House Armed Services Committee Press Release

US House Armed Services Committee

For Immediate Release:
May 14, 2003

Contact:

Harald Stavenas
Meghan Wedd
Angela Sowa
(202) 225-2539

House Armed Services Committee APPROVES
Fiscal Year 2004 Defense Authorization BILL

Legislation Builds on Initial Lessons of Operation Iraqi Freedom and War on Terrorism, Supports Military Personnel and Their Families, Provides Defense Spending to Meet Today's Threats and Prepare for Tomorrow's Challenges

House Armed Services Committee Chairman Duncan Hunter (R-CA) today announced that H.R. 1588, the National Defense Authorization Act for Fiscal Year 2004, was reported out of committee with a bipartisan 58 to 2 vote. The committee authorized $400.5 billion in budget authority for the Department of Defense (DOD) and the national security programs of the Department of Energy (DOE).

"The Iraqi conflict and our continuing war on terrorism have brought a renewed and proper focus on national defense. We owe much to our men and women in uniform. Their success in Iraq and Afghanistan is a testament to their bravery, training and equipment, and their commitment to defend our freedom.

"It is my guiding principle that American military families deserve no less than for us to make certain, should our nation have to resort to armed conflict, that we win such conflict quickly and decisively, with the fewest casualties possible. This legislation is part of the annual process to ensure we provide the proper tools and training for our troops. I am proud to say the House Armed Services Committee approved it with an overwhelming bipartisan vote.

"This bill bolsters our national security by striking a balance between modernizing our existing forces and investing in so-called transformational capabilities. The fact is, we are always evolving and transforming; the key is balancing short term risk with long term strategy.

"Our troops have seen nearly every type of conflict in recent months, from air campaigns and armored warfare, to special operations and urban street combat. They have fought terrorists and irregular forces while conducting psychological warfare and other covert operations. This real world proving ground allows for an examination of what works and what needs improvement."

"Drawing on early lessons from operations in Afghanistan and Iraq, we reaffirmed important cornerstones of American military might. Foremost among them are heavy armor, precision guided munitions, deep strike capability, air lift, aerial refueling, and missile defense. All proved their worth and importance, and this legislation appropriately increases funding for each of these critical needs.

"This bill also continues a tradition of supporting the development of transformational technologies. The success of these systems, ranging from the enhanced intelligence, surveillance, and reconnaissance capabilities of unmanned aerial vehicles to the increased lethality of precision guided munitions demonstrates the wisdom of that approach.

"None of our recent military successes or the freedom Americans enjoy would be possible without our troops. This bill includes a significant pay raise, along with other retention and recruitment incentives, such as housing allowances and strengthened programs for our National Guard and Reserve personnel. We must and will continue to do more to take care of our troops and their families.

"We've come a long way since the procurement holiday of the mid-1990s. Under former Chairmen Floyd Spence (R-SC) and Bob Stump (R-AZ), this committee fought hard to restore spending for our national security. This work is manifest in our recent military victories. Much remains to be done, however, to counter years of cuts to modernization accounts, force structure and readiness.

"The harsh reality is that the funding gap created during the past decade will require many years of significant increases in defense spending. John Kennedy spent nine percent of America's gross domestic product on defense. Ronald Reagan spent six percent. In 2004, we will spend 3.4 percent on defense. As Chairman, I will continue to work to increase this number over the long term.

"Some might argue that we cannot afford to both modernize our existing force structure while developing the transformational capabilities needed for the future. I believe that as a country at war with global terrorism, the United States can ill afford not to.

"I commend President Bush, Secretary Rumsfeld and our military leaders for taking the fight to those who would do us harm. We stand committed to provide the resources to ensure our continued success.

"I am grateful to Subcommittee Chairmen Curt Weldon (R-PA), Joel Hefley (R-CO), Jim Saxton (R-NJ), John McHugh (R-NY), Terry Everett (R-AL), Roscoe Bartlett (R-MD), Ranking Member Ike Skelton (D-MO), and all the members of the committee for their hard work in advancing this important legislation."

# # #

A complete summary of H.R. 1588 as reported out of committee is available on the House Armed Services Committee website at: http://armedservices.house.gov. Electronic versions of the legislation and the committee report will be posted on the committee website by May 16, 2003.

H.R. 1588: Implementing Lessons Learned

H.R. 1588 balances the need to address today's threats, while preparing for tomorrow's challenges. It implements lessons learned from recent conflicts and acts upon ongoing committee concerns. The legislation also incorporates needed policy, personnel, and procedural reforms at the Department of Defense. Highlights include:

Increasing Combat Capabilities

H.R. 1588 implements emerging lessons from operations in Afghanistan, Iraq, and the continuing war on terrorism. These conflicts have reaffirmed the need for certain core capabilities and the legislation provides for their increased funding:

ü Heavy Armor	ü Air Lift
ü Deep Strike Capability	ü Aerial Refueling
ü Precision Guided Munitions	ü Missile Defense

Force Projection

The proactive fight against terrorism and the proliferation of weapons of mass destruction has reinforced the need to project military power around the world quickly and effectively. With uncertain access to foreign countries and adversaries which use terrain including caves and bunkers, our military must build capabilities to deliver overwhelming force from great distances. H.R. 1588 supports:

ü R&D Funds for a New Deep Strike Bomber	ü Continuing Support for Leaner, Faster, and More Lethal Forces
ü Stand-off Weapons: Tactical Tomahawk and Affordable Weapon	ü Working to Maintain the Navy's Force Structure
ü Enhanced Resources and Capabilities for Special Operations Command	ü R&D Funds for New Navy Technologies and Operational Concepts

Reforming DOD Policies and Practices

H.R. 1588 seeks to increase the effectiveness of the Department of Defense in performing its national security function. New measures include:

ü Repeal of Unnecessary Reporting Requirements and Modification of Others	ü Modernizing the DOD Personnel System to Allow for Retention and Recruitment of Important Personnel
ü Requiring the Department to Help Bolster U.S. Defense Industrial Base Capabilities	ü Enhanced Military Readiness and Continued Conservation of Marine Mammals and Endangered Species
ü Elimination of Waste and Inefficiencies in Commercial Contract Awards

H.R. 1588: Funding and Legislative Highlights

Major policy and funding recommendations made at the full committee level include:

efforts to revitalize the U.S. defense industrial base;
extending the authorization of the use of funds available for drug interdiction and counter drug activities in Colombia to support efforts against organizations designated as terrorist organizations;
requiring a study of how Iraq acquired weapons of mass destruction and associated delivery systems, to include unmanned aerial vehicles and cruise missiles, as well as the illegal transfer of militarily useful goods to Iraq during Operation Iraqi Freedom;
supporting the Administration's request for funds to dismantle, secure, and eliminate weapons of mass destruction and facilities in the Former Soviet Union;
granting new management flexibility over the civilian workforce at DOD;
developing a responsible set of initiatives intended to restore a balance between protecting the environment and military readiness; and
provisions improving federal agencies ability to contract with vendors that otherwise would not contract with the federal government due to arcane and bureaucratic contracting rules - small businesses should particularly benefit.

Subcommittee on Tactical Air and Land Forces
Chairman Curt Weldon (R-PA)

H.R. 1588 recognizes the United States must strike a balance between modernizing and enhancing current combat forces and developing the next generation of capabilities to ensure military dominance over all future adversaries. The Tactical Air and Land Forces Subcommittee has jurisdiction of approximately 1,000 procurement, research, development, test and evaluation programs, totaling $50 billion in the fiscal year 2004 request. Highlights of the subcommittee's work include:

· authorization for an additional $1.9 billion above the Administration's request for tactical air and land forces programs;

· $726.8 million for heavy forces modernization, including upgrades for the Bradley Fighting Vehicle and the Abrams tank;

· $3.7 billion across the services to procure more conventional ammunition, including $44 million for ammunition industrial base upgrades;

· $1.7 billion for the Future Combat Systems program, but with added congressional oversight; and

· multiyear procurement for E-2C and F-18 aircraft and increased numbers of prior year authorized multiyear procurement of C-130J aircraft.

Subcommittee on Readiness
Chairman Joel Hefley (R-CO)

Recognizing current threats, H.R. 1588 includes initiatives to address immediate shortfalls in important warfighting requirements. All recommendations are critical to the conduct of military operations of the type just concluded in Iraq and Afghanistan. The Readiness Subcommittee addressed concerns regarding the overall readiness of our armed forces and the maintenance and sustainment of the vital facilities and infrastructure that support our uniformed and civilian personnel. The legislation also addresses the impact of current operations on our major combat systems, and many important programs that affect the quality of life for our military and civilian personnel and their families, including military construction, family housing, and base operating support. Highlights of the subcommittee's work include:

· $1.1 billion for the services' high priority unfunded readiness requirements, including depot maintenance across the services;

· $114 billion for critical readiness accounts to support the day-to-day operations of the U.S. military;

· increases to the military construction and family housing budget by approximately $500 million; and

· support for DOD's reduced overseas military construction and family housing request.

Subcommittee on Terrorism, Unconventional Threats and Capabilities Chairman Jim Saxton (R-NJ)

Recognizing initial lessons learned from recent operations, H.R. 1588 reprioritizes funding from indistinct programs toward more immediate needs. The legislation funds urgent requirements to protect Americans at home and our deployed soldiers, sailors, airmen and Marines from those who are developing weapons of mass destruction. Responsible for DOD counter proliferation and counter terrorist programs, the Terrorism Subcommittee sought to address immediate needs in the fight against terrorism - while also maintaining our technological edge over the long term. Highlights of the subcommittee's work include:

· more than $65 million for Special Operations Forces weapons and equipment procurement;

· an authorization for increases in Special Operations Forces end strength levels;

· $566.7 million to procure chemical-biological weapons detection equipment; and

· $75.3 million to devise more effective ways to combat terrorism.

Subcommittee on Total Force
Chairman John McHugh (R-NY)

H.R. 1588 addresses not only emerging lessons from the global war on terrorism, but also long-standing committee concerns about the need for better military benefits and the inadequacy of manpower. Members of the Total Force Subcommittee met with military personnel deployed overseas and here at home in order to ascertain their own "lessons learned." The recommendations also build on the subcommittee's belief in the need to be proactive in military personnel policy and pay matters, so as to sustain the commitment and professionalism of America's all-voluntary armed services, and the families that support them. Highlights of the subcommittee's work include:

an increase in basic pay for members of the armed forces averaging 4.1 percent, as well as targeted increases for mid-grade and senior noncommissioned officers and select warrant officers;
establishment of a civilian and military task force to examine issues related to sexual harassment and assault;
increases in active component end strengths to meet high priority manpower shortfalls in special operating forces, force protection, communications, intelligence, and key specialties such as airborne refueling and combat control; and
initiatives to facilitate and enhance the service of reserve and National Guard personnel, such as:

equalization of entitlement to hazardous duty pay with active duty members;

authorization of supplemental subsistence allowance targeted to reservists serving in high cost and unique duty locations;

authorization to pay mobilized reservists a per diem for housing during leave;

authorization of unlimited access to commissaries for reservists and family members; and

eligibility for dependents of mobilized reservists to attend DOD schools overseas on a space available, tuition free basis.

Subcommittee on Strategic Forces
Chairman Terry Everett (R-AL)

H.R. 1588 supports the Administration's budget request for ballistic missile defense programs. However, in recognition of more immediate concerns, it shifts funding from activities with longer term pay-off to more near-term requirements, particularly in the area of theater missile defense. The Strategic Forces Subcommittee's jurisdiction encompasses approximately $58 billion in programs within the budget request, including $17.6 billion for research and development, $25.4 billion for procurement, and $15.5 billion for Department of Energy national security activities. The programs are primarily in the areas of ballistic missile defense, the military use of space, strategic weapon systems and platforms, and nuclear weapons. Highlights of the subcommittee's work include:

· authorization of the President's budget request of $9.1 billion for ballistic missile defense programs;

· an increase of $177 million above the budget request for strategic forces programs;

· $838.1 million for Advanced Extremely High Frequency military satellite communications (MILSATCOM);

· an additional $20 million to upgrade the Air Force space surveillance network.

