authority of this section describing the sources and amounts of funds proposed to be transfered, summarizing the projects funded under this demonstration program (including the name and location of project sponsors) to date, a description of the major program accomplishments to date, and an overall assessment of the benefits of this demonstration program compared to the goals expressed in the legislative history accompanying Section 8150 of Public Law 107-117.

SEC. 8106. Notwithstanding any other provision of law or regulation, the Secretary of Defense may exercise the provisions of 38 U.S.C. 7403(g) for occupations listed in 38 U.S.C. 7403(a)(2) as well as the following:

Pharmacists, Audiologists, and Dental Hygienists.

(A) The requirements of 38 U.S.C. 7403(g)(1)(A) shall apply.

(B) The limitations of 38 U.S.C. 7403(g)(1)(B) shall not apply.

SEC. 8107. Funds appropriated by this Act, or made available by the transfer of funds in this Act, for intelligence activities are deemed to be specifically authorized by the Congress for purposes of section 504 of the National Security Act of 1947 (50 U.S.C. 414) during fiscal year 2003 until the enactment of the Intelligence Authorization Act for fiscal year 2003.

SEC. 8108. In addition to funds made available elsewhere in this Act $7,750,000 is hereby appropriated and shall remain available until expended to provide assistance, by grant or otherwise (such as, but not limited to, the provision of funds for repairs, maintenance, construction, and/or for the purchase of information technology, text books, teaching resources), to public schools that have unusually high concentrations of special needs military dependents enrolled: Provided, That in selecting school systems to receive such assistance, special consideration shall be given to school systems in States that are considered overseas assignments, and all schools within these school systems shall be eligible for assistance: Provided further, That up to $2,000,000 shall be available for the Department of Defense to establish a non-profit trust fund to assist in the public-private funding of public school repair and maintenance projects, or provide directly to non-profit organizations who in return will use these monies to provide assistance in the form of repair, maintenance, or renovation to public school systems that have high concentrations of special needs military dependents and are located in States that are considered overseas assignments, and of which 2 percent shall be available to support the administration and execution of the funds: Provided further, That to the extent a federal agency provides this assistance, by contract, grant, or otherwise, it may accept and expend non-federal funds in combination with these federal funds to provide assistance for the authorized purpose, if the non-federal entity requests such assistance and the non-federal funds are provided on a reimbursable basis: Provided further, That $2,750,000 shall be available for a grant to the Central Kitsap School District, Washington.

SEC. 8109. Notwithstanding any other provision in this Act, the total amount appropriated in this Act is hereby reduced by $400,000,000, to reduce cost growth in information technology development, to be distributed as follows:

`Operation and Maintenance, Defense-Wide', $19,500,000;

`Other Procurement, Army', $53,200,000;

`Other Procurement, Navy', $20,600,000;

`Procurement, Marine Corps', $3,400,000;

`Other Procurement, Air Force', $12,000,000;

`Procurement, Defense-Wide', $3,500,000;

`Research, Development, Test and Evaluation, Army', $17,700,000;

`Research, Development, Test and Evaluation, Navy', $25,600,000;

`Research, Development, Test and Evaluation, Air Force', $27,200,000;

`Research, Development, Test and Evaluation, Defense-Wide', $36,600,000;

`Defense Working Capital Funds', $148,600,000; and

`Defense Health Program', $32,100,000:

SEC. 8110. Notwithstanding section 1116(c) of title 10, United States Code, payments into the Department of Defense Medicare-Eligible Retiree Health Care Fund for fiscal year 2003 under section 1116(a) of such title shall be made from funds available in this Act for the pay of military personnel.

SEC. 8111. None of the funds in this Act may be used to initiate a new start program without prior notification to the Office of Secretary of Defense and the congressional defense committees.

SEC. 8112. The amount appropriated in title II of this Act is hereby reduced by $120,000,000, to reflect Working Capital Fund cash balance and rate stabilization adjustments, to be derived as follows:

`Operation and Maintenance, Navy', $120,000,000.

SEC. 8113. Notwithstanding any other provision in this Act, the total amount appropriated in this Act is hereby reduced by $48,000,000, to reduce excess funded carryover, to be derived as follows:

`Operation and Maintenance, Army', $48,000,000.

SEC. 8114. Of the amounts appropriated in title II of the Act, not less than $1,000,000,000 is available for operations of the Department of Defense to prosecute the war on terrorism.

SEC. 8115. (a) In addition to the amounts provided elsewhere in this Act, the amount of $3,400,000 is hereby appropriated to the Department of Defense for `Operation and Maintenance, Army National Guard'. Such amount shall be made available to the Secretary of the Army only to make a grant in the amount of $3,400,000 to the entity specified in subsection (b) to facilitate access by veterans to opportunities for skilled employment in the construction industry.

(b) The entity referred to in subsection (a) is the Center for Military Recruitment, Assessment and Veterans Employment, a nonprofit labor-management co-operation committee provided for by section 302(c)(9) of the Labor-Management Relations Act, 1947 (29 U.S.C. 186(c)(9)), for the purposes set forth in section 6(b) of the Labor Management Cooperation Act of 1978 (29 U.S.C. 175a note).

SEC. 8116. (a) During the current fiscal year, funds available to the Secretary of a military department for Operation and Maintenance may be used for the purposes stated in subsection (b) to support chaplain-led programs to assist members of the Armed Forces and their immediate family members in building and maintaining a strong family structure.

(b) The purposes referred to in subsection (a) are costs of transportation, food, lodging, supplies, fees, and training materials for members of the Armed Forces and their family members while participating in such programs, including participation at retreats and conferences.

SEC. 8117. Section 8159 of the Department of Defense Appropriations Act, 2002 (division A of Public Law 107-117; 115 Stat. 2284), is revised as follows:

(1) in subsection (c) by inserting at the end of paragraph (1) the following new sentence: `Notwithstanding the provisions of Section 3324 of Title 31, United States Code, payment for the acquisition of leasehold interests under this section may be made for each annual term up to one year in advance.'

(2) by adding the following paragraph (g):

`(g) Notwithstanding any other provision of law, any payments required for a lease entered into under this Section, or any payments made pursuant to subsection (c)(3) above, may be made from appropriations available for operation and maintenance or for lease or procurement of aircraft at the time that the lease takes effect; appropriations available for operation and maintenance or for lease or procurement of aircraft at the time that the payment is due; or funds appropriated for those payments.'.

SEC. 8118. (a) LIMITATION ON ADDITIONAL NMCI CONTRACT WORK STATIONS- Notwithstanding section 814 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-215) or any other provision of law, the total number of work stations provided under the Navy-Marine Corps Intranet contract (as defined in subsection (i) of such section 814) may not exceed 160,000 work stations until the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Chief Information Officer of the Department of Defense certify to the congressional defense committees that all of the conditions specified in subsection (b) have been satisfied.

(b) CONDITIONS- The conditions referred to in subsection (a) are the following:

(1) The Commander of the Navy Operational Test and Evaluation Force conducts an operational assessment of the work stations that have been fully transitioned to the Navy-Marine Corps Intranet, as defined in the Test and Evaluation Strategy Plan for the Navy-Marine Corps Intranet approved on September 4, 2002.

(2) The results of the assessment are submitted to the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Chief Information Officer of the Department of Defense, and they determine that the results of the assessment are acceptable.

SEC. 8119. None of the funds in this Act, excluding funds provided for advance procurement of fiscal year 2004 aircraft, may be obligated for acquisition of more than 16 F-22 aircraft until the Under Secretary of Defense for Acquisition, Technology, and Logistics has provided to the congressional defense committees:

(a) A formal risk assessment which identifies and characterizes the potential cost, technical, schedule or other significant risks resulting from increasing the F-22 procurement quantities prior to the conclusion of Dedicated Initial Operational Test and Evaluation (DIOT&E) of the aircraft: Provided, That such risk assessment shall evaluate, based on the best available current information: (1) the range of potential additional program costs (compared to the program costs assumed in the President's fiscal year 2003 budget) that could result from retrofit modifications to F-22 production aircraft that are placed under contract or delivered to the government prior to the conclusion of DIOT&E; and (2) a cost-benefit analysis comparing, in terms of unit cost and total program cost, the cost advantages of increasing aircraft production at this time to the potential cost of retrofitting production aircraft once DIOT&E has been completed; and

(b) Certification that increasing the F-22 production quantity for fiscal year 2003 beyond 16 airplanes involves lower risk and lower total program cost than staying at that quantity, or he submits a revised production plan, funding plan and test schedule.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8120. Section 305(a) of the Emergency Supplemental Act, 2002 (division B of Public Law 107-117; 115 Stat. 2300), is amended by adding at the end the following new sentences: `From amounts transferred to the Pentagon Reservation Maintenance Revolving Fund pursuant to the preceding sentence, not to exceed $305,000,000 may be transferred to the Defense Emergency Response Fund, but only in amounts necessary to reimburse that fund (and the category of that fund designated as `Pentagon Repair/Upgrade') for expenses charged to that fund (and that category) between September 11, 2001, and February 19, 2002, for reconstruction costs of the Pentagon Reservation. Funds transferred to the Defense Emergency Response Fund pursuant to this section shall be available only for reconstruction, recovery, force protection, or security enhancements for the Pentagon Reservation.'.

SEC. 8121. FINANCING AND FIELDING OF KEY ARMY CAPABILITIES- The Department of Defense and the Department of the Army shall make future budgetary and programming plans to fully finance the Non-Line of Sight (NLOS) Objective Force cannon and resupply vehicle program in order to field this system in the 2008 timeframe. As an interim capability to enhance Army lethality, survivability, and mobility for light and medium forces before complete fielding of the Objective Force, the Army shall ensure that budgetary and programmatic plans will provide for no fewer than six Stryker Brigade Combat Teams to be fielded between 2003 and 2008.

SEC. 8122. (a) MANAGEMENT OF CHEMICAL DEMILITARIZATION ACTIVITIES AT BLUEGRASS ARMY DEPOT, KENTUCKY- If a technology other than the baseline incineration program is selected for the destruction of lethal chemical munitions pursuant to section 142 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261; 50 U.S.C. 1521 note), the program manager for the Assembled Chemical Weapons Assessment shall be responsible for management of the construction, operation, and closure, and any contracting relating thereto, of chemical demilitarization activities at Bluegrass Army Depot, Kentucky, including management of the pilot-scale facility phase of the alternative technology.

(b) MANAGEMENT OF CHEMICAL DEMILITARIZATION ACTIVITIES AT PUEBLO DEPOT, COLORADO- The program manager for the Assembled Chemical Weapons Assessment shall be responsible for management of the construction, operation, and closure, and any contracting relating thereto, of chemical demilitarization activities at Pueblo Army Depot, Colorado, including management of the pilot-scale facility phase of the alternative technology selected for the destruction of lethal chemical munitions.

SEC. 8123. Of the total amount appropriated pursuant to this Act for any selected component of the Department of Defense that the Director of the Office of Management and Budget determines shall require audited financial statements under subsection (c) of section 3515 of title 31, United States Code, not more than 99 percent may be expended until the Inspector General of the Department of Defense certifies to the Congress of the United States that the head of the affected agency has made a formal decision as to whether to audit vouchers of the agency pursuant to section 3521(b) of title 31, United States Code: Provided, That such certification shall include a written assessment of the agency head's decision by the Inspector General.

SEC. 8124. Of the funds made available under the heading `Operation and Maintenance, Air Force', $8,000,000 shall be available to realign railroad track on Elmendorf Air Force Base and Fort Richardson.

(TRANSFER OF FUNDS)

SEC. 8125. Upon enactment of this Act, the Secretary of the Navy shall make the following transfers of funds: Provided, That the amounts transferred shall be available for the same purpose as the appropriations to which transferred, and for the same time period as the appropriation from which transferred: Provided further, That the amounts shall be transferred between the following appropriations in the amount specified:

From:

Under the heading, `Shipbuilding and Conversion, Navy, 1994/2003':

DDG-51 Destroyer program, $7,900,000;

LHD-1 Amphibious Assault Ship program, $6,500,000;

Oceanographic Ship program, $3,416,000;

Craft, outfitting, post delivery, first destination transportation, $1,800,000;

Mine warfare command and control ship, $604,000;

To:

Under the heading, `Shipbuilding and Conversion, Navy, 1999/2003':

LPD-17 Amphibious Transport Dock Ship program, $20,220,000.

SEC. 8126. Of the amounts appropriated in Public Law 107-206 under the heading `Defense Emergency Response Fund', an amount up to the fair market value of the leasehold interest in adjacent properties necessary for the force protection requirements of Tooele Army Depot, Utah, may be made available to resolve any property disputes associated with Tooele Army Depot, Utah, and to acquire such leasehold interest as required: Provided, That none of these funds may be used to acquire fee title to the properties.

SEC. 8127. Up to $3,000,000 of the funds appropriated under the heading `Operation and Maintenance, Navy' in this Act for the Pacific Missile Range Facility may be made available to contract for the repair, maintenance, and operation of adjacent off-base water, drainage, and flood control systems critical to base operations.

SEC. 8128. Of the total amount appropriated by this Act under the heading `Operation and Maintenance, Defense-Wide', $3,000,000 may be available for payments under section 363 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-77).

SEC. 8129. In addition to the amounts appropriated or otherwise made available in this Act, $8,100,000, to remain available until September 30, 2003, is hereby appropriated to the Department of Defense: Provided, That the Secretary of Defense shall make grants in the amount of $2,800,000 to the American Red Cross for Armed Forces Emergency Services; $2,800,000 to the United Service Organizations, Incorporated; and $2,500,000 to the Intrepid Sea-Air-Space Foundation.

SEC. 8130. None of the funds appropriated in this Act under the heading `Overseas Contingency Operations Transfer Fund' may be transferred or obligated for Department of Defense expenses not directly related to the conduct of overseas contingencies: Provided, That the Secretary of Defense shall submit a report no later than 30 days after the end of each fiscal quarter to the Committees on Appropriations of the Senate and House of Representatives that details any transfer of funds from the `Overseas Contingency Operations Transfer Fund': Provided further, That the report shall explain any transfer for the maintenance of real property, pay of civilian personnel, base operations support, and weapon, vehicle or equipment maintenance.

SEC. 8131. For purposes of section 1553(b) of title 31, United States Code, any subdivision of appropriations made in this Act under the heading `Shipbuilding and Conversion, Navy' shall be considered to be for the same purpose as any subdivision under the heading `Shipbuilding and Conversion, Navy' appropriations in any prior year, and the 1 percent limitation shall apply to the total amount of the appropriation.

SEC. 8132. The budget of the President for fiscal year 2004 submitted to the Congress pursuant to section 1105 of title 31, United States Code, and each annual budget request thereafter, shall include separate budget justification documents for costs of United States Armed Forces' participation in contingency operations for the Military Personnel accounts, the Overseas Contingency Operations Transfer Fund, the Operation and Maintenance accounts, and the Procurement accounts: Provided, That these budget justification documents shall include a description of the funding requested for each anticipated contingency operation, for each military service, to include active duty and Guard and Reserve components, and for each appropriation account: Provided further, That these documents shall include estimated costs for each element of expense or object class, a reconciliation of increases and decreases for ongoing contingency operations, and programmatic data including, but not limited to troop strength for each active duty and Guard and Reserve component, and estimates of the major weapons systems deployed in support of each contingency: Provided further, That these documents shall include budget exhibits OP-5 and OP-32, as defined in the Department of Defense Financial Management Regulation, for the Overseas Contingency Operations Transfer Fund for fiscal years 2002 and 2003.

SEC. 8133. Notwithstanding any other provision in this Act, the total amount appropriated in this Act is hereby reduced by $59,260,000, to reduce cost growth in travel, to be distributed as follows:

`Operation and Maintenance, Army', $14,000,000;

`Operation and Maintenance, Navy', $9,000,000;

`Operation and Maintenance, Marine Corps', $10,000,000;

`Operation and Maintenance, Air Force', $15,000,000; and

`Operation and Maintenance, Defense-Wide', $11,260,000.

SEC. 8134. None of the funds in this Act may be used for research, development, test, evaluation, procurement or deployment of nuclear armed interceptors of a missile defense system.

(INCLUDING RESCISSIONS)

SEC. 8135. (a) The total amount appropriated or otherwise made available in titles II, III, and IV of this Act is hereby reduced by $1,374,000,000 to reflect revised economic assumptions: Provided, That the Secretary of Defense shall allocate this reduction proportionately to each budget activity, activity group, subactivity group, and each program, project, and activity within each applicable appropriation account: Provided further, That appropriations made available in this Act for the pay and benefits of military personnel are exempt from reductions under this provision.

(b) Of the funds provided in the Department of Defense Appropriations Act, 2002, (division A of Public Law 107-117), $300,000,000 are rescinded from amounts made available under titles III and IV of that Act: Provided, That the Secretary of Defense shall allocate this rescission proportionately by program, project, and activity.

SEC. 8136. During the current fiscal year, section 2533a(f) of Title 10, United States Code, shall not apply to any fish, shellfish, or seafood product. This section is applicable to contracts and subcontracts for the procurement of commercial items notwithstanding section 34 of the Office of Federal Procurement Policy Act (41 U.S.C. 430).

SEC. 8137. None of the funds appropriated by this Act may be used to convert the 939th Combat Search and Rescue Wing of the Air Force Reserve until the Secretary of the Air Force certifies to the Congress the following: (a) that a functionally comparable search and rescue capability is available in the 939th Search and Rescue Wing's area of responsibility; (b) that any new aircraft assigned to the unit will comply with local environmental and noise standards; and (c) that the Air Force has developed a plan for the transition of personnel and manpower billets currently assigned to this unit.

SEC. 8138. Navy Dry-Dock AFDL-47 (a) REQUIREMENT FOR SALE- Notwithstanding any other provision of law, the Secretary of the Navy shall sell the Navy Dry-dock AFDL-47, located in Charleston, South Carolina, to Detyens Shipyards, Inc., the current lessee of the dry-dock from the Navy.

(b) CONSIDERATION- As consideration for the sale of the dry-dock under subsection (a), the Secretary shall receive an amount equal to the fair market value of the dry-dock at the time of the sale, as determined by the Secretary, taking into account amounts paid by, or due and owing from, the lessee.

SEC. 8139. From funds made available in this Act for the Office of Economic Adjustment under the heading `Operation and Maintenance, Defense-Wide', $100,000 shall be available for the elimination of asbestos at former Battery 204, Odiorne Point, New Hampshire.

SEC. 8140. The Secretary of Defense may, using amounts appropriated or otherwise made available by this Act, make a grant to the National D-Day Museum in the amount of $3,000,000.

SEC. 8141. (a) PRELIMINARY STUDY AND ANALYSIS REQUIRED- The Secretary of the Army shall carry out a preliminary engineering study and environmental analysis regarding the establishment of a connector road between United States Route 1 and Telegraph Road in the vicinity of Fort Belvoir, Virginia.

(b) FUNDING- Of the amount appropriated by title II under the heading `OPERATION AND MAINTENANCE, ARMY', up to $5,000,000 may be available for the preliminary study and analysis required by subsection (a).

