Senate Report 108-46 - NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2004 REPORT

[Senate Report 108-46]
[From the U.S. Government Publishing Office]

108th Congress 1st Calendar No. 96

Session SENATE Report
108-46
_______________________________________________________________________

NATIONAL DEFENSE AUTHORIZATION
ACT FOR FISCAL YEAR 2004

REPORT

[to accompany s. 1050]

AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2004 FOR MILITARY ACTIVITIES
OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR
DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL
STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER
PURPOSES

together with

ADDITIONAL VIEWS

----------

COMMITTEE ON ARMED SERVICES
UNITED STATES SENATE

May 13, 2003.--Ordered to be printed

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2004
?

108th Congress
1st Session SENATE Report
108-46
_______________________________________________________________________

Calendar No. 96

NATIONAL DEFENSE AUTHORIZATION

ACT FOR FISCAL YEAR 2004

REPORT

[to accompany s. 1050]

together with

ADDITIONAL VIEWS

__________

COMMITTEE ON ARMED SERVICES

UNITED STATES SENATE

May 13, 2003.--Ordered to be printed

COMMITTEE ON ARMED SERVICES

(108th Congress, 1st Session)

JOHN WARNER, Virginia, Chairman
JOHN McCAIN, Arizona CARL LEVIN, Michigan
JAMES M. INHOFE, Oklahoma EDWARD M. KENNEDY, Massachusetts
PAT ROBERTS, Kansas ROBERT C. BYRD, West Virginia
WAYNE ALLARD, Colorado JOSEPH I. LIEBERMAN, Connecticut
JEFF SESSIONS, Alabama JACK REED, Rhode Island
SUSAN M. COLLINS, Maine DANIEL K. AKAKA, Hawaii
JOHN ENSIGN, Nevada BILL NELSON, Florida
JAMES M. TALENT, Missouri E. BENJAMIN NELSON, Nebraska
SAXBY CHAMBLISS, Georgia MARK DAYTON, Minnesota
LINDSEY O. GRAHAM, South Carolina EVAN BAYH, Indiana
ELIZABETH DOLE, North Carolina HILLARY RODHAM CLINTON, New York
JOHN CORNYN, Texas MARK PRYOR, Arkansas
Judith A. Ansley, Staff Director
Richard D. DeBobes, Democratic Staff Director