Subcommittee on Projection Forces
Chairman Roscoe Bartlett (R-MD)

A critical lesson learned is the need to project military power around the world on short notice. With limits on access to foreign countries, such as was most recently witnessed in Turkey, the U.S. must maintain robust naval capabilities. Doubts concerning adequate planning persist, leading to provisions in H.R. 1588 which call for an analysis of potential threats, emerging technologies, and new operational concepts to defeat new challenges. The Projection Forces Subcommittee has jurisdiction of approximately 500 procurement, research and development, test and evaluation Navy, Air Force and Army programs, totaling $28 billion in the fiscal year 2004 request. Highlights of the subcommittee's work include:

· an increase of $1.7 billion above the budget request for projection forces programs;

· one additional C-17 aircraft for $172 million;

· an additional $20.3 million to sustain a force structure of 83 B-1's, 23 aircraft above the level planned;

· an airborne tanker initiative of $229 million that would give the Air Force the flexibility of retaining KC-135E aircraft, meeting unfunded requirements for depot maintenance of tanker aircraft, and/or preparing to procure or lease KC-767 airborne tanker aircraft;

· an additional $178 million for the Affordable Weapon - a highly capable cruise missile built for less than 1/10^th the cost of a Tomahawk;

· $100 million in research and development funding for the next generation, deep strike stealth bomber; and

· several legislative proposals, such as:

multi-year procurement authorization for Tomahawk missiles and Virginia Class submarines;

a limit on the retirement of C-5A aircraft until testing of a reliability and re-engining program is completed; and

multiple studies on potential future fleet architectures for the Navy.

Summary of Major Provisions
for H.R. 1588
National Defense Authorization Act
for Fiscal Year 2004

Defending America

"Operations in Afghanistan , Iraq and elsewhere in the war on terrorism have demonstrated that our adversaries are increasingly unconventional in nature. To meet these changing threats, this legislation takes a proactive approach to defeating the enemy by increasing funding for intelligence, special operations, and non-proliferation programs."

- HASC Terrorism, Unconventional Threats and Capabilities Subcommittee Chairman Jim Saxton (R-NJ)

IMPLEMENTING LESSONS LEARNED:
WEAPONS OF MASS DESTRUCTION

Combating Terrorism
Protecting our Homeland, Troops, and Installations

Biomedical Countermeasures. Nearly every day there are lessons learned about the immediate need for U.S. forces to have the means to defend against chemical, biological, radiological, or nuclear (CBRN) agents. As such, the committee recommends provisions to develop and procure biomedical countermeasures, including:

· requiring the Secretary to establish and carry out an accelerated research and development program for biological countermeasures, including drugs and vaccines;

· authorizing the Secretary, in consultation with the Secretary of Health and Human Services, to procure biological countermeasures for the DOD stockpile; and

· defining the conditions under which the Secretary of Defense could authorize the use of such countermeasures for members of the armed forces in a potential or actual emergency.

Chemical Agents and Munitions Destruction. The committee notes positive progress in the destruction of the U.S. stockpile of chemical agents and munitions, including activities at Johnston Atoll in the Pacific; Tooele, Utah; and Edgewood, Maryland, and preparation for operations at Anniston, Alabama; and Umatilla, Oregon. The committee recommends $1.7 billion ($50 million more than the Administration's request for the Chemical Stockpile Emergency Preparedness Program) for chemical agents and munitions destruction. The increased funds enhance the ability of state and local governments in Arkansas, Oregon, and Alabama to protect local communities from the risks of chemical stockpile storage and destruction operations.

Chemical-Biological Defense (CBD) Procurement Program. The committee recommends $566.7 million (increasing the Administration's request by $61 million to address immediate needs) for procurement of chemical-biological defense equipment and materiel, including:

$353.5 million for contamination avoidance, including funds for automatic chemical agent alarms and advanced chemical agent detectors;
$85 million for individual protection equipment;
$72 million for procurement of drugs, vaccines, and biological sensors under the joint biological defense program;
$53.6 million for collective protection equipment; and
$12.6 million for decontamination equipment.

Chemical Biological Defense Research and Development. The committee recommends $664 million ($65 million more than the Administration's request) for chemical and biological defense research and development. The increase includes $50 million for applied research and advanced technology development initiatives. In these initiatives, emerging technologies and concepts may compete for funding on the basis of technical merit and anticipated contribution to the chemical biological defense capabilities of U.S. armed forces and homeland defense. The increase also includes $15 million to establish a secure, high-containment biomedical test and evaluation laboratory to support DOD chemical biological defense and medical programs. In addition, the committee recommends $149.3 million ($12 million more than the Administration's request) for the Defense Advanced Research Projects Agency's biological warfare defense program. The increase is for the development of broad-spectrum asymmetric protocols for biological defense.

Developing Technology to Combat Terrorism. The committee recommends $75.3 million ($14.8 million more than the President's request) for the Combating Terrorism Technology Support (CTTS) Program. Under the direction of the interagency Technical Support Working Group, the CTTS program addresses technology developments that may help efforts to combat terrorism. Specific increases include:

· $5 million for development and evaluation of new materials and technologies to protect buildings and other infrastructure, and new testing techniques and technologies to assess new structural designs against the effects of explosive blasts;

· $4.8 million for the chemical-biological electrostatic decontamination system, which uses a charged mist that, when sprayed onto a contaminated surface and illuminated with ultraviolet light, destroys any chemical or biological agents;

· $3 million for development of facial recognition technology to identify possible terrorists by matching features with data contained in a facial recognition library; and

· $2 million to continue the development of magnetic quadrupole resonance explosives detection to enhance detection capabilities of explosives in luggage or mail.

Special Operations Command (SOCOM). A major lesson learned in recent conflicts is that the best way to fight terrorism is to keep terrorists far from our shores. Through Operations Enduring Freedom and Iraqi Freedom, the small but highly trained Special Operations Forces (SOF) has proven to be a great asset in disrupting the enemy overseas. As such, the committee recommends $33 million ($10.5 million more than the Administration's request) for SOF weapons procurement. The increase purchases additional AT4-confined space (CS) anti-armor and bunker breeching weapons, the SOF's primary shoulder fired weapon for confined spaces. In addition, the committee recommends $32.5 million ($16.5 million more than the Administration's request) for SOF small arms and weapons. The increase includes funding for the AN/PVS-17A mini night sight, which will enhance the M-4 rifle's targeting capabilities, the light weight counter mortar radar, which will allow SOF under mortar fire to counterattack with accurate, timely fire, and the infrared zoom laser illuminator/designator, which will permit the surgical delivery of global positioning system guided weapons onto targets. The AT4-CS, AN/PVS-17A, counter mortar radar, and the infrared zoom laser all promise to increase the combat capability of special operations tactical units, and are all unfunded requirements of SOCOM's Commander. Finally, the committee supports increasing SOF end strength levels by 1,890, provided that personnel standards are not compromised by manning a larger force.

Global Effort in the War on Terrorism

Counter-Drug Activities. The committee supports the Administration's request to fund DOD efforts to stop the flow of drugs into the U.S. and recommends $817.3 million (matching the Administration's request) for drug interdiction and counter-drug activities, and $159.9 million (matching the Administration's request) for expenses contained in the operating budgets of the services.

Additionally, the committee believes U.S. assistance to the government of Colombia should not only continue a unified campaign against narcotics trafficking, but also curtail the activities and financial support of terrorist organizations. Accordingly, the committee recommends a two-year extension of the Secretary of Defense's authority to use funds in this provision for activities in Colombia for counter-drug as well as counterterrorism efforts.

Cooperative Threat Reduction (CTR). The committee supports the Administration's request for $450.8 million to dismantle, secure, and eliminate WMD and WMD facilities in the Former Soviet Union (FSU) through the CTR program, including:

· $171.5 million to destroy chemical weapons in Russia;

· $86.4 million to eliminate strategic offensive arms in Russia;

· $54.2 million to prevent proliferation of biological weapons and materials from the FSU;

· $48 million to improve security at nuclear weapons storage facilities in Russia;

· $39.4 million to prevent the proliferation of WMD and WMD technologies and material outside Russia but within the FSU;

· $23.2 million to improve security for the transportation of nuclear weapons in Russia; and

· $3.9 million to eliminate strategic nuclear arms in the Ukraine.

The committee continues to be concerned about uncooperative behavior by Russia and recommends several modifications to increase accountability and transparency in the CTR program:

Recent U.S. investments in CTR funds have been lost because the necessary land-use permits were not granted. Therefore, the committee recommends a requirement that DOD identify and obtain the necessary permits before expending all of the funds needed to complete a project. In addition, to further improve oversight, the committee recommends that DOD deploy on-site managers at large construction projects.
Russia continues to demonstrate an unwillingness to grant sufficient access to its key biological research facilities so that the U.S. can determine that they are not researching or attempting to produce illicit biological weapons. Therefore, the committee recommends limiting spending on biological defense research and early warning preparedness against biological attack to those sites that provide sufficient access.
Last year, in response to a request by the Administration, Congress authorized the President to waive requirements that an FSU state must meet before receiving CTR funds. The committee recommends extending for one year the President's authority to waive certain requirements so funds may be released for the construction of the chemical weapons facility at Shchuch'ye. However, the committee remains concerned about Russia's continued failure to comply with requirements on biological and chemical weapons. Therefore it recommends creating incentives for Russia and other states to honor their commitments to Shchuch'ye and other nonproliferation programs in Russia by authorizing a portion of the Shchuch'ye budget as a matching fund.

The committee recommends expending $50 million in prior-year unobligated CTR funds outside the FSU by transferring those funds to the State Department's Nonproliferation and Disarmament Fund, which already conducts nonproliferation and disarmament activities around the world. The committee's recommendation would enable the Administration to achieve its goals efficiently without duplicating State Department functions within DOD.

Iraqi Advanced Weapons Report. During 24 years of international inspections in Iraq, the government of Saddam Hussein worked to circumvent inspections efforts, exploit holes in export control processes, and defy multilateral and unilateral sanctions and arms control agreements to obtain WMD and advanced conventional armaments. In order to prevent such activity from happening in the future, the committee recommends requiring the Secretary of Defense to conduct a study on how Iraq was able to obtain these materials, and why nonproliferation processes failed to stop the spread of dangerous weapons into Iraq. The report should also address the illegal transfer of militarily useful goods to Iraq during Operation Iraqi Freedom.

National Nuclear Security Administration (NNSA) Nonproliferation Programs. NNSA's nonproliferation programs are intended to reduce the threat resulting from the proliferation of WMD and nuclear materials. The committee recommends $8.8 billion ($783.6 million more than the authorized level from fiscal year 2003) to address the proliferation of WMDs (a complete listing of NNSA programs may be found on pages 42-43).

Other Initiatives

Revitalizing the U.S. Defense Industrial Base. The ongoing war on terrorism dictates the need to have reliable domestic sources of weapons and equipment. Unfortunately, fewer American companies are capable of designing and manufacturing the components and materials used in military systems, as the U.S. industrial base is becoming more dependent on foreign sources. As such, the committee directs the Secretary of Defense and the service secretaries to establish a program assessing the ability of the U.S. industrial base to produce military systems and key critical components and materials we need to support national security and win the war on terrorism. In addition, the committee recommends provisions to further strengthen the U.S. industrial base by:

authorizing $100 million for a Defense Industrial Base Capabilities Fund to develop U.S. capabilities for the production of components and materials that are critical to the operation and performance of military systems;
requiring the Secretary of Defense to purchase certain critical items only if they are produced entirely in the U.S., unless the Secretary declares an urgent reason to purchase from a foreign source;
expanding the list of items that DOD is required to purchase from domestic sources, and limiting the authority of the Secretary of Defense to waive this requirement;
directing the Secretary of Defense to identify all critical components and essential U.S. capabilities necessary to produce such items;
require the Secretary of Defense to identify any purchases made from foreign sources that could otherwise have been from U.S. sources, and further identify purchases made from foreign sources for key critical equipment that is paramount to U.S. national security;
bolstering manufacturing capabilities through the use of U.S. machine tools; and
introducing much stronger Berry Amendment provisions in order to use commercial aircraft for military purposes.

Protecting Americans from
Ballistic Missile Attack

"To ensure that Americais better able to respond to emerging threats unique to the security realities of the new century, H.R. 1588 places an increased emphasis on theater missile defense programs with more funding for Patriot PAC-3 missiles and THAAD testing. Additional weight is given to critical space-based technology including the Advanced Extremely High Frequency MILSATCOM and Global Positioning System III satellite programs.