SEC. 8142. Of the amount appropriated by title V under the heading `NATIONAL DEFENSE SEALIFT FUND', up to $10,000,000 may be available for implementing the recommendations resulting from the Navy's Non-Self Deployable Watercraft (NDSW) Study and the Joint Chiefs of Staff Focused Logistics Study, which are to determine the requirements of the Navy for providing lift support for mine warfare ships and other vessels.

SEC. 8143. (a) Congress finds that--

(1) the Medal of Honor is the highest award for valor in action against an enemy force which can be bestowed upon an individual serving in the Armed Forces of the United States;

(2) the Medal of Honor was established by Congress during the Civil War to recognize soldiers who had distinguished themselves by gallantry in action;

(3) the Medal of Honor was conceived by Senator James Grimes of the State of Iowa in 1861; and

(4) the Medal of Honor is the Nation's highest military honor, awarded for acts of personal bravery or self-sacrifice above and beyond the call of duty.

(b)(1) Chapter 9 of title 36, United States Code, is amended by adding at the end the following new section:

`Sec. 903. Designation of Medal of Honor Flag

`(a) DESIGNATION- The Secretary of Defense shall design and designate a flag as the Medal of Honor Flag. In selecting the design for the flag, the Secretary shall consider designs submitted by the general public.

`(b) PRESENTATION- The Medal of Honor Flag shall be presented as specified in sections 3755, 6257, and 8755 of title 10 and section 505 of title 14.'.

(2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`903. Designation of Medal of Honor Flag.'.

(c)(1)(A) Chapter 357 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 3755. Medal of honor: presentation of Medal of Honor Flag

`The President shall provide for the presentation of the Medal of Honor Flag designated under section 903 of title 36 to each person to whom a medal of honor is awarded under section 3741 of this title after the date of the enactment of this section. Presentation of the flag shall be made at the same time as the presentation of the medal under section 3741 or 3752(a) of this title.'.

(B) The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`3755. Medal of honor: presentation of Medal of Honor Flag.'.

(2)(A) Chapter 567 of such title is amended by adding at the end the following new section:

`Sec. 6257. Medal of honor: presentation of Medal of Honor Flag

`The President shall provide for the presentation of the Medal of Honor Flag designated under section 903 of title 36 to each person to whom a medal of honor is awarded under section 6241 of this title after the date of the enactment of this section. Presentation of the flag shall be made at the same time as the presentation of the medal under section 6241 or 6250 of this title.'.

(B) The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`6257. Medal of honor: presentation of Medal of Honor Flag.'.

(3)(A) Chapter 857 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 8755. Medal of honor: presentation of Medal of Honor Flag

`The President shall provide for the presentation of the Medal of Honor Flag designated under section 903 of title 36 to each person to whom a medal of honor is awarded under section 8741 of this title after the date of the enactment of this section. Presentation of the flag shall be made at the same time as the presentation of the medal under section 8741 or 8752(a) of this title.'.

(B) The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`8755. Medal of honor: presentation of Medal of Honor Flag.'.

(4)(A) Chapter 13 of title 14, United States Code, is amended by inserting after section 504 the following new section:

`Sec. 505. Medal of honor: presentation of Medal of Honor Flag

`The President shall provide for the presentation of the Medal of Honor Flag designated under section 903 of title 36 to each person to whom a medal of honor is awarded under section 491 of this title after the date of the enactment of this section. Presentation of the flag shall be made at the same time as the presentation of the medal under section 491 or 498 of this title.'.

(B) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 504 the following new item:

`505. Medal of honor: presentation of Medal of Honor Flag.'.

(d) The President shall provide for the presentation of the Medal of Honor Flag designated under section 903 of title 36, United States Code, as added by subsection (b), to each person awarded the Medal of Honor before the date of enactment of this Act who is living as of that date. Such presentation shall be made as expeditiously as possible after the date of the designation of the Medal of Honor Flag by the Secretary of Defense under such section.

SEC. 8144. (a) The conditions described in section 1305 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 22 U.S.C. 5952 note) shall not apply to the obligation and expenditure of funds for fiscal years 2000, 2001, 2002 and 2003 for the planning, design, or construction of a chemical weapons destruction facility in Russia if the President submits to Congress a written certification that includes--

(1) a statement as to why waiving the conditions is important to the national security interests of the United States;

(2) a full and complete justification for exercising this waiver; and

(3) a plan to promote a full and accurate disclosure by Russia regarding the size, content, status, and location of its chemical weapons stockpile.

(b) EXPIRATION OF AUTHORITY- The authority under paragraph (a) shall expire on September 30, 2003.

SEC. 8145. Effecitve as of August 2, 2002, the 2002 Supplemental Appropriations Act for Further Recovery From and Response To Terrorist Attacks on United States (Public Law 107-206) is amended--

(1) in section 305(a) (116 Stat. 840), by striking `fiscal year 2002' and inserting `fiscal years 2002 and 2003'; and

(2) in section 309 (116 Stat. 841), by striking `of' after `instead'.

SEC. 8146. The Secretary of Defense may modify the grant made to the State of Maine pursuant to section 310 of the 2002 Supplemental Appropriations Act for Further Recovery From and Response To Terrorist Attacks on the United States (Public Law 107-206) such that the modified grant is for purposes of supporting community adjustment activities relating to the closure of the Naval Security Group Activity, Winter Harbor, Maine (the naval base on Schoodic Point, within Acadia National Park), and the reuse of such Activity, including reuse as a research and education center the activities of which may be consistent with the purposes of Acadia National Park, as determined by the Secretary of the Interior. The grant may be so modified not later than 60 days after the date of the enactment of this Act.

SEC. 8147. None of the funds appropriated by this Act may be used for leasing of transport/VIP aircraft under any contract entered into under any procurement

procedures other than pursuant to the Competition and Contracting Act.

SEC. 8148. (a) Funds appropriated by title II under the heading `Operation and Maintenance, Defense-Wide' may be used by the Military Community and Family Policy Office of the Department of Defense for the operation of multidisciplinary, impartial domestic violence fatality review teams of the Department of Defense that operate on a confidential basis.

(b) Of the total amount appropriated by title II under the heading `Operation and Maintenance, Defense-Wide', $5,000,000 may be used for an advocate of victims of domestic violence to provide confidential assistance to victims of domestic violence at military installations.

(c) Not later than June 30, 2003, the Secretary of Defense shall submit to the Congress a report on the implementation of the recommendations included in the reports submitted to the Secretary by the Defense Task Force on Domestic Violence.

SEC. 8149. (a) LIMITATION ON NUMBER OF GOVERNMENT CHARGE CARD ACCOUNTS DURING FISCAL YEAR 2003- The total number of accounts for government purchase charge cards and government travel charge cards for Department of Defense personnel during fiscal year 2003 may not exceed 1,500,000 accounts.

(b) REQUIREMENT FOR CREDITWORTHINESS FOR ISSUANCE OF GOVERNMENT CHARGE CARD- (1) The Secretary of Defense shall evaluate the creditworthiness of an individual before issuing the individual a government purchase charge card or government travel charge card.

(2) An individual may not be issued a government purchase charge card or government travel charge card if the individual is found not credit worthy as a result of the evaluation under paragraph (1).

(c) DISCIPLINARY ACTION FOR MISUSE OF GOVERNMENT CHARGE CARD- (1) The Secretary shall establish guidelines and procedures for disciplinary actions to be taken against Department personnel for improper, fraudulent, or abusive use of government purchase charge cards and government travel charge cards.

(2) The guidelines and procedures under this subsection shall include appropriate disciplinary actions for use of charge cards for purposes, and at establishments, that are inconsistent with the official business of the Department or with applicable standards of conduct.

(3) The disciplinary actions under this subsection may include--

(A) the review of the security clearance of the individual involved; and

(B) the modification or revocation of such security clearance in light of the review.

(4) The guidelines and procedures under this subsection shall apply uniformly among the Armed Forces and among the elements of the Department.

(d) REPORT- Not later than June 30, 2003, the Secretary shall submit to the congressional defense committees a report on the implementation of the requirements and limitations in this section, including the guidelines and procedures established under subsection (c).

SEC. 8150. Notwithstanding any provision of 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) or any other provision of law, the Secretary of the Navy shall transfer administrative jurisdiction of the portion of the former Charleston Naval Base, South Carolina, comprising a law enforcement training facility of the Department of Justice, together with any improvements thereon, to the head of the department of the Federal Government having jurisdiction of the Border Patrol as of the date of the transfer under this section.

TITLE IX--COMMERCIAL REUSABLE IN-SPACE TRANSPORTATION

SEC. 901. SHORT TITLE.

This title may be cited as the `Commercial Reusable In-Space Transportation Act of 2002'.

SEC. 902. FINDINGS.

Congress makes the following findings:

(1) It is in the national interest to encourage the production of cost-effective, in-space transportation systems, which would be built and operated by the private sector on a commercial basis.

(2) The use of reusable in-space transportation systems will enhance performance levels of in-space operations, enhance efficient and safe disposal of satellites at the end of their useful lives, and increase the capability and reliability of existing ground-to-space launch vehicles.

(3) Commercial reusable in-space transportation systems will enhance the economic well-being and national security of the United States by reducing space operations costs for commercial and national space programs and by adding new space capabilities to space operations.

(4) Commercial reusable in-space transportation systems will provide new cost-effective space capabilities (including orbital transfers from low altitude orbits to high altitude orbits and return, the correction of erroneous satellite orbits, and the recovery, refurbishment, and refueling of satellites) and the provision of upper stage functions to increase ground-to-orbit launch vehicle payloads to geostationary and other high energy orbits.

(5) Commercial reusable in-space transportation systems can enhance and enable the space exploration of the United States by providing lower cost trajectory injection from earth orbit, transit trajectory control, and planet arrival deceleration to support potential National Aeronautics and Space Administration missions to Mars, Pluto, and other planets.

(6) Satellites stranded in erroneous earth orbit due to deficiencies in their launch represent substantial economic loss to the United States and present substantial concerns for the current backlog of national space assets.

(7) Commercial reusable in-space transportation systems can provide new options for alternative planning approaches and risk management to enhance the mission assurance of national space assets.

(8) Commercial reusable in-space transportation systems developed by the private sector can provide in-space transportation services to the National Aeronautics and Space Administration, the Department of Defense, the National Reconnaissance Office, and other agencies without the need for the United States to bear the cost of production of such systems.

(9) The availability of loan guarantees, with the cost of credit risk to the United States paid by the private-sector, is an effective means by which the United States can help qualifying private-sector companies secure otherwise unattainable private financing for the production of commercial reusable in-space transportation systems, while at the same time minimizing Government commitment and involvement in the development of such systems.

SEC. 903. LOAN GUARANTEES FOR PRODUCTION OF COMMERCIAL REUSABLE IN-SPACE TRANSPORTATION.

(a) AUTHORITY TO MAKE LOAN GUARANTEES- The Secretary may guarantee loans made to eligible United States commercial providers for purposes of producing commercial reusable in-space transportation services or systems.

(b) ELIGIBLE UNITED STATES COMMERCIAL PROVIDERS- The Secretary shall prescribe requirements for the eligibility of United States commercial providers for loan guarantees under this section. Such requirements shall ensure that eligible providers are financially capable of undertaking a loan guaranteed under this section.

(c) LIMITATION ON LOANS GUARANTEED- The Secretary may not guarantee a loan for a United States commercial provider under this section unless the Secretary determines that credit would not otherwise be reasonably available at the time of the guarantee for the commercial reusable in-space transportation service or system to be produced utilizing the proceeds of the loan.

(d) CREDIT SUBSIDY-

(1) COLLECTION REQUIRED- The Secretary shall collect from each United States commercial provider receiving a loan guarantee under this section an amount equal to the amount, as determined by the Secretary, to cover the cost, as defined in section 502(5) of the Federal Credit Reform Act of 1990, of the loan guarantee.

(2) PERIODIC DISBURSEMENTS- In the case of a loan guarantee in which proceeds of the loan are disbursed over time, the Secretary shall collect the amount required under this subsection on a pro rata basis, as determined by the Secretary, at the time of each disbursement.

(e) OTHER TERMS AND CONDITIONS-

(1) PROHIBITION ON SUBORDINATION- A loan guaranteed under this section may not be subordinated to another debt contracted by the United States commercial provider concerned, or to any other claims against such provider.

(2) RESTRICTION ON INCOME- A loan guaranteed under this section may not--

(A) provide income which is excluded from gross income for purposes of chapter 1 of the Internal Revenue Code of 1986; or

(B) provide significant collateral or security, as determined by the Secretary, for other obligations the income from which is so excluded.

(3) TREATMENT OF GUARANTEE- The guarantee of a loan under this section shall be conclusive evidence of the following:

(A) That the guarantee has been properly obtained.

(B) That the loan qualifies for the guarantee.

(C) That, but for fraud or material misrepresentation by the holder of the loan, the guarantee is valid, legal, and enforceable.

(4) OTHER TERMS AND CONDITIONS- The Secretary may establish any other terms and conditions for a guarantee of a loan under this section, as the Secretary considers appropriate to protect the financial interests of the United States.

(f) ENFORCEMENT OF RIGHTS-

(1) IN GENERAL- The Attorney General may take any action the Attorney General considers appropriate to enforce any right accruing to the United States under a loan guarantee under this section.

(2) FORBEARANCE- The Attorney General may, with the approval of the parties concerned, forebear from enforcing any right of the United States under a loan guaranteed under this section for the benefit of a United States commercial provider if such forbearance will not result in any cost, as defined in section 502(5) of the Federal Credit Reform Act of 1990, to the United States.

(3) UTILIZATION OF PROPERTY- Notwithstanding any other provision of law and subject to the terms of a loan guaranteed under this section, upon the default of a United States commercial provider under the loan, the Secretary may, at the election of the Secretary--

(A) assume control of the physical asset financed by the loan; and

(B) complete, recondition, reconstruct, renovate, repair, maintain, operate, or sell the physical asset.

(g) CREDIT INSTRUMENTS-

(1) AUTHORITY TO ISSUE INSTRUMENTS- Notwithstanding any other provision of law, the Secretary may, subject to such terms and conditions as the Secretary considers appropriate, issue credit instruments to United States commercial providers of in-space transportation services or system, with the aggregate cost (as determined under the provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)) of such instruments not to exceed $1,500,000,000, but only to the extent that new budget authority to cover such costs is provided in subsequent appropriations Acts or authority is otherwise provided in subsequent appropriations Acts.

(2) CREDIT SUBSIDY- The Secretary shall provide a credit subsidy for any credit instrument issued under this subsection in accordance with the provisions of the Federal Credit Reform Act of 1990.

(3) CONSTRUCTION- The eligibility of a United States commercial provider of in-space transportation services or systems for a credit instrument under this subsection is in addition to any eligibility of such provider for a loan guarantee under other provisions of this section.

SEC. 904. DEFINITIONS.

In this title:

(1) SECRETARY- The term `Secretary' means the Secretary of Defense.

(2) COMMERCIAL PROVIDER- The term `commercial provider' means any person or entity providing commercial reusable in-orbit space transportation services or systems, primary control of which is held by persons other than the Federal Government, a State or local government, or a foreign government.

(3) IN-SPACE TRANSPORTATION SERVICES- The term `in-space transportation services' means operations and activities involved in the direct transportation or attempted transportation of a payload or object from one orbit to another by means of an in-space transportation vehicle.

(4) IN-SPACE TRANSPORTATION SYSTEM- The term `in-space transportation system' means the space and ground elements, including in-space transportation vehicles and support space systems, and ground administration and control facilities and associated equipment, necessary for the provision of in-space transportation services.

(5) IN-SPACE TRANSPORTATION VEHICLE- The term `in-space transportation vehicle' means a vehicle designed--

(A) to be based and operated in space;

(B) to transport various payloads or objects from one orbit to another orbit; and

(C) to be reusable and refueled in space.

(6) UNITED STATES COMMERCIAL PROVIDER- The term `United States commercial provider' means any commercial provider organized under the laws of the United States that is more than 50 percent owned by United States nationals.

This Act may be cited as the `Department of Defense Appropriations Act, 2003'.

And the Senate agree to the same.
JERRY LEWIS,
BILL YOUNG,
JOE SKEEN,
DAVE L. HOBSON,
HENRY BONILLA,
GEORGE R. NETHERCUTT, Jr.,
RANDY `DUKE' CUNNINGHAM,
RODNEY P. FRELINGHUYSEN,
TODD TIAHRT,
JOHN P. MURTHA,
NORMAN D. DICKS,
MARTIN OLAV SABO,
PETER J. VISCLOSKY,
JAMES P. MORAN,
DAVE R. OBEY
(Except for sec. 8149 relating to corporate expatriates),

Managers on the Part of the House.
DANIEL K. INOUYE,
ERNEST F. HOLLINGS,
ROBERT C. BYRD,
PATRICK J. LEAHY,
TOM HARKIN,
BYRON L. DORGAN,
RICHARD J. DURBIN,
HARRY REID,
DIANNE FEINSTEIN,
HERB KOHL,
TED STEVENS,
THAD COCHRAN,
ARLEN SPECTER,
PETE V. DOMENICI,
CHRISTOPHER S. BOND,
MITCH MCCONNELL,
RICHARD C. SHELBY,
JUDD GREGG,
KAY BAILEY HUTCHISON,

Managers on the Part of the Senate.

JOINT EXPLANATORY STATEMENT

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. 5010), making appropriations for the Department of Defense for the fiscal year ending September 30, 2003, and for other purposes, submit the following joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and recommended in the accompanying conference report.

The conference agreement on the Department of Defense Appropriations Act, 2003, incorporates some of the provisions of both the House and Senate versions of the bill. The language and allocations set forth in House Report 107-532 and Senate Report 107-213 should be complied with unless specifically addressed in the accompanying bill and statement of the managers to the contrary.

Senate Amendment: The Senate deleted the entire House bill after the enacting clause and inserted the Senate bill. The conference agreement includes a revised bill.

DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

The conferees agree that for the purposes of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177) as amended by the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100-119) and by the Budget Enforcement Act of 1990 (Public Law 101-508), the term program, project, and activity for appropriations contained in this Act shall be defined as the most specific level of budget items identified in the Department of Defense Appropriations Act, 2003, the accompanying House and Senate Committee reports, the conference report and accompanying joint explanatory statement of the managers of the Committee of Conference, the related classified annexes and reports, and the P-1 and R-1 budget justification documents as subsequently modified by Congressional action. The following exception to the above definition shall apply: for the Military Personnel and the Operation and Maintenance accounts, the term `program, project, and activity' is defined as the appropriations accounts contained in the Department of Defense Appropriations Act.

At the time the President submits his budget for fiscal year 2004, the conferees direct the Department of Defense to transmit to the congressional defense committees budget justification documents to be known as the `M-1' and `O-1' which shall identify, at the budget activity, activity group, and subactivity group level, the amounts requested by the President to be appropriated to the Department of Defense for military personnel and operation and maintenance in any budget request, or amended budget request, for fiscal year 2004.