(ii)
C O N T E N T S

----------
Page
Purpose of the Bill.............................................. 1
Committee overview and recommendations........................... 2
Explanation of funding summary............................... 5
Division A--Department of Defense Authorizations................. 15
Title I--Procurement............................................. 15
Explanation of tables........................................ 15
Subtitle A--Authorization of Appropriations.................. 15
Chemical agents and munitions destruction, Defense (sec.
106)................................................... 15
Subtitle B--Army Programs.................................... 15
Army Aircraft............................................ 38
UH-60 Blackhawk...................................... 38
CH-47 cargo helicopter modifications................. 38
UH-60 Blackhawk modifications........................ 38
Kiowa warrior........................................ 39
Aircraft survivability equipment..................... 39
Avionics support equipment........................... 39
Aircrew integrated systems........................... 39
Army Missiles............................................ 40
Hellfire............................................. 40
Javelin missiles..................................... 40
Weapons and Track Combat Vehicles........................ 40
Squad automatic weapon............................... 40
Lightweight 155mm howitzer........................... 41
Rapid fielding initiative............................ 41
Army Ammunition.......................................... 41
M919 Armor-piercing fin-stabilized, discarding-sabot,
with tracer 25mm cartridge......................... 41
M789 high-explosive, dual-purpose cartridge.......... 42
M930 illumination cartridge.......................... 42
M485 illumination cartridge.......................... 42
M87A1 Volcano anti-tank mine......................... 42
Modern demolition initiators......................... 42
Dye sets for medium caliber ammunition............... 42
Modern munitions load, assembly, and pack technology. 43
White phosphorous production equipment............... 43
Conventional ammunition demilitarization............. 43
Other Army Procurement................................... 43
M871A3 semi-trailer.................................. 43
High mobility multipurpose wheeled vehicles.......... 44
Movement Tracking System............................. 44
SINCGARS radios...................................... 45
Area Common User System.............................. 45
Land warrior......................................... 45
Construction equipment extended service program...... 46
Modular Causeway System.............................. 46
Military operations on urban terrain................. 46
Subtitle C--Navy Programs.................................... 46
Multiyear procurement authority for Navy programs
(sec. 121)......................................... 73
Pilot program for flexible funding of Navy vessel
conversions and overhauls (sec. 122)............... 73
Other Navy Programs.......................................... 74
Navy Aircraft............................................ 74
Airborne low frequency sonar......................... 74
Operational support aircraft......................... 74
C-37 aircraft........................................ 74
Joint Primary Aircraft Training System............... 75
AV-8B aircraft modifications......................... 75
Navigational Thermal Imaging System.................. 75
EP-3 aircraft service life assessment................ 76
P-3C aircraft modifications.......................... 76
Aerial targets....................................... 77
Navy Weapons............................................. 77
Weapons industrial facilities........................ 77
Close-in weapons system.............................. 77
Navy and Marine Corps Ammunition......................... 77
60mm high explosive cartridge........................ 77
Navy Shipbuilding and Conversion......................... 78
Submarine refueling overhauls........................ 78
DDG-51 Arleigh Burke-class destroyer modernization
program............................................ 78
Integrated Condition Assessment System............... 79
Other Navy Procurement................................... 79
SPQ-9B radar......................................... 79
Shipboard communications automation.................. 79
Submarine high data rate antenna..................... 80
Joint Engineering Data Management Information and
Control System..................................... 80
Integrated bridge system............................. 80
NULKA anti-ship missile decoy system................. 80
Submarine training device modifications.............. 81
Other supply support equipment....................... 81
Man overboard indicator system....................... 81
Marine Corps Procurement................................. 81
Squad automatic weapon............................... 81
Night vision equipment............................... 82
Lightweight multiband satellite terminal............. 82
Subtitle D--Air Force Programs............................... 82
Elimination of quantity limitations on multiyear
procurement authority for C-130J aircraft (sec.
131)............................................... 99
Other Air Force Programs..................................... 99
Air Force Aircraft....................................... 99
F/A-22 aircraft...................................... 99
C-17 aircraft funding transfers...................... 100
A-10 aircraft modifications.......................... 101
F-15 aircraft modifications.......................... 101
F-15 modifications................................... 101
F-16 aircraft modifications.......................... 101
C-5 aircraft modifications........................... 102
C-130 modifications.................................. 102
C-130 radar upgrade.................................. 102
KC-135 aircraft boom operator weapons systems trainer 103
Cobra Ball dual-sided signals intelligence........... 103
Rivet Joint specific emitter identification.......... 103
Rivet Joint signals intelligence modernization....... 103
Air Force Missiles....................................... 104
Guidance replacement program......................... 104
Titan................................................ 104
Evolved expendable launch vehicle.................... 104
Other Air Force Procurement.............................. 105
Air National Guard jumbo digital transit-cased system 105
Joint Threat Emitter................................. 105
Base information infrastructure...................... 106
Panoramic night vision goggles....................... 106
Personnel safety and rescue.......................... 106
Point of maintenance initiative...................... 106
Expeditionary medical support packages............... 107
Subtitle E--Other Matters.................................... 107
Defense-wide Programs.................................... 115
MH-60L altitude hold................................. 115
EC-130J Commando Solo upgrades....................... 115
Advanced SEAL delivery system........................ 115
Hand-held reconnaissance and surveillance project.... 116
Joint threat warning system.......................... 117
Advanced lightweight grenade launcher................ 117
Lightweight counter mortar radar..................... 117
Night vision and laser targeting devices............. 118
Special operations craft-riverine.................... 118
Joint Service Lightweight Integrated Suit Technology. 118
M45 Army Aircrew Protective Mask..................... 119
M291 and M295 decontamination kits................... 119
Wide-area decontamination............................ 119
Chemical-Biological Protective Shelter............... 120
Automatic Chemical Agent Detector and Alarm.......... 120
Chemical Biological Installation Force Protection
Program............................................ 120
Joint Chemical Agent Detector........................ 121
Items of Special Interest.................................... 121
Ammunition plant and arsenal modernization........... 121
Ground systems industrial base....................... 122
Navy and Marine Corps Tactical Aviation Integration.. 123
Relevancy of the Mobility Requirements Study for
Fiscal Year 2005................................... 123
Report on conventional ammunition industrial base.... 124
Sonobuoys............................................ 125
Surface combatant shipbuilding industrial base....... 125
T-45 Training System................................. 126
Title II--Research, Development, Test, and Evaluation............ 127
Explanation of tables........................................ 127
Subtitle A--Authorization of Appropriations.................. 129
Science and Technology............................... 129
Subtitle B--Program Requirements, Restrictions, and
Limitations................................................ 130
Prohibition on transfer of certain programs outside
the Office of the Secretary of Defense (sec. 211).. 130
Objective force indirect fires program (sec. 212).... 131
Subtitle C--Ballistic Missile Defense........................ 131
Fielding of ballistic missile defense capabilities
(sec. 221)......................................... 131
Repeal of requirements for certain program elements
for Missile Defense Agency activities (sec. 222)... 132
Oversight of procurement of ballistic missile defense
system elements (sec. 223)......................... 132
Renewal of authority to assist local communities
impacted by ballistic missile defense system test
bed (sec. 224)..................................... 133
Subtitle D--Other Matters.................................... 133
Global Research Watch Program in the Office of the
Director of Defense Research and Engineering (sec.
231)............................................... 133
Defense Advanced Research Projects Agency Biennial
Strategic Plan (sec. 232).......................... 133
Enhancement of authority of Secretary of Defense to
support science, mathematics, engineering and
technology education (sec. 233).................... 134
Department of Defense high-speed network-centric and
bandwidth expansion program (sec. 234)............. 135
Additional Matters of Interest............................... 136
Army..................................................... 136
Fundamental research for the Army Objective Force.... 148
Infrastructure protection research................... 148
Ferroelectric nanomaterials fabrication.............. 148
Applied materials research........................... 148
Army missile research................................ 148
Advanced Concepts and Simulation Research............ 148
Combat vehicle and automotive technology............. 149
Single crystal tungsten alloy penetrators............ 149
Flexible displays.................................... 149
Countermine capabilities............................. 149
Environmental response and security protection....... 149
Geosciences and atmospheric research................. 150
Embedded optical communications...................... 150
Enhanced anthrax research............................ 150
Genomics research.................................... 150
Medical Advanced Technology.......................... 150
Combat vehicle technology development and support.... 150
Interactive training technologies.................... 151
Close-in Active Protection........................... 151
Warfighter/firefighter position, location, and
tracking sensor.................................... 151
Advanced laser electric power........................ 151
Advanced radars and electro-optical sensors.......... 152
Integrated composite missile structures.............. 152
Low cost interceptor................................. 152
Mobile tactical high energy laser.................... 152
Radar power technology............................... 153
Air and missile defense architecture analysis........ 153
Managing Army Technologies for Environmental
Enhancement Program................................ 153
Manganese Health Research Project.................... 153
Logistics and engineer equipment..................... 154
Automated technologies for biodefense................ 154
Tactical unmanned ground vehicle..................... 155
Advanced Precision Kill Weapon System................ 155
Viper strike munition................................ 155
Army airborne command and control system............. 155
Combat vehicle improvement program................... 156
Full authority digital engine control................ 156
Base protection and monitoring system................ 156
Document exploitation................................ 157
Navy..................................................... 157
Naval basic research................................. 171
Free electron laser.................................. 171
Microelectronics and materials development........... 171
Transformational unmanned aerial vehicles
capabilities....................................... 171
Force Protection Applied Research.................... 171
Advanced research for Naval systems.................. 172
Biowarfare detection and diagnosis................... 172
Coastal mapping systems.............................. 172
Electronics research for naval applications.......... 172
Ocean observing program.............................. 172
Low acoustic signature motors and propulsors......... 172
Office of Naval Research accounting adjustment....... 172
High temperature superconducting alternating current
synchronous motor.................................. 173
Laser welding for shipbuilding....................... 173
Project M............................................ 173
Common picture technologies.......................... 173
Warfighter sustainment advanced technology........... 174
Precision surveillance and targeting radar........... 174
Marine Corps Warfighting Laboratory.................. 175
Modeling and simulation for homeland defense......... 175
Mine warfare technology.............................. 176
Rotorcraft external airbag protection system......... 176
Improved shipboard combat information center......... 176
Advanced battle station/decision support system...... 176
Carrier system development........................... 177
Surface vessel torpedo tubes......................... 177
Anti-submarine warfare risk reduction................ 177
Reducing maintenance by improving brushes on electric
motors............................................. 178
Rotary electromagnetic launcher...................... 178
Submarine payloads and sensors....................... 178
Littoral Combat Ship................................. 179
Non-lethal weapons................................... 180
Distress signaling systems........................... 181
Marine mammal monitoring and protection system....... 181
Advanced wireless networks........................... 181
Advanced cable design................................ 182
AV-8B aircraft engine development.................... 182
P-3 modernization program............................ 182
Warfare support system............................... 182
Extended range active missile........................ 183
Submarine antenna technology improvements............ 183
Virginia-class submarine design development.......... 183
Submarine tactical warfare system.................... 184
Uninterruptible fuel cell............................ 184
NULKA anti-ship missile decoy system development..... 185