-HASC Strategic Forces Subcommittee Chairman Terry Everett (R-AL)

IMPLEMENTING LESSONS LEARNED:
BALLISTIC MISSILE DEFENSE

H.R. 1588 supports the Administration's budget request for ballistic missile defense programs. However, in recognition of more immediate concerns, the legislation shifts funding from activities with longer term pay-off to more near-term requirements, particularly in the area of theater missile defense.

The committee commends the President's commitment to missile defense, and recommends $9.1 billion for the continued development of ballistic missile defense (BMD) programs, including:

· Midcourse Defenses. The committee recommends $3.6 billion ($29.9 million more than the Administration's request, recognizing the immediate threat from nations such as North Korea) for mid-course defense programs to begin fielding an initial defense operational capability in fiscal year 2004.

· Boost Defense Segment. The committee recommends $626.3 million (matching the Administration's request) for directed energy boost phase intercept programs.

· Patriot Advanced Capability-3 (PAC-3). The committee recommends $687.6 million ($126 million more than the Administration's request) for PAC-3 procurement to speed the protection of our troops and allies. The increase includes $36 million for radar upgrades and communication enhancements, and $90 million for the procurement of an additional 30 missiles (for a total of 138 missiles), addressing an unfunded requirement of the Army Chief of Staff.

· BMD Products. The committee recommends $312.5 million ($31.1 million less than the Administration's request, reflecting the need to fund more near-term requirements) for definition, integration, and demonstration of the multi-layered ballistic missile defense system, including battle management, command, control, and communications.

· Sensors. The committee recommends $438.2 million (matching the Administration's request) for ground and space-based sensors, including the Space Tracking and Surveillance System (formerly SBIRs-Low), the Russian-American Observation Satellite program, and a common radar program.

· Systems Core Segment. The committee recommends $439 million ($45 million less than the Administration's request) for core system engineering and support that do not benefit a specific block of the overall BMD system. The committee reduces the Administration's request by holding funding for the Missile Defense National Team to fiscal year 2003 levels because its exact role and measures to evaluate its performance remain unclear.

· System Interceptor. The committee recommends $151.1 million ($150 million less than the Administration's request) for the systems interceptor, a new BMD program intended to develop a new family of ground-based, sea-based, and space-based interceptors. Given the early stage of this effort, the committee believes that the recommended funding level is adequate to meet requirements for concept definition and technology development.

· Technology and Advanced Concepts. The committee recommends $336.7 million ($55.8 million less than the Administration's request) for development of crosscutting technology and concepts necessary to keep pace with constantly evolving missile threats. The decrease reflects the committee's decision to fund BMD technology at the funding level projected for fiscal year 2004.

· Terminal Defenses. The committee recommends $1.1 billion ($413.3 million more than the Administration's request) for the Missile Defense Agency (MDA) for research and development of terminal defenses, including provisions as follows:

· The committee recommends moving the Army's $276.3 million request for Medium Extended Air Defense System (MEADS) back to MDA because the committee continues to question the technical maturity of the program.

· The committee recommends an additional $37 million for the Theater High Altitude Area Defense system to compress the flight test schedule by six months.

· The committee recommends $64.8 million (matching the Administration's request) for the Arrow anti-tactical ballistic missile system under development by the U.S. and Israel. While the committee supports the continuing evolution of the Arrow system, it has reservations about Israeli interest in selling the system to third parties. As such, the committee urges the Administration to develop policy on third party sales of all missile defense technologies co-developed by the U.S. before approving any such transactions.

Supporting America 's
Service Members

"While our men and women in uniform have swiftly dispatched our enemies abroad, they face increasingly complex personal and professional challenges here at home. We must do more to take care of those who are putting their lives on the line to defend our freedom. This legislation includes improved retention and recruitment programs for our active, guard and reserve forces, as well as important increases in pay and allowances."

-HASC Total Force Subcommittee Chairman John McHugh (R-NY)

IMPLEMENTING LESSONS LEARNED:
TOTAL FORCE REFORMS

Pay and Bonuses

Basic Military Pay. Continuing its commitment to boost income for military personnel, the committee recommends a 4.1 percent average increase in base pay for our men and women in uniform. This increase represents the fifth consecutive year the military pay raise has exceeded pay increases in the private sector.

Housing Allowance.The committee recommends reducing the average amount of housing expenses paid by service members from the current 7.5 percent to 3.5 percent in fiscal year 2004, and to eliminate the out-of-pocket expense completely by fiscal year 2005.

Subsistence Allowance. Certain areas such as San Francisco , CA, Boston , MA , Atlantic City , NJ, and New York City dictate a high cost of living. These costs place an additional strain on service members; therefore, the committee recommends supplementing the allowance for subsistence expenses of service members based at high-cost or unique duty locations.

Active Duty Special Pay and Bonuses. The committee recommends extending several special pays and bonuses for active duty personnel through December 31, 2004, including:

enlistment and reenlistment bonus;
aviation officer retention bonus;
special pay for nuclear qualified officers extending their period of active service;
nuclear career accession bonus;
nuclear career annual incentive bonus;
special pay for members of Weapons of Mass Destruction Civil Support Teams;;
accession bonuses for dental officers and registered nurses;
incentive pay for nurse anesthetists;
nurse officer candidate accession program bonus;
accession bonus for new officers in critical skills; and
retention bonus for members with critical military skills.

Skill Conversion Incentive Pay. Generally, a specialty becomes "critically short" when personnel drops below 95 percent of the authorized level for a particular occupational skill. Certain occupational specialties have recently had difficulty retaining their members. As such, the committee recommends authorizing the service secretaries to award an incentive bonus of up to $4,000 for enlisted members who agree to serve in a critically short occupational specialty.

Benefits

Survivor Benefit Program (SBP). Currently the SBP benefit for the survivor of an injured or ill service member who lived long enough to be disability retired is better than the benefit for the survivor of a service member who dies instantaneously. The committee is deeply concerned about this inequity, and therefore, recommends that the Secretary of Defense review SBP procedures and propose legislation to ensure equitable treatment for the survivors of all members, regardless of circumstances.

Accumulated Leave. Service members constantly put their lives at risk to protect American citizens and others. Currently, personnel performing 120 days of duty in areas of imminent danger or similar assignments are granted 90 days of leave. The committee recommends an increase of up to 120 days of accumulated leave.

Health Care Centers of Excellence. The growing cost of health care for active and retired personnel and their families is of serious concern to the committee. The committee is interested in exploring cost containment measures that may have applications for both the Department of Defense and Veterans Affairs' health care systems. To that end, the committee recommends establishing joint centers of excellence to examine mutually beneficial opportunities. The centers should include the use of alternative treatment regimes, observation units, and an increased use of paramedics, and protocols proven effective in reducing cost while maintaining quality health care.

TRICARE Standard Information Outreach to Eligible Beneficiaries. Many individuals under the TRICARE Standard (fee-for-service) program are encountering increased difficulties in finding health care providers willing to accept them as patients. The committee recommends that the Secretary of Defense develop a plan and implementation schedule for an information outreach program designed to assist beneficiaries with access to health care. Specific measures in the plan will help members and their families to understand their health care coverage, obtain health care provider information, and gain assistance resolving any difficulties with the program that they may encounter.

Health Protection and Surveillance. Current law requires pre- and post- deployment medical evaluations of service members; however, the committee believes that DOD has not fully demonstrated a commitment to carry out these and other statutory requirements. As service members return from a second conflict in the Persian Gulf, the committee recommends that the Secretary establish a quality control program to ensure the execution of a health protection and surveillance program and full policy requirements.

Closing or Realigned Health Care Facilities at Military Installations. The committee is concerned that military health care beneficiaries may be adversely affected by future base closures or realignments. In order to address this concern, the committee requires the establishment of a working group to advise the Secretary of Defense and the Defense Base Realignment and Closure (BRAC) Commission on the impact of base closures on health care delivery. The working group will also provide a plan for continuing of health care for individuals relying on health care facilities affected by the planned 2005 BRAC round. The group's responsibilities would entail conducting meetings with members entitled to health care and visiting areas where BRAC will affect the accessibility of health care for members.

Increasing Military Manpower

Active Duty End Strengths. Even before Operation Iraqi Freedom, the global war on terrorism, and the commitment to homeland security, the armed forces had insufficient manpower for existing wartime and peacetime requirements. A lesson learned is that, with the likelihood of the open-ended, long-term manpower requirements of stabilizing Iraq, and continuing the war on terrorism, it is now crucial to begin addressing existing shortfalls. Therefore the committee recommends an increase in active end strength of 6,240 above the budget request, with $291.3 million in additional funding to support the growth. The added strength will provide the Army, Navy, and Air Force the ability to begin filling high priority shortfalls in special operating forces, force protection, communications, intelligence, naval coastal warfare units and key sustainment specialties such as airborne refueling, combat control, airborne systems maintenance, loadmaster, flight engineer, and aerial port logistics.

Reserve Component Full-Time Support End Strengths. The committee recommends an increase of full-time support end strength levels of 1,515 (2.2 percent) in Active Guard and Reserve personnel and 2,123 (3.4 percent) in military technicians over fiscal year 2003 levels.

Improving Living and Working Facilities

Military Construction. Even after several years of funding increases in the Department's military construction and family housing budgets, America 's service members continue to live and work in aging and substandard facilities. In fact, more than two-thirds of the services' current facilities are classified at "C-3" or "C-4" readiness levels, indicating that their ability to conduct their missions has been significantly degraded. In an effort to improve the military's living and working conditions, the committee recommends $9.8 billion ($537.6 million more than the Administration's request) for military construction and family housing. Highlights of the committee's recommendations include:

Troop Housing. The committee recommends $1.3 billion ($7.2 million and one building more than the Administration's request) for the construction of 46 new barracks and dormitories to support unaccompanied military personnel.
Military Family Housing. The committee recommends $775.6 million (matching the Administration's request) for construction of approximately 3,900 units.
Medical Facilities. The committee recommends $99.5 million ($9.4 million and one more than the Administration's request) for the construction of seven medical facilities.
Schools for DOD Dependents. The committee recommends $118.4 million (matching the Administration's request) for the construction and improvement of classrooms and education facilities.
Child Development Centers. The committee recommends $20.3 million ($16.7 million and three more than the Administration's request) for four child development centers.

Reforming the Base Realignment and Closure (BRAC) Process. In order to maintain national security and remain capable of supporting future mobilizations, the military must possess the facilities, land, and air space necessary to support its forces. In 1991, the Joint Chiefs of Staff and the Secretary of Defense proposed shaping the military into the "Base Force," a force of 1.6 million active duty personnel and 900,000 reserve component personnel, 12 active Army divisions, 12 aircraft carrier battlegroups, three active divisions for the Marine Corps, and 15 active fighter wings for the Air Force. Although today's United States military is somewhat smaller than the Base Force, the committee believes that the Base Force represents a level to which the military might "surge" in a future crisis. Therefore, the committee recommends modifying current BRAC law to ensure that the 2005 BRAC round results in a national inventory of installations capable of supporting a Base Force-size military that is stationed entirely within the United States. Finally, the committee recommends requiring the Secretary of Defense to name at least half of the nation's installations as essential to national defense. This list of installations would be eliminated from BRAC commission consideration for closure or realignment.

Supporting Guard and Reserve Forces

Extremely high deployment rates for members of the National Guard and Reserves have taken a toll on these personnel and their families. H.R. 1588 recognizes their sacrifice and works to support their needs.

Reimbursement Expenses for Reservists. Currently, mobilized reservists and recalled retirees serving on active duty for extended periods are not authorized for reimbursement of their lodging costs while on leave. The committee recommends the service secretaries reimburse the actual cost of lodging or the applicable per diem rate during leave status.

Reserve Component Training and Readiness. The committee recommends $566 million ($196.7 million more than the Administration's request) for facilities enhancements to improve the training and readiness of the National Guard and reserves, including:

$253.8 million for the Army National Guard;
$123.4 million for the Air National Guard;
$89.8 million for the Army Reserve;
$53.4 million for the Air Force Reserve; and
$45.8 million for the Navy and Marine Corps Reserves.