SPECIAL INTEREST ITEMS

Items for which additional funds have been provided as shown in the project level adjustment tables or items identified in paragraphs using the phrase `only for' or `only to' in this Statement, are congressional interest items for the purpose of the Base for Reprogramming (DD 1414). Each of these items must be carried on the DD Form 1414 at the stated amount, or a revised amount if changed during the conference or if otherwise specifically addressed in the conference report. These items remain special interest items whether or not they are repeated in a subsequent conference report or Statement.

CLASSIFIED ANNEX

Adjustments to classified programs are addressed in the classified annex accompanying this report.

Insert offset folio 161 here 82254.001

FORCE STRUCTURE CHANGES

The conferees recommend a total of $110,100,000 in the military personnel, operation and maintenance, and procurement accounts for force structure that was not included in the budget request, as follows:

[In thousands of dollars]

-------------------------------------------------------------------

                                      Milpers    O&M  Proc.  Total

-------------------------------------------------------------------

Air Force B-52 aircraft                 2,600 28,000 17,700 48,300

Army Reserve Full-Time Support         11,400  4,000        15,400

Army National Guard Full-Time Support  35,100 11,300        46,400

-------------------------------------------------------------------

ACTIVE END STRENGTH

[Fiscal Year 2003]

-------------------------------------------------------------------

                           Budget Conference Conference vs. budget

-------------------------------------------------------------------

Army                      480,000    480,000

Navy                      375,700    375,700

Marine Corps              175,000    175,000

Air Force                 359,000    359,000

Total, Active Personnel 1,389,700  1,389,700

-------------------------------------------------------------------

Insert offset folio 163 here 82254.002

Insert offset folio 164 here 82254.003

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars]
Budget Activity 1: Pay and Allowances of Officers:
600 Separation Pay/$30,000 Lump Sum Bonus	-26,000
Budget Activity 2: Pay and Allowances of Enlisted Personnel:
800 Basic Pay/CT-FP DERF Transfer--CINC Protective Services Detail	963
825 Retired Pay Accrual/CT-FP DERF Transfer--CINC Protective Services Detail	264
1100 Special Pays/Enlistment Bonuses	-24,000
1100 Special Pays/Selective Reenlistment Bonus	-13,000
1200 Separation Pays/$30,000 Lump Sum Bonus	-3,000
1250 Social Security Tax/CT-FP DERF Transfer--CINC Protective Services Detail	73
Budget Activity 6: Other Military Personnel Costs:
2450 Unemployment Benefits	-5,375
Other Adjustments:
2780 DHP Accrual Reestimate	-110,700
2790 Unobligated Balances	-50,000
2800 Adopted Legislative Proposals	6,400

SELECTIVE REENLISTMENT BONUS PROGRAM

The conferees direct the Army to transfer $13,000,000 from Selective Reenlistment Bonus initial payments to anniversary payments to cover the anticipated shortfall in anniversary payments during fiscal year 2003.

Insert offset folio 166 here 82254.004

Insert offset folio 167 here 82254.005

Insert offset folio 168 here 82254.006

Insert offset folio 169 here 82254.007

Insert offset folio 170 here 82254.008

Insert offset folio 171 here 82254.009

Insert offset folio 172 here 82254.010

Insert offset folio 173 here 82254.011

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars]
Budget Activity 1: Pay and Allowances of Officers:
8750 Special Pays/High Deployment Per Diem Allowances	-383
8750 Special Pays/Critical Skills Accession Bonus	-18,300
8750 Special Pays/Critical Skills Retention Bonus	-20,000
8850 Separation Pay/$30,000 Lump Sum Bonus	-32,000
Budget Activity 2: Pay and Allowances of Enlisted Personnel:
9350 Special Pays/High Deployment Per Diem Allowances	-1,898
9350 Special Pays/Selective Reenlistment Bonus	-5,000
9450 Separation Pay/$30,000 Lump Sum Bonus	-1,000
Budget Activity 6: Other Military Personnel Costs:
10700 Unemployment Benefits	-6,747
Other Adjustments:
10980 B-52 Force Structure	2,600
11080 DHP Accrual Reestimate	-82,800
11090 Adopted Legislative Proposals	4,220

NATIONAL GUARD AND RESERVE FORCES

The conferees agree to provide $14,312,543,000 in Reserve personnel appropriations, $13,936,917,000 in Reserve operation and maintenance appropriations, and $100,000,000 in the National Guard and Reserve Equipment appropriation. These funds support a Selected Reserve end strength of 864,558 as shown below.

SELECTED RESERVE END STRENGTH

[Fiscal Year 2003]

--------------------------------------------------------------

                      Budget Conference Conference vs. budget

--------------------------------------------------------------

 Selected Reserve:

Army Reserve         205,000    205,000

Navy Reserve          87,800     87,800

Marine Corps Reserve  39,558     39,558

Air Force Reserve     75,600     75,600

Army National Guard  350,000    350,000

Air National Guard   106,600    106,600

Total                864,558    864,558

 AGR/TARS:

Army Reserve          13,588     13,888                  +300

Navy Reserve          14,572     14,572

Marine Corps Reserve   2,261      2,261

Air Force Reserve      1,498      1,498

Army National Guard   23,768     24,662                  +894

Air National Guard    11,697     11,727                   +30

Total                 67,384     68,608                +1,224

 Technicians:

Army Reserve           7,344      7,594                  +250

Air Force Reserve      9,911      9,911

Army National Guard   25,215     25,702                  +487

Air National Guard    22,845     22,845

Total                 65,315     66,052                  +737

--------------------------------------------------------------

Insert offset folio 176 here 82254.012

Insert offset folio 177 here 82254.013

Insert offset folio 178 here 82254.014

Insert offset folio 179 here 82254.015

Insert offset folio 180 here 82254.016

Insert offset folio 181 here 82254.017

Insert offset folio 182 here 82254.018

Insert offset folio 183 here 82254.019

Insert offset folio 184 here 82254.020

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars]
Budget Activity 1: Unit and Individual Training:
14800 Pay Group A Training/AT Participation Rates	-18,000
Other Adjustments:
15370 Emergency Spill Response Program	600
15390 Additional Full-Time Support	35,100
15400 DHP Accrual Reestimate	-34,200
15420 Adopted Legislative Proposals	2,100

ACTIVE GUARD AND RESERVE PERSONNEL

The conferees recommend a total of $35,100,000 for additional Active Guard and Reserve (AGR) personnel, instead of $28,400,000 as proposed by the House and Senate. The additional $6,700,000, offset by a reduction in Research, Development, Test and Evaluation, Defense-Wide, line 74, will provide 52 AGRs for security at the Missile Defense Agency Test Bed site at Fort Greely, Alaska and 33 AGRs for emergency defensive operations at Fort Greely, Alaska and Colorado Springs, Colorado.

Insert offset folio 186 here 82254.021

Insert offset folio 187 here 82254.022

Insert offset folio 188 here 82254.023

MANAGEMENT RESERVE FUNDS

Each service headquarters retains a portion of its operation and maintenance appropriation as a reserve to meet emergent needs. From fiscal year 1999 through fiscal year 2002, the services set aside the following amounts in management reserve funds: Army, $278,000,000; Navy, $466,000,000; Air Force, $200,000,000; and, Marine Corps, $96,000,000. In fiscal year 2002 alone, the Army set aside $128,000,000; the Navy, $150,000,000; the Air Force, $50,000,000; and, the Marines, $30,000,000. These funds are used at the discretion of the service chiefs or service secretaries and, since fiscal year 1999, have been used for projects ranging in cost from $5,000 to $40,100,000.

The amount retained by the Army in the management reserve fund grew from $50,000,000 in fiscal year 2001 to $128,000,000 in fiscal year 2002. The Navy increased its management reserve from $81,000,000 in fiscal year 1999 to $150,000,000 in fiscal year 2002. The Marine Corps' management reserve historically has been between $30,000,000, and $40,000,000, significantly higher than the Army, Navy, and Air Force reserve funds when considered as a percentage of the operation and maintenance funding provided for each service. The Air Force management reserve fund has remained constant at $50,000,000 per year. The services have applied the reserve funds to address a broad range of requirements, ranging from employment kiosks at minority institutions, to funding for a North Atlantic Treaty Organization Meeting, to ship and aircraft depot maintenance.

The conferees acknowledge the utility of retaining a small amount of the operation and maintenance funds appropriate for each service in the service headquarters to address emergent requirements. The conferees are concerned, however, with the recent growth in the amounts retained in the management reserve funds. Further, the growing amounts that the service chiefs and service secretaries have chosen to withhold from distribution to field activities call into question the validity of the budget justification process.

The conferees direct that not more than the following amounts may be used for service chief/service secretary reserve funds:

Operation and Maintenance, Army	$50,000,000
Operation and Maintenance, Navy	50,000,000
Operation and Maintenance, Marine Corps	10,000,000
Operation and Maintenance, Air Force	50,000,000

Additionally, the conferees direct that not later than 60 days after the end of fiscal year 2003, the Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force shall each submit to the congressional defense committees a report detailing service chief/service secretary reserve fund expenditures during the fiscal year.

MIDWAY AIRFIELD

The conferees are aware of the continuing efforts to forge a long term solution for the operation and maintenance of the Midway Island airfield, and are aware that Department of Defense aircraft used the Midway facility 17 times in fiscal year 2002. The conferees encourage the Department of Defense, in conjunction with the Department of the Interior, to identify a long-term contracting solution to continue the availability of this airfield in a manner which meets the refueling and emergency divert airfield requirements of military aircraft.

Insert offset folio 192 here 82254.024

Insert offset folio 193 here 82254.025

Insert offset folio 194 here 82254.026

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
250 All Terrain Military Utility Vehicles	2,900
250 Hydration on the Move System, Including Chem/Bio Sys	1,000
250 Modular Lightweight Load-Carrying Equipment (MOLLE)	3,600
250 Modular General Purpose Tent System (MGPTS)	1,200
250 Expendable Light Air Mobility Shelter	2,500
450 Camera Assisted Monitoring System (CAMS)	4,000
450 SBCT Implementation	42,500
550 Continuity of Operations DERF--Alt Nat Cmd Ctr	44,000
550 CT/FP DERF--Physical Security Equipment	76,900
550 CT/FP DERF--Physical Security Equipment trans to OPA	-76,900
550 ITAM Program at Army NTC	1,000
550 Corrosion Prevention and Control Program at CCAD and Fort Hood	1,500
600 Studies, analysis and headquarters growth	-10,000
750 USARSO headquarters growth	-1,000
750 Other Contracts, unjustified program growth	-5,000
750 Training and Support Facilities--Continue Ft. Irwin facility and road improvements	6,000
800 Airborne Barracks--Ft. Benning, Georgia	2,000
800 Ft. Lewis SRM, Vancouver Barracks preservation	3,700
850 USARPAC C41 PACMERS	4,300
850 USARPAC C4 shortfalls	5,100
850 Management and Operational Headquarters, unjustified program growth	-2,000
900 DERF transfer--CINC AT/FP staff	9,400
900 Hunter UAV	6,000
950 Nuclear Posture Review DERF--Info Systems Security	15,000
Budget Activity 3: Training and Recruiting:
1650 SROTC--Air Battle Captain Program	1,400
1850 Sec, Comms & Info Opns DERF--Army Lang Pgm TIARA	19,500
1850 Sec, Comms & Info Opns DERF--Contr Linguists TIARA	9,400
1850 Sec, Comms & Info Opns DERF--Contract Linguists Interrogation	5,000
1850 Military Police MCTFT joint training	1,700
1850 SCOLA language training	1,000
2000 Defense Language Institute (DLI) LandNet	1,000
2000 TRADOC Transformation, unjustified program increase	-15,000
2000 Ft. Knox Distance Learning	2,100
2050 DoD Monterey Bay Center furniture and equipment	1,000
2100 Restoration and modernization of dining facilities	2,300
2200 Contract Recruiting Companies	-5,000
2350 Online Technology Training Pilot Program Ft. Lewis	1,000
2450 Sec, Comms & Info Opns DERF--PE0135197	2,300
Budget Activity 4: Administration and Servicewide Activities:
2650 Continuity of Operations DERF--CONUS Support	2,000
2650 Sec, Comms & Info Opns DERF--Battle Space Character	2,000
2650 Sec, Comms & Info Opns DERF--Sec & Invest backlog	10,000
2650 Sec, Comms & Info Opns DERF--Information Dominance	1,000
2750 Second Destination Transportation, unjustified pgm growth	-18,000
2750 MTMC DRMEC demo project including RAPID	2,000
2800 Pulse Technology--Army Battery Management Program	3,200
2850 AIT/RFID Program at Sierra Army Depot	1,000
2850 Electronic Maintenance System (EMS)/Point-to-Point Wiring and Signal Tracing	1,000
2850 Logistics and Technology Program	1,000
3000 Sec, Comms & Info Opns DERF--Crit Infr Protect (CIP)	600
3000 Administration	-17,000
3000 Biometrics Support	9,500
3050 Continuity of Operations DERF--JMIP CONUS Support	5,000
3050 Sec, Comms & Info Opns DERF--Collaboration Planning/Enablers	2,500
3050 Sec, Comms & Info Opns DERF--CONUS Support, CIP	500
3050 Servicewide Communications	-22,000
3050 Army Information Systems	-6,000
3050 Army Enterprise Architecture	-6,000
3100 Manpower Management	-3,000
3150 Chaplain--Building Strong and Ready Families Pgm	1,000
3200 Other Service Support	-10,000
3200 Army Conservation and Ecosystem Management	3,400
3300 Real Estate Management--underexecution	-2,000
3350 Worker Safety Pilot Program at Fort Bragg, NC and Watervliet, NY expansion	2,500
3350 Innovative Safety Management	2,500
3400 Army Chapel Renovation Matching Funds Program	3,400
3400 Rock Island Bridge Repairs	1,700
3400 Yukon training infrastructure and access upgrades	1,700
3400 Ft. Richardson Bldg. 802 repairs	3,900
3400 Ft. Wainwright utilidors	8,500
3400 Tanana River bridge study	1,275
Undistributed:
3710 Classified Programs	42,153
3720 Memorial Events	800
3730 Repairs at Fort Baker	2,500
3960 FECA Surcharge	-8,799
3970 Un-obligated Balance	-50,000
3980 CONOPS Costs	-50,000
4035 Anti-corrosion programs	1,000
4037 Utilities privatization	-9,000
4045 PACOM Infrastructure Modernization Program--transfer To OPA	-41,800
4050 EUSA command and control--transfer to OPA	-4,700
4055 USARPAC Comms equipment fielding--transfer to OPA	-3,200
4060 PACOM Infrastructure Modernization Program--transfer To OPA	-620

ARMY BUDGET JUSTIFICATION MATERIALS

The conferees recognize the importance of the budgetary management improvement process undertaken by the Under Secretary of the Army to provide more meaningful budget justification materials for future budget submissions. The conferees strongly encourage further efforts to ensure programmatic accountability, integrity, management, and oversight, which may continue to benefit from an independent third party experienced in federal assurance services to mitigate program and operational risk, and to ensure quality.

SOLDIER EQUIPMENT--ORGANIZATIONAL CLOTHING AND INDIVIDUAL EQUIPMENT

The conferees are aware that experience in Afghanistan showed once again that while the Army is continuing to invest significant sums in developing better soldier equipment, the system to get that equipment to soldiers still has major shortcomings. Consequently, the Army now estimates that its soldiers spend on average about $300 per year out of pocket to buy additional necessary equipment ranging from hydration systems to GPS receivers. Equipment shortages reported by American soldiers in Afghanistan and elsewhere include modern knee and elbow pads, hydration systems to replace canteens, GPS receivers, lensatic compasses, sunglasses, helmet pads, polypropylene underwear, assault packs, close combat optics, soldier intercoms, viper binoculars, black fleece and `bear suits', thermal weapons sights, body armor, and other important basic gear. In Afghanistan, some soldiers reported the loss of circulation in their arms in situations where they had to wear the new Interceptor Body Armor with the ALICE rucksack frame or the current Load Bearing Vest instead of the MOLLE pack for which it was designed. Many Reserve Components have a far worse equipment situation. For example, soldiers from the 1-151st Infantry of the Indiana Army National Guard personally purchased radios from local discount department stores to serve as soldier intercoms for their deployment to Bosnia. With the expected increased OPTEMPO of both active and reserve forces to sustain the war on terrorism, this problem is becoming evermore acute and unacceptable.

The conferees believe the Army leadership must take a fresh look at the entire system for issuing soldier equipment. It is unacceptable for American soldiers--both active and reserve--to be deployed with anything but the best equipment the Army has developed, and it must be a priority objective to dramatically improve the situation where soldiers deploy with lower quality gear that could cost their lives. In the short term this will require more investment in the Soldier Enhancement Program, the Centralized Funding and Fielding activity, and other accounts whose purpose is to field new equipment to soldiers expeditiously. In the long term, the Army must retool its practices and procedures for equipping its soldiers, in order to field the most advanced gear faster and to more soldiers. The Secretary of the Army is directed to submit a report to the congressional defense committees by May 1, 2003 assessing and identifying the major soldier equipment shortages in all major active and reserve component units, identifying the highest priority Army-wide soldier equipment items that require higher procurement rates and faster distribution, and explaining how the Army plans to address those needs. This report shall also present the Army's plan and timetable for transforming its practices and procedures for procuring and distributing soldier equipment in order to dramatically improve the distribution of modern soldier equipment across the board to all units--both active and reserve.

NATIONAL MEMORIAL CEMETERY OF THE PACIFIC

The conferees are pleased that the Department of the Army has been able to accomplish the necessary research and coordination with the Department of Veterans Affairs in order to bring about the remarking of 178 graves at the National Memorial Cemetery of the Pacific, to properly denote service members killed on December 7, 1941 on United States Ships Oklahoma, West Virginia, California, Utah, Nevada, and Curtis, as well as Hickam Air Field. The Conferees understand that the new grave markers will be provided to the National Cemetery in Hawaii by approximately November 20, 2002 with the goal of replacing the 178 grave markers by December 7, 2002.

INTERNET ACCESS KOREA

The conferees direct that of the funds provided in Operation and Maintenance, Army, $2,500,000 shall be available only to accelerate the Army Knowledge Online pilot program to full implementation in order to provide access to internet and electronic mail services for soldiers stationed in the Republic of Korea.

FORT BAKER

The conference agreement provides an additional $2,500,000 to continue infrastructure repairs at Fort Baker. The accompanying bill provides authority to transfer these funds under the same terms and conditions and to the same federal recipient as specified under Operation and Maintenance, Army, in P.L. 107-117

LOWRY BOMBING RANGE

The Conferees are aware of the unique environmental clean-up measures needed at the former Lowry Bombing and Gunnery Range, and recognize the importance of expediting restoration and containment activities to permit planned development in the surrounding area to proceed without delay. The conferees encourage the Corps of Engineers to provide sufficient resources, and select appropriate clean-up and containment methodologies, in a timely manner, to ensure that Jeep demolition range and the 20-millimeter range areas are safe for future economic, educational and recreational activities.