Radar absorbing tiles for ship self defense.......... 185
Joint Strike Fighter................................. 185
Wireless sensor technology........................... 186
Fire retardant fibers................................ 186
Warfare analysis and education....................... 186
Thin plate pure lead battery technology.............. 186
Precision terrain aided navigation................... 186
Fire Scout RQ-84..................................... 186
Airborne reconnaissance systems...................... 187
Verification, validation and accreditation
improvements....................................... 187
Air Force................................................ 187
Air Force propulsion research........................ 200
Aerospace materials research......................... 200
Space technologies................................... 200
MASINT warfighter visualization tools................ 201
Advanced materials for weapons systems............... 201
Aerospace technologies and demonstrations............ 201
Fuels, lubrication and turbine engine technology..... 201
B-2 bomber........................................... 201
Advanced spacecraft technology....................... 202
Satellite protection technology...................... 202
High accuracy network determination system........... 202
Global Positioning System III........................ 203
Advanced extremely high frequency system............. 203
Space control technology............................. 204
Advanced wideband system/transformational
communications architecture........................ 204
Electronic warfare development....................... 205
Passive Attack Weapon................................ 206
Space test program................................... 206
F-15C/D aircraft radar upgrade....................... 206
Patriot advanced capability-3 spiral development..... 206
Global positioning system jammer detection and
location system.................................... 208
Space control test bed............................... 209
Eagle Vision......................................... 209
Joint air-to-surface standoff missile................ 210
Cybersecurity Research............................... 210
Civil reserve space service.......................... 210
Ballistic missile range safety technology............ 210
U-2 aircraft Senior Year electro-optical
reconnaissance system focal planes................. 211
U-2 signals intelligence risk mitigation............. 211
Global Hawk lithium battery demonstration............ 212
Distributed common ground systems.................... 212
Aging aircraft....................................... 212
Defense-Wide............................................. 212
Defense Research Sciences............................ 225
Nanophotonic systems fabrication..................... 225
Semiconductor research programs...................... 225
University Research Initiative....................... 226
Cell and tissue culture and bacterial growth core
research........................................... 226
Bacteriophage amplification.......................... 226
Medical Free Electron Laser.......................... 226
Computer research projects........................... 227
Acoustic wave sensor technology...................... 227
Bioinformatics....................................... 227
Food security technologies........................... 227
Mustard gas antidote................................. 227
Nerve agent decontamination technology............... 228
Sensor technologies.................................. 228
Water quality sensors................................ 228
Tactical technology.................................. 228
Biology research at the Defense Advanced Research
Projects Agency.................................... 228
Armed Forces Radiobiology Research Institute......... 228
Explosive demilitarization technology................ 229
Blast mitigation program............................. 229
Portable radiation search tool....................... 230
Advanced Aerospace Systems........................... 230
Anthrax and plague oral vaccine research and
development........................................ 230
SensorNet............................................ 230
Topically applied vectored vaccines.................. 231
Logistics technology demonstrations.................. 231
Vehicle fuel cell program............................ 231
High Altitude Airship................................ 231
All optical transparent switching systems............ 231
Sensor and guidance technology....................... 231
Organic micro unmanned aerial vehicles............... 232
Tactical unmanned ground vehicles.................... 232
Arrow................................................ 232
Aegis ballistic missile defense...................... 233
Ground-based midcourse defense....................... 233
Airborne infrared system............................. 234
E-2 infrared search and track........................ 234
Family of radars..................................... 234
Russian American observation satellite program....... 235
Space tracking and surveillance system............... 236
Ballistic missile defense system interceptors........ 236
Advanced Research Center............................. 236
Ballistic missile defense lethality testing.......... 237
Joint robotics....................................... 237
See and avoid technologies........................... 237
Information systems security research................ 237
Broadcast-Request Imagery Technology Experiment...... 237
Tasking, processing, exploitation and dissemination
for the future imagery architecture................ 238
Laser additive manufacturing initiatives............. 238
Multiband multimission radios........................ 238
Items of Special Interest.................................... 239
Apache Longbow....................................... 239
Ballistic protective garments........................ 239
Chemical and biological test facilities.............. 239
Counterproliferation Support Program................. 240
Cruise missile defense............................... 240
DD(X) destroyer...................................... 240
Infrared search and track............................ 241
National Aerospace Initiative........................ 242
Networking technologies.............................. 242
Patriot advanced capability-3 testing................ 243
Potential use of hydrogen fuel....................... 243
Space based radar and missile defense................ 243
Space based radar architecture....................... 244
Space based infrared system.......................... 244
Space system vulnerability........................... 245
Spacelift range system............................... 246
Title III--Operation and Maintenance............................. 249
Explanation of tables........................................ 249
Subtitle A--Authorization of Appropriations.................. 285
Armed Forces Retirement Home (sec. 303).................. 285
Subtitle B--Program Requirements, Restrictions, and
Limitations................................................ 285
Armed Forces Emergency Services (sec. 311)............... 285
Commercial imagery industrial base (sec. 312)............ 285
Subtitle C--Environmental Provisions......................... 286
General definitions applicable to facilities and
operations (sec. 321).................................. 286
Military readiness and conservation of protected species
(sec. 322)............................................. 286
Arctic and Western Pacific Environmental Technology
Cooperation Program (sec. 323)......................... 287
Participation in wetland mitigation banks in connection
with military construction projects (sec. 324)......... 288
Extension of authority to use Environmental Restoration
Account funds for relocation of a contaminated facility
(sec. 325)............................................. 288
Applicability of certain procedural and administrative
requirements to restoration advisory boards (sec. 326). 289
Expansion of authorities on use of vessels stricken from
Naval Vessel Register for experimental purposes (sec.
327)................................................... 289
Transfer of vessels stricken from the Naval Vessel
Register for use as artificial reefs (sec. 328)........ 289
Salvage facilities (sec. 329)............................ 290
Task force on resolution of conflict between military
training and endangered species protection at Barry M.
Goldwater Range, Arizona (sec. 330).................... 290
Public health assessment of exposure to perchlorate (sec.
331)................................................... 291
Subtitle D--Reimbursement Authorities........................ 292
Reimbursement of reserve component military personnel
accounts for personnel costs of special operations
reserve component personnel engaged in landmines
clearance (sec. 341)................................... 292
Reimbursement of reserve component accounts for costs of
intelligence activities support provided by reserve
component personnel (sec. 342)......................... 292
Reimbursement rate for airlift services provided to the
Department of State (sec. 343)......................... 292
Subtitle E--Defense Dependents Education..................... 292
Assistance to local educational agencies that benefit
dependents of members of the Armed Forces and
Department of Defense civilian employees (sec. 351).... 292
Impact aid for children with severe disabilities (sec.
352)................................................... 292
Subtitle F--Other Matters.................................... 293
Sale of Defense Information Systems Agency services to
contractors performing the Navy-Marine Corps Intranet
contract (sec. 361).................................... 293
Use of the Defense Modernization Account for life cycle
cost reduction initiatives (sec. 362).................. 293
Exemption of certain firefighting service contracts from
prohibition on contracts for performance of
firefighting functions (sec. 363)...................... 293
Technical amendment relating to termination of Sacramento
Army Depot, Sacramento, California (sec. 364).......... 293
Exception to competition requirement for workloads
previously performed by depot-level activities (sec.
365)................................................... 294
Support for transfers of decommissioned vessels and
shipboard equipment (sec. 366)......................... 294
Aircraft for performance of aerial refueling mission
(sec. 367)............................................. 294
Stability of certain existing military troop dining
facilities contracts (sec. 368)........................ 295
Repeal of calendar year limitations on use of commissary
stores by certain Reserves and others (sec. 369)....... 295
Budget Items................................................. 295
Extended Cold Weather Clothing System.................... 295
Field battery charging technology........................ 296
Quadruple shipping containers............................ 296
Department of Defense foreign language training.......... 296
Recruiting and advertising costs......................... 296
Flight School XXI........................................ 297
Corrosion prevention and control......................... 297
M1A1 Abrams tank transmission upgrade.................... 297
Weapons of Mass Destruction--Civil Support Teams......... 297
Operations in Southwest Asia............................. 298
Working Capital Funds.................................... 298
Civilian personnel pay in excess of requirements......... 299
Condition-based maintenance photonic sensors............. 299
Lead paint removal....................................... 299
Navy excess carryover.................................... 300
Naval Station Roosevelt Roads............................ 300
Chemical-Biological Incident Response Force Family of
Incident Response Systems.............................. 300
Initial issue............................................ 301
Corrosion prevention and control......................... 301
Missile maintenance...................................... 301
Manufacturing Technical Assistance and Production Program 301
Air Force Supply Management Activity Group Working
Capital Fund and Depot Maintenance..................... 302
Train and equip program.................................. 302
Information assurance scholarship program................ 302
Transportation Working Capital Fund...................... 303
Equipment Storage Site initial operations................ 303
Cannon bore cleaning..................................... 303
Test support program..................................... 303
Funding for Formerly Used Defense Sites.................. 304
Overseas Contingency Operations Transfer Fund............ 304
Other Legislation........................................ 305
Items of Special Interest.................................... 305
Arlington National Cemetery information and planning
system................................................. 305
Chemical depot airspace security......................... 305
Comprehensive management of Department of Defense ranges. 305
Depot, arsenal and ammunition workforce revitalization... 306
Environmental cleanup for former Navy property on Vieques 306
Guaranteed fixed price remediation contracts............. 307
Mail delivery to troops stationed in the Middle East..... 308
Sea Swap................................................. 308
Summer training for cadets and midshipmen................ 309
Support for the Joint National Training Capability....... 309
Visual language translators.............................. 310
War reserve stocks of Meals Ready to Eat................. 310
Title IV--Military Personnel Authorizations...................... 311
Subtitle A--Active Forces.................................... 311
End strengths for active forces (sec. 401)............... 311
Increased maximum percentage of general and flag officers
on active duty authorized to be serving in grades above
brigadier general and rear admiral (lower half) (sec.
402)................................................... 311
Extension of certain authorities relating to management
of numbers of general and flag officers in certain
grades (sec. 403)...................................... 311
Subtitle B--Reserve Forces................................... 311
End strengths for Selected Reserve (sec. 411)............ 311
End strengths for Reserves on active duty in support of
the reserves (sec. 412)................................ 312
End strengths for military technicians (dual status)
(sec. 413)............................................. 312
Fiscal year 2004 limitations on non-dual status
technicians (sec. 414)................................. 312
Subtitle C--Other Matters Relating to Personnel Strengths.... 313
Revision of personnel strength authorization and
accounting process (sec. 421).......................... 313
Exclusion of recalled retired members from certain
strength limitations during period of war or national
emergency (sec. 422)................................... 313
Subtitle D--Authorization of Appropriations.................. 313
Authorization of appropriations for military personnel
(sec. 431)............................................. 313
Title V--Military Personnel Policy............................... 315
Subtitle A--Officer Personnel Policy......................... 315
Retention of health professions officers to fulfill
active duty service obligations following failure of