Reserve Forces Special Pay and Bonuses. The committee recommends extending certain special pays and bonuses for reserve personnel through December 31, 2004 (except as noted), including:

special pay for health care professionals who serve in the selected reserve in critically short wartime specialties;
selected reserve enlistment and reenlistment bonuses;
special pay for selected reserve enlisted personnel assigned to certain high priority units;
authority for reservists who maintain the same qualification standards as required for active duty members to receive hazardous duty pay equal to the monthly rates paid to active duty members for explosives demolition and parachute jumping duties (permanent authority);
authority for reserves to receive hostile fire and imminent danger pay equal to the monthly rate as active duty members in an inactive duty training status location (permanent authority);
ready reserve enlistment and reenlistment bonuses;
selected reserve affiliation bonuses;
prior service enlistment bonus; and;
authority for repayment of educational loans for certain health professionals who serve in the selected reserve; (extended to January 1, 2005).

Use of Commissaries by Reservists. Under current law, selected reserve, retirees and their families are not eligible for commissary privileges under some circumstances. The committee recommends the Secretary of Defense modify this policy to grant reservists the same privileges as active duty personnel and their dependents.

Enrollment Reforms for Department of Defense Dependent Schools (DODDS). Currently, dependents of mobilized reservists recalled from an overseas location are permitted to enroll in DODDS on a space-available, tuition-free basis. However, the dependents of reservists recalled from a location in the Continental United States (CONUS) are not afforded the same tuition-free enrollment status. The committee seeks to resolve this disparity by extending the space-available, tuition-free enrollment status to the dependents of certain reservists recalled from a CONUS location.

Pre-Mobilization Health and Dental Care for Selected Reserve Units. Deployment readiness is being hindered by current law, which does not permit medical care for reserve component personnel until after mobilization. To remove this impediment, the committee recommends that DOD provide immediate medical and dental screening for selected reservists who are assigned to a unit that has been alerted or notified of mobilization.

Commissaries and Exchanges

Commissaries and Non-Appropriated Fund Facilities. Commissaries and non-appropriated fund facilities are not built or maintained by funds provided by Congress. These facilities are built by extra charges imposed on, or from, items purchased by service members, retirees and their families. To ensure that base closures did not deprive service members, retirees and their families of the value of their contributions, Congress required funds resulting from the sale or transfer of commissary and non-appropriated fund facilities at closed installations to be deposited into a special fund, which now totals over $70 million. Unfortunately, under current law, money from the fund cannot be used without first being appropriated by Congress. The committee believes it is unfair and illogical to require congressional action to use money from a fund built entirely by the contributions of service members. Therefore, the committee recommends that the use of the fund be allowed without the need for appropriation by Congress.

Shelf-Stocking Pilot Program. A shelf-stocking pilot program will help the Secretary of Defense determine the most cost effective way for the Defense Commissary Agency (DeCA) to assume responsibility for these duties. Therefore, the committee recommends the Secretary conduct a pilot program in which the stocking of shelves at three defense commissary stores operated by the DeCA would become the sole responsibility of federal employees of the agency or employees contracted by the agency.

Educating Service Members and their Children

Education Funding. The committee recommends $1.69 billion (matching the Administration's request) for the DOD dependent education system.

Impact Aid. The Department of Education's Impact Aid program provides funds to school districts nationwide that educate approximately 600,000 military children. To enable DOD to supplement this program, the committee recommends $35 million.

Increased Student Loan Repayment Authority. Retaining highly qualified employees through incentives is a primary objective of DOD. The committee recognizes this and therefore recommends increasing the annual amount a federal agency can repay a highly qualified employee for a student loan from $6,000 to $10,000 per year with an overall total limit of $40,000.

Naval Postgraduate School to Instruct Enlisted Members. In an effort to recruit and retain personnel with strong computer and network security skills, the committee recommends enlisted members receive instruction, in connection with the information security scholarship program, at the Naval Postgraduate School.

Re-Entry Process for Former Academy Cadets and Midshipmen. The committee believes there should be a process to readmit certain cadets and midshipmen to the service academies in cases of substantiated reprisals. Therefore, the committee recommends that when a formal report by an inspector general within DOD concludes that a cadet or midshipmen has been the victim of an injustice or has suffered reprisals which lead to resignation from a service academy, the cadet or midshipmen may be readmitted. Cadets or midshipmen would not be required to submit a request through the board for correction of military records or reenter with a loss of academic or military status previous to their resignation. The committee takes this action as a follow-up to findings developed as a result of the Air Force Academy investigations.

Other Initiatives

Combating Sexual Harassment and Violence at Military Academies. The committee requires the Secretary of Defense to establish a task force to more effectively address sexual harassment and violence at the United States Military and Naval Academies. The task force will be required to report their findings to the Secretary, and should include recommendations to improve efforts such as victim's safety programs, offender accountability, sexual harassment prevention, and standard guidelines for training personnel at the academies. The committee also requires the Secretary to assess the effectiveness of the corrective actions taken at the Air Force Academy resulting from various investigations of sexual assault and harassment.

Eliminating Domestic Violence. Following a three-year effort, the Defense Task Force on Domestic Violence completed its assessment and made significant recommendations, including proposed changes to law, to improve DOD efforts to prevent and respond to domestic violence in the military. In support of these proposals, the committee recommends:

travel and transportation allowances for dependents who are victims of domestic violence for the purpose of relocating for personal safety;
transitional compensation to victims, to begin upon the sentencing of a domestic violence offender, except for certain pretrial agreements. Eligible individuals may receive transitional compensation for three years;
the Secretary of Defense will conduct multidisciplinary fatality reviews for each domestic violence or child abuse fatality; and
in addition, the committee requires the Secretary of Defense to organize a working group to review and assess the progress of the Department in implementing the recommendations of the task force.

National Security Personnel System. The committee is concerned about the existing DOD civilian personnel system. Modernizing the management system is imperative to national security and the retention and recruitment of civilian personnel. The committee believes that the important lessons learned from various demonstration projects within DOD should be applied across the Department. These projects have been shown to improve the expeditious hiring of qualified personnel, have been valuable in providing flexible personnel compensation and assignment systems, and have improved organizational efficiency. These demonstration projects have also been highly successful in attracting and maintaining high quality workforces. The reforms included in the legislation would be similar to the flexibility provided to the Department of Homeland Security. Finally, the committee believes the Secretary of Defense should have more flexible management authority. As such, the committee recommends:

Merit-based System. Establishment of a merit-based system which would protect a hiring preference for veterans and provide for collective bargaining at the national and local levels. In developing this system, the Director of the Office of Personnel and Management would serve as a strategic and collaborative partner.
Collaborative Process. The creation of a collaborative process, which would ensure inclusion of employee representatives in the planning, development, and implementation of the human resources management system.
Appeals Process. Establishment of an independent review process, which would ensure employees receive fair treatment in any appeals they raise in decisions related to their employment.
Early Retirement Program. Establishment of a program under which employees would be eligible for early retirement, offered separation pay to leave service voluntarily, or both, for purposes of reducing or restructuring the workforce.
Complying with Current Law. A requirement that the new system must comply with provisions in current law relating to political activity, oath of office, access to criminal history records for national security, the Ethics in Government Act, and Inspector General Act.
Senior Executive Service Pay. Senior Executives Service pay, allowances, differentials, bonus, awards, and other payments should be capped at no more than the Vice President's total annual compensations.
Hiring of Experts. In order to utilize expertise from outside DOD the committee recommends that the Secretary have the authority to hire highly qualified personnel with uniquely critical technical, scientific, and management skills at appropriate pay for up to five years, with the possibility of a one-year extension.
Retired Citizens. American citizens 55 years of age and older could be hired to work for DOD for up to two years, without a reduction in any annuity, pension, retirement pay, or similar payment, to fill needs that are not otherwise met by civilian employees.
Alignment. In addition, the committee recommends DOD align the allowances and benefits of certain employees outside the U.S. with those of the Foreign Service and the Central Intelligence Agency.

Increasing Our Combat Capabilities

"Today, our forces must be able to respond quickly to rapidly changing threats. As such, nothing could be more important to our military than its current state of readiness. The pace of current operations has placed huge demands on personnel and equipment already suffering from a decade of under-funding. This legislation reduces non-warfighting spending and puts the money where it is of best use - training for our service members, maintenance of equipment, and support for the cost of operations."

-HASC Readiness Subcommittee Chairman Joel Hefley (CO)

IMPLEMENTING LESSONS LEARNED:
INCREASING COMBAT CAPABILITIES

Readiness and Training

Critical Readiness Accounts. The committee recommends $114 billion for readiness accounts critical to the day-to-day operations of the U.S. military, including:

$28.8 billion for aircraft operations and flying hours ($1.6 billion more than the fiscal year 2003 level);
$10.8 billion for depot maintenance ($1.3 billion more than the fiscal year 2003 level);
$8.6 billion for training accounts ($494 million more than the fiscal year 2003 level); and
$4.1 billion for ground forces operations ($321 million more than the fiscal year 2003 level).

Unfunded Readiness Requirements. The committee continues to place a high priority on addressing the concerns expressed by the service chiefs in their annual Unfunded Requirements Lists. Increasing our near-term readiness capabilities is a critical lesson learned in the fight against terrorism. The committee recommends an increase of $1.1 billion to support a number of high priority unfunded requirements, such as:

· $330 million for Air Force depot maintenance;

· $148 million for Army Flight School XXI training program;

· $233 million for Army depot maintenance;

· $90 million for Air Force aviation spare parts to support the flying hour program;

· $173 million for Navy flight operations;

· $90 million for Army consumable spare parts to support the ground operational tempo requirements;

· $76 million for Navy ship depot maintenance;

· $64 million for Marine Corps and Marine Corps Reserve initial use equipment; and

· $43 million for Marine Corps and Marine Corps Reserve depot maintenance.

DOD Environmental Programs. Military officers returning from Afghanistan reported their ability to train for operations was far from ideal due to environmental issues affecting their mission profile. Our nation is more secure when our military is able to train as it fights and fight as it trains. The committee recommends a responsible set of initiatives intended to restore a balance between protecting the environment and military readiness.

· Conservation of Protected Species. The Endangered Species Act (ESA) frequently restricts access to training areas when critical habitat is designated for threatened or endangered species on military installations. Therefore, the committee recommends a provision to amend the ESA to prohibit further designations of critical habitat on installations in areas where there is an Integrated Natural Resources Management Plan, prepared in cooperation with DOD and state and federal Fish and Wildlife Services. This provision would not annul existing critical habitat areas and would not allow DOD to take any action that would harm an endangered or threatened species.

· Marine Mammal Protection Act (MMPA). Potential adversaries to the U.S. and our allies are deploying quiet diesel submarines that, if undetected, can cripple or sink Navy ships and submarines, including aircraft carriers with their crews of thousands. However, MMPA restrictions continue to inhibit the use of technology to counter such threats. For example, under current law, any action that has even the potential to disturb a marine mammal is considered harassment in violation of the MMPA. Also, the Navy must apply for a permit every time it conducts readiness exercises in the sea. Further, the MMPA is currently the only major environmental law that contains no exemptions for national security reasons. Accordingly, the committee recommends modifying the MMPA by redefining harassment as an action that has significant impact on behavior critical to marine mammal survival and reproduction. Also, the committee recommends modifying the permitting process for the Navy if its readiness activities create no more than a negligible impact on marine mammals. However, this permitting authority does not allow intentional harm to marine mammals. Finally, the committee recommends making the MMPA consistent with other environmental laws by providing an exemption if warranted by national security needs.

Modernizing the Force

"This legislation funds the weapons needed to defeat current adversaries while preparing for tomorrow's challenges. Today's armored vehicles and tactical aircraft will continue to be vital tools in the war on terrorism. We've also funded critical airlift and refueling capabilities. Future conflicts will require us to be leaner, faster, and more lethal and we've provided the resources to develop the next generation of technologies."

-HASC Tactical Air and Land Subcommittee Chairman Curt Weldon (R-PA)

IMPLEMENTING LESSONS LEARNED:
BALANCING RISK

H.R. 1588 recognizes the United States must strike a balance between modernizing and enhancing current combat forces and developing the next generation of capabilities to ensure our military dominance over all future adversaries.