SUSTAINMENT, RESTORATION AND MODERNIZATION

The conferees direct that facilities sustainment, restoration and modernization funds recommended in this bill shall provide the following program baseline in fiscal year 2003. Any adjustments directed in the bill shall be applied to this baseline:

[In thousands of dollars]
AMC	126,000
ATEC	71,888
COE	8,050
EUSA	128,000
FORSCOM	400,206
MDW	57,674
MEDCOM	28,000
MTMC	22,229
OSA	14,275
TRADOC	358,430
USAREUR	332,702
USARPAC	207,420
USARSO	9,659
USMA	57,102
Site R	3,010
Total	1,823,945

BROADWAY ARMORY PROJECT

The conferees direct the Secretary of the Army to provide funding, from within available funds under Operation and Maintenance, Army, for the Chicago Park District's Broadway Armory project, consistent with Section 8161 of Public Law 107-117.

Insert offset folio 205 here 82254.027

Insert offset folio 206 here 82254.028

Insert offset folio 207 here 82254.029

Insert offset folio 208 here 82254.030

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
4500 Sea Sparrow Test Set Upgrade	4,300
4900 Continuity of Operations DERF, software licenses CNSG	5,000
4900 Sec, Comms & Info Opns DERF--Cryptologic Direct Support	2,000
5050 Apprentice, Engineering Technician and CO-OP Program NUWC Keyport	1,400
5050 Apprentice, Engineering Technician and CO-OP Program IMF Bangor	700
5050 Improved Engineering Design Process	4,000
5050 Shipyard Apprentice Program	10,000
5050 PHNSY SRM	13,800
5400 Warfare Tactics PMRF	17,000
5450 Hydrographic Center of Excellence	2,500
5500 Continuity of Operations DERF--Office of Navy Intelligence Data Backup	2,000
5500 Sec, Comms & Info Opns DERF--classified	1,000
5500 Sec, Comms & Info Opns DERF--Analysts	3,000
5500 Sec, Comms & Info Opns DERF--SCI GCCS I3	3,800
5500 Sec, Comms & Info Opns DERF--GENSER GCCS I3	5,400
5500 Sec, Comms & Info Opns DERF--JDIS/LOCE/CENTRIX	5,300
5500 Sec, Comms & Info Opns DERF--CMMA	1,500
5500 Sec, Comms & Info Opns DERF--CMMA	17,000
5500 Sec, Comms & Info Opns DERF--JWICS Connectivity	5,500
5500 Center of Excellence for Disaster Management and Humanitarian Assistance	4,300
5550 MROD testing, repair and replacement	1,000
5550 Central Command deployable HQ spares & tech supt	2,500
5850 CT/FP DERF--Strat Security Forces & Technicians	7,000
5900 In-service Weapons Systems Support, underexecution	-3,000
5950 Sec, Comms & Info Opns DERF--Pioneer	6,000
5950 Mark-45 Gun, 5" Depot Overhauls	10,500
5950 Mark-245 Decoys	1,000
6210 CT/FP DERF--Site Improvement, SRM	219,200
6210 Homeland Security--Guantanamo Bay Operations	2,500
6210 NAS North Island CNAF Facility Renovation Projects	2,600
6220 CT/FP DERF--Security Forces and Technicians	143,096
6220 CT/FP DERF--Law Enforcement	32,573
6220 CT/FP DERF--Management and Planning	1,712
6220 CT/FP DERF--Shipyard Security Forces and Tech	28,000
6220 Homeland Security DERF--Base Supt Svcs--Guantanamo	38,500
6220 Critical Asset Vulnerability Assessment, Navy Region NW	1,100
6220 Northwest Environmental Resource Centers	4,200
6220 Combating Terrorism Data Base Sys (CDTS) Remote Data Repository	1,200
6220 Earle Naval Weapons Station, N.J	1,250
Budget Activity 2: Mobilization:
6500 Ex-Oriskany Remediation, Demil and Disposal	2,800
6500 Ship Disposal Project	3,500
6500 Ship Disposal Program--James River	20,000
6600 Homeland Security--Medical Operations--Guantanamo	4,000
Budget Activity 3: Training and Recruiting:
7000 ROTC Unit Operating Costs	2,000
7200 Sec, Comms & Info Opns DERF--Pre-deploy Training	1,000
7200 Sec, Comms & Info Opns DERF--Imagery Training Init	1,000
7300 NPS unjustified program growth	-2,000
7350 Center for Civil-Military Relations at NPS	1,000
7350 CNET Distance Learning	3,400
7350 Prototype System for Embedded Training and Performance Supt--CNET	1,000
7350 Navy Learning Network Program CNET	2,600
7600 Continuing Education Distance Learning	1,000
7700 Naval Sea Cadet Corps	1,000
7820 CT/FP DERF--Site Improvement	42,000
7830 CT/FP DERF--Security Forces and Tech	1,500
7830 Fire Fighter Protective Equipment Maintenance Pilot, Puget Sound Federal Fire Dept, NW Region	500
Budget Activity 4: Administration and Servicewide Activities:
8000 CT/FP DERF--HQ Management and Planning	1,600
8000 Administration Unsupported Growth	-6,000
8000 Navy-wide PVCS Enterprise license	2,500
8250 Continuity of Opns DERF--Various/ONI Data Backup	3,000
8250 CT/FP DERF--HQ Management and Planning	3,920
8250 Sec, Comms & Info Opns DERF--Computer Network Def	3,800
8250 Sec, Comms & Info Opns DERF--Enclave Boundary	1,200
8250 Sec, Comms & Info Opns DERF--Intrusion Detection	1,140
8250 Servicewide Communications	-12,000
8250 Critical Infrastructure Protection Program	5,100
8500 Servicewide Transportation	-1,000
8550 Stainless Steel Sanitary Space System	2,500
8550 Planning, Engineering and Design	-15,000
8600 Sec, Comms & Info Opns DERF--Acquisition and PM	5,500
8600 Acquisition and Program Management	-16,000
8600 Space and Naval Warfare Info Tech Center (SITC)	1,500
8600 Naval Armory Inventory and Custody Tracking	800
8650 Air Systems Support	-8,000
8650 Configuration Management Info System (CMIS)	2,800
8700 Advanced Technical Information Support	1,800
8700 Flash Detection System	900
8800 Sec, Comms & Info Opns DERF--Carryon Cryptologic Sys	500
9000 Continuity of Operations DERF--Various/Navy Criminal Investigations	2,000
9000 CT/FP DERF--Intel Security & Invest Matters	3,500
9000 Sec, Comms & Info Opns DERF--HUMINT	3,700
9000 Sec, Comms & Info Opns DERF--Counter Surveillance and Law Enforcement	5,000
9220 CT/FP DERF--Site Improvement--SRM	13,000
9230 NAS Jacksonville and NAS Mayport Anti-Corrosion Init	1,000
Undistributed:
9280 Classified Programs	41,664
9400 Legislative Proposals Not Adopted	-2,100
9410 Non-NMCI IT Savings	-20,000
9430 FECA Surcharge	-14,764
9440 Un-obligated Balance	-82,000
9510 Anti-corrosion programs	1,000
9530 CINCPACFLT Ultra-thin Client Pilot Program	5,000

EX-ORISKANY DISPOSAL

The conferees recommend an additional $2,800,000 in Operation and Maintenance, Navy for the remediation, demilitarization and disposal of the Ex-Oriskany in the manner determined by the Secretary of the Navy to be most advantageous.

NAVAL SHIPYARD APPRENTICE PROGRAM

The conferees agree to provide an increase of $10,000,000 for the Shipyard Apprentice program. The conferees direct that during fiscal year 2003 the Navy shall induct classes of no fewer than 125 apprentices, respectively, at each of the Naval Shipyards. The conferees further direct the Navy to include the costs of the fiscal year 2004 class of apprentices in the budget request.

NAVY PILOT HUMAN RESOURCES CALL CENTER

The conferees direct that of the funds provided in Operation and Maintenance, Navy, not less than $1,000,000 shall be made available for the Navy Pilot Human Resources Call Center, Cutler, Maine.

CASUALTY CARE RESEARCH CENTER

The conferees recommend $4,300,000 for the Center of Excellence for Disaster Management and Humanitarian Assistance (COE), of which $600,000 shall be made available for the Casualty Care Research Center.

CENTRAL KITSAP SCHOOL

The conferees included a general provision, Section 8108, that includes $2,700,000 for a grant to the Central Kitsap School District for the construction and outfitting of the Central Kitsap School special needs learning center, to meet the needs of Department of Defense special needs students at Submarine Base Bangor, Washington.

CLASSIFICATION OF VESSELS

The American Bureau of Shipping has been expressly designated in 46 USC 3316(a) as the chosen instrument of the United States Government in classifying all vessels owned by the United States Government (including those leased or bareboat chartered) and in matters related to classification. The conferees therefore note with approval Military Sealift Command's compliance with those requirements in its recent request for proposal for a high speed vessel and expect continued compliance in all subsequent procurements, excluding experimental or service unique vessels, theater-assigned assets, or as designated by the service secretary. Congress designated the American Bureau of Shipping for those purposes in furtherance of the national interest in a strong merchant marine and industrial base, and the conferees expect all government agencies to comply with 46 USC 3316(a).

NAVY MARINE CORPS INTRANET

The conferees believe that the Navy has made significant progress in establishing an adequate test plan for the Navy Marine Corps Intranet. Accordingly, the conferees have included a general provision requiring that the next NMCI decision point include an evaluation of the Operational Assessment and a certification to the congressional defense committees that the results of the assessment are acceptable for additional seat orders.

The conferees remain concerned, however, about the legacy application challenges the program faces and believe that greater attention must be paid to innovative, commercially available secure technologies and solutions to address this problem. In an NMCI Stakeholders' Council Issue Paper dated more than one year ago, CINCPACFLT proposed the exploration of using ultra thin clients as a solution to both the security and software incompatibilities certain legacy applications present to the NMCI network. To date, these recommendations have not been acted on. The conferees recommend $5,000,000 to conduct a pilot program at CINCPACFLT using ultra thin clients integrated with a network security solution previously evaluated by the National Security Agency at a Level of Trust not less than B2, and currently at a minimum Common Criteria Evaluation Assurance Level (EAL) of not less than 4.

Insert offset folio 216 here 82254.031

Insert offset folio 217 here 82254.032

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
10050 Continuity of Operations DERF--Continuity of Intel	1,000
10050 Sec, Comms & Info Opns DERF--I-SURSS	700
10050 Sec, Comms & Info Opns DERF--TRSS	1,000
10050 Sec, Comms & Info Opns DERF--TCAC	500
10050 Sec, Comms & Info Opns DERF--RREP	200
10050 Sec, Comms & Info Opns DERF--TPC	700
10050 Sec, Comms & Info Opns DERF--MCIA Analytic Supt	2,400
10050 Sec, Comms & Info Opns DERF--TEG	1,000
10050 Sec, Comms & Info Opns DERF--TROJAN Lite	1,500
10050 Sec, Comms & Info Opns DERF--ISR	2,900
10050 Sec, Comms & Info Opns DERF--FLAMES/CESAS	2,000
10050 Sec, Comms & Info Opns DERF--Computer Network Def	2,000
10050 Sec, Comms & Info Opns DERF--Secure Wireless	800
10050 Sec, Comms & Info Opns DERF--Deployed Security Interdiction Devices	700
10050 Modular General Purpose Tent System (MGPTS)	4,200
10050 Joint Service NBC Defense Equipment Surveillance	2,400
10050 Polar Fleece shirts	1,000
10150 Depot Maintenance of Radar Systems	4,300
10200 CT/FP DERF--Physical Security Equipment	228,000
10200 CT/FP DERF--CINC AT/FP Staffs	3,200
10200 CT/FP DERF--Physical Security Upgrades	10,000
10200 Training and Support Facilities	12,000
Budget Activity 4: Administration and Servicewide Support:
11800 Continuity of Operations DERF--Site R	1,000
Undistributed:
12000 FECA Surcharge	-1,283
12100 Un-obligated Balance	-8,000
12020 Anti-corrosion programs	1,000

TRAINING AND SUPPORT FACILITIES

The conferees recommend an additional $12,000,000 in Operation and Maintenance, Marine Corps of which $7,500,000 is provided only for mission critical requirements at the Marine Air-Ground Task Force Training Center, and $4,500,000 is provided only for the seismic retrofit of buildings at Barstow Marine Corps Logistics Base.

Insert offset folio 220 here 82254.033

Insert offset folio 221 here 82254.034

Insert offset folio 222 here 82254.035

Insert offset folio 223 here 82254.036

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to budget activities are as follows:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
12600 CONUS Combat Air Patrol DERF--Changed Alert Posture	380,000
12600 Unmanned Aerial Vehicles DERF--Predator O&M	9,000
12600 F-16 Distributed Mission Training System	8,500
12600 B-52 Attrition Reserve	28,000
12600 B-1 Bomber modifications	7,700
12600 B-52 Engine Modification Study	3,000
12775 Oklahoma City Air Logistics Center	1,400
12800 AFSAA HQ program growth	-4,000
12850 CT/FP DERF--AEF Force Prot Certification Tng	10,200
12850 CT/FP DERF--WMD 1st Responder	46,000
12850 PACAF server consolidation	6,800
12900 CT/FP DERF--AT/FP Facilities Upgrades	99,585
12900 Wright-Patterson AFB Dormitory Renovation	1,800
12900 11th AF Range upgrades--fiber optics and power	6,800
13000 CT/FP DERF--Geo Reach/Geo Base	25,800
13000 Nuclear Posture Review DERF--Info Warfare Support	5,000
13000 Sec, Comms & Info Opps DERF--Defense Recon Supt	68,630
13000 Sec, Comms & Info Opns DERF--Defense Recon Trans	-68,630
13050 University Partnership for Operational Support	3,400
13100 Continuity of Ops DERF--Nat'l Abn Cmd Ctr	10,000
13100 Continuity of Ops DERF--Aircraft Comms Mods	3,600
13100 Continuity of Ops DERF--UH-1 Support, NCR	700
13100 Continuity of Ops DERF--Comms Sys Operators Tng	500
13100 Sec, Comms & Info Opns DERF--Commercial Imagery	2,000
13200 CT/FP DERF--CENTCOM PSD and Forward HQ	700
13200 CT/FP DERF--CINC AT/FP Staff	5,500
13200 Nuclear Posture Review DERF--Mgt HQ STRATCOM	1,250
13200 Nuclear Posture Review DERF--Info Warfare Supt	4,000
13200 Nuclear Posture Review DERF--Tactical Deception	1,000
13200 Sec, Comms & Info Opns DERF--Critical Infrastructure Protection	400
13200 Management Supt for Air Force Battle Labs	4,300
13250 Continuity of Ops DERF--Combat Air Intel Sys	2,300
13250 Continuity of Ops DERF--Special Purpose Comms	2,000
13250 Continuity of Ops DERF--Tactical Info Program	5,000
13250 Sec, Comms & Info Opps DERF--SEP classified	1,200
13250 Sec, Comms & Info Opns DERF--DCGS Architecture	3,000
13250 Sec, Comms & Info Opns DERF--Integrated Broadcast Service	100
13250 Sec, Comms & Info Opns DERF--IBS Smart Pull Tech	100
13450 Space Control Systems, underexecution	-5,000
13500 Satellite Systems, underexecution	-2,000
13550 Continuity of Ops DERF--Recon Supt Activities	10,000
13550 Other Space Operations, headquarters growth	-5,000
Budget Activity 2: Mobilization:
13900 Sec, Comms & Info Opns DERF--Critical Infrastructure Protection	1,800
14000 Transportation Business Area, program growth	-115,657
14050 CT/FP DERF--AEF Force Protection Certification Training	4,800
14050 CT/FP DERF--WMD 1st Responder	21,850
14050 Combined Air Crew System Tester (CAST)	2,500
14100 CT/FP DERF--AT/FP Facility Upgrades	57,254
14100 PACAF strategic airlift	2,600
Budget Activity 3: Training and Recruiting:
14500 CT/FP DERF--AT/FP Facility Upgrades	16,341
14650 MBU-20/P Oxygen Mask	2,800
14650 AWACS Modeling and Simulation System	500
14700 Professional Development Education--underexecution, unjustified growth in other costs	-5,000
14800 CT/FP DERF--WMD 1st Responder	1,150
15100 Workforce Shaping--civilian manpower mispricing	-2,000
Budget Activity 4: Administration and Servicewide Activities:
15400 Technical support activities--unjustified growth in other contracts	-4,000
15450 Servicewide Transportation	-2,000
15500 CT/FP DERF--AEF Force Protection Certification Training	2,900
15500 CT/FP DERF--WMD 1st Responder	4,600
15500 Hickam AFB Alternative Fuel Vehicle Program	1,000
15500 Eielson AFB Utilidors	8,500
15550 CT/FP DERF--AT/FP Facilities Upgrades	3,976
15650 Tanker Lease Pilot Program	3,000
15650 Administration	-10,000
15700 Sec, Comms & Info Opns DERF--Modernization, Sustainment and Dev	4,900
15700 Sec, Comms & Info Opns DERF--Modernization, Sustainment and Dev	1,700
15700 Sec, Comms & Info Opns DERF--Intrusion Detect Sys	1,500
15700 Servicewide Communications	-9,000
15700 ALCOM Wide Mobile Radio Network	421
15750 Personnel Programs	-5,000
15900 Arms control, underexecution	-1,000
15950 Other Servicewide Activities	-16,500
15950 Range residue recycling program	2,600
16100 William Lehman Aviation Center	750
16150 NAIC Foreign Materials Exploitation Facility	1,000
16150 Conformable Lithography System AFIT Wright-Patterson AFB	1,000
16250 Nuclear Posture Review DERF--Security and Investigative Activities/on-line threat collection	2,000
16250 Sec, Comms & Info Opns DERF--Def Security Service	5,000
Undistributed:
16410 Classified Programs	27,462
16480 MTAPP	4,200
16580 FECA Surcharge	-8,717
16590 Aeronautical System Center Enterprise Infostructure Prototype	4,600
16600 Threat Representation and Validation (TR&V)	1,000
16610 Classified NAIC operationalizing MASINT	3,200
16620 Information Assurance Initiative for Air Force Material Command	1,100
16630 Un-obligated Balance	-33,000
16640 CONOPS Costs	-50,000
16685 Anti-corrosion programs	1,000
16690 Utilities	-55,000

EGLIN AFB BOS SIMULATION MODEL

The conferees recommend that of the funds provided in Operation and Maintenance, Air Force, $1,000,000 shall be made available for the Eglin Air Force Base, Base Operations and Support simulation model.