selection for promotion (sec. 501)..................... 315
Eligibility for appointment as Chief of Army Veterinary
Corps (sec. 502)....................................... 315
Subtitle B--Reserve Component Personnel Policy............... 315
Expanded authority for use of Ready Reserve in response
to terrorism (sec. 511)................................ 315
Streamlined process for continuing officers on the
reserve active-status list (sec. 512).................. 315
National Guard officers on active duty in command of
National Guard units (sec. 513)........................ 315
Subtitle C--Revision of Retirement Authorities............... 316
Permanent authority to reduce three-year time-in-grade
requirement for retirement in grade for officers in
grades above major and lieutenant commander (sec. 521). 316
Subtitle D--Education and Training........................... 316
Increased flexibility for management of senior level
education and post-education assignments (sec. 531).... 316
Expanded educational assistance authority for cadets and
midshipmen receiving ROTC scholarships (sec. 532)...... 316
Eligibility and cost reimbursement requirements for
personnel to receive instruction at the Naval
Postgraduate School (sec. 533)......................... 316
Actions to address sexual misconduct at the service
academies (sec. 534)................................... 317
Subtitle E--Decorations, Awards, and Commendations........... 317
Subtitle F--Military Justice................................. 317
Extended limitation period for prosecution of child abuse
cases in courts-martial (sec. 551)..................... 317
Clarification of blood alcohol content limit for the
offense under the Uniform Code of Military Justice of
drunken operation of a vehicle, aircraft, or vessel
(sec. 552)............................................. 317
Subtitle G--Other Matters.................................... 317
High-tempo personnel management and allowance (sec. 561). 317
Alternate initial military service obligation for persons
accessed under direct entry program (sec. 562)......... 318
Policy on concurrent deployment to combat zones of both
military spouses of military families with minor
children (sec. 563).................................... 318
Enhancement of voting rights of members of the uniformed
services (sec. 564).................................... 318
Items of Special Interest.................................... 319
Assisting non-citizen service members.................... 319
Computer-based assistance for survivors of military
decedents.............................................. 319
Education for service members in preventing identity
theft.................................................. 319
Family surveys........................................... 319
Impact of reserve mobilization on state and local first
responder units........................................ 320
Increased reliance on warrant officers................... 320
Joint training of Department of Defense personnel in the
Code of Conduct........................................ 321
Panel to review sexual misconduct allegations at the
United States Air Force Academy........................ 321
Pre-enlistment screening of applicants for military
service................................................ 322
Report on implementation of recommendations of the
Defense Task Force on Domestic Violence................ 322
Title VI--Compensation and Other Personnel Benefits.............. 323
Subtitle A--Pay and Allowances............................... 323
Increase in basic pay for fiscal year 2004 (sec. 601).... 323
Revised annual pay adjustment process (sec. 602)......... 323
Computation of basic pay rate for commissioned officers
with prior enlisted or warrant officer service (sec.
603)................................................... 323
Pilot program of monthly subsistence allowance for non-
scholarship Senior ROTC members committing to continue
ROTC participation as sophomores (sec. 604)............ 323
Basic allowance for housing for each member married to
another member without dependents when both spouses are
on sea duty (sec. 605)................................. 324
Increased rate of family separation allowance (sec. 606). 324
Subtitle B--Bonuses and Special and Incentive Pays........... 324
One-year extension of certain bonus and special pay
authorities for reserve forces (sec. 611).............. 324
One-year extension of certain bonus and special pay
authorities for certain health care professionals (sec.
612)................................................... 324
One-year extension of special pay and bonus authorities
for nuclear officers (sec. 613)........................ 324
One-year extension of other bonus and special pay
authorities (sec. 614)................................. 324
Special pay for reserve officers holding positions of
unusual 5responsibility and of critical nature (sec.
615)................................................... 325
Assignment incentive pay for service in Korea (sec. 616). 325
Increased maximum amount of reenlistment bonus for active
members (sec. 617)..................................... 325
Payment of Selected Reserve reenlistment bonus to members
of Selected Reserve who are mobilized (sec. 618)....... 325
Increased rate of hostile fire and imminent danger
special pay (sec. 619)................................. 325
Availability of hostile fire and imminent danger special
pay for reserve component members on inactive duty
(sec. 620)............................................. 325
Expansion of overseas tour extension incentive program to
officers (sec. 621).................................... 326
Eligibility of warrant officers for accession bonus for
new officers in critical skills (sec. 622)............. 326
Incentive bonus for conversion to military occupational
specialty to ease personnel shortage (sec. 623)........ 326
Subtitle C--Travel and Transportation Allowances............. 326
Shipment of privately owned motor vehicle within
continental United States (sec. 631)................... 326
Payment or reimbursement of student baggage storage costs
for dependent children of members stationed overseas
(sec. 632)............................................. 326
Contracts for full replacement value for loss or damage
to personal property transported at Government expense
(sec. 633)............................................. 327
Subtitle D--Retired Pay and Survivor Benefits................ 327
Special rule for computation of retired pay base for
commanders of combatant commands (sec. 641)............ 327
Survivor Benefit Plan annuities for surviving spouses of
Reserves not eligible for retirement who die from a
cause incurred or aggravated while on inactive-duty
training (sec. 642).................................... 327
Increase in death gratuity payable with respect to
deceased members of the Armed Forces (sec. 643)........ 327
Subtitle E--Other Matters.................................... 327
Retention of accumulated leave (sec. 651)................ 327
Other Programs............................................... 327
Selective reenlistment bonuses........................... 327
Title VII--Health Care........................................... 329
Medical and dental screening for members of Selected
Reserve units alerted for mobilization (sec. 701)...... 329
TRICARE beneficiary counseling and assistance
coordinators for reserve component beneficiaries (sec.
702)................................................... 329
Extension of authority to enter into personal services
contracts for health care services to be performed at
locations outside medical treatment facilities (sec.
703)................................................... 330
Department of Defense Medicare-Eligible Retiree Health
Care Fund valuations and contributions (sec. 704)...... 330
Surveys on continued viability of TRICARE standard (sec.
705)................................................... 330
Elimination of limitation on covered beneficiaries
eligible to receive health care services from former
public health service treatment facilities (sec. 706).. 330
Modification of structure and duties of Department of
Veterans Affairs--Department of Defense Health
Executive Committee (sec. 707)......................... 331
Items of Special Interest.................................... 331
Children's hospitals..................................... 331
Chiropractic health care................................. 331
Force health protection.................................. 332
Population based medical research........................ 332
Title VIII--Acquisition Policy, Acquisition Management, and
Related Matters................................................ 333
Subtitle A--Acquisition Policy and Management................ 333
Temporary emergency procurement authority to facilitate
the defense against or recovery from terrorism or
nuclear, biological, chemical, or radiological attack
(sec. 801)............................................. 333
Special temporary contract close-out authority (sec. 802) 333
Defense acquisition program management for use of radio
frequency spectrum (sec. 803).......................... 333
National Security Agency modernization program (sec. 804) 334
Quality control in procurement of aviation critical
safety items and related services (sec. 805)........... 336
Subtitle B--Procurement of Services.......................... 337
Expansion and extension of incentive for use of
performance-based contracts in procurements of services
(sec. 811)............................................. 337
Public-private competitions for the performance of
Department of Defense functions (sec. 812)............. 337
Authority to enter into personal services contracts (sec.
813)................................................... 338
Subtitle C--Major Defense Acquisition Programs............... 338
Certain weapons-related prototype projects (sec. 821).... 338
Applicability of Clinger-Cohen Act policies and
requirements to equipment integral to a weapon or
weapon system (sec. 822)............................... 338
Applicability of requirement for reports on maturity of
technology at initiation of major defense acquisition
programs (sec. 823).................................... 339
Subtitle D--Domestic Source Requirements..................... 339
Exceptions to Berry Amendment for contingency operations
and other urgent situations (sec. 831)................. 339
Inapplicability of Berry Amendment to procurements of
waste and byproducts of cotton and wool fiber for use
in the production of propellants and explosives (sec.
832)................................................... 340
Waiver authority for domestic source or content
requirements (sec. 833)................................ 340
Buy American exception for ball bearings and roller
bearings used in foreign products (sec. 834)........... 340
Subtitle E--Defense Acquisition and Support Workforce........ 340
Flexibility for management of the defense acquisition and
support workforce (sec. 841)........................... 340
Limitation and reinvestment authority relating to
reduction of the defense acquisition and support
workforce (sec. 842)................................... 341
Clarification and revision of authority for demonstration
project relating to certain acquisition personnel
management policies and procedures (sec. 843).......... 341
Subtitle F--Federal Support for Procurement of Anti-Terrorism
Technologies and Services by States and Local Governments.. 342
Federal support for procurement of anti-terrorism
technologies and services by state and local
governments (secs. 851, 852, 853)...................... 342
Subtitle G--General Contracting Authorities, Procedures, and
Limitations, and Other Matters............................. 342
Limited acquisition authority for commander of United
States Joint Forces Command (sec. 861)................. 342
Operational test and evaluation (sec. 862)............... 343
Multiyear task and delivery order contracts (sec. 863)... 343
Repeal of requirement for contractor assurances regarding
the completeness, accuracy, and contractual sufficiency
of technical data provided by the contractor (sec. 864) 343
Reestablishment of authority for short-term leases of
real or personal property across fiscal years (sec.
865)................................................... 344
Items of Special Interest.................................... 344
Applicability of the Trade Agreements Act to commercially
available off-the-shelf items.......................... 344
Contracting for overseas logistics support............... 344
Department of Defense anti-tamper program................ 345
National Industrial Security Program..................... 345
Evolutionary acquisition strategies...................... 346
Improvement of software acquisition processes............ 346
Performance contracts.................................... 347
Title IX--Department of Defense Organization and Management...... 349
Subtitle A--Department Offices and Agencies.................. 349
Clarification of responsibility of military departments
to support combatant commanders (sec. 901)............. 349
Redesignation of National Imagery and Mapping Agency as
National Geospatial-Intelligence Agency (sec. 902)..... 349
Standards of conduct for members of the Defense Policy
Board and the Defense Science Board (sec. 903)......... 349
Subtitle B--Space Activities................................. 350
Coordination of space science and technology activities
of the Department of Defense (sec. 911)................ 350
Space personnel cadre (sec. 912)......................... 350
Policy regarding assured access to space for United
States national security payloads (sec. 913)........... 351
Pilot program to provide space surveillance network
services to entities outside the United States
government (sec. 914).................................. 352
Content of biennial global positioning system report
(sec. 915)............................................. 352
Subtitle C--Other Matters.................................... 352
Combatant Commander Initiative Fund (sec. 921)........... 352
Authority for the Marine Corps University to award the
degree of master of operational studies (sec. 922)..... 353
Report on changing roles of United States Special
Operations Command (sec. 923).......................... 353
Integration of Defense intelligence, surveillance and
reconnaissance capabilities (sec. 924)................. 354
Establishment of the National Guard of the Northern
Mariana Islands (sec. 925)............................. 355
Title X--General Provisions...................................... 357
Subtitle A--Financial Matters................................ 357
Transfer authority (sec. 1001)........................... 357
United States contribution to NATO common-funded budgets
(sec. 1002)............................................ 357
Authorization of supplemental appropriations for fiscal
year 2003 (sec. 1003).................................. 357
Subtitle B--Improvement of Travel Card Management............ 357
Mandatory disbursement of travel allowances directly to
travel care creditors (sec. 1011)...................... 357
Determinations of creditworthiness for issuance of
Defense travel card (sec. 1012)........................ 358
Disciplinary actions and assessing penalties for misuse
of Defense travel cards (sec. 1013).................... 358
Subtitle C--Reports.......................................... 358
Elimination and revision of various reporting