Aircraft

Air Force Air Refueling Transfer Account. The Air Force's refueling tanker fleet was utilized extensively over the past several years, and that pattern has continued during recent operations. A lesson learned is the fleet's essential role in projecting airpower to fight the war on terrorism. Current operational demands have shortened the life of an already aging fleet, consisting mostly of KC-135s and KC-10s. A recent Air Force report indicated that tanker shortfalls are driven largely by the high number of KC-135s in depot status. Yet, rather than upgrading its KC-135 fleet, the Air Force decided to retire 44 KC-135s in fiscal year 2004 and an additional 22 aircraft in the future. To replace the retired KC-135s, the Air Force has opted to lease or purchase air refueling aircraft. However, the Air Force did not budget fiscal year 2004 funds for this purpose, but instead listed it as an unfunded priority for fiscal year 2004. Therefore, the committee recommends $229.2 million (the Administration did not request any funds) to establish an Air Force air refueling transfer account that would allow the Secretary of the Air Force to use any combination of the following:

$180.6 million to purchase maintenance equipment for KC-135s in depot status;
$154 million to prepare for the purchase of replacement refueling aircraft;
$132 million to prepare for the lease of replacement refueling aircraft; and/or
$75.2 million to retain, rather than retire, KC-135E aircraft.

AV-8B Harrier. The committee recommends $57.9 million ($37 million more than the Administration's request) for AV-8B modifications. The Marine Corps currently has a shortfall of 22 Litening AT pods that incorporate infra-red radar and other enhancements to improve multi-sensor and precision strike capability. As such, the committee's recommended increase procures 22 Litening AT pods and upgrades eight Litening II pods to the AT configuration, a top unfunded requirement of the Commandant of the Marine Corps.

B-1B Lancer. The long-range, precision bombing capabilities of the B-1B were crucial to the success of recent combat operations. A critical lesson learned from the continuing war on terrorism is the need for deep strike capabilities, especially when access to overseas bases is limited. Since the B-1B is capable of striking an adversary anywhere around the globe on short notice, potential future conflicts will likely demand continued contributions from B-1Bs, requiring more B-1B force structure than now planned. However, the Air Force currently plans to retire 32 of its 92 B-1Bs by the end of fiscal year 2003. The committee notes that 23 of these B-1Bs could be regenerated by upgrading the aircraft with modern capabilities. Accordingly, the committee recommends $119 million ($20.3 million more than the Administration's request) for B-1B modifications to begin the regeneration process for the 23 B-1Bs. The committee expects that the increase for B-1Bs, along with increases to planned Air Force budgets in future years, will result in additional upgraded B-1Bs entering service in fiscal year 2005.

B-2 Spirit. The B-2 is the U.S. military's most advanced long-range strike aircraft. A critical lesson learned from the continuing war on terrorism is the need for deep strike capabilities, especially when access to overseas bases is limited. The Air Force should continue to upgrade the existing B-2 fleet with the most effective systems and weapons. As such, the committee recommends $128.3 million ($51.8 million more than the Administration's request) for B-2 modifications. Of the total amount, the committee recommends $27.1 million to repair recently discovered crack growth in the B-2's aft deck that requires a modification to sustain its durability, mission capable rates, and low-observability characteristics. In addition, the committee recommends $185.6 million ($33.5 million more than the Administration's request) for B-2 research and development. Of this increase, $29.6 million is to accelerate the development of the extremely high frequency satellite communications system which provides high bandwidth communications for nuclear and conventional B-2 missions, and $3.9 million is for development of aft deck repair kits.

Next Generation Bomber. The Air Force currently plans to begin a next generation bomber program in approximately ten years. However, the bulk of the Air Force bomber fleet consists of 94 B-52s, which will be 50 years old by the year 2012. The committee believes this is insufficient to meet ongoing requirements for long-range strike aircraft with stealth capabilities. Accordingly, the committee recommends $100 million (the Administration did not request any funds) for research and development for the next generation bomber program.

C-5 Galaxy. One of the largest aircraft in the world, the C-5 provides airlift support for oversized cargo and combat-ready troops, while taking off and landing in relatively short distances. A lesson learned from recent operations is the need for more airlift capability. The ability to transport our troops and their equipment around the world is critical in the ongoing war on terrorism. The committee recommends $131.4 million ($39.4 million more than the Administration's request) for C-5 modifications. The increase includes funds for 12 avionics modernization program kits that replace unreliable engine flight instruments and flight system components, an unfunded requirement for the Air Force Chief of Staff.

C-17 Globemaster. The C-17 is capable of carrying large combat equipment, troops, and other cargo across international distances. A lesson learned from recent operations is the need for more airlift capability. The ability to transport our troops and their equipment around the world is critical in the ongoing war on terrorism. Currently, the C-17 is contracted at a delivery rate of 15 aircraft per year until fiscal year 2008. Yet, increased demands on airlift operations in support of the war on terrorism call for accelerating the C-17 delivery rate to 16 aircraft per year. Therefore, the committee recommends $2.2 billion ($172 million and one more aircraft than the Administration's request) for procurement of 12 C-17s in fiscal year 2004. While the Air Force only budgeted 11 C-17s for fiscal year 2004, 15 aircraft are currently planned to be delivered based on prior year's authorization. The increase of one C-17 in fiscal year 2004 would increase delivery rates in future years. The committee also recommends $927.6 million (matching the Administration's request) for C-17 contractor support for fiscal year 2004, and $504.1 million (matching the Administration's request) for advance procurement of 14 aircraft in fiscal year 2005. In addition, the committee recommends $49.1 million (matching the Administration's modified request) for C-17 modifications.

C-130 Hercules. C-130s are four-engine turboprop aircraft capable of performing a variety of roles ranging from transporting troops and vehicles to serving as gunships and tankers. The committee recommends $201.8 million ($6.1 million more than the Administration's request for the Air National Guard) for Air Force and Air National Guard C-130 modifications. (See "National Guard and Reserve Equipment" on page 33 for details about additional procurement funds for C-130 modifications.)

E-2 Hawkeye. The E-2 provides fleet commanders with long-range radar surveillance, command and control of fighter aircraft, communications relay, and tactical data exchange. The committee recommends $238.1 million (matching the Administration's request) for two E-2C Hawkeye aircraft and $43.1 million (matching the Administration's request) for E-2 modifications. In addition, the committee recommends authorizing a four-year E-2C multiyear procurement beginning in fiscal year 2004.

EA-6B Prowler. The EA-6B protects other aircraft and ground troops by jamming hostile radar and communications. The committee recommends $339.5 million ($132 million more than the Administration's request) for EA-6B modifications. Included in this increase is $6 million to replace antiquated oxygen systems with the on-board oxygen generating system, and $60 million to replace rapidly aging outer wing panels on 18 Prowlers, a top unfunded requirement of the Chief of Naval Operations, and $66 million to procure additional improved capability program kits to advance the EA-6B's ability to suppress and destroy modern enemy air defenses, a top unfunded requirement of both the Chief of Naval Operations and the Commandant of the Marine Corps.

E-8C Joint Surveillance and Target Attack Radar System (JSTARS). The E-8C JSTARS aircraft is equipped with a long-range, air-to-ground surveillance system designed to locate, classify, and track ground targets in all weather conditions. The E-8C reportedly played an important role in Operation Iraqi Freedom, as its radar was unaffected by sand storms. Its command and control capabilities can also be a key part of the integration of the military services, the effectiveness of which was demonstrated so well in Iraq. The E-8C's current engines are old, inefficient, and provide only marginal power. New, replacement engines would improve the E-8C's ability to accomplish its missions as well as reduce operation and maintenance costs. Therefore, the committee recommends $63 million ($27 million more than the Administration's request) for E-8 modifications and to begin a re-engining program for the E-8C JSTARS aircraft.

F-15 Eagle. The F-15A, B, C and D models are the Air Force's all-weather, supersonic, air superiority attack aircraft. The committee recommends $237.6 million ($40 million more than the Administration's request) for F-15 modifications for active duty Air Force and the Air National Guard. (See "National Guard and Reserve Equipment" on page 33 for details about additional procurement funds for F-15 modifications.) Of this increase, $10 million is for the ALQ-135 band 1.5 countermeasures system modification which provides a self-protection jamming capability against modern surface-to-air enemy missiles. In addition, the committee recommends $128.6 million ($16.5 million more than the Administration's request) for development of new capabilities for the F-15. The increase continues the development of the F-15C/D radar block upgrade program to improve radar performance to detect and engage cruise missiles.

F-16 Falcon. The F-16 is a maneuverable, multi-role fighter aircraft. The committee recommends $314.8 million ($14.2 million more than the Administration's request for the Air Reserve Component) for F-16 modifications. (See "National Guard and Reserve Equipment" on page 33 for details about additional procurement funds for F-16 modifications.) Included in this increase is $5.8 million for the structural augmentation roadmap (STAR) program to replace the structure of aging F-16s and prevent fatigue damage, maintain safety, and extend life. The STAR program is an unfunded requirement of the Air Force Chief of Staff. In addition, the committee recommends $107.5 million ($20 million more than the Administration's request) for development of new capabilities for the F-16. Included in the increase is $10 million for the AN/APG-68(V)9 radar upgrade program to provide improved performance, savings, and reliability to the existing radar, and $10 million for the AN/APX-113, an advanced electronic system used at long ranges to identify aircraft as friendly or enemy.

F/A-18 Hornet. The F/A-18A, B, C, and D fleets are the primary fighter and attack aircraft for both the Navy and the Marine Corps. The newest model, the F/A-18E/F Superhornet, began production five years ago and has recently completed its first operational deployment at sea as part of Operation Iraqi Freedom. To provide the Navy with the improved capabilities of the Superhornet, the committee recommends $3 billion ($31 million more than the Administration's request) for procurement of 42 F/A-18E/Fs. The increase is for additional Superhornet ancillary equipment, a top unfunded requirement for the Chief of Naval Operations. The committee also recommends authorization of a 234-aircraft, five year multiyear procurement beginning in fiscal year 2005, for both Superhornets and the EF-18G Growler, the future replacement for the EA-6B Prowler. In addition, the committee recommends $335.9 million (matching the Administration's request) for modifications to the existing F/A-18 fleet. Finally, the committee recommends $179 million (matching the Administration's request) for F/A-18 research and development.

F/A-22 Raptor. The F/A-22 Raptor is the Air Force's next-generation air dominance fighter. The committee recommends $3.5 billion ($161 million less than the Administration's request) for 22 F/A-22s. The committee recommends reducing the Administration's request because savings from lower than negotiated vendor and unit costs will reduce the cost of the F/A-22s for fiscal year 2004. Additionally, the committee is concerned about the reliability of the F/A-22 avionics software, and recommends a provision that would limit the obligation of $136 million of F/A-22 aircraft procurement funds until DOD certifies that the latest software version installed in the F/A-22 performs for at least 20 hours without incurring an instability event.

F-35 Joint Strike Fighter (JSF). The JSF will be a high technology, affordable, multi-role, combat aircraft based on a common airframe and components that will be used by the Air Force, Navy, and Marine Corps. The committee supports the Administration's requests for $2.2 billion for Navy JSF development and $2.2 billion for Air Force JSF development.

Joint Primary Air Training System (JPATS). JPATS, consisting of T-6A Navy aircraft and ground-based training systems, provides safe and effective training for Navy and Air Force pilots. Although the Navy had not planned to procure additional JPATS until fiscal year 2007, purchasing JPATS units in fiscal year 2004 will reduce operations, maintenance, and procurement costs. Therefore, the committee recommends $14.7 million (the Administration did not request any funds) for Navy T-6A aircraft and ground based training systems. In addition, the committee recommends $280.6 million (matching the Administration's request) for 52 JPATSs for the Air Force.

P-3 Orion Antisubmarine Aircraft. Of the Navy's fleet of 288 P-3s, only 69 are equipped with anti-surface warfare improvement programs (AIP) that improve their ability to fly intelligence, surveillance, and reconnaissance (ISR) missions. Some of the remaining 219 P-3s can be upgraded with electro-optic sensors and communication upgrades to meet lower-priority demands for ISR missions, preserving the airframe life of the 69 AIP-equipped P-3s. As such, the committee recommends $104 million ($9 million more than the Administration's request) for P-3 modifications to upgrade one non-AIP-equipped P-3 with electro-optic sensors and communication upgrades. In addition, the committee recommends $24.8 million ($17.5 million more than the Administration's request) for P-3 development, including funds to upgrade AIP-equipped P-3s with the phased capability update (PCU) program. The AIP PCU program would further enhance the P-3 by improving sensor performance to provide precise target locations for real-time dissemination to strike platforms.