COMBAT SEARCH AND RESCUE (CSAR) PLATFORM

The accompanying bill provides that of the funds made available in Operation and Maintenance, Air Force, $2,000,000 may be obligated for the deployment of Air Force active duty and Reserve CSAR air crews to the United Kingdom to participate in an Inter-fly program to train, operate, evaluate and exchange operational techniques and procedures on the EH-101. The Air Force has identified mission deficiencies with the current CSAR platform for future requirements, which include mission reaction time, inadequate range, insufficient cabin space, poor survivability, insufficient situational awareness, and inadequate adverse weather capability. Following the Inter-fly program, the Secretary of the Air Force shall report to the congressional defense committees on the suitability of this aircraft as the future CSAR platform.

Insert offset folio 228 here 82254.037

Insert offset folio 229 here 82254.038

ADJUSTMENTS TO BUDGET ACTIVITIES

The adjustments to the budget activities are as follows:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
17050 (TJS--Combating Terrorism Readiness Initiative Fund (Transfer from DERF)	12,000
17050 (TJS--JCS Exercise Program	-5,000
17100 SOCOM--Hydration on the Move (Camel Bak)	1,000
17100 SOCOM--SPECWARCOM Mission Support Center	1,700
Budget Activity 3: Training and Recruiting:
17400 Classified Programs	-6,869
17460 DAU--DCMS/IT Organizational Composition Research	1,000
17460 DAU--Distance Learning and Performance	2,975
17480 DHRA--DLAMP	-19,155
17480 DHRA--JRAP	-24,250
17480 DHRA--Joint Military Education Venture Forum	500
Budget Activity 4: Administration and Servicewide Activities:
17750 Civil Military Program--Innovative Readiness Training	8,500
17750 Civil Military Program--Challenge Program	1,250
17775 Classified Programs	385,072
17850 DFAS--Financial Operations (Transfer from DERF)	5,900
17875 DHRA--Critical Infrastructure Protection (Transfer from DERF)	500
17875 DHRA--Civilian Personnel Data System	-20,000
17900 DISA--Secure Voice Teleconferencing System (Transfer from DERF)	2,500
17900 DISA--Defense Conferencing Enhancement Program (Transfer from DERF)	8,900
17900 DISA--DISA Continuity of Operations (Transfer from DERF)	2,500
17900 DISA--Bandwidth Expansion (Transfer from DERF)	7,600
17900 DISA--IA, Intell/Coalition Encrp (CWAN) (Transfer from DERF)	5,000
17900 DISA--IA, Intell/Coalition Encrp (CFBL) (Transfer from DERF)	1,600
17900 DISA--IA Computer Network Defense (Transfer from DERF)	3,500
17900 DISA--On-site administrators for primary sites (Transfer from DERF)	3,000
17900 DISA--White House Communications (Transfer from DERF)	3,000
17900 DISA--Wireless Priority Service Program	-73,000
17900 DISA--Travel Program Growth	-1,000
17900 DISA--CWIN Contract Savings	-1,000
17900 DISA--DISA Tier One and DERF Reductions	-10,000
17925 DLA--Critical Infrastructure Protection (Transfer from DERF)	600
17925 DLA--Information Technology Network Consolidation	-10,000
17925 DLA--PTAP	3,500
17975 DODEA--Enhanced Force Protection (Transfer from DERF)	24,200
17975 DODEA--GAVRT Project Expansion	2,550
17975 DODEA--Lewis Center for Educational Research	3,440
17975 DODEA--Family Support Services	2,500
17975 DODEA--UNI Math Teacher Leadership	1,000
17975 DODEA--Galena IDEA	4,250
18000 DSCA--Program Growth	-2,000
18050 DSS--Critical Infrastructure Protection (Transfer from DERF)	500
18075 DTRA--Chemical & Biological Defense Capabilities Assessment	1,000
18075 DTRA--Unconventional Nuclear Threat	34,000
18100 OEA--George AFB	2,125
18100 OEA--Norton AFB	2,550
18100 OEA--Bayonne Military Ocean Terminal	2,500
18100 OEA--Philadelphia Naval Business Center	3,500
18100 OEA--Cecil Field	2,500
18100 OEA--Charles Melvin Price Support Center	1,000
18100 OEA--East Bay Conversion and Reinvestment Commission Pilot	1,000
18100 OEA--CCAT	2,000
18100 OEA--Hunters Point NSY	1,400
18100 OEA--Relocate Barrow Landfill	4,000
18100 OEA--Fitzsimmons Army Hospital	6,000
18100 OEA--Port of Anchorage Intermodal Marine Facility Program	5,000
18100 OEA--Security Lighting for Platt Bridge	600
18100 OEA--Commonwealth of Pennsylvania--Reimbursement of extraordinary Quecreek Mine disaster rescue/recovery expenses	2,000
18125 OSD--OSD Continuity of Operations (COOP) (Transfer from DERF)	18,000
18125 OSD--NCR COOP (Transfer from DERF)	10,500
18125 OSD--NICP Reserve Support (Transfer from DERF)	4,000
18125 OSD--Hard and Deeply Buried Targets (Transfer from DERF)	3,050
18125 OSD--CIP--Biological Agent Security (Transfer from DERF)	2,000
18125 OSD--CIP--Nuclear Security Command and Control (Transfer from DERF)	400
18125 OSD--CIP Technology & Consequence Management (Transfer from DERF)	6,600
18125 OSD--Information Operations (Transfer from DERF)	1,500
18125 OSD--Horizontal Fusion Analysis (Transfer from DERF)	2,000
18125 OSD--CENTRIX (Transfer from DERF)	14,000
18125 OSD--Classified (Transfer from DERF)	9,500
18125 OSD--Classified Programs (Change to DERF)	52,600
18125 OSD--Program Growth	-17,000
18125 OSD--Management Headquarters	-11,600
18125 OSD--Information Technology Network Consolidation	-10,000
18125 OSD--Legacy--CSS Alabama	600
18125 OSD--Middle East Regional Security Issues Program	1,500
18125 OSD--ADUSD (MPP&R) Wearable Computers--Existing Program	3,400
18125 OSD--Commercial Technologies for Maintenance Activities (CTMA)	5,750
18125 OSD--Clara Barton Center	3,000
18125 OSD--Pacific Command Regional Initiative	5,100
18125 OSD--National Dedicated Fiber Optic Network Feasibility Study	1,250
18125 OSD--Studies and Analysis, SECDEF Study Fund	-1,200
18125 OSD--PA&E Long Range Planning	-5,300
18125 OSD--Logistics Systems Modernization	-2,000
18125 OSD--C31 Mission Analysis Fund	-4,894
18125 OSD--Intelligence Fusion Study continuation	4,250
18125 OSD--Command Information Superior Architectures	2,800
18150 SOCOM--Combat Development Activities (Transfer to DERF)	7,000
18150 SOCOM--Combat Development Activities--Classified (Change to DERF)	16,000
18200 TJS--Critical Infrastructure Protection (Transfer from DERF)	300
18200 TJS--CINC for Homeland Security (Transfer from DERF)	41,000
18200 TJS--Other Combating Terrorism Initiatives (Transfer from DERF)	1,459
18200 TJS--Vulnerability Assessments, AT/FP requirements (Transfer from DERF)	400
18200 TJS--Program Growth	-12,000
18200 TJS--Counter Terrorism Analysis Method for Adaptive Threats	1,000
18200 TJS--NDU XXI	3,400
18225 WHS--Classified Program (Transfer from DERF)	28,000
18225 WHS--Information Technology Network Consolidation	-10,000
Undistributed:
19000 Legacy	8,400
19010 Impact Aid	30,000
19015 Impact Aid for Children with Disabilities	3,000
19210 FECA Reduction	-6,455
19220 Un-obligated Balance	-25,000
19245 Operation Walking Shield	3,500
19250 NIMA Commercial Imagery	15,000

LEGACY

The conference agreement provides $8,400,000 for continuation of the Legacy program. From within these funds, the conferees direct the Department to continue naval archaeology programs in the Lake Champlain basin. Of equal importance to the conferees are the reclamation of the C.S.S. Alabama, the recovery and preservation of the U.S.S. Monitor, the U.S.S. Constitution Museum, the Graveyard of the Atlantic Museum, the U.S.S. Massachusetts and other naval vessels of Battleship Cove, the preservation of the cruiser Olympia of the Independence Seaport Museum, the preservation of the LST 325 in the Port of Mobile and restoration of the Lincoln Cottage of the Armed Forces Retirement Home. The Undersecretary of Defense (Comptroller) shall report to the Appropriations Committees no later than March 15, 2003, on the allocation of Legacy funding, and the status of the projects named above.

MOTOR VEHICLE SAFETY INITIATIVES

The conferees are aware of Department of Defense data showing that the leading cause of death and serious injury for all military personnel is motor vehicle crashes as opposed to training accidents or combat. Between fiscal year 2001 and the first 10 months of fiscal year 2002, Department of Defense data show fatalities among military personnel in motor vehicle crashes have increased by 35 percent--from 191 to 258. Fiscal year 2002 would appear to be the highest motor vehicle fatality rate for military personnel in at least four years, with the Marine Corps experiencing an especially high death rate compared to the other services. The Marine Corps reports that of the 25 Marines killed in motor vehicle crashes in fiscal year 2001 and 46 killed in fiscal year 2002, well over half were not wearing seat belts. During the Thanksgiving holiday period, law enforcement officials across the nation will conduct special seat belt enforcement activities as part of the U.S. Department of Transportation Click It Or Ticket program. The conferees strongly encourage the Secretary of Defense to direct all services to join the Marine Corps in actively participating in this program and other similar seat belt usage efforts throughout the year. The Secretary is directed to submit a report to the congressional defense committees within 90 days of enactment of this Act summarizing personal motor vehicle safety statistics of each service for the last five fiscal years and outlining the plans of each service to increase efforts to reduce the level of deaths and injuries suffered by its personnel from motor vehicle accidents.

DLAMP

The conferees remain concerned about the focus and management of the Defense Leadership and Management Program (DLAMP). Though during fiscal year 2002 DLAMP restructured, the outcome of the restructure is unclear and the full costs of the program are poorly defined. The Department needs to insure that the restructured program is more mission-oriented, focused, efficient, and effective. Additionally, the conferees direct that any reductions to this program cannot be applied to the leased facility in Southbridge, Massachusetts.

STARBASE

The conferees are aware of the high demand and strong support for the STARBASE civil-military program that has reached over 200,000 youths and their families at 39 locations. The conferees urge the Department to strengthen its management of this program in line with the recommendations made in the STARBASE program annual report. The conferees direct the Secretary of Defense to provide a report to the congressional defense committees by no later than March 1, 2003 summarizing the status of implementing program improvements in the areas of systematic assessment, core curriculum, host service component regulations, STARBASE resource/training center, startup program standardization, and quality control.

Insert offset folio 238 here 82254.039

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
19530 Division Forces/ECWCS	2,800
19640 Forces Readiness Operations Support/Controlled Humidity Preservation	2,000
19650 Land Forces System Readiness/Homeland Security DERF Transfer--Enhanced Secure Communications	5,900
19650 Land Forces System Readiness/Homeland Security DERF Transfer--Enhanced Secure Communications	25,600
19650 Land Forces System Readiness/Information Operations Sustainment	1,500
19680 Base Support/CT-FP DERF Transfer--Access Control Program	20,000
19680 Base Support/Homeland Security DERF Transfer--Enhanced Secure Communications	30,700
19680 Base Support/Salute our Services Pilot Project	170
Budget Activity 4: Administration and Servicewide Activities:
19980 Administration/Headquarters Program Growth	-5,000
19990 Servicewide Communications/Homeland Security DERF Transfer--Enhanced Secure Communications	2,400
Other Adjustments:
20160 Additional Military Technicians	4,000

SECURE WIRELESS TECHNOLOGY

The conferees recommend that of the funds requested in the Defense Emergency Response Fund and transferred to Operation and Maintenance, Army Reserve, for enhanced secure communications, $4,500,000 may be available to increase the availability of current generation NSA-approved secure nationwide digital cell phones to meet urgent service needs. Furthermore, the conferees believe that significant development opportunities have arisen in this area since the submission of the budget request. An accelerated research and development investment strategy could realize advancements that would greatly benefit all defense community users of this technology. The conferees direct the Department to consider accelerating the National Security Agency's continued development of secure cellular wireless technology and multi-band functionality. To accomplish this the conferees would be supportive of a reprogramming of $10,000,000 to support development of a more robust secure nationwide cellular capability with multi-band functionality.

Insert offset folio 241 here 82254.040

Insert offset folio 242 here 82254.041

Insert offset folio 243 here 82254.042

Insert offset folio 244 here 82254.043

Insert offset folio 245 here 82254.044

Insert offset folio 246 here 82254.045

Insert offset folio 247 here 82254.046

Insert offset folio 248 here 82254.047

Insert offset folio 249 here 82254.048

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
26180 Divisions/ECWCS	4,200
26180 Divisions/Homeland Security Training, Camp Gruber	2,900
26200 Corps Combat Forces/Unjustified Growth for Other Purchases	-3,000
26360 Azure Blue Cannon Bore Cleaning System	1,000
26420 Base Operations Support/Homeland Security DERF Transfer--Long-Haul Communications	86,200
26420 Base Operations Support/Homeland Security DERF Transfer--General Communications	48,500
26440 Facilities Sustainment, Restoration and Modernization/1st Bn, 118th Infantry Brigade Rifle Range	3,000
26480 Miscellaneous Activities/Distributed Battle Simulation Program Support	895
Budget Activity 4: Administration and Servicewide Activities:
26680 Information Management/Interoperable Automation Continuity of Operations	1,000
26680 Information Management/Information Operations	4,200
Other Adjustments:
26820 Angel Gate Academy	2,500
26830 National Emergency and Disaster Information Center	2,600
26840 Emergency Spill Response	500
26850 Distributed Learning Project	30,000
26890 Joint Training and Experimentation Program	3,400
26940 Rural Access to Broadband Technology	2,100
26960 Additional Military Technicians	11,300
26970 National Guard Global Education Project	500
26980 All Terrain Military Utility Vehicle	2,170
26990 Northeast Center for Homeland Security Feasibility Study	1,000
27000 Courseware to Educate IT Managers	1,700
27010 Information Assurance	1,275
27030 WMD Response Element Advanced Laboratory Integrated Training and Indoctrination	1,700
27050 Cold Weather Clothing	300
27057 Southeast Regional Terrorism Training	1,200
27070 Communicator Emergency Notification Center	1,000

INFORMATION ASSURANCE

The conferees recommend $1,275,000 for information assurance only for a local community education agency in a collaborative information effort with the Software Engineering Institute.

SECURE WIRELESS TECHNOLOGY CAPABILITY

The conferees remain concerned that the Army National Guard lacks a near-term capability or plan to ensure a secure cellular phone capability for use in the event of a domestic emergency. Accordingly, the conferees direct the Director of the Army National Guard to report to the congressional defense committees within 30 days of enactment of this legislation on its plans to achieve that objective and would be supportive of a reprogramming to increase this capability.

Insert offset folio 252 here 82254.049

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
27650 Aircraft Operations/ECWCS	2,800
27800 Facilities, Sustainment, Restoration and Modernization/CT-FP DERF Transfer--Facility Upgrades	38,015
27800 Facilities, Sustainment, Restoration and Modernization/Key Field Facility Renovation	1,000
27850 Depot Maintenance	2,500
Budget Activity 4: Administration and Servicewide Activities:
28050 Administration/Information Operations	3,500
Other Adjustments:
28160 National Guard State Partnership Program	1,000
28170 Project Alert	1,375
28215 Defense Support Evaluation Group	2,800
28250 Surveying Training Systems	1,000
28260 Instrument Landing System at Rickenbacker ANG Base	500
28270 Cold Weather Clothing	300
28280 Medical Equipment	350

OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND

The conference agreement provides $5,000,000 for the Overseas Contingency Operations Transfer Fund.

UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

The conference agreement provides $9,614,000 for the United States Court of Appeals for the Armed Forces.

ENVIRONMENTAL RESTORATION, ARMY

The conference agreement provides $395,900,000 for Environmental Restoration, Army.

ENVIRONMENTAL RESTORATION, NAVY

The conference agreement provides $256,948,000 for Environmental Restoration, Navy.

ENVIRONMENTAL RESTORATION, AIR FORCE

The conference agreement provides $389,773,000 for Environmental Restoration, Air Force.

ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

The conference agreement provides $23,489,000 for Environmental Restoration, Defense-Wide.

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

The conference agreement provides $246,102,000 for Environmental Restoration, Formerly Used Defense Sites, instead of $212,102,000 as proposed by the House and $252,102,000 as proposed by the Senate.

OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

The conference agreement provides $58,400,000 for Overseas Humanitarian, Disaster, and Civic Aid.

FORMER SOVIET UNION THREAT REDUCTION

The conference agreement provides $416,700,000 for the Former Soviet Union Threat Reduction program.

SUPPORT FOR INTERNATIONAL SPORTING COMPETITIONS, DEFENSE

The conference agreement provides $19,000,000 for the Support for International Sporting Competitions, Defense account.

DEFENSE EMERGENCY RESPONSE FUND

The conference agreement provides amounts approved for those items requested in the Defense Emergency Response Fund in the appropriation accounts and line items identified by the Department.

INSERT OFFSET FOLIO 257 HERE 82254.050

PROCUREMENT OF SECURITY VEHICLES

The conferees are concerned about the justification provided for the procurement of physical security vehicles. The services' budget requests provide little explanation for the number of vehicles requested or the fluctuation in costs from one year to the next. In fact, the current budget request presents a disparity in costs by service ranging from $180,000 to $250,000 per physical security vehicle. The conferees believe that a better presentation of the request for procurement of these vehicles is necessary. Accordingly, the conferees direct the Under Secretary of Defense (Comptroller) to be the central coordinator of all budget justification material for physical security vehicle procurement. The Under Secretary shall submit to the congressional defense committees a separate consolidated justification that clearly explains each service's requirement and the maximum purchase cost authority requested.

NATIONAL IMAGERY AND MAPPING AGENCY (NIMA)

NFIP/JMIP CONSOLIDATION

The House included language directing that all NIMA funding be consolidated within the National Foreign Intelligence Program (NFIP) account. The Senate did not include such language. In response to the House direction, the Secretary of Defense stated that he is working with the Director of Central Intelligence (DCI) to determine the most efficient resource strategy for NIMA and is committed to revising the NIMA budget appropriately in the fiscal year 2004 President's Budget Request. The conferees appreciate the commitment of the Secretary of Defense on this matter, and on the basis of this commitment, the House recedes.

SUPPORT TO SMALL BUSINESS

The conferees recognize the importance of small business to the Department's procurement chain. In order to effectively compete in federal procurement processes, small businesses require proficiency in electronic commerce and electronic business practices. As such, the conferees recommend the Department seek innovative methods for providing support to small business supply providers in these areas and full funding of the Supply Chain Management program.