requirements applicable to the Department of Defense
(sec. 1021)............................................ 358
Global strike plan (sec. 1022)........................... 358
Report on the conduct of Operation Iraqi Freedom (sec.
1023).................................................. 359
Report on mobilization of the Reserves (sec. 1024)....... 359
Subtitle D--Other Matters.................................... 359
Blue forces tracking initiative (sec. 1031).............. 359
Loan, donation, or exchange of obsolete or surplus
property (sec. 1032)................................... 360
Acceptance of gifts and donations for Asia-Pacific Center
for Security Studies (sec. 1033)....................... 360
Provision of living quarters for certain students working
at National Security Agency Laboratory (sec. 1034)..... 360
Protection of operational files of the National Security
Agency (sec. 1035)..................................... 361
Transfer of administration of National Security Education
Program to Director of Central Intelligence (sec. 1036) 361
Report on use of unmanned aerial vehicles for support of
homeland security missions (sec. 1037)................. 361
Conveyance of surplus T-37 aircraft to Air Force Aviation
Heritage Foundation, Incorporated (sec. 1038).......... 362
Budget Items................................................. 362
Information technology investments to support effective
financial management................................... 362
Refined Petroleum Products, Marginal Expense Transfer
Account................................................ 364
Items of Special Interest.................................... 364
Terrorist threat integration center...................... 364
Title XI--Department of Defense Civilian Personnel Policy........ 367
Authority to employ civilian faculty members at the
Western Hemisphere Institute for Security Cooperation
(sec. 1101)............................................ 367
Pay authority for critical positions (sec. 1102)......... 367
Extension, expansion, and revision of authority for
experimental personnel program for scientific and
technical personnel (sec. 1103)........................ 367
Transfer of personnel investigative functions and related
personnel of the Department of Defense (sec. 1104)..... 368
Items of Special Interest.................................... 368
Laboratory Personnel Demonstration Projects.............. 368
Title XII--Matters Relating to Other Nations..................... 369
Authority to use funds for payment of costs of attendance
of foreign visitors under regional defense
counterterrorism fellowship program (sec. 1201)........ 369
Availability of funds to recognize superior noncombat
achievements or performance of members of friendly
foreign forces and other foreign nationals (sec. 1202). 369
Check cashing and exchange transactions for foreign
personnel in alliance or coalition forces (sec. 1203).. 370
Clarification and extension of authority to provide
assistance for international nonproliferation
activities (sec. 1204)................................. 370
Reimbursement costs relating to national security
controls on satellite export licensing (sec. 1205)..... 370
Annual report on the NATO Prague capabilities commitment
and the NATO response force (sec. 1206)................ 371
Expansion and extension of authority to provide
additional support for counter-drug activities (sec.
1207).................................................. 371
Use of funds for unified counterdrug and counterterrorism
campaign in Colombia (sec. 1208)....................... 372
Title XIII--Cooperative Threat Reduction With States of the
Former Soviet Union............................................ 373
Specification of Cooperative Threat Reduction programs
and funds (sec. 1301).................................. 373
Funding allocations (sec. 1302).......................... 373
Annual certifications on use of facilities being
constructed for Cooperative Threat Reduction Program
projects or activities (sec. 1303)..................... 373
Authority to use Cooperative Threat Reduction funds
outside the Former Soviet Union (sec. 1304)............ 374
One-year extension of inapplicability of certain
conditions on use of funds for chemical weapons
destruction (sec. 1305)................................ 374
Division B--Military Construction Authorizations................. 375
Explanation of funding tables............................ 375
Military construction at overseas locations.............. 397
Title XXI--Army.................................................. 399
Summary...................................................... 399
Authorized Army construction and land acquisition
projects (sec. 2101)................................... 399
Family housing (sec. 2102)............................... 399
Improvements to military family housing units (sec. 2103) 400
Authorization of appropriations, Army (sec. 2104)........ 400
Termination of authority to carry out certain fiscal year
2003 projects (sec. 2105).............................. 400
Modification of authority to carry out certain fiscal
year 2003 projects (sec. 2106)......................... 400
Modification of authority to carry out certain fiscal
year 2002 projects (sec. 2107)......................... 400
Modification of authority to carry out certain fiscal
year 2001 projects (sec. 2108)......................... 400
Title XXII--Navy................................................. 401
Summary...................................................... 401
Authorized Navy construction and land acquisition
projects (sec. 2201)................................... 401
Family housing (sec. 2202)............................... 401
Improvements to military family housing units (sec. 2203) 401
Authorization of appropriations, Navy (sec. 2204)........ 401
Termination of authority to carry out a certain fiscal
year 2003 project (sec. 2205).......................... 401
Title XXIII--Air Force........................................... 403
Summary...................................................... 403
Authorized Air Force construction and land acquisition
projects (sec. 2301)................................... 403
Family housing (sec. 2302)............................... 403
Improvements to military family housing units (sec. 2303) 403
Authorization of appropriations, Air Force (sec. 2304)... 403
Modification of fiscal year 2003 authority relating to
improvement of military family housing units (sec.
2305).................................................. 404
Title XXIV--Defense Agencies..................................... 405
Summary...................................................... 405
Authorized defense agencies construction and land
acquisition projects (sec. 2401)....................... 405
Family housing (sec. 2402)............................... 405
Improvements to military family housing units (sec. 2403) 405
Energy conservation projects (sec. 2404)................. 405
Authorization of appropriations, defense agencies (sec.
2405).................................................. 406
Termination of authority to carry out certain fiscal year
2003 projects (sec. 2406).............................. 406
Modification of authority to carry out certain fiscal
year 2003 projects (sec. 2407)......................... 406
Title XXV--North Atlantic Treaty Organization Security Investment
Program........................................................ 407
Summary...................................................... 407
Authorized NATO construction and land acquisition
projects (sec. 2501)................................... 407
Authorization of appropriations, NATO (sec. 2502)........ 407
Title XXVI--Guard and Reserve Forces Facilities.................. 409
Summary...................................................... 409
Authorized Guard and Reserve construction and land
acquisition projects (sec. 2601)....................... 409
Title XXVII--Expiration and Extension of Authorizations.......... 411
Expiration of authorizations and amounts required to be
specified by law (sec. 2701)........................... 411
Extension of authorizations of certain fiscal year 2001
projects (sec. 2702)................................... 411
Extension of authorizations of certain fiscal year 2000
projects (sec. 2703)................................... 411
Effective date (sec. 2704)............................... 411
Title XXVIII--General Provisions................................. 413
Subtitle A--Military Construction Program and Military Family
Housing Changes............................................ 413
Modification of general definitions relating to military
construction (sec. 2801)............................... 413
Increase in number of family housing units in Italy
authorized for lease by the Navy (sec. 2802)........... 414
Subtitle B--Real Property and Facilities Administration...... 414
Increase in threshold for reports to Congress on real
property transactions (sec. 2811)...................... 414
Acceptance of in-kind consideration for easements (sec.
2812).................................................. 414
Expansion to military unaccompanied housing of authority
to transfer property at military installations to be
closed in exchange for military housing (sec. 2813).... 414
Exemption from screening and use requirements under
McKinney-Vento Homeless Assistance Act for Department
of Defense property in emergency support of homeland
security (sec. 2814)................................... 415
Subtitle C--Land Conveyances................................. 415
Transfer of land at Fort Campbell, Kentucky and Tennessee
(sec. 2821)............................................ 415
Land conveyance, Fort Knox, Kentucky (sec. 2822)......... 415
Land conveyance, Marine Corps Logistics Base, Albany,
Georgia (sec. 2823).................................... 415
Land conveyance, Army and Air Force Exchange Service
property, Dallas, Texas (sec. 2824).................... 416
Subtitle D--Review of Overseas Military Facility and Range
Structure.................................................. 416
Review of overseas military facility structure (secs.
2841-2848)............................................. 416
Division C--Department of Energy National Security Authorizations
and Other Authorizations....................................... 419
Title XXXI--Department of Energy National Security Programs...... 419
Subtitle A--National Security Programs Authorizations........ 419
National Nuclear Security Administration (Sec. 3101)..... 442
Weapons activities....................................... 442
Directed stockpile work.................................. 442
Campaigns................................................ 442
Readiness in the technical base.......................... 443
Secure transportation asset.............................. 443
Safeguards and security.................................. 443
Facilities and infrastructure............................ 443
Defense Nuclear Nonproliferation Program................. 444
Naval Reactors........................................... 444
Office of Administrator.................................. 445
Defense environmental management (sec. 3102)............. 445
Defense site acceleration completion..................... 445
Defense environmental services........................... 445
Accelerate completion of 2012 and 2035 closure sites..... 446
Other defense activities (sec. 3103)..................... 446
Energy Security and Assistance........................... 446
Office of Security....................................... 446
Intelligence............................................. 446
Counterintelligence...................................... 447
Independent Oversight and Performance Assurance.......... 447
Environment safety and health............................ 447
Worker and community transition.......................... 447
National nuclear security administrative support......... 447
Defense nuclear waste disposal (sec. 3104)............... 447
Defense energy supply (sec. 3105)........................ 447
Subtitle B--Program Authorizations, Restrictions, and
Limitations................................................ 447
Repeal of prohibition on research and development of low-
yield nuclear weapons (sec. 3131)...................... 447
Readiness posture for resumption by the United States of
underground nuclear weapons tests (sec. 3132).......... 448
Technical base and facilities maintenance and
recapitalization activities (sec. 3133)................ 449
Continuation of processing, treatment, and disposition of
legacy nuclear materials (sec. 3134)................... 450
Subtitle C--Proliferation Matters............................ 451
Expansion of International Materials Protection, Control,
and Accounting Program (sec. 3141)..................... 451
Semi-annual financial reports on Defense Nuclear
Nonproliferation Program (sec. 3142)................... 452
Report on reduction of excessive uncosted balances for
defense nuclear nonproliferation activities (sec. 3143) 452
Subtitle D--Other Matters.................................... 453
Modification of authorities on Department of Energy
personnel security investigations (sec. 3151).......... 453
Responsibilities of Environmental Management program and
National Nuclear Security Administration of Department
of Energy for environmental cleanup, decontamination
and decommissioning, and waste management (sec. 3152).. 453
Update of report on stockpile stewardship criteria (sec.
3153).................................................. 454
Progress reports on energy employees occupational illness
compensation program (sec. 3154)....................... 455
Subtitle E--Consolidation of General Provisions on Department
of Energy National Security Programs....................... 455
Consolidation and assembly of recurring and general
provisions on Department of Energy national security
programs (sec. 3161)................................... 455
Budget Items................................................. 455
Nonproliferation and Verification Research and
Development Program.................................... 455
Items of Special Interest.................................... 456
Academic evaluation of environmental management
accelerated cleanup technologies....................... 456
Consolidation of the Office of Worker and Community
Transition and the Office of Legacy Management......... 456
Facilities and infrastructure recapitalization program... 457
Need for an enhanced schedule for the modern pit facility 457
Recruiting and retaining critical skills in the nuclear
weapons complex........................................ 458
Treatment of construction projects for the environmental
management program..................................... 459
Title XXXII--Defense Nuclear Facilities Safety Board............. 461
Defense Nuclear Facilities Safety Board (sec. 3201)...... 461
Legislative Requirements..................................... 461
Departmental Recommendations............................. 461
Committee Action......................................... 461
Congressional Budget Office Cost Estimate................ 461
Regulatory Impact........................................ 461
Changes in Existing Law.................................. 462
Additional Views of Senators Chambliss, Cornyn, Graham of South
Carolina, and Inhofe........................................... 463
Additional Views of Senator Reed................................. 465
Calendar No. 96
108th Congress Report
SENATE
1st Session 108-46