V-22 Osprey. The V-22 is a tilt-rotor vertical takeoff and landing aircraft that is being developed for the Marine Corps, Air Force, and Navy. The committee recommends $872.2 million (matching the Administration's request) for nine Marine Corps HV-22s and advance procurement of MV-22s in fiscal year 2005, $441.1 million (matching the Administration's request) for Navy V-22 research and development, and $233.1 million (matching the Administration's request) or two Air Force CV-22s and advance procurement of CV-22s in fiscal year 2005, and $65.7 million (matching the Administration's request) to continue Air Force CV-22 development.

Helicopters
(Listed Alphabetically)

AH-64 Apache Longbow. The Apache Longbow is the Army's upgraded heavy attack helicopter designed to destroy tanks and support infantry ground offensives. The committee recommends $762.5 million (matching the Administration's request) for upgrades and recapitalization of 64 Apache Longbows.

Blackhawk. The committee recommends $251.7 million ($112.8 million more than the Administration's request for the Army National Guard) for Blackhawk procurement for the active duty Army and the Army National Guard. The committee recommendation includes $138.9 million for ten UH-60L Blackhawks for the active duty Army. The committee also recommends a transfer of $100 million from procurement to research and development as part of the restructured UH-60M upgrade development program to curb cost growth and to ensure the helicopter can be fielded without further delays. Finally, the committee recommends $49.7 million ($4.7 million more than the Administration's request for the Air National Guard) for H-60 modifications for the Air National Guard. (See "National Guard and Reserve Equipment" on page 33 for details about additional procurement funds for Blackhawks.)

MH-47 Chinook Modifications. The MH-47 Chinook's primary mission is to transport joint special operations forces and their equipment on deep insertion and extraction missions in all weather conditions. The committee recommends $495.5 million (matching the Administration's request) for modifications to 16 MH-47 special operations helicopters.

MH-60S. The MH-60S will replace the Navy's aging H-46D helicopter fleet, and will provide airborne mine countermeasures, conduct vertical replenishment, and search and rescue missions. The committee recommends $336.5 million (matching the Administration's request) for procurement of 13 MH-60S helicopters and $95 million (matching the Administration's request) for advance procurement of additional helicopters in fiscal year 2005. The committee also recommends $77 million (matching the Administration's request) for multi-mission helicopter development.

RAH-66 Comanche. The Comanche is the Army's next-generation, stealthy, armed reconnaissance helicopter. The committee recommends $1.1 billion (matching the Administration's request) for continued Comanche engineering and manufacturing development.

Ground Weapons, and Vehicles

Heavy Forces Modernization. A clear lesson learned during Operation Iraqi Freedom was the dominant role played by heavy armored forces; yet, budgetary constraints led to the Army's decision to terminate both M2A3 Bradley upgrades and M1A2 Abrams system enhancement program (SEP) upgrades in the fiscal year 2004 budget request. The committee is extremely concerned with both the force structure and industrial base implications of terminating these programs. To ensure that the Army's heavy forces continue to be modernized and to maintain a strong heavy armor industrial base until the next generation future combat system ground vehicle requirements are identified, the committee recommends $726.8 million (The Administration did not request any funds) for heavy forces upgrades. Of the total amount, the committee recommends $258.8 million for Bradley M3A2 Operation Desert Storm D+ upgrades, $424 million for M1A2 Abrams SEP tank upgrades, and $44 million for combat support and combat service support equipment for heavy forces modernization.

Future Combat System (FCS). The committee supports the Army's efforts to transform into a lighter, more agile and lethal force. The Army currently envisions three highly interdependent projects within the transformed armored systems: FCS, Networked Fires Systems Technology, and Objective Force Indirect Fires. The three systems will be designed to increase the lethality of current systems, increase the survivability of U.S. troops, and to ensure that U.S. soldiers and Marines have the fire support they need. However, the committee has numerous concerns about the current structure of the FCS program. Among the concerns: the program's performance parameters are so broad that many current Army systems already meet FCS requirements; the Army has had difficulties in major programs of far less complexity; the Army needs to provide additional detail and descriptive material to justify its $1.7 billion request for the three projects; and congressional oversight is limited by the Army's current plan to place all three projects under one FCS program. Therefore, the committee recommends restructuring the program so that the three projects and future projects are funded separately, but recommends $1.7 billion (matching the Administration's request) for FCS. However, the committee recommends that the funds not be released until 30 days after the Army provides sufficient detail to Congress justifying the budget request.

Family of Medium Tactical Vehicles (FMTV). The FMTV, consisting of 15 different C-130 deployable truck variants in 2.5 or five ton payload classes with companion trailers, is the Army's primary medium tactical vehicle and key logistics enabler for combat support and combat service support forces. The committee recommends $349.8 million ($40 million more than the Administration's request) for 1,340 FMTVs for the Army. The additional funds will procure nearly 180 trucks to support continued cost-savings and address an unfunded requirement of the Army Chief of Staff.

Family of Heavy Tactical Vehicles (FHTV). The committee recommends $164 million ($30.9 million more than the Administration's request) for the family of heavy tactical vehicles, including palletized load systems, heavy equipment transporter systems, heavy expanded mobility tactical trucks (HEMTTS), and movement tracking systems (MTS). (See "National Guard and Reserve Equipment" on page 33 for details about additional procurement funds for MTS.) The additional funds will procure additional HEMTTs to supplement heavy forces modernization, and address a critical National Guard shortfall.

High Mobility Multipurpose Wheeled Vehicle (HMMWV). The committee recommends $155.8 million ($18 million more than the Administration's request) for Army HMMWVs, a light, tactical, four-wheel drive utility and combat support vehicle. The additional funds will procure 117 Up-Armored HMMWVs for Army Reserve and National Guard units. (See "National Guard and Reserve Equipment" on page 33 for details about additional procurement funds for Up-Armored HMMWVs.)

M249 Squad Automatic Weapons (SAW). The SAW is a lightweight machine gun capable of delivering accurate, automatic fire up to 800 meters. As an integral weapon system for infantry units deployed in support of Operations Enduring Freedom and Iraqi Freedom, the committee recommends $11.2 million ($8.1 million more than the Administration's request) for procurement of additional SAWs, an unfunded requirement of the Commandant of the Marine Corps. In addition, the committee recommends $13.9 million (the Administration did not request any funds) for SAWs for the Army.

Night Vision Equipment. Operation Iraqi Freedom revalidated the tactical advantages provided by night vision equipment and enhanced light infantry units' operations at nighttime and in decreased visibility during poor weather conditions. The committee recommends $34.8 million ($10.4 million more than the Administration's request) to procure night vision equipment. The increase includes $5.4 million for the AN/PVS-14, helmet-mounted image-intensification device, and $5 million for the AN/PVS-17, a lightweight, rifle-mounted, night vision sight that replaces obsolete AN/PVS-4 sights. Both the AN/PVS-14 and the AN/PVS-17 are unfunded requirements of the Commandant of the Marine Corps.

Stryker Medium Armored Vehicles. The committee recommends $955 million (matching the Administration's request) for the procurement of 301 medium armored vehicles for the fourth Stryker brigade combat team. In addition, the committee recommends $61.4 million (matching the Administration's request) for research and development of medium armored vehicles.

Munitions

Ammunition. The service chiefs each listed ammunition as a top unfunded priority. The committee believes it is important to replenish the stocks used during recent operations and recommends $3.7 billion ($200 million more than the Administration's request) for the replenishment of ammunition and industrial base upgrades. As such, the committee recommends $1.3 billion ($119 million more than the Administration's request) for Army ammunition programs, $1.3 billion ($40 million more than the Administration's request) for the Air Force, $710 million ($20 million more than the Administration's request) for the Navy, and $253.4 million ($21 million more than the Administration's request) for the Marine Corps.

Missiles and Precision-Guided Munitions (PGMs) Operation Iraqi Freedom demonstrated the dramatic technological capability of PGMs to strike targets precisely while reducing the risk to military personnel and civilians. The committee recommends:

$653.6 million ($376 million and 333 missiles more than the Administration's request) for Tactical Tomahawk cruise missiles for the Navy. The increase sustains a production rate of 600 missiles per year and helps replenish stock severely depleted in Operation Iraqi Freedom. In addition, the increase further addresses missile shortfalls by providing $40 million to purchase equipment necessary to increase production from 600 to 900 missiles per year by fiscal year 2006.

$138 million (the Administration did not request any funds) for the affordable weapons system, an advanced technology initiative to develop a capable precision guided weapon that would be far less expensive than comparable weapons systems; (See also "Communications, Science and Technology" on page 40 for more information on the affordable weapon.)
$705 million (matching the Administration's request) to procure Joint Direct Attack Munitions, including $427.7 million for 20,244 bomb kits for the Air Force and $277.3 million for 12,326 bomb kits for the Navy;
$181 million (matching the Administration's request) for laser guided bomb kits, including $100 million for the Air Force and $81 million for the Navy and Marine Corps;
$148.3 million (matching the Administration's request) for 75 Standoff Land Attack Missile-Expanded Response missiles for the Navy;
$142.8 (matching the Administration's request) for 201 Advanced Medium-Range Air-to-Air Missiles (AMRAAMs) for the Air Force and 53 AMRAAMs for the Navy;
$138.5 million (matching the Administration's request) for 429 Joint Standoff Weapons for the Navy;
$133.1 million (matching the Administration's request) for 901 Javelin anti-tank missiles for the Army;
$104.9 million (matching the Administration's request) for 167 AIM-9X Sidewinder air-to-air missiles for the Navy and 386 missiles for the Air Force;
$102.5 million (matching the Administration's request) for 250 Joint Air to Surface Standoff Missiles for the Air Force;
$53.3 million ($10 million more than the Administration's request) for missile technology, including micro electro-mechanical systems with inertial sensors and global positioning systems, to improve the accuracy and reduce the cost of precision guided munitions; and
$50.3 million (matching the Administration's request) for 50 Army tactical missile system Quick Reaction Unitary missiles for the Army.

National Guard and Reserve Equipment

BEAMHIT Laser Marksmanship Training System (LMTS). BEAMHIT LMTS is a training program used by the U.S. military to maintain and enhance small arms marksmanship. Currently, the Army Reserve lacks sufficient BEAMHIT LMTS systems to maintain marksmanship skills. Therefore, the committee recommends $10 million (the Administration did not request any funds) to purchase BEAMHIT LMTS for the Army Reserve.

Blackhawks. The committee recommends $251.7 million ($112.8 million more than the Administration's request) for Blackhawk procurement for the active duty Army and the Army National Guard (ARNG). The increase procures five UH-60L utility variants and four HH-60L medical evacuation Blackhawks for the ARNG. In addition, the committee recommends $49.7 million ($4.7 million more than the Administration's request) for H-60 modifications for active duty Army and the Air National Guard (ANG). This increase upgrades existing AN/ARS-6PLS radio systems to version 12 to allow operation with all current and future survival radios, including defense and civilian emergency beacons. (See "Aircraft" on page 28 for details about additional procurement funds for active duty Blackhawks.)

C-130 Hercules. The committee recommends $201.8 million ($6.1 million more than the Administration's request) for Air Force and ANG C-130 modifications. The increase procures AN/APN-241 radars to replace the antiquated, unreliable weather and navigation systems currently installed on the ANG's C-130 fleet, the top unfunded requirement of the Director of the ANG. (See "Aircraft" on page 28 for details about additional procurement funds for active duty C-130s.)

Family of Heavy Tactical Vehicles. The committee recommends $164 million ($30.9 million more than the Administration's request) for the family of heavy tactical vehicles. Included in the increase is $9 million to procure an additional 562 movement tracking systems (MTS) for the Army Reserve, an unfunded requirement of the Chief of the Army Reserve. MTS is a proven near real-time command and management system that provides combat service support units with total asset visibility through global positioning system vehicle location, and two-way text messaging between mobile and fixed assets. (See "Ground Weapons and Vehicles" on page 31 for details about additional procurement funds for the active duty Family of Heavy Tactical Vehicles.)

F-15 Eagle. The committee recommends $237.6 million ($40 million more than the Administration's request) for F-15 modifications for active duty Air Force and the ANG. Included in this increase is $30 million to procure additional conversion kits to upgrade the ANG's current F-15 engines to the F100-220E configuration to provide increased thrust, greater reliability, better fuel efficiency, and reduced operations and maintenance costs. (See "Aircraft" on page 28 for details about additional procurement funds for active duty F-15s.)