INSERT OFFSET FOLIO 260 HERE 82254.051

INSERT OFFSET FOLIO 261 HERE 82254.052

INSERT OFFSET FOLIO 262 HERE 82254.053

INSERT OFFSET FOLIO 263 HERE 82254.054

UH-60 BLACKHAWK HELICOPTERS

The conference agreement includes $269,916,000 to procure 19 UH-60 Blackhawk helicopters. This is an increase of $116,555,000, providing for an additional seven aircraft. Of the additional aircraft in the conference agreement, two UH-60L aircraft are available only for the Army Reserve as described in House Report 107-532. Of the additional aircraft, three shall be HH-60L Medical Evacuation (MEDEVAC) models available only for units of the Army National Guard, and two aircraft shall be UH-60L models available only for units of the Army National Guard.

CH-47F UPGRADE PROGRAM RESTRUCTURING

The conferees agree to provide an additional $39,100,000 to facilitate the restructuring of the CH-47F Chinook helicopter upgrade program. Given the critical importance of this improved helicopter to the Army's Objective Force, these funds should be used to facilitate a program restructuring in order to upgrade the full fleet of helicopters (which is currently 465) at the most efficient economic rate, which the conferees believe is between 36 and 48 helicopters per year. The Army is directed to ensure that out-year budgetary and program plans are implemented to meet 100 percent of the Army's CH-47F Objective Force helicopter requirement by no later than 2016.

ATIRCM

The conferees agree not to rescind $3,000,000 for ATIRCM as recommended by the House. These funds should have been reprogrammed to USSOCOM when responsibility for this program was moved to USSOCOM. The conferees direct the Army to expeditiously submit a reprogramming to the Congress in order to properly realign these funds to Procurement, Defense-Wide.

Insert offset folio 266 here 82254.055

Insert offset folio 267 here 82254.056

Insert offset folio 268 here 82254.057

Insert offset folio 269 here 82254.058

Insert offset folio 270 here 82254.059

Insert offset folio 271 here 82254.060

Insert offset folio 272 here 82254.061

Insert offset folio 273 here 82254.062

Insert offset folio 274 here 82254.063

Insert offset folio 275 here 82254.064

Insert offset folio 276 here 82254.065

Insert offset folio 277 here 82254.066

Insert offset folio 278 here 82254.067

Insert offset folio 279 here 82254.068

Insert offset folio 280 here 82254.069

Insert offset folio 281 here 82254.070

Insert offset folio 282 here 82254.071

Insert offset folio 283 here 82254.072

Insert offset folio 284 here 82254.073

Insert offset folio 285 here 82254.074

Insert offset folio 286 here 82254.075

Insert offset folio 287 here 82254.076

Insert offset folio 288 here 82254.077

Insert offset folio 289 here 82254.078

Insert offset folio 290 here 82254.079

CONTINUITY OF OPERATIONS

The budget request included $215,000,000 in funding under the Defense Emergency Response Fund for activities associated with upgrades and improvements to alternate relocation sites. The conferees have provided $120,000,000 for these activities. The conferees note that the Army, which is the executive agent, has provided little justification for these funds, no plan for their execution, has not coordinated military construction requirements at the sites, and has not demonstrated a commitment to support funding for these activities in subsequent years. For these reasons, the conferees direct that none of the funds provided for alternate relocation sites may be obligated until 30 days after the Secretary of the Army provides a report to the congressional defense committees which provides, in detail, the proposed use of funding, a timeline for execution, a review of necessary improvements to infrastructure, and a plan for funding in subsequent years.

STRYKER BRIGADE COMBAT TEAMS

In order to enhance the Army's transformation initiatives, the conferees provide an additional $59,500,000 for fielding of the Stryker Brigade Combat Teams (SBAT). Of this amount, $42,500,000 is provided in the `Operation and Maintenance, Army' appropriation and $17,000,000 in the `Other Procurement, Army' appropriation. The conferees direct that the additional operation and maintenance funding be made available to the Army Materiel Command Transformation Support Office, specifically to support the fielding of the six brigade teams.

GENERATORS

The conference agreement provides $79,180,000, as provided in the budget request, for generators and associated equipment. Of this amount, the conferees direct that no less than $2,400,000 shall be available only for the procurement of 2kW Military Tactical Generators, as proposed in the budget request.

INSERT OFFSET FOLIO 293 HERE 82254.080

INSERT OFFSET FOLIO 294 HERE 82254.081

INSERT OFFSET FOLIO 295 HERE 82254.082

INSERT OFFSET FOLIO 296 HERE 82254.083

INSERT OFFSET FOLIO 297 HERE 82254.084

INSERT OFFSET FOLIO 298 HERE 82254.085

INSERT OFFSET FOLIO 299 HERE 82254.086

INSERT OFFSET FOLIO 300 HERE 82254.087

INSERT OFFSET FOLIO 301 HERE 82254.088

INSERT OFFSET FOLIO 302 HERE 82254.089

INSERT OFFSET FOLIO 303 HERE 82254.090

INSERT OFFSET FOLIO 304 HERE 82254.091

INSERT OFFSET FOLIO 305 HERE 82254.092

CVN-77 INTEGRATED WARFARE SYSTEM (IWS)

The conferees agree to provide $90,000,000 for the CVN-77 Integrated Warfare System (IWS) instead of $250,000,000 as proposed by the House and no funding as proposed by the Senate. The conferees do not agree to the House restriction on the obligation of funds for the CVN-77 IWS contract data package.

It is the sense of the conferees that every opportunity should be taken to include potentially transformational technologies on the CVN-77 as it is being constructed. This will not only provide enhanced warfighting and defensive capabilities in the near-term, but also lay a cornerstone for risk and cost reduction on the CVN(X) program which is also strongly supported by the conferees.

To that end, the conferees direct that the additional funds provided are only for transformational technologies and initiatives for other CVN-77 IWS to include: (1) design and development of a common flexible island, (2) full service integrated networks to include data, voice, sensor, and HM&E monitoring and control, (3) multi-modal display workstation concepts using middleware and open system architectures, and (4) integrated advanced strike and mission planning capabilities for both the ship and embarked airwings.

The conferees also direct the Assistant Secretary of the Navy for Research, Development, and Acquisition to provide, no later than March 15, 2003, a revised program acquisition strategy for the CVN-77 which incorporates these transformational initiatives and establishes a foundation for regular technology refresh and product improvements during the life cycle of the ship.

ROPELESS ELEVATOR

The conferees understand the Department of the Navy is working on design concepts for ropeless elevator systems in aircraft carriers. The conferees support this effort and encourages the Navy to continue this development in future defense budgets.

INSERT OFFSET FOLIO 308 HERE 82254.093

INSERT OFFSET FOLIO 309 HERE 82254.094

INSERT OFFSET FOLIO 310 HERE 82254.095

INSERT OFFSET FOLIO 311 HERE 82254.096

INSERT OFFSET FOLIO 312 HERE 82254.097

INSERT OFFSET FOLIO 313 HERE 82254.098

INSERT OFFSET FOLIO 315 HERE 82254.100

INSERT OFFSET FOLIO 314 HERE 82254.099

INSERT OFFSET FOLIO 316 HERE 82254.101

INSERT OFFSET FOLIO 317 HERE 82254.102

INSERT OFFSET FOLIO 318 HERE 82254.103

INSERT OFFSET FOLIO 319 HERE 82254.104

INSERT OFFSET FOLIO 320 HERE 82254.105

INSERT OFFSET FOLIO 321 HERE 82254.106

INSERT OFFSET FOLIO 322 HERE 82254.107

INSERT OFFSET FOLIO 323 HERE 82254.108

INSERT OFFSET FOLIO 324 HERE 82254.109

INSERT OFFSET FOLIO 325 HERE 82254.110

INSERT OFFSET FOLIO 326 HERE 82254.111

INSERT OFFSET FOLIO 327 HERE 82254.112

F-22

The conferees agree with the language in the House and Senate reports regarding the F-22 program. In addition, the conferees agree, with some modification, to a general provision included in the House bill related to the F-22 testing program. Finally, of the amounts provided for the F-22, the conferees designate $207,000,000, requested for the producibility improvement program, as a special interest item. If the Air Force believes it is necessary to use these funds for an alternative purpose, the Department must submit a prior approval reprogramming.

C-17 AIRCRAFT

In the Department of Defense's fiscal year 2003 budget submission, the Air Force did not request a sufficient amount to fully fund the purchase of 15 C-17 cargo aircraft per year. Instead, it requested only the amount of funds it expected to obligate each year to start production of 15 aircraft, and financed the remaining costs in later years. This financing scheme runs counter to the `full funding' principles which guide Federal government procurement practice, and thereby creates a future liability for the Air Force and Congress. For this reason, the conferees disapprove the Air Force's C-17 financing proposal. As such, the conference agreement includes an increase of $585,900,000 over the budget request to fully fund the purchase of 15 C-17 aircraft in fiscal year 2003. Additionally, the conferees agree to retain House language which directs that funds made available within the `Aircraft Procurement, Air Force' account be used for advance procurement of 15 aircraft.

NATO AWACS

Not later than 60 days after the enactment of this Act, the Commander in Chief of the United States European Command shall submit a plan to the congressional defense committees that provides for the refurbishment and re-engining of the NATO AWACS aircraft fleet. This report should reflect the significant contribution made by the NATO AWACS fleet in response to the attack on the United States on September 11, 2001, and the invocation of Article V of the North Atlantic Treaty. The plan shall also describe any necessary memorandum of agreement between the United States and NATO for the refurbishment and re-engining of these aircraft.

APPLICATION OF BERRY AMENDMENT TO MULTI-YEAR AIRCRAFT LEASE PILOT PROGRAM

Due to the special circumstances surrounding the Multi-Year Aircraft Lease Pilot Program authorized in fiscal year 2002, Congress enacted Section 308 of P.L. 107-206 to clarify Berry Amendment restrictions on the use of foreign sourced specialty metals in commercial aircraft to be leased under this program. In this case, the Congress concurred with views expressed by Air Force officials that the unique financial and time-sensitive requirements of the aircraft lease arrangements and the administrative complexity involved in making Berry Amendment determinations on a plane-by-plane basis for over 100 aircraft built under commercial practices instead of under military acquisition procedures would add so much cost and delay that the entire program would be undermined. Enactment of Section 308 was intended to provide the opportunity to ensure that the Air Force would be able to economically procure air refueling tanker replacement aircraft necessary to the national security while maintaining the overall integrity of the Berry Amendment for future application.

The conferees note the assertion expressed by some industry officials that if the aircraft manufacturer for this lease program were allowed to calculate Berry Amendment requirements on a system-level basis for the entire fleet of aircraft, it could demonstrate that these aircraft contain a very high percentage content of domestically produced specialty metals such as titanium. The conferees believe this data could be useful in future deliberations about this program. The Secretary of the Air Force is therefore directed to provide the congressional defense committees with estimates of the amount, value, and overall percentage of foreign and domestic-sourced specialty metals (under the definitions of the Berry Amendment) to be used in the fleet of leased aircraft under this program and how this compares to the specialty metal content of military aircraft that have been procured by the Air Force over the last five years. The Secretary shall use such methodology as he determines will provide the most accurate estimates at a reasonable cost after consultations with the specialty metals and aircraft manufacturing industries. This report shall be submitted to Congress no later than six months after enactment of this Act.

PREDATOR UNMANNED AERIAL VEHICLE (UAV)

The conferees agree to provide an additional $26,000,000 for the acquisition of not less than three Predator B turboprop aircraft, including spares. Should the program office determine there are additional costs for aircraft, spares, support equipment, sensors, and productionization efforts which cannot be accommodated within the amount appropriated, the Air Force should consider submitting to Congress the appropriate reprogramming request to fund these requirements.

The conferees agree to provide an additional $68,000,000 in transfer from the Defense Emergency Response Fund for the acquisition of Predator A UAVs. This among, when added to the request of $23,068,000, is for the acquisition of 22 air vehicles.

DEFENSE AIRBORNE RECONNAISSANCE PROGRAM

The conferees agree to reduce funding for the RIVET JOINT Quick Reaction Capability (QRC) by $12,700,000 instead of $15,000,000 as proposed by the House and no reduction as proposed by the Senate.

The conferees are aware the Air Force preferred to have these funds transferred to a different line in the Aircraft Procurement, Air Force account to fund the same QRC on the COMPASS CALL platform. The conferees agree that should the Air Force determine that it wishes to proceed with putting this QRC on the COMPASS CALL aircraft, it should submit a request to reprogram funds and justify the requirement for expanding the program.

Insert offset folio 351 here 82254.113

Insert offset folio 352 here 82254.114

Insert offset folio 353 here 82254.115

Insert offset folio 354 here 82254.116

Insert offset folio 355 here 82254.117

Insert offset folio 356 here 82254.118

Insert offset folio 357 here 82254.119

Insert offset folio 358 here 82254.120

Insert offset folio 359 here 82254.121

Insert offset folio 360 here 82254.122

Insert offset folio 361 here 82254.123

Insert offset folio 362 here 82254.124

Insert offset folio 363 here 82254.125

Insert offset folio 364 here 82254.126

Insert offset folio 365 here 82254.127

Insert offset folio 366 here 82254.128

Insert offset folio 367 here 82254.129

Insert offset folio 368 here 82254.130

MISCELLANEOUS EQUIPMENT

The conferees agree that the Chiefs of the Reserve and National Guard components could exercise control of modernization funds provided in this account. The conferees further agree that separate submissions of a detailed assessment of its modernization priorities by the component commanders is required to be submitted to the defense committees. The conferees expect the component commanders to give priority consideration to the following items: HMMWV, Family of Medium Tactical Vehicles, Commercial Construction Equipment, AN/TMQ-41A Meteorological Measuring Sets, Bladefold Kits for Apache Helicopters, Combat Arms Training Systems, Firefinder Systems, the National Guard Lightway Project and the Paul Revere Portal, Next Generation Small Loader, Modern Burner unit, APN-21 beacon radar, P4RC+(P5) airborne combat training pods, APN-241 radar, F-16 Re-engining, Abrams Full-crew Interactive Skills Trainer, Cockpit Air Bag System, and Deployable Force-on-Force Integrated Range System.

DEFENSE PRODUCTION ACT PURCHASES

The conferees agree to provide a total of $73,057,000 for the Defense Production Act Purchases, the amount of the budget request.

Insert offset folio 371 here 82254.131

Insert offset folio 372 here 82254.132

Insert offset folio 373 here 82254.133

Insert offset folio 374 here 82254.134

Insert offset folio 375 here 82254.135

Insert offset folio 376 here 82254.136

Insert offset folio 377 here 82254.137

Insert offset folio 378 here 82254.138

Insert offset folio 379 here 82254.139

Insert offset folio 380 here 82254.140

Insert offset folio 381 here 82254.141

Insert offset folio 382 here 82254.142

Insert offset folio 383 here 82254.143

Insert offset folio 384 here 82254.144

Insert offset folio 385 here 82254.145

Insert offset folio 386 here 82254.146

Insert offset folio 387 here 82254.147

Insert offset folio 388 here 82254.148

Insert offset folio 389 here 82254.149

Insert offset folio 390 here 82254.150

Insert offset folio 391 here 82254.151

Insert offset folio 392 here 82254.152

Insert offset folio 393 here 82254.153

Insert offset folio 394 here 82254.154

Insert offset folio 395 here 82254.155

Insert offset folio 396 here 82254.156

Insert offset folio 397 here 82254.157

MAGNETO INDUCTIVE INITIATOR

The President's budget request includes $3,000,000 to be used for Engineering and Manufacturing Development of the Magneto Inductive Initiator. The conferees support the rapid fielding of this capability which will allow for U.S. forces to have a remote precision demolition capability that is highly reliable in hardened structures, bunkers, caves, buildings, and in the littoral surf zone. The conferees ask to be kept apprised of the progress of this important program.

SOLID STATE LASERS

There has been substantial technical progress in the ongoing solid state laser development efforts, and the need to continue rapid progress toward developing an Army tactical laser weapons capability for the Objective Force. Therefore, the conferees urge the Army to allocate $11,200,000, as proposed in the fiscal year 2003 budget request, for High Energy Laser Technology to the current Solid State Heat Capacity Laser program.

BRILLIANT ANTI-ARMOR TECHNOLOGY (BAT) AND BAT P3I SUBMUNITION PROGRAM

The conferees agree with the recommendations found in both the House and Senate reports to terminate the BAT program, and accordingly, include a reduction of $145,293,000 to this program. The conference agreement also provides $45,000,000 of the funds requested for this program for the purpose of developing and testing a multi-mode seeker technology. In addition, the conferees direct the Army establish a new project code for the seeker development to distinguish this work from the base BAT and BAT P3I programs.

LOITERING ATTACK MISSILE REQUIREMENTS REVIEW

The conferees direct the Secretary of the Army to submit a report to the congressional defense committees by no later than March 31, 2003, comparing and contrasting the cost, technical risk, schedule risk, and combat capability of replacing the planned Loitering Attack Missile (LAM) with a comparable capability centered on the use of Unmanned Aerial Vehicles (UAV) with a smart seeker munition. This report shall assess whether a UAV with a smart seeker munition can provide equal or better combat capability within the same or a shorter timeframe compared to use of the LAM under the existing Army Objective Force Transformation plan. This report shall also include an analysis of the relative capabilities of each system to discern friend or foe in real time and to limit collateral damage. It shall also assess whether a UAV/smart munition option provides better value and greater overall combat effectiveness to the Army when considering the added potential of combining surveillance and strike capability on the same platform.

FUTURE COMBAT SYSTEM AND INTELLIGENT MINEFIELDS

The conferees agree to provide an additional $105,000,000 for the Army's next generation warfighting capability, the Future Combat System. The conferees also agree with the Senate's language that encourages the Army to invest part of this additional funding into a development program for a next generation intelligent minefield. The conferees direct that the Army clearly define the requirements for a next generation intelligent minefield and ensure compliance with the Ottawa Treaty, and report back to the House and Senate Appropriations Committees with detailed plans for such a system. The conferees understand that the Army has already begun this process with plans to incorporate the Intelligent Munitions System (IMS) into the Future Combat System. The conferees urge that the Army consider using a portion of this additional funding to begin development of the IMS. Funds for the intelligent minefield may be obligated before the Milestone B decision for the Future Combat System program, for demonstration and validation of technologies as appropriate.

FUTURE TESTING REQUIREMENTS

The conferees agree with the House report language requiring the Secretary of Defense to provide a report on Future Testing Requirements. The Senate did not address this matter. The conferees direct the Secretary of Defense to submit this report to the congressional defense committees not later than May 1, 2003. The report should provide an analysis of the capabilities of the test ranges, including the need for investment in new equipment; the capabilities of current modeling and simulation techniques used in testing and evaluation; recommend a means of using modeling and simulation techniques to make the testing of weapons systems more efficient and effective; and propose a five-year plan of integrated investment for both ranges and modeling and simulation techniques.