======================================================================

_______

May 13, 2003.--Ordered to be printed

_______

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

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany S. 1050]

The Committee on Armed Services reports favorably an
original bill (S. 1050) to authorize appropriations during the
fiscal year 2004 for military activities of the Department of
Defense, for military construction, and for defense activities
of the Department of Energy, to prescribe personnel strengths
for such fiscal year for the Armed Forces, and for other
purposes, and recommends that the bill do pass.

PURPOSE OF THE BILL

This bill would:
(1) authorize appropriations for (a) procurement, (b)
research, development, test and evaluation, (c)
operation and maintenance and the revolving and
management funds of the Department of Defense for
fiscal year 2004;
(2) authorize the personnel end strengths for each
military active duty component of the Armed Forces for
fiscal year 2004;
(3) authorize the personnel end strengths for the
Selected Reserve of each of the reserve components of
the Armed Forces for fiscal year 2004;
(4) impose certain reporting requirements;
(5) impose certain limitations with regard to
specific procurement and research, development, test
and evaluation actions and manpower strengths; provide
certain additional legislative authority, and make
certain changes to existing law;
(6) authorize appropriations for military
construction programs of the Department of Defense for
fiscal year 2004; and
(7) authorize appropriations for national security
programs of the Department of Energy for fiscal year
2004.