F-16 Falcon. The committee recommends $314.8 million ($14.2 million more than the Administration's request) for active duty and Air Reserve Component (the "ARC" is comprised of the ANG and the Air Force Reserve) F-16 modifications. The increase includes $8.4 million to install on-board oxygen-generating systems to replace the antiquated liquid oxygen systems currently installed on ARC F-16s. The committee also recommends $84.6 million for airborne reconnaissance system development ($6.8 million more than the Administration's request), for the F-16 theater airborne reconnaissance system (TARS) pre-planned product improvement (P31) program. The TARS P31 program will upgrade existing systems with software that will improve night and all-weather reconnaissance capabilities, and provide the ability to connect with the joint force air component commander's command and control (JFACC C2) structure. (See "Aircraft" on page 29 for details about additional procurement funds for active duty F-16s.)

High Mobility Multipurpose Wheeled Vehicle (HMMWV). The committee recommends $155.8 million ($18 million more than the Administration's request) for Army HMMWVs. The increase procures 117 Up-Armored HMMWVs for deployed Army Reserve and National Guard units, an unfunded requirement of the Chief of the Army Reserve and a critical shortfall of the Chief of the National Guard. The Up-Armored HMMWVs provide increased force protection for U.S. soldiers from anti-tank and anti-personnel mines, and armor-piercing munitions. (See "Ground Weapons and Vehicles" on page 32 for details about additional procurement funds for active duty HMMWVs.)

Unmanned Aerial Vehicles (UAVs )

Joint Operational Test Bed System (JOTBS). The Joint Forces Command (JFCOM) established the joint operational test bed system (JOTBS) to further the development of interoperable UAVs that would allow the all services to fly, operate, and receive data from all UAVs. The need for, and advantages of, interoperable UAVs was demonstrated through excellent performance during Operations Enduring and Iraqi Freedom. The committee believes that UAV interoperability is fundamental to successful joint operations and therefore specifically recommends an additional $7 million for JFCOM JOTBS.

Global Hawk UAV. The committee recommends $403.2 million ($4.6 million more than the Administration's request) for Global Hawk development for the Air Force and the Navy. The increase develops, integrates, and tests the advanced imagery architecture for the Global Hawk to effectively use bandwidth communication, and to increase intelligence, surveillance, and reconnaissance capabilities. In addition, the committee recommends $93.1 million ($8.4 million less than the Administration's request) for the Global Hawk maritime demonstration (GHMD) program. The GHMD program determines how high altitude endurance UAVs contribute to the Navy's maritime surveillance mission. As the Air Force is developing similar capabilities in its Global Hawk program, the committee reduced the Administration's request to avoid duplicating efforts by the Navy and Air Force in their Global Hawk programs.

Predator UAV. The committee recommends $211.6 million ($18 million more than the Administration's request) for 16 Predator Systems. The increase is for additional Predator B UAV systems and associated spare parts. The Predator B is a turbo prop variant of the Predator that is faster and able to carry a larger payload.

Shadow 200 Tactical UAV (TUAV). The Shadow TUAV provides tactical intelligence information for the Army. The committee recommends $73.8 million (matching the Administration's request) for eight Shadow 200 TUAV systems for the Army. In addition, the committee recommends $20.9 million (the Administration did not request any funds) for continued development for Shadow, and to upgrade Marine Corps Pioneer UAVs with Shadow 200 equipment.

Naval Programs

"Our naval forces continue to play a critical role in meeting the challenges imposed by the war on terrorism. In Iraq , the Navy flew thousands of strike missions, dropped millions of pounds of ordnance, and fired hundreds of missiles. This legislation provides the resources to allow us to continue to project overwhelming lethal force against a wide array of threats."

-HASC Projection Forces Subcommittee Chairman Roscoe Bartlett (R-MD)

IMPLEMENTING LESSONS LEARNED:
PROJECTING FORCE

A continuing lesson is the need to project military power around the world on short notice. With limits on access to foreign countries, such as was most recently witnessed in Turkey , the U.S. must maintain robust naval capabilities. Doubts concerning adequate planning persist, however, leading to provisions in H.R. 1588 which call for an analysis of potential threats, emerging technologies, and new operational concepts to defeat new challenges.

Ships

Aegis Open Architecture. The committee recommends $215.7 million ($10 million more than the Administration's request) for surface combatant combat system engineering. The recommended increase funds continued development of the Aegis open architecture for the Navy's cruiser conversion program to maximize software component interoperability with other programs on Navy ships. This ensures the Aegis open architecture can be introduced into the cruiser conversion program in fiscal year 2005 as required by the Navy and the Missile Defense Agency's sea-based missile defense plan.

Aircraft Carriers. The committee recommends $339.4 million (matching the Administration's request) for research and development for the CVN-21 next generation aircraft carrier, and $1.2 billion (matching the Administration's request) for CVN-21 long-lead procurement. CVN-21 is planned to be fully funded in fiscal year 2007 and will join the Navy's fleet in 2013.

DDG-51. The DDG-51 class of Navy AEGIS destroyers provides improved radar, fleet defense, missile defense, and land attack capabilities to the Navy's surface fleet. The committee recommends $3.2 billion (matching the Administration's request) for procurement of three Arleigh Burke-class destroyers.

DD(X). The committee recommends $1 billion (matching the Administration's request) for the continued development of the DD(X). DD(X) is the next generation surface combatant ship tailored for land attack in support of a ground campaign and maritime dominance. DD(X) will provide the technology and engineering baseline needed to meet future maritime requirements, and for development of a family of future ships, including the future cruiser CG(X) and the Littoral Combat Ship. DD(X) will incorporate transformational technologies including an integrated power system and electric drive, advanced gun system, new radars, increased automation and stealth, and reduced manning. In designing DD(X), the Navy is reassessing the capabilities required for its predecessor, the DD-21. Because assessment may impact the design and size of the DD(X), the committee recommends that the Navy inform Congress of the results.

Future Fleet Architecture Studies. The Navy's current fleet architecture is represented by its basic combination of 310 ships, including aircraft carriers, submarines, and amphibious support ships. In planning a fleet architecture for the future, a thorough analysis must be made of potential threats, emerging technologies, and new operational concepts to defeat new threats. The committee is concerned that the Navy's plans for their future fleet architecture are too tradition-bound, risking a future fleet that does not best utilize all its resources, or best address tomorrow's threats. Therefore, the committee recommends a provision directing the Secretary of Defense to commission independent studies on future fleet architectures to be conducted by qualified outside organizations and one in-house Navy organization. Each group would consider the National Security Strategy of the U.S. , potential threats, traditional and possible alternative roles for the Navy, and the evolving role of technology on future naval forces. Each study would present one or two proposals, and include details such as the number, kinds, and sizes of ships on their proposed architecture, and how available resources would be used most effectively to counter future threats.

Landing Craft Air Cushion (LCAC). The LCAC is a high-speed, amphibious landing craft capable of carrying personnel or large cargo, including the M1 tank, from ship to shore. The service life extension program (SLEP) includes hull, engine, and communications upgrades, and would extend the LCAC's service life from 20 to 30 years. The committee recommends $94.1 million ($21 million and one SLEP upgrade more than the Administration's request) for four LCAC SLEPs.

LHD-8. LHD-8 will be the eighth ship in the Navy's latest amphibious assault ship class, improving the Navy and Marine Corps' ability to operate helicopters, AV-8B attack aircraft, and amphibious assault and landing craft during assault combat missions. The committee recommends $355 million (matching the Administration's request) to continue to build LHD-8.

Littoral Combat Ship (LCS). The LCS will be a new class of Navy surface combatants and the smallest member of the DD(X) family of next generation surface combatant ships. LCS will be fast, agile, stealthy, affordable, and tailored for specific missions such as anti-submarine, anti-surface, or mine warfare in heavily contested littoral waters. The committee recommends $193 million ($35 million more than the Administration's request) to continue development of the Littoral Combat Ship. The increase develops LCS mission modules which are focused mission capability packages configured for anti-submarine warfare, anti-surface warfare, or mine warfare, an unfunded requirement for the Chief of Naval Operations.

LPD-17 The San Antonio-class LPD-17 ships will improve the Marine Corps' ability to embark, transport, and land its forces. The committee recommends $1.2 billion (matching the Administration's request) for one LPD-17.

Non-lethal Swimmer Detection Systems. Non-lethal swimmer detection systems would automate the identification of underwater threats to prevent actions intended to harm an anchored or docked ship and those on board. Because ships are most vulnerable at pier side or anchored at sea, the committee recommends $17 million (the Administration did not request any funds) for non-lethal swimmer detection systems, a top unfunded requirement of the Chief of Naval Operations.

T-AKE. The committee recommends $722.3 million (matching the Administration's request) for procurement of two T-AKEs, a ship that replenishes battlegroups at sea with ammunition, spare parts, and provisions.

Submarines

Advanced Submarine Systems Development. The Virginia Class Submarine is designed with improved capabilities in stealth, surveillance, special warfare, and the flexibility to be adapted to new missions. The committee recommends $91.4 million ($38.7 million more than the Administration's request) for system development of innovative submarine hull and combat systems technologies for potential insertion into new Virginia Class and other submarines. The committee's recommendation includes $25 million to develop transformational submarine payloads, sensors, and employment concepts that could enable a revolutionary expansion in submarine capabilities. In addition, the committee recommends $10 million (the Administration did not request any funds) for evaluation of modular payload concepts and multi-mission modules for Virginia Class submarines that would increase payload capacity and mission capability.

Guided Missile Submarine Conversion. Through the guided missile submarine conversion program, the Navy will refuel ballistic missile submarines and replace their nuclear missiles with long-range conventional Tomahawk cruise missiles. The committee recommends $1.2 billion (matching the Administration's request) to convert the remaining two submarines to the guided missile submarine configuration.

New Attack Submarine (NSSN). The NSSN will replace retiring Los Angeles-class submarines and constitute the bulk of the future attack submarine force. The committee recommends $1.5 billion (matching the Administration's request) for procurement of the sixth boat in the Virginia-class of submarines, and $1 billion (matching the Administration's request) for advanced procurement for a seventh boat in fiscal year 2005.

Nuclear Attack Submarine (SSN) Refueling and Overhaul. The SSN engineered refueling overhaul (ERO) program refuels, modernizes, and upgrades SSNs for extended service in the fleet. The committee recommends $164.4 million (matching the Administration's request) for long-lead procurement for the two SSN EROs planned for fiscal year 2005.

Submarine Sonar Improvements. The committee recommends $80.2 million (matching the Administration's request) for submarine sonar improvements, including $29.1 million for the continued development of the acoustic rapid commercial-off-the-shelf insertion (A-RCI) program. The committee strongly supports the A-RCI program which uses advances in technology that have been developed under a small business innovative research program to provide continuing improvements in sonar capabilities as technology develops.

Maritime Administration

Maritime Administration (MARAD). The committee recommends $163.9 million ($43.6 million more than the Administration's request) for the Maritime Administration. Included in the committee's recommendation is $104.4 million for operations and training programs, $39.5 million for the vessel construction loan guarantee program administered by MARAD, and $20 million for the disposal of obsolete ships in the National Defense Reserve Fleet.

Reauthorization of the Maritime Security Program. The Maritime Security Act of 1996 provided financial assistance to U.S. flag commercial ship operators to offset the higher cost of operating under the U.S. flag. In return for that assistance, the ship owners must enter into a DOD preparedness agreement. Under the terms of this agreement, the company's ships as well as the company's intermodal systems, equipment, and terminal facilities are to be made available to DOD in times of war or to respond to a surge or sustainment sealift requirement. Changes in the industry and DOD requirements dictate that legislation address these issues now. While the Act does not expire until 2005, the committee believes that shipowners and operators should be given an adequate period to plan for changes in DOD requirements. While the current program has worked reasonably well, the Maritime Security Act of 2003 includes a shipbuilding component to provide tanker support to our deployed forces, and grants greater flexibility for DOD to select the types of vessels it would likely need during a contingency. Accordingly, the committee recommends modifying the Maritime Security Act of 1996 by:

increasing the number of participants from 47 ships to 60 ships;
providing financial assistance to construct five newly built tankers in the U.S. that are capable of carrying military petroleum products during a war;
extending the current program for ten additional years;
establishing a 30-month period to replace older ships with newer DOD approved and militarily useful ships;
enhancing the priority selection system to favor U.S. citizen vessel owners and operators;
adding DOD certification requirements on new operators; and
increasing the annual payment to ship operators from $2.1 million per year to $2.6 million per year.