NON-LINE OF SIGHT (NLOS) CANNON

The conferees agree to align the funding proposed in the Crusader budget amendment of the Non-Line of Sight (NLOS) Cannon to the Artillery Systems-Demonstration/Validation program to ensure that the experienced Army staff who were developing the Crusader will lead the effort to migrate these technologies, and to develop the NLOS cannon. The conferees, therefore, have included a total of $368,500,000, for the Non-Line of Sight Cannon and Resupply Vehicle Program in Artillery Systems Demonstration/Validation, to develop a Non-Line of Sight Cannon. This amount is an increase of $173,000,000 above the President's budget request. The conferees direct that this additional funding be used to integrate cannon technologies with a suitable platform and munitions to ensure that this NLOS Cannon can be delivered in the 2008 timeframe. Finally, the conferees direct the NLOS Cannon program office to closely coordinate its program with the Army's Future Combat Systems program office.

Insert offset folio 404 here 82254.158

COMBAT SUPPORT HOSPITAL-MOBILE SURGICAL UNIT

The conferees understand that the Army is working to develop a replacement system to the deployable medical hospital. Accordingly, $2,500,000 is provided to the U.S. Army Medical Research and Materiel Command, Ft. Detrick, MD, to prototype a 44-bed Combat Support Hospital consistent with the concept design of the U.S. Army Medical Center and School's ICT report on the Future Medical Support System.

M934 MORTAR--LOW COST COURSE CORRECTION MODULE

The conferees are aware of recently concluded tests sponsored by Army PM-Mortar which support further demonstration and evaluation of the Low Cost Course Correction (LCCC) module for the M934 Mortar. The conferees also note the positive performance of the LCCC module as reported by the Army and encourage the Secretary of the Army to address future funding requirements for the LCCC module and future testing requirements.

ARMY ASSAULT RIFLE EARLY TRANSFORMATION

The conferees are aware of significant Army progress in developing the XM-8 assault rifle as a stand-alone module of the XM-29 assault weapon program. The XM-8 appears to offer significant improvements over the current M-4 assault rifle and may be worthy of fielding on an expedited basis. The conferees direct the Secretary of the Army to review the costs, benefits and feasibility of accelerating replacement of the M-4 with the XM-8. The Secretary shall submit a report to the congressional defense committees by no later than April 1, 2003, comparing and contrasting the cost, weapon performance/capabilities, technical risk, schedule risk, and improvements in overall combat capability of fielding the XM-8 assault rifle module of the XM-29 assault weapon under an initial block development approach compared to the current fielding plan. This report shall specifically assess the benefits of an early block development fielding of the XM-8 in providing equal or better combat capability in a shorter timeframe, and the overall benefits to soldier effectiveness and survivability, compared to waiting for final development of the XM-29 under the existing Army Objective Force Transformation Plan.

PSEUDOFOLLICULITIS BARBE

The Conferees agree that Pseudofolliculitis Barbe (PFB) is a serious condition that impacts many African American military personnel and deserves additional attention. The conferees strongly encourage the Department of Defense to act quickly on a plan of action to initiate research into more effective treatments and control of this problem.

Insert offset folio 408 here 82254.159

Insert offset folio 409 here 82254.160

Insert offset folio 410 here 82254.161

Insert offset folio 411 here 82254.162

Insert offset folio 412 here 82254.163

Insert offset folio 413 here 82254.164

Insert offset folio 414 here 82254.165

Insert offset folio 415 here 82254.166

Insert offset folio 416 here 82254.167

Insert offset folio 417 here 82254.168

Insert offset folio 418 here 82254.169

Insert offset folio 419 here 82254.170

Insert offset folio 420 here 82254.171

Insert offset folio 421 here 82254.172

Insert offset folio 422 here 82254.173

Insert offset folio 423 here 82254.174

Insert offset folio 424 here 82254.175

Insert offset folio 425 here 82254.176

Insert offset folio 426 here 82254.177

Insert offset folio 427 here 82254.178

FORCENET

The conferees agree to provide an appropriation of $13,000,000 for the Navy's FORCEnet program instead of $20,000,000 as proposed by the House and no appropriation as proposed by the Senate.

Despite the conferees interest in the goals of FORCEnet, a program the Chief of Naval Operations considers a key transformation enabler for the 21st Century Navy, concerns remain about the lack of specificity and documentation provided thus far by the Navy. While a solid organizational structure for the development of FORCEnet requirements has been established, the Navy must now refine the program's plan and scope. To ensure continued oversight of this important program, the conferees direct that the Secretary of the Navy submit, by May 1, 2003, a detailed report on the FORCEnet program. At a minimum, the report shall identify the five-year estimated cost of the program, describe the long term and short term program objectives, define requirements, detail the spiral development and testing milestone plan, and indicate how each existing system will be integrated into the FORCEnet approach.

JOINT STRIKE FIGHTER--F136 INTERCHANGEABLE ENGINE

The conferees have included an additional $29,750,000 for the Joint Strike Fighter Interchangeable Engine Program only to continue the current effort to develop and maintain two, competing, interchangeable engine programs for the Joint Strike Fighter.

UNMANNED AERIAL VEHICLES

The conferees agree to provide a total of $262,459,000 for the Navy's tactical unmanned aerial vehicles program.

Broad Area Maritime Surveillance (BAMS): The conferees agree to provide an additional $42,300,000 for the Navy BAMS UAV. Of this amount, $28,300,000 is a transfer from the Defense Emergency Response Fund and shall only be used for the projects and activities as described in justification material submitted by the Navy and detailed in House Report 107-532; $7,000,000 is to determine the requirement for utilizing existing infrastructure resident in the Tactical Support Centers (TSCs) at P-3/EP-3 bases for hosting the BAMS mission planning and control and to initiate equipment upgrades as necessary; and $7,000,000 is for Global Hawk HAEUAV producibility initiatives such as tooling enhancements and improvements and special test equipment, an effort which the Navy shall coordinate with the Air Force.

The conferees believe the Navy should initiate a technology program to improve maritime ISR, including space-time processing algorithms from electro-optical data.

The conferees agree with the reporting requirements contained in House Report 107-532 with respect to the BAMS UAV.

VTOL UAV Operational Testing: The conferees agree to reduce by $4,000,000 the Navy's request for operational testing of the Vertical Take Off and Landing UAV instead of $9,000,000 as proposed by the House. This reduction is taken without prejudice and may be applied as a general reduction to the program.

USMC Pioneer upgrades: The conferees agree to provide a total of $16,000,000 for upgrades to the Pioneer UAV used in support of the Marine Corps; $7,000,000 is provided in the Research, Development, Test and Evaluation, Navy appropriation and $9,000,000 is provided in the Weapons Procurement, Navy appropriation. The conferees direct that these funds, and any additional funds as required, shall be used only to upgrade the Pioneer UAV in support of the Marine Corps.

VTOL UAV Rescission: The conferees agree not to rescind $2,000,000 from the $5,000,000 appropriated to the Research, Development, Test and Evaluation, Navy account in fiscal year 2002 as proposed by the House. The conferees agree that these funds are excess to the requirement for which originally appropriated and therefore direct that these funds instead be used by the Navy to establish a Joint Program Office with the Air Force for the Predator B and Global Hawk UAVs. To the extent that there may be similar vehicle and sensor requirements for the Navy and the Air Force, the Joint Program Office could facilitate the development of requirements, program management, acquisition support, testing and training.

Joint Operational Test Bed (JOTBS): The conferees agree to provide an additional $4,100,000 for the Joint Operational Test Bed System (JOTBS) project. The conferees further agree to the language contained in House Report 107-532 with respect to designation of the Deputy Chief of Naval Operations for Warfare Requirements and Programs (N7/N78), as the program sponsor. The conferees direct the Navy to evaluate the JOTBS prototype to determine if the system adequately addresses Service requirements and if so initiate the development of the necessary documentation of requirements.

NAVAL FIRES NETWORK

The conferees agree to provide an additional $7,500,000 in the Land Attack Technology program for Naval Fires Network (NFN), of which $2,500,000 is for the tactical dissemination module. The conferees agree that remaining funds shall be used to continue architecture design for NFN, to study and initiate a design for the Joint Fires Center, improve training devices, and support major Fleet exercises.

The conferees have also provided an additional $1,300,000 in the Distributed Common Ground Station line to continue development of an open architecture and sustain modernization and enhancement of precision strike capabilities for NFN.

TREATMENT OF RADIATION SICKNESS RESEARCH

The conference agreement provides $3.4 million for the establishment of a blood bank for the purpose of treating patients exposed to high doses of radiation. The conferees agree that these funds are to establish a blood bank with an entity that has a demonstrated track record in this specific area.

Insert offset folio 433 here 82254.179

Insert offset folio 434 here 82254.180

Insert offset folio 435 here 82254.181

Insert offset folio 436 here 82254.182

Insert offset folio 437 here 82254.183

Insert offset folio 438 here 82254.184

Insert offset folio 439 here 82254.185

Insert offset folio 440 here 82254.186

Insert offset folio 441 here 82254.187

Insert offset folio 442 here 82254.188

Insert offset folio 443 here 82254.189

Insert offset folio 444 here 82254.190

Insert offset folio 445 here 82254.191

Insert offset folio 446 here 82254.192

Insert offset folio 447 here 82254.193

Insert offset folio 448 here 82254.194

B-1 DSUP PROGRAM

Despite development problems which have plagued the Air Force's B-1 Defense System Upgrade Program (DSUP), the conferees agree to provide the fiscal year 2003 funding requested for this program. Concerned, however, by the need to continue modernizing the B-1 bomber so the aircraft can undertake combat missions in various threat environments, the conferees direct the Air Force to use these funds to explore alternative towed decoy and defensive systems other than the ALE-55 towed decoy included in the Department of Defense's original request. The Secretary of the Air Force shall report to the congressional defense committees on the allocation of these funds not later than January 1, 2003. Finally, the conferees approve a rescission totaling $45,500,000 of prior year funds in excess to the Air Force's DSUP requirements.

MC2C

The conference agreement provides a total of $338,089,000 for the Multi-sensor Command and Control Constellation (MC2C) program. This level is more than sufficient to fully fund all planned MP-RTIP design and platform adaptation activities for the coming year. Given the reported technical difficulties this program recently experienced in initial testing, the conferees strongly urge the Air Force to use any remaining funds for sensor and command and control system integration development efforts.

SPACE SURVEILLANCE (MSSS)

The conference agreement includes funding of $48,472,000 for the MSSS program. Of this amount, $13,000,000 shall be used to continue the Panoramic Survey Telescope and Rapid Response System. In addition, $2,000,000 shall be used only to fund the High Accuracy Network Determination System. The conferees are aware of security and electromagnetic interference concerns from antennas located near the site, and recommend allocating up to $5,000,000 for assisting in the relocation of the antennas. The remaining research funds should be allocated by on-site officials to programs which offer the greatest potential return. The conferees expect the officials to consider the following programs for funding: MATRIX, NEAT, and HSN.

ADVANCED POWER TECHNOLOGY

To improve technology transition and the incorporation of advanced power concepts into vehicles and facilities, the conferees direct the Secretary of the Air Force to prepare a plan for establishing an Advanced Power Technology office to support the program manager for support equipment, ground vehicles, and bare base. The plan should be provided to the House and Senate Appropriations Committees with the submission of the Department of Defense fiscal year 2004 budget request.

ENDURANCE UNMANNED AERIAL VEHICLES

The conferees agree to provide a total of $352,743,000 for the Air Force's endurance unmanned aerial vehicles program, including an additional $31,000,000 for the continued development and testing of the Global Hawk endurance UAV system and sensor requirements.

Global Hawk Defensive System: The conferees do not agree to the Budget request for an additional $30,000,000 for the development of a U-2 like defensive system for the Global Hawk UAV.

Global Hawk SIGINT Sensor Development: The conferees agree to transfer $59,000,000 requested for Global Hawk SIGINT sensor development, and the development efforts these funds were requested to support, into a new line entitled Global Hawk Advanced Payload Development and Support.

Global Hawk Advanced Payload Development and Support: The conferees agree to provide a total of $84,000,000 in this new line, of which $59,000,000 is a transfer from the SIGINT Sensor Development line, including the High Band Subsystem development effort, and $15,775,000 is a transfer from the Airborne Reconnaissance Systems Sensor Development line. It is the intent of the conferees that the Air Force work with the Navy and the Army to identify new and existing sensor technologies for a high altitude UAV, including a day/night hyperspectral sensor system developed by an Air Force laboratory, and use the funds appropriated to develop, test and demonstrate payload options to enhance Global Hawk UAV mission capabilities. The conferees directed the Air Force to submit by January 15, 2003, a plan for expenditure of these funds.

The conferees support the Air Force's Airborne Signals Intelligence Payload (ASIP) program, a common high altitude SIGINT sensor based on the ongoing HBSS program and a new low band effort based on existing technology. The ASIP program is the Office of Secretary of Defense approved program designed to replace the failed Joint SIGINT Avionics Family (JSAF) program. The fiscal year 2003 estimated cost for ASIP is $31,400,000, of which $17,900,000 shall be funded from Global Hawk SIGINT sensor development (Advanced Payload Development and Support) and $13,500,000 from funds provided in a separate line for U-2 SIGINT systems. The conferees direct the Navy to evaluate its requirements and participate in the ASIP effort as appropriate.

Insert offset folio 455 here 82254.195

Insert offset folio 456 here 82254.196

Insert offset folio 457 here 82254.197

Insert offset folio 458 here 82254.198

Insert offset folio 459 here 82254.199

Insert offset folio 460 here 82254.200

Insert offset folio 461 here 82254.201

Insert offset folio 462 here 82254.202

Insert offset folio 463 here 82254.203

Insert offset folio 464 here 82254.204

Insert offset folio 465 here 82254.205

Insert offset folio 466 here 82254.206

Insert offset folio 467 here 82254.207

Insert offset folio 468 here 82254.208

Insert offset folio 469 here 82254.209

Insert offset folio 470 here 82254.210

CHEMICAL AND BIOLOGICAL DEFENSE

The conferees agree to establish a `Chem-bio Defense Initiatives Fund' within the Department of Defense's Chemical and Biological Defense program, and provide an increase of $25,000,000 for this purpose. The Secretary of Defense is directed to allocate these funds among the program proposals listed below in a manner which yields the greatest gain in our chem-bio defensive posture. The program proposals to be considered are:

The National Center for Biodefense;

Chem-bio Threat Mitigation technologies;

Global Pathogen Science Portal;

Advanced Sensors for Chem-bio Agents;

Rapid Sensitive Biowarfare Protection;

Diagnostic Tool for Biowarfare;

Ultra-High Field Instrumentation;

Urban Security Initiative;

Chemical Imaging Biothreat Detection;

Biological Agent Sensor/Detection System;

Chem-bio Air Filtration System;

Food Safety and Security Sensors;

Bioinformatics;

Phylogenetic- and PCR-based Detector System

Field Portable Nucleic Acid Bioterrorism Detection;

LISA-Inspector Transportable Chem-bio Detection System;

Distributed Chemical Agent Sensing and Transmission;

Wide-Area Standoff Chem-bio Agent Detection System;

Air Purification for Protection System;

Rapid Antibody-based Countermeasures;

Oral Anthrax Antibiotic;

Plant Vaccine Development;

Rapid Response Sensor Networking for Multiple Applications; and

Chemical Biological Incident Response Force (CBIRF).

ANTHRAX VACCINE SUPPLY PREPAREDNESS

The conferees are concerned about the adequacy of the supply and production capacity for the only FDA-licensed anthrax vaccine currently available in the U.S. to protect our military and civilian defense personnel from the demonstrated and potential future threat of anthrax. The Secretary of Defense is directed to provide a report which assesses the immediate and short-term preparedness and potential future total biowarfare defense need for the FDA-licensed anthrax vaccine, the potential need for expanded production capacity to meet that need, and the need for a separate production capacity to mitigate risks of an event which could result in a halt to current vaccine production. The Secretary shall submit this report to the congressional defense committees within 90 days after enactment of this Act.

CHRONIC MULTI-SYMPTOM ILLNESSES

The conferees have provided $5,200,000 to extend research on chronic multi-symptom illnesses with a special focus on the relationship between Gulf War Illnesses and other diseases, fibromyalgia, chronic fatigue syndrome, and multiple chemical sensitivity. Within this amount up to $2,000,000 may be made available for research in the Upper Great Plains Region.

MEDICAL FREE ELECTRON LASER

The conferees agree that the work the universities are doing in conjunction with the Department of Defense to develop the medical free electron laser is vital to address a wide variety of research problems that are important to military personnel and civilian populations. The conferees provide $12,000,000 to continue research within the Department of Defense for this program and expect that these funds, along with any associated outyear funding, be retained within the Department of Defense.

BALLISTIC MISSILE DEFENSE

The conferees agree to provide a total of $7,387,856,000 for ballistic missile defense research and development and related procurement activities. This reflects a reduction of $14,400,000 from the President's request and transfers to other accounts totaling $28,700,000.

Last year the conferees provided guidance in the Statement of Managers accompanying the Department of Defense Appropriations Act, 2002 regarding special interest projects, budget justification material and reprogrammings. The conferees agree to sustain that guidance and, unless exceptions to the countrary are provided explicitly, expect the Department to continue abiding by this guidance in the future.

RADAR RESEARCH

The conferees agree to transfer $22,000,000 from the Missile Defense Agency's sea-based midcourse program to the Navy (PE 0604307N) only for the development of Solid State S-Band radar. In addition, the conferees agree that $10,000,000 in sea-based midcourse funds shall be made available for radar development, the exact technology to be decided by the agency after a careful consideration of relevant radar options.

SEA-BASED X-BAND RADAR

Subsequent to submission of the budget for fiscal year 2003, the Missile Defense Agency proposed acquisition of a sea-based X-band radar, in lieu of the land based concept previously funded by Congress. At this juncture, the conferees have little insight about the technical and cost feasibility of this initiative, or about the impact of this change on the schedule and test plan for the ground based mid-course segment. On that basis, the conferees direct that none of the funds provided for the ground based mid-course segment program may be obligated to acquire the proposed, foreign built sea-based platform until 30 days after the Director of the Missile Defense Agency provides a report to the congressional defense committees on the cost and schedule impact of this approach, including a comparison to the cost and capability of the previously proposed land based site and the technical criteria used to determine that a sea-based platform will provide effective test and operational performance for the missile defense system.

TECHNOLOGY TRANSITION PROGRAMS

The conferees agree to provide $25,430,000 for technology transition efforts, including the Challenge program, the Quick Reaction Special Projects program, and the Technology Transition Initiative. Of this amount, $12,800,000 shall be used only to fund the Challenge program. The remainder shall be allocated between the other listed programs, at the discretion of the Secretary of Defense. The Secretary is directed to provide to the congressional defense committees a report detailing his funding allocation decisions with the submission of the fiscal year 2004 Defense budget request.

HISTORICALLY BLACK COLLEGES AND UNIVERSITIES SCIENCE

The conferees direct the Department of Defense to evaluate the programmatic impact of combining funding and administration for the Historically Black Colleges and Universities Science program, the Hispanic Serving Institutions program, and American Indian Tribal Colleges program under a new program element.

The Department shall provide a report to the congressional defense committees on the results of this evaluation within 120 days of enactment of this legislation.