Committee overview and recommendations

As the committee deliberates on the National Defense
Authorization Act for Fiscal Year 2004, over 300,000 soldiers,
sailors, airmen, marines, and coast guardsmen, active and
reserve component, and countless civilians who support
military, diplomatic and humanitarian operations, are serving
valiantly in the Persian Gulf region to secure the peace and
freedom they have won for the people of Iraq. The stunning,
rapid military success in Operation Iraqi Freedom is a
testament to the dedication and competence of the members of
the U.S. Armed Forces. The precision and skill with which
recent operations have been conducted is a tribute to American
technology and ingenuity, as well as to forward-thinking
officials who recognized the changing nature of warfare in the
21st Century. The American military has made the Nation, and
the world, a safer place. Military strategists and historians
will study this military campaign for years to come and will
recognize it as a new chapter in military history. Without a
doubt, the U.S. military is the most capable military force in
the world, a model of excellence, and the standard by which
others are measured.
The defense of the United States and the protection of the
American people is the most solemn responsibility of any
elected official. All Americans must be ever mindful that the
defense of the homeland begins on the distant battlefields of
the world. Time and again in recent years, the Armed Forces of
the United States have been called upon to defend American
interests and values around the world, from Iraq to Afghanistan
to the Balkans, and elsewhere. Time and again, the men and
women who wear the uniform of the United States military have
successfully achieved the missions they have been given with
professionalism, precision, and humanity. They will be called
upon again, and they must be ready.
Despite recent successes, new threats and challenges will
surely emerge. A most urgent duty of the Congress is to provide
the authorities and resources necessary to ensure that the
armed forces have the capability to effectively deter and, if
necessary, defeat those who would attack America or its
interests, either at home or abroad.
In order to meet the comprehensive defense needs required
for the 21st Century, the U.S. Armed Forces must be
technologically advanced, fully integrated forces that can
rapidly and decisively reach the far corners of the world to
deter, disrupt or defeat those who threaten the United States,
its interests overseas, and its friends and allies. The
modernization--transformation--of America's Armed Forces is
achievable and necessary, if the U.S. military is to be
prepared for current and future responsibilities. The
President's budget request for defense for fiscal year 2004
continues the momentum achieved in recent years of making real
increases in defense spending to sustain readiness, enhance the
quality of life of military personnel and their families, and
modernize and transform the U.S. Armed Forces to meet current
and future threats.
Since the beginning of the 108th Congress, the Armed
Services Committee of the Senate has conducted 44 hearings and
received numerous policy and operational briefings on the
President's budget request for fiscal year 2004 and related
defense issues. As a result of these deliberations, the
committee identified six priorities to guide its work on the
National Defense Authorization Act for Fiscal Year 2004:
(1) enhance the ability of the Department of Defense
to fulfill its homeland defense responsibilities by
providing the resources and authorities necessary for
the Department to assist in protecting the nation
against all current and anticipated forms of attack;
(2) continue the committee's commitment to improving
the quality of life for the men and women of the armed
forces--active, reserve, guard and retired--and their
families;
(3) provide the men and women in uniform with the
resources, training, technology and equipment they need
to safely and successfully perform their missions, both
now and in the future;
(4) sustain the readiness of the armed forces to
conduct the full spectrum of military operations
against all current and anticipated threats;
(5) support the Department of Defense's efforts to
build the innovative capabilities necessary to continue
the transformation of the armed forces to enable them
to successfully confront future threats, particularly
by enhancing technological advantages in areas such as
unmanned systems; and
(6) improve the efficiency of Department programs and
operations, and reduce the cost and time required to
develop and acquire new capabilities and needed
services.
In order to fund these priorities, the committee recommends
$400.5 billion for defense programs for fiscal year 2004, an
increase of $17.9 billion above the amount appropriated last
year by the Congress for fiscal year 2003. This represents an
increase of 3.2 percent in real terms for defense.
The committee's first priority was to enhance the
Department of Defense's homeland defense capabilities and
improve the ability of the U.S. Armed Forces to combat
terrorism, both at home and abroad. In these areas, the
committee authorizes an increase of $400.0 million over the
budget request. Funding highlights include, $88.4 million to
field 12 additional Weapons of Mass Destruction--Civil Support
Teams; $147.0 million for innovative technologies to combat
terrorism and defeat emerging asymmetric threats; $173.3
million for development and fielding of chemical and biological
agent detection and protection technologies; and, $107.0
million for enhancing the capabilities of special operations
forces. To protect America from ballistic missile threats, the
committee supports the budget request of $9.1 billion for
missile defense.
The committee continues its commitment to improving the
quality of life of the men and women in uniform, and their
families, by authorizing a 3.7 percent across-the-board pay
raise for all uniformed service personnel, as well as a
targeted pay raise of up to 6.25 percent for certain senior
non-commissioned officers and mid-career personnel. The
committee also adopted several key provisions to recognize the
sacrifices of the members of the armed forces, including
increases in the family separation allowance and hostile fire
pay, designation of assignment incentive pay for those assigned
to Korea, and approval of a high-tempo allowance for those
service members deployed away from home for extended periods of
time.
The administration requested $9.0 billion for military
construction and family housing. Due to pending realignments of
overseas basing, the committee recommends adjusting the program
to increase investment in installations in the United States,
while at the same time sustaining a reduced, but prudent
investment in overseas locations that will be of long-term
value to the United States. The committee recommends an overall
increase of $373.4 million in military construction. Among the
funding adjustments made by the committee are increases of over
$220.0 million in critical unfunded projects identified by the
military services, and an additional $200.0 million in quality
of life projects such as barracks, family housing, and child
development centers.
Over the past several years, the committee has encouraged
the Department to increase procurement spending to a level that
will sustain the timely recapitalization and modernization of
the armed forces. This year, the committee authorizes $75.6
billion in procurement funding, a $1.1 billion increase over
the budget request. This procurement funding includes: over
$12.0 billion for shipbuilding and conversions; almost $1.0
billion for the Army's interim armored combat vehicle, the
Stryker; $1.5 billion for Army attack and lift helicopters;
over $2.0 billion for 11 additional C-17 strategic lift
aircraft; and, $8.1 billion in various tactical aircraft
programs for the Air Force and the Navy.
Additionally, the committee recognized the need for robust
investment in future capabilities. The committee authorizes
$63.2 billion for research, development, test and evaluation
(RDT&E) activities, an increase of $1.3 billion over the
President's budget request. This RDT&E funding includes, over
$1.0 billion for the next generation DD(X) destroyer;
additional funding for the continued development of the
Littoral Combat Ship; $1.7 billion for the Future Combat
System, the Army's centerpiece of transformation; $5.8 billion
for development of various tactical aircraft, including over
$4.4 billion for the continued development of the Joint Strike
Fighter, an increase of $56.0 million over the budget request;
and, $10.7 billion for advanced science and technology (S&T)
initiatives, an increase of over $500.0 million over the budget
request. This increase in S&T brings the Department closer to
the Secretary's goal of devoting three percent of all defense
funds to the S&T programs that have the potential to develop
transformational technologies.
Together, the investments in procurement to sustain current
capabilities, and research and development to evolve to a more
capable force, will give the men and women of the U.S. Armed
Forces the equipment they need to prevail across the full
spectrum of military operations, both now and in the future.
The sustained readiness of the U.S. Armed Forces is what
protects America. The success of recent military operations
represents the real return on added investments made by the
Congress in recent years in training, munitions, maintenance
and spare parts. As the force reconstitutes after operations in
Afghanistan and Iraq, the committee will closely monitor
whether additional funds are needed for those items not covered
by supplemental funds to pay for these operations and to ensure
the overall readiness of the armed forces. Within readiness
accounts, funds were increased to address currently identified
shortfalls, such as adding $283.0 million for equipment
maintenance and testing, including depot maintenance, technical
assistance, corrosion control, and systems testing, and $26.5
million above the budget request to support active and reserve
forces to accelerate fielding and replacement of personal and
field equipment.
The transformation of the Department of Defense will depend
on effective management and stewardship of departmental
resources. The committee recommends numerous legislative
provisions to improve the management and oversight of the
Department. Some of these provisions would streamline the
acquisition process, provide for greater personnel flexibility
to manage the acquisition workforce, and ensure that joint
requirements can be more rapidly achieved. Acquisition
authorities to facilitate the war on terrorism and support
contingency operations were extended, and proposed new
authorities will give state and local governments rapid access
to anti-terrorism technologies and services available to the
Department. Finally, access to military training ranges has
been assured in a way that safeguards the protection of
endangered species and contributes to the readiness of the
armed forces.
With U.S. Armed Forces poised on distant battlefields and
countless others standing watch at home, the committee is
committed to providing the resources needed for the men and
women of the armed forces, and their families. The committee's
past support for increased defense spending has proven to be a
wise investment. There is no greater evidence than the
successes witnessed on the battlefields of Iraq. The committee
believes that the National Defense Authorization Act for Fiscal
Year 2004 sustains the advances made in recent years, and
provides the necessary investments to prepare for the future.

Explanation of funding summary

The administration's budget request for the national
defense function of the federal budget for fiscal year 2004 was
$399.7 billion, of which $298.5 billion was for programs that
require specific funding authorization. According to the
estimating procedures used by the Congressional Budget Office
(CBO), the amount requested was $400.5 billion. The funding
summary table that follows uses the budget authority as
calculated by CBO.
The following table summarizes both the direct
authorizations and equivalent budget authority levels for
fiscal year 2004 defense programs. The columns relating to the
authorization request do not include funding for the following
items: pay and benefits for military personnel; military
construction authorizations provided in prior years; and other
small portions of the defense budget that are not within the
jurisdiction of this committee or that do not require an annual
authorization.
Funding for all programs in the national defense function
is reflected in the columns related to the budget authority
request and the total budget authority implication of the
authorizations in this bill.
The committee recommends funding for national defense
programs totaling $400.5 billion in budget authority. This
funding level is consistent with the budget authority level of
$400.5 billion for the national defense function recommended in
the Concurrent Resolution on the Budget for Fiscal Year 2004
(H. Con. Res. 95).

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Explanation of tables
The following tables provide the program-level detailed
guidance for the funding authorized in title I of this Act. The
tables also display the funding requested by the administration
in the fiscal year 2004 budget request for procurement programs
and indicate those programs for which the committee either
increased or decreased the requested amounts. As in the past,
the administration may not exceed the authorized amounts (as
set forth in the tables or, if unchanged from the
administration request, as set forth in budget justification
documents of the Department of Defense) without a reprogramming
action in accordance with established procedures. Unless noted
in the report, funding changes to the budget request are made
without prejudice.

Subtitle A--Authorization of Appropriations

Chemical agents and munitions destruction, Defense (sec. 106)
The budget request included $1.7 billion for Chemical
Agents and Munitions Destruction, Defense (CAMD,D), as follows:
$1,199.2 million for operations and maintenance; $251.9 million
for research and development; and $79.2 million for
procurement. The request also included $119.8 million for
military construction described as elsewhere in this report.
The committee strongly supports the decision of the
Department to request funding for the Chemical Agents and
Munitions Destruction program in a defense-wide account.
Section 1521(f) of title 50, United States Code, requires that
funds for this program shall not be included in the budget
accounts for any military department. Funding the destruction
program in a defense-wide account ensures that the program is
subject to the appropriate level of management and oversight
and ensures that the program is not subject to the internal
budget priorities of one particular service. Therefore, the
committee recommends $1.5 billion for CAMD, D as follows: $1.2
billion for operation and maintenance; $251.9 million for
research and development; and $79.2 million for procurement.

Subtitle B--Army Programs

Army Aircraft

UH-60 Blackhawk

The budget request included $138.9 million for 10 UH-60L
Blackhawk helicopters. The current Army requirement for
Blackhawk helicopters is 1,680. When the current UH-60L
Blackhawk helicopter multi year procurement contract terminates
in fiscal year 2007, as planned, the Army will have 1,665
helicopters in the inventory, 15 short of the total
requirement.
The committee notes that the engines of Army helicopters
flying as part of Operation Iraqi Freedom frequently clogged
because of exposure to sand. The committee believes that Army
aviation assets could benefit from the installation of an
engine inlet barrier system.
The committee recommends an increase of $70.7 million for
seven additional UH-60L helicopters to be fielded in accordance
with Army priorities and $800,000 for an engine inlet barrier
system for the UH-60 Blackhawk helicopter, for a total
authorization of $209.4 million.