Communications, Science and Technology

Defense Science and Technology Program. Defense science and technology programs are critical to maintaining U.S. military technological superiority in the face of evolving threats to U.S. national security interests around the world. However, the Administration's budget request for science and technology of 2.7 percent of the total DOD budget does not meet the goal of three percent established by the 2001 Quadrennial Defense Review. In addition, the committee is concerned that the military services' science and technology budget requests are not sufficient to meet their transformation goals. As such, the committee recommends $10.9 billion ($662 million more than the Administration's request) for the DOD science and technology program, including $2 billion for the Army, $1 billion for the Navy, $2.3 billion for the Air Force, and $4.7 billion for Defense Agency science and technology (including $2.9 billion for DARPA, the Defense Advanced Research Projects Agency).

Affordable Weapon System (AWS). AWS is an advanced technology initiative to design, develop, and build a capable and affordable precision guided weapon system at a fraction of the cost of comparable systems. AWS uses commercial-off-the-shelf technology and has a 400-600 mile range, with a 200-pound payload. AWS has enormous potential as a weapon system that would fill the gap between shorter range weapons with smaller warheads and longer range weapons with larger warheads. Also, AWS provides a new paradigm for rapid development, transition to production, and fielding of new and innovative weapon systems. Therefore, the committee recommends a total of $178 million (the Administration did not request any funds) for AWS: $138 million in procurement and $40 for million research and development.

Littoral Support Craft (LSC-X). LSC-X is an Office of Naval Research program to develop a small, stealthy, fast experimental ship that is designed to operate in the littorals, and is scheduled to begin sea-trials during the summer of 2004. Designed to carry a variety of mission modules, LSC-X will serve as a test bed for new technologies and operational capabilities that might be chosen for the Littoral Combat Ship. The committee recommends $25 million ($20 million more than the Administration's request) to complete construction of the LSC-X.

Electromagnetic Gun. The military is interested in developing electromagnetic propulsion for advanced gun systems. The committee recommends establishing a collaborative program among the Army, Navy and the Defense Advanced Research Projects Agency for researching technologies to develop advanced high velocity and long range gun systems. Therefore, the committee recommends $32.6 million ($2.1 million more than the Administration's request) for Army electromagnetic gun technology research and development, and $7.6 million (the Administration did not request any funds) for the Navy electromagnetic gun program.

Joint Tactical Radio System (JRTS). In the past, radios procured by the services, in many instances, have been incompatible, leading to an inability for one unit to communicate with another service's unit. As joint operations increase, interoperable communications are crucial to enhance the success and the safety of the missions by reducing risk of friendly fire incidents due to miscommunications. JTRS will eliminate warfighter communication barriers by providing seamless, software-defined radio interoperability among the military's air, land, and ship radio networks. As such, the committee recommends strengthening the JTRS joint program office to centralize funding and development of the JTRS.

Local Area Networks (LAN) Upgrades. The LAN forms the communications backbone on military installations; without it, combat units could not deploy rapidly and efficiently. To ensure communications needs are being met, the committee recommends $104.5 million ($8 million more than the Administration's request) to upgrade the LANs at several Army installations. The increase is to upgrade LANs at installations hosting XVIII Airborne Corps major units so that the Army's combat power can move quickly when needed.

PRC-148 Tactical Radio. The Tactical Hand Held Radio (THHR), the Marine Corps variant of the PRC-148, is a secure voice and data radio that is interoperable with numerous other DOD radios. The committee recommends $9.6 million (the Administration did not request any funds) for THHR for active and reserve Marine Corps forces, an unfunded requirement of the Commandant of the Marine Corps. In addition, the committee recommends $8 million for PRC-148 radios for the Army, an unfunded requirement of the Army Chief of Staff.

Space Programs
(Listed Alphabetically)

Satellite Communications. Satellite communications have become increasingly important to the military by delivering real-time information and guidance to all types of military assets, from soldiers to ships. In an effort to support the development of satellite capabilities, the committee supports programs such as:

The Advanced Extremely High Frequency (AEHF) military satellite communication system (MILSATCOM), provides secure, global communications to support U.S. and allied forces on the land or sea, and in the air. It also connects strategic activities such as nuclear operations, theater missile defense, space operations, and intelligence. The committee recommends $838.1 ($60 million more than the Administration's request) for AEHF.
The Advanced Wideband System is a high-capacity tactical communications system that, once developed, is intended to provide greatly enhanced communications for the warfighter. However, much of the system is not mature, and the final transformational communications architecture has yet to be determined. Slightly less funding will allow technology maturation and risk reduction, while freeing resources for urgently needed nearer term systems, such as the Advanced EHF MILSATCOM. Therefore, the committee recommends $359.3 million ($80 million less than the Administration's request to better pace program growth) for the Advanced Wideband System.

Space Based Radar (SBR). The SBR system will provide near real-time, high resolution surveillance deep into enemy territory and denied areas that are critical to the military and intelligence community. Further, integrating SBR with surveillance aircraft and UAVs will dramatically improve situational awareness. Therefore, the committee recommends $274.1 million (matching the Administration's request) for SBR.

Shaping the U.S. Nuclear Deterrent for the 21^st Century

Nuclear programs are a cornerstone of U.S. national security posture. H.R. 1588 funds the testing and security of weapons as well as accelerated clean-up of former weapons sites. The legislation also funds Department of Energy efforts to combat terrorism and the proliferation of weapons of mass destruction.

National Nuclear Security Administration (NNSA). The committee recommends $8.8 billion ($783.6 million more than the authorized level for fiscal year 2003) for NNSA, a semi-autonomous agency within DOE with responsibility for managing the nation's nuclear weapons, nuclear nonproliferation, and naval reactor programs. NNSA funding includes:

· Weapons Activities. The committee recommends $6.4 billion ($15 million more than the Administration's request) to support maintenance of a safe, reliable, and secure nuclear weapons stockpile, and to continue the recapitalization of the defense nuclear complex infrastructure. Included in the committee's recommendation is $141 million ($12 million less than the Administration's request) for new plant projects, such as infrastructure modernization and test capabilities modernization at DOE plants; and $583.8 million ($1.7 million more than the President's request) for safeguards and security programs at DOE facilities, including physical security upgrades, cyber-security upgrades, and security systems maintenance and replacement.

· Defense Nuclear Nonproliferation. The committee recommends $1.3 billion ($27.5 million less than the Administration's request) to address the threat of proliferation of weapons of mass destruction, assist with safeguarding weapons and weapons grade materials in Russia, and dispose of nuclear materials excess to defense needs.

· Naval Reactors. The committee recommends $768.4 million (matching the Administration's request) for the naval reactors program, which supports operation, maintenance, and continuing development of Navy nuclear propulsion systems.

· Office of the Administrator for Nuclear Security. The committee recommends $348 million (matching than the Administration's request) for the Office of the Administrator for Nuclear Security, which provides federal management and oversight of the activities of the defense nuclear complex.

Other DOE Defense Activities. The committee recommends $497.3 million ($3 million more than the Administration's request) for other DOE defense activities necessary for national security.

Nuclear Waste Disposal. The committee recommends $430 million (matching the Administration's request) for payment to the Nuclear Waste Fund for final disposition of nuclear waste from defense activities.

Department of Energy (DOE) Defense Environmental Management Programs. The committee recommends $6.8 billion ($9.5 million more than the Administration's request) for DOE environmental management programs and clean up, including:

· $5.8 billion ($9.5 million more than the Administration's request) to accelerate clean up completion at defense sites, including $44.9 million for new plant projects to accelerate clean up completion; and

· $995.2 million (matching the Administration's request) for defense environmental services.

Defeating Underground Bunkers. Terrorists and rogue nations are known to hide nuclear, chemical, and biological weapons and weapons making facilities in hardened and deeply buried underground bunkers. Unfortunately, the weapons in our conventional arsenal are not capable of defeating a large percentage of these hard and deeply buried targets. An earth penetrating nuclear weapon could defeat many of these targets with less collateral damage to the surrounding environment than a larger surface nuclear burst. In 1993, Congress prohibited the research and development of low-yield nuclear weapons to draw a distinction between conventional and nuclear weapons. The committee believes that when Congress passed this provision, it could not have fully understood the direct threat underground weapons bunkers and facilities would have on our nation's safety in the future. Therefore, the committee recommends a provision that would allow research on new low-yield nuclear weapon concepts but would continue to prohibit their development and production.

Robust Nuclear Earth Penetrator (RNEP). The NNSA is studying the feasibility of repackaging an existing high yield nuclear stockpile weapon to destroy hardened and deeply buried targets by penetrating into the ground before detonation. Because such a weapon will provide a significant advantage for U.S. troops in destroying underground weapons facilities and bunkers, the committee recommends $15 million (matching the Administration's request) to continue feasibility, cost, and concept studies for the RNEP.

Advanced Weapons Concepts. In addition to researching and testing weapons and technologies that help maintain our national security, U.S. weapons laboratories also proactively defend our country by exploring means to counter threats of the future. Studying advanced weapons concepts to meet these potential threats serve a number of important purposes. First, advanced concepts studies entail the actual experience of designing weapons. While NNSA engages in sophisticated weapons related activities, there is still no substitute for exercising the design process. Second, since many of the most experienced weapons designers have retired, there is an urgent need for those who remain to train the next generation of scientists and engineers. Third, an advanced concepts program allows an investigation of the "art of the possible" by anticipating new weapons and capabilities that potential adversaries may develop using proliferated nuclear weapons and technologies. Finally, advanced weapons concepts programs allow the U.S. to prepare for the day when the present Cold War stockpile may no longer be a credible deterrent. Accordingly, the committee recommends $6 million (matching the Administrations request) for the advanced concepts initiative. However, the committee believes that the importance of these activities calls for NNSA to make more significant budget requests in the future.

Appendix

Military Manpower

FISCAL YEAR 2004 END STRENGTH - ACTIVE FORCES

		Fiscal Year 2004		Change from Fiscal Year
Service	FY 2003	Administration's	HASC	2004	2003
	Level	Request	Recommendation	Request	Level
Army	480,000	480,000	482,375	2,375	2,375
Navy	375,700	373,800	375,700	1,900	0
USMC	175,000	175,000	175,000	0	0
USAF	359,000	359,300	361,268	1,968	2,168

Total	1,389,700	1,388,100	1,394,343	6,243	4,543

FISCAL YEAR 2004 END STRENGTH - SELECTED RESERVE

		Fiscal Year 2004		Change from Fiscal Year
Service	FY 2003	Administration's	HASC	2004	2003
	Level	Request	Recommendation	Request	Level
ARNG	350,000	350,000	350,000	0	0
USAR	205,000	205,000	205,000	0	0
USNR	87,800	85,900	85,900	0	-1,900
USMCR	39,558	39,600	39,600	0	42
ANG	106,600	107,000	107,000	0	400
AFR	75,600	75,800	75,800	0	200

Total	864,558	863,300	863,300	0	-1,258
USCGR	9,000	10,000	10,000	0	1,000

FISCAL YEAR 2004 END STRENGTH -Reserves on Active Duty

		Fiscal Year 2004		Change from Fiscal Year
Service	FY 2003	Administration's	HASC	2004	2003
	Level	Request	Recommendation	Request	Level
ARNG	24,562	25,386	25,386	0	824
USAR	14,070	14,374	14,374	0	304
USNR	14,572	14,384	14,384	0	-188
USMCR	2,261	2,261	2,261	0	0
ANG	11,727	12,140	12,140	0	413
AFR	1,498	1,660	1,660	0	162

Total	68,690	70,205	70,205	0	1,515

FISCAL YEAR 2004 END STRENGTH - Dual Status Military Technicians

		Fiscal Year 2003		Change from Fiscal Year
Service	FY 2003	Administration's	HASC	2004	2003
	Level	Request	Recommendation	Request	Level
ARNG	24,102	24,589	24,589	0	487
USAR	6,599	6,699	7,844	1,145	1,245
ANG	22,495	22,806	22,806	0	311
AFR	9,911	9,911	9,911	0	80

Total	63,107	64,085	65,230	1,145	2,123

###

House Armed Services Committee
2120 Rayburn House Office Building
Washington, D.C. 20515

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