ADVANCED SEMICONDUCTOR DEVICES

The conferees recommend that the Department of Defense conduct a study to examine the long-term DoD acquisition model for advanced semiconductor devices used in military and intelligence applications. This study should address whether a consolidated U.S. semiconductor foundry could offer the U.S. Government a solution to the impending advanced technology procurement challenge. The Department is encouraged to make this study a high priority so that a preliminary assessment can be available by December 2002.

JOINT ROBOTICS

Based on reports received from the Department of Defense and U.S. military field commanders, the conferees agree the Department should proceed expeditiously to test, produce, and field technologically mature robots and other unmanned vehicles for use in combat. As such, the conferees recommend a total increase of $24,000,000 for the Joint Robotics program. Further, the conferees strongly encourage the Department to retain oversight of this program under the Office of the Secretary of Defense, given the applicability of robots to numerous joint and combined combat missions.

STRATEGIC CAPABILITY MODERNIZATION

The conference agreement includes $20,000,000 to fund the Department of Defense Strategic Capability Modernization program. The Department shall give priority to upgrading command and control systems and related Strategic Command communication systems in the use of these funds.

INFORMATION SYSTEMS ENGINEERING

The conferees remain interested in the Department of Defense providing a greater focus on its information systems engineering (ISE) effort. This effort is important to enabling the engineering of large-scale information systems for transformation to network-centric operations. Thus, the conferees direct DARPA to continue its efforts to pursue and support ISE research. The conferees urge that the expertise of ICICX and others be used to assist in developing and implementing new management strategies, consistent with the recommendations of the President's Information Technology Advisory Committee.

HOMELAND SECURITY COMMAND AND CONTROL ADVANCED CONCEPT TECHNOLOGY DEMONSTRATION

The conferees recommend $3,000,000 for the Homeland Security Command and Control Advanced Concept Technology Demonstration for upgrades to communication and display equipment, and subsequent demonstrations and spiral development at the C2 nodes in Louisiana.

Insert offset folio 481 here 82254.211

Insert offset folio 482 here 82254.212

TITLE V--REVOLVING AND MANAGEMENT FUNDS

DEFENSE WORKING CAPITAL FUNDS

The conference agreement provides $1,784,956,000 for Defense Working Capital Funds, instead of $1,832,956,000 as proposed by the House.

NATIONAL DEFENSE SEALIFT FUND

The conferees agree to provide $942,629,000 for the National Defense Sealift Fund, an increase of $8,500,000 to the budget request. The conferees also agree that the additional funds provided are only to finance the cost of constructing additional sealift capacity.

Insert offset folio 485 here 82254.213

Insert offset folio 486 here 82254.214

Insert offset folio 487 here 82254.215

DHP REPROGRAMMING PROCEDURES

The conferees share the concerns expressed in the report accompanying the House version of the Department of Defense Appropriations bill for fiscal year 2003 regarding the diversion of funds from DoD military medical treatment facilities (MTFs) to pay for contractor-provided medical care. To limit such transfers within the Defense Health Program operation and maintenance account, the conferees agree that the Department of Defense shall follow prior approval reprogramming procedures for transfers with a cumulative value in excess of $25,000,000 into the Private Sector Care activity group.

In addition, the conferees agree that the Department of Defense shall provide budget execution data for all of the Defense Health Program accounts. Such budget execution data shall be provided quarterly to the congressional defense committees through the DD-COMP(M) 1002.

PEER REVIEWED MEDICAL RESEARCH PROGRAM

The Senate recommended $50,000,000 for a Peer Reviewed Medical Research program. The conferees agree to provide $50,000,000 for this program, and recommend the following projects as candidates for study: acellular matrix research for military orthopedic trauma; alcoholism research; amyotrophic lateral sclerosis; and anti-diarrhea supplement; Army nutrition research; augmented care in the chain of stroke survival (ACCESS); blood-related cancer research; bone-related disease research; cell response to anti-cancer agents; Mt. Sinai cancer research program; casualty care research center; chiropractic care; epilepsy; infectious disease tracking system; interstitial cystitis research; low vision research; medical digital assistance; miniature renal assist devices; natural toxin detection technology; neuroscience research; Paget's disease; personal intelligent medical assistant; Providence cancer center; respiratory research; smoking cessation; social work research; and Volume Angio CAT (VAC) research.

CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY

The conference agreement on items addressed by either the House or Senate is as follows:

[In thousands of dollars]

------------------------------------------------------------------------------------------

                                                    Budget     House    Senate Conference

------------------------------------------------------------------------------------------

CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY:

CHEM DEMILITARIZATION--O&M                         974,238   974,238   974,238    974,238

CHEM DEMILITARIZATION--PROC                        213,278   213,278   213,278    213,278

CHEM DEMILITARIZATION--RDTE                        302,683   302,683   302,683    302,683

TOTAL, CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY 1,490,199 1,490,199 1,490,199  1,490,199

------------------------------------------------------------------------------------------

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES DEFENSE

The conference agreement includes $881,907,000 for `Drug Interdiction and Counter-drug Activities, Defense' as opposed to $859,907,000 as proposed by the House and $916,107,000 as proposed by the Senate. Adjustments to the budget request are as follows:

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS

[In thousands of dollars]

--------------------------------------------------------------------------------

                                                        House Senate Conference

--------------------------------------------------------------------------------

 Recommended Increases:

SOUTHCOM Reconnaissance UAV Counter-drug Initiative    15,100                 0

National Counter-narcotics Training Center, Hammer      1,000             1,000

Indiana National Guard Counter-drug Activities          1,000             1,000

Nevada National Guard CD RAID Counter-drug Program      2,000             1,000

Florida National Guard Counter-drug Port Initiative     2,500             2,100

Southwest Border Fence                                  6,700             4,700

Multi-jurisdictional Counter-drug Task Force Training   5,000             4,300

Southwest Anti-drug Border States Initiative            5,000             4,300

Tethered Aerostat Radar System at Morgan City, LA       4,000             2,200

C-26 Counter-drug Electro Optical Sensor Upgrades       6,200             5,200

Young Marines Program                                   1,500  2,500      1,500

Kentucky National Guard Counter-drug Activities         1,000  3,600      2,600

Northeast Counter-drug Training Center                  8,000  5,000      6,800

Tennessee National Guard Counter-drug Activities        1,000  1,000      1,000

National Guard Counter-drug Support                           35,000     20,000

OH-58 RAID EO/IR upgrades; ANG                                 4,000      2,400

Alaska National Guard Counter-drug Program                     3,000      2,700

West Virginia National Guard Counter-drug Program              3,500      3,000

Regional Counter-drug Training Academy, Mississippi            2,000      1,400

Hawaii Counter-drug Activities                                 3,000      2,700

NGB-Counter-drug Technology Consortium                         2,600      1,800

P-3 Counter-drug EO/IR Upgrades                                2,000      1,000

Midwest Regional Counter-drug Training                         5,000      3,500

 Recommended Reductions:

Tethered Aerostat Radar System Procurement             -5,000 -5,000     -5,000

DEA Support                                            -1,300            -1,300

Transit Zone Maritime Patrol Aircraft                  -9,000            -4,000

Riverine Training Deployments                          -1,000            -1,000

TAC OPS Support                                        -1,800            -1,000

T-AGOS                                                -13,000           -13,000

Classified                                            -17,900           -17,900

--------------------------------------------------------------------------------

OFFICE OF THE INSPECTOR GENERAL

The conferees agree to provide $157,165,000, as proposed by both the House and Senate, for the Office of the Inspector General. Of this amount $155,165,000 shall be for operation and maintenance, and $2,000,000 shall be for procurement.

TITLE VII--RELATED AGENCIES

CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND

The conferees agree to provide $222,500,000 for CIARDS instead of $212,000,000 as proposed by both the House and Senate.

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

The conferees agree to provide $163,479,000, of which $34,100,000 is for transfer to the Department of Justice, instead of $162,254,000 as proposed by the House and $122,754,000 as proposed by the Senate.

PAYMENT TO KAHO'OLAWE ISLAND CONVEYANCE, REMEDIATION, AND ENVIRONMENTAL RESTORATION FUND

The conference agreement provides $75,000,000 for payment to the Kaho'olawe Island Conveyance, Remediation, and Environmental Restoration Fund, instead of $25,000,000 as proposed by the House and $80,000,000 as proposed by the Senate.

NATIONAL SECURITY EDUCATION TRUST FUND

The conferees agree to provide $8,000,000 as proposed by both the House and the Senate.

TITLE VIII--GENERAL PROVISIONS

The conference agreement incorporated general provisions of the House and Senate versions of the bill which were not amended. Those general provisions that were amended in conference follow:

The conferees included a general provision (Section 8005) which amends lanaguage providing transfer authority of $2,000,000,000; requires a request for multiple reprogramming to be made prior to May 31, 2003; and provides additional fiscal year 2002 transfer authority.

The conferees included a general provision (Section 8021) which amends language to clarify the original intent that incentives authorized in the Indian Financing Act be applied broadly. The conferees expect these adjustments will be implemented expeditiously by the publication of an interim final rule.

The conferees included a general provision (Section 8029) which amends language directing that not more than 6,321 staff years may be funded, and reduces the amount appropriated for defense FFRDCs by $74,200,000.

The conferees included a general provision (Section 8050) that amends lanaguage recommending rescissions. The recissions agreed to are:

	(Rescissions)
Fiscal Year 2001:
Procurement of Weapons and Tracked Combat Vehicles, Army C2V	$9,500,000
Procurement of Ammunition, Army: WAM	4,000,000
Other Procurement, Army: Semitrailers, Tankers	8,000,000
Other Procurement, Navy: JTCTS	5,000,000
Missile Procurement, Air Force: Titan	93,600,000
Fiscal Year 2002:
Missile Procurement, Army:
Stinger	5,150,000
Avenger Mods	10,000,000
TOW Fire and Forget	13,200,000
LOSAT	9,300,000
Procurement of Ammunition, Army: RADAM	19,000,000
Other Procurement, Army:
Combat Identification Program	11,000,000
Spares--EHF Terminal	10,200,000
Missile Procurement, Air Force:
MALD	8,900,000
JSOW-B	18,000,000
Titan	87,700,000
Research, Development, Test and Evaluation, Navy:
Naval T&E Airborne Telemetry System	1,700,000
Research, Development, Test and Evaluation, Air Force:
B-1B DSUP	45,500,000
B-2 EHF SATCOM	23,500,000
Research, Development, Test and Evaluation, Defense-Wide:
Towed Decoy	3,000,000
Combat Development Activities	4,000,000
VSWMMCM-SAHRV	1,500,000
Passive RW Survivability	1,000,000
Chemical and Biological Defense Program	10,000,000

(Note: The conferees agree to rescind Titan funding in fiscal year 2001 and fiscal year 2002 budgeted for program closeout and facilities shutdown. The conferees note that launch delays have deferred the last Titan launch to fiscal year 2005. The conferees believe it is more appropriate to budget for these

activities in the year of performance. The conferees have made no adjustments to funds budgeted for special termination costs.)

The conferees included a general provision (Section 8065) which amends language limiting the use of funds. The amended provision includes a government-wide appropriations limitation intended by the conferees to protect the status of a national memorial established under Section 8137 of Public Law 107-117.

The conferees included a general provision (Section 8095) which amends language making funds available for the Arrow Missile Defense Program.

The conferees included a general provision (Section 8099) which amends House language providing $1,700,000 for the Fisher House Foundation, Inc.

The conferees included a new general provision (Section 8100) which amends Senate language which reduces funds available by $850,000,000 to reflect savings to be achieved from efficiencies in the procurement of advisory and assistance services.

The conferees included a general provision (Section 8101) which amends language which allows the Secretary of Defense to transfer $1,279,899,000 to fund increases in the cost of prior year shipbuilding programs.

The conferees included a general provision (Section 8105) which restores and amends a fiscal year 2002 provision which, for the period of fiscal years 2003 through 2005, provides the authority to transfer $20,000,000 of unobligated balances in `Research, Development, Test and Evaluation, Army' to a current year account only for the continuation of the Army Venture Capital Fund demonstration.

The conferees included a general provision (Section 8108) which amends Senate language appropriating $7,750,000 to provide assistance by grant or otherwise to public schools that have unusually high concentrations of special needs military dependents enrolled.

The conferees included a new general provision (Section 8109) which amends Senate language which reduces funds available by $400,000,000 for cost growth in information technology development.

The conferees included a new general provision (section 8112) which amends House language reducing funds available in operation and maintenance accounts by $120,000,000 for Working Capital Fund cash balance and rate stabilization adjustments.

The conferees included a new general provision (Section 8113) which amends House language reducing funds available in operation and maintenance accounts by $48,000,000 for excess funded carryover.

The conferees included a new general provision (Section 8114) which amends Senate language providing funds for combating terrorism. The conferees note that the conference agreement includes funds in title II, Operation and Maintenance, above those requested by the President for the service, Defense-Wide, and Reserve component operation and maintenance appropriations. This includes funds specifically requested in the Defense Emergency Response Fund for combating terrorism and related activities, which in this conference agreement have been provided in the operation and maintenance appropriations for proper execution. The provision provides that not less than $1,000,000,000 of these funds are available for operations of the Department of Defense to prosecute the war on terrorism. The conferees direct that these funds be executed as specifically delineated elsewhere in this statement.

The conferees included a new general provision (Section 8115) that amends House language which provides $3,400,000 in `Operation and Maintenance, Army National Guard' funds for a grant to the Center for Military Recruitment, Assessment and Veterans Employment.

The conferees included a new general provision (Section 8117) that amends Senate language amending Section 8159 of Public Law 107-117.

The conferees included a new general provision (Section 8118) that amends House language placing limitations on additional NMCI contract work stations until an Operational Assessment has been conducted and certified as acceptable to the congressional defense committees.

The conferees included a new general provision (Section 8119) which amends House language which prohibits acquisition of more than 16 F-22 aircraft until the Under Secretary of Defense for Acquisition, Technology, and Logistics provides a risk assessment to the congressional defense committees.

The conferees included a new general provision (Section 8120) which amends House language that allows for the transfer of funds from the Pentagon Reservation Maintenance Revolving Fund to the Defense Emergency Response Fund.

The conferees included a new general provision (Section 8121) which amends House language concerning development of the Non-Line of Sight (NLOS) Objective Force cannon and resupply vehicle program. Language directs the Army to implement an interim capability before complete

fielding of the Objective Force, and ensure that budgetary and programmatic plans will provide for no fewer than six Stryker Brigade Combat Teams.

The conferees included a new general provision (Section 8123) which amends House language that limits expenditure of funds until certain audit decisions have been made.

The conferees included a general provision (Section 8126) which amends Senate language making funds available from amounts appropriated in Public Law 107-206 under the heading `DEFENSE EMERGENCY RESPONSE FUND', for an amount up to the fair market value of the leasehold interest in adjacent properties necessary for the force protection requirements of Tooele Army Depot, Utah.

The conferees included a general provision (Section 8128) which amends Senate language providing $3,000,000 of `Operation and Maintenance, Defense-Wide' funds for impact aid for children with severe disabilities.

The conferees included a general provision (Section 8129) which amends Senate language appropriating $8,100,000 for grants to the American Red Cross, the United Service Organizations, Inc., and the Intrepid Sea-Air-Space Foundation.

The conferees included a new general provision (Section 8135) that amends Senate language which reduces available funds by $1,674,000,000 to reflect savings from revised economic assumptions.

The conferees included a new general provision (Section 8140) which amends Senate language which earmarks $3,000,000 of funds available in this Act for a grant to the National D-Day Museum.

The conferees included a new general provision (Section 8144) which amends Senate language authorizing that up to September 30, 2003, the President may waive conditions described in section 1305 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 22 U.S.C. 5952 note) if the President submits to Congress a written certification meeting several criteria.

The conferees included a new general provision (Section 8145) which amends Senate language amending sections 305 and 309 of the Supplemental Appropriations Act for Fiscal year 2002 (Public Law 107-206).

The conferees included a new general provision (Section 8146) which amends Senate language amending section 310 of the Supplemental Appropriations Act for Fiscal Year 2002 (Public Law 107-206) modifying a

grant for the purpose of supporting community adjustment activities relating to the closure of a Naval Security Group Activity.

The conferees included a general provision (Section 8148) which amends Senate language which provides $5,000,000 of `Operation and Maintenance, Defense-Wide' funds for operation of domestic violence fatality review teams.

The conferees included a general provision (Section 8149) which limits the issuance of government purchase and travel charge cards for Department of Defense personnel. The provision requires the Secretary of Defense to conduct a credit check before issuing to an individual a charge card, and prohibits the issuance of a charge card to an individual who is not found credit worthy. The conferees understand that this provision allows an individual with no credit history to be issued a restricted-use charge, debit, or stored value card.

The conferees included a new general provision (Section 8150) which amends Senate language directing the Secretary of the Navy to transfer administrative jurisdiction of the law enforcement training facility at the former Charleston Naval Base.

The conferees included a new title IX which provides the Secretary of Defense the authority to make loan guarantees to eligible U.S. commercial providers for the purpose of producing commercial reusable inspace transportation services or systems.

CONFERENCE TOTAL--WITH COMPARISONS

The total new budget (obligational) authority for the fiscal year 2003 recommended by the Committee of Conference, with comparisons to the fiscal year 2002 amount, the 2003 budget estimates, and the House and Senate bills for 2003 follow:

[In thousands of dollars]
New budget (obligational) authority, fiscal year 2002	$334,239,062
Budget estimates of new (obligational) authority, fiscal year 2003	366,671,630
House bill, fiscal year 2003	354,712,914
Senate bill, fiscal year 2003	355,405,941
Conference agreement, fiscal year 2003	355,107,380
Conference agreement compared with:
New budget (obligational) authority, fiscal year 2002	+20,868,318
Budget estimates of new (obligational) authority, fiscal year 2003	-11,564,250
House bill, fiscal year 2003	+394,466
Senate bill, fiscal year 2003	-298,561

Jerry Lewis,
Bill Young,
Joe Skeen,
Dave Hobson,
Henry Bonilla,
George R. Nethercutt, Jr.,
Randy `Duke' Cunningham,
Rodney P. Frelinghuysen,
Todd Tiahrt,
John P. Murtha,
Norman D. Dicks,
Martin Olav Sabo,
Peter J. Visclosky,
James P. Moran,
Dave R. Obey
(Except for sec. 8149 relating to corporate expatriates),

Managers on the Part of the House.
Daniel K. Inouye,
Ernest F. Hollings,
Robert C. Byrd,
Patrick J. Leahy,
Tom Harkin,
Byron L. Dorgan,
Richard J. Durbin,
Harry Reid,
Dianne Feinstein,
Herb Kohl,
Ted Stevens,
Thad Cochran,
Arlen Specter,
Pete V. Domenici,
Christopher S. Bond,
Mitch McConnell,
Richard C. Shelby,
Judd Gregg,
Kay Bailey Hutchison,

Managers on the Part of the Senate.

NEWSLETTER

Join the GlobalSecurity.org mailing list