CH-47 cargo helicopter modifications

The budget request included $495.5 million for CH-47
modifications. The committee understands that the Secretary of
Defense approved the U.S. Special Operations Command (USSOCOM)
Army Special Operations Aviation (ARSOA) transformation plan to
increase the number of authorized MH-47G helicopters by 24. The
Army was directed to transfer 16 CH-47 aircraft to USSOCOM for
conversion to MH-47G, leaving the Army with a requirement to
transfer eight additional aircraft in the future. The committee
notes that there are four aircraft awaiting induction at Corpus
Christi Army Depot that could be used to satisfy half of the
remaining USSOCOM requirement. The committee recommends an
increase of $15.0 million for the repair of four CH-47
helicopters, for a total authorization of $510.5 million for
aircraft modifications.

UH-60 Blackhawk modifications

The budget request included $136.5 million for selected
upgrades for the UH-60 Blackhawk helicopter. With this funding
the Army intended to begin a much-needed recapitalization
program for the upgrade of UH-60 helicopters into the UH-60
model M configuration, with 10 UH-60M helicopters to be
produced in fiscal year 2004. The committee understands that
the UH-60M contractor recently submitted an estimate-at-
completion for the integration and qualification contract that
indicates that the program will not be executable as currently
budgeted. As a result, the Army and the contractor have
restructured the program to make the program executable within
the amounts requested for UH-60 Blackhawk modifications in the
fiscal year 2004 request for procurement and research and
development. According to the Army, the restructured program
will allow the contractor to complete fiscal year 2003 work,
including the completion of two prototypes. With the revised
fiscal year 2004 budget request, the Army intends to procure
four additional prototype aircraft to mitigate risk in the
operational test. Accordingly, the Army has requested that
funding be transferred from procurement accounts to research
and development accounts to fund these activities. The
committee recommends a transfer of $100.0 million from Aircraft
Procurement, Army, to PE23744A, for a total authorization of
$36.5M for selected UH-60 helicopter upgrades and $170.2
million in PE23744A for Blackhawk UH-60M recapitalization.

Kiowa Warrior

The budget request included $45.1 million for safety
enhancements for the OH-58D Kiowa Warrior helicopter. The Kiowa
Warrior safety enhancement program (SEP) is intended to reduce
aircraft weight, resulting in increased range, maneuverability
and mission performance in a helicopter which provides the Army
with an armed reconnaissance capability until adequate numbers
of Comanche helicopters are fielded in the 2017 time frame. The
GAU-19/A is an externally mounted aircraft gun that was
nominated, successfully field tested, and approved for SEP by
the Army process. The GAU-19/A is safer, more reliable,
requires less maintenance, and is lighter than the current OH-
58D weapon, the M2 .50 caliber machine gun. The committee
recommends an increase of $12.3 million for 75 GAU-19As, for a
total authorization of $57.3 million for Kiowa Warrior.

Aircraft survivability equipment

The budget request included $7.0 million for the AN/AVR-2A
laser detecting set. The AN/AVR-2A is a passive threat warning
system which receives, processes, and displays threat
information resulting from aircraft illumination by lasers. The
committee notes that current funding procures AN/AVR-2s for
installation on special operations helicopters but does not
fully address Army requirements for integration of the AN/AVR-
2A on Apache model A and D aircraft. The AN/AVR-2A provides
increased crew and aircraft survivability. The committee
believes that these enhancements should be fielded as soon as
possible. The committee recommends an increase of $7.0 million
for the AN/AVR-2A laser detecting set, for a total
authorization of $14.0 million for AN/AVR-2A laser detecting
sets.

Avionics support equipment

The budget request included $13.3 million for 1,862 Aviator
Night Vision Imaging Systems (ANVIS). The ANVIS is critical to
the aviator's ability to operate at night and in low-light
conditions. With a total requirement of 12,000 ANVISs, a
shortfall of over 7,500 systems exists after the fiscal year
2004 quantities are procured. The Army has funded the
acquisition of the ANVIS in fiscal years 2005-2007 of the
Future Years Defense Program. The committee believes that the
safety and effectiveness of Army aviators support an
acceleration of procurement of these systems. The committee
recommends an increase of $15.0 million for 2,100 additional
ANVIS, a total authorization of $28.8 million.

Aircrew integrated systems

The budget request included $28.9 million for aircrew
integrated systems, but no funding for the cockpit airbag
system (CABS), a crash-activated, inflatable protection system.
The committee believes that CABS provides supplemental head and
body restraint for helicopter aircrews which can significantly
reduce fatalities and injuries in the event of helicopter
crashes. The committee recommends an increase of $10.0 million
for the procurement of cockpit airbag systems, for a total
authorization of $38.9 million.

Army Missiles

Hellfire

The budget request included $33.1 million for the
procurement of Longbow Hellfire missiles, but no funding for
the Hellfire II missile. The Hellfire II air-to-ground missile
provides a precision strike capability and is the primary anti-
tank weapon of Army aviation helicopters. The committee
understands that the Hellfire II was operationally employed in
Operation Iraq Freedom and that the current inventory of 7,900
missiles is below the Army's acquisition objective of 8,578
missiles. The committee notes that the Army Chief of Staff
identified a fiscal year 2004 unfunded requirement of $129.2
million for the Laser Hellfire Missile (Hellfire II). The
committee recommends an increase of $43.0 million for the
procurement of Hellfire II missiles, for a total authorization
of $76.1 million.

Javelin missiles

The budget request included $133.1 million for Javelin
missile procurement. Javelin consists of a reusable command
launch unit and missile and is capable of defeating all known
tank armor and has residual capability against bunkers and
field fortifications. The committee notes that existing funding
supports the procurement of a total of 4,348 command launch
units, leaving an unfunded requirement of 1,074 to outfit the
Army National Guard. The committee understands that if the Army
buys command launch units during fiscal year 2004, it can take
advantage of a planned multi year Javelin procurement contract,
enabling a better price than if these systems are purchased in
smaller quantities over several years. The committee recommends
an increase of $40.0 million for the procurement of Javelin
command launch units, for a total authorization of $173.1
million in Javelin missile procurement.

Weapons and Track Combat Vehicles

Squad automatic weapon

The budget request included no funding for the procurement
of the M249 Squad Automatic Weapon (SAW). The SAW is an
individually portable machine gun which provides sustained
automatic fire capability and increased range. The Army Chief
of Staff has identified a fiscal year 2004 unfunded requirement
of $13.9 million for the SAW. The committee recommends an
increase of $6.9 million for the procurement of additional M249
SAWs, for a total authorization of $6.9 million for the SAW.

Lightweight 155mm howitzer

The budget request included $5.0 million for the
procurement of long-lead items for the lightweight 155mm (M777)
howitzer. The M777 towed howitzer program is a joint Army/
Marine Corps program to develop and field a replacement for the
M198 howitzer. The M777 howitzer incorporates innovative
designs, including an M776 cannon tube, to achieve lighter
weight without sacrificing capability. The program entered low
rate initial production for 94 Marine Corps guns in November
2002. The committee understands that the program will enter
into full rate production for the Marine Corps howitzer in
fiscal year 2005. The committee believes that advanced
procurement of cannons for the Marine Corps' howitzers will
reduce fiscal year 2005 howitzer production costs. The
committee recommends an increase of $4.0 million for the
procurement of long-lead items for howitzer cannons, for a
total authorization of $9.0 million for the lightweight 155mm
howitzer.

Rapid fielding initiative

As a result of lessons learned from the 2002 deployment of
combat units to Afghanistan, the Army initiated a program, the
Rapid Fielding Initiative (RFI), to provide soldiers and units
with required items of field equipment which were not issued
through normal supply procedures. The committee understands
that the Army has fielded this equipment to elements of the
82nd Airborne Division and 101st Air Assault Division by
reallocating funds within the Army. The committee further
understands that the Army has identified an initial cost of
approximately $11.0 million to equip a brigade with soldier
mission essential equipment, including: specialized cold
weather clothing and hydration systems; military operations on
urbanized terrain (MOUT) specialized equipment sets, including
assault ladders and fiber optic viewers; individual weapons
optics; force mobility and mobility equipment, such as the
advanced combat helmet and knee and elbow pads; and lethality
improvements such as the M249 squad automatic weapons rails and
multiband inter/intra team radios. The committee supports this
initiative and recommends an increase of $14.9 million for this
initiative. Specifically, the committee recommends an increase
of $6.9 million to weapons and tracked combat vehicles, Army,
and $8.0 million to other procurement, Army, to be distributed
in the following manner:

(In millions of dollars)

WTCV BLIN 33, GB3007, M4 Carbine Modifications.................... 5.0
WTCV BLIN 34, GZ1290, Squad Automatic Weapons Modifications....... 0.3
WTCV BLIN 35, GZ1300, Medium Machine Gun Modifications............ 0.2
WTCV BLIN 39, GZ0925, M145 Machine Gun Optics..................... 0.7
WTCV BLIN 40, Gl3200, Lightweight Shotgun System.................. 0.7
OPA, BLIN 40, BA5210, Multiband Inter/Intra Team Radios........... 6.2
OPA, BLIN 77, KA3500, Night Vision Devices........................ 1.8

Army Ammunition

M919 Armor-piercing fin-stabilized, discarding-sabot, with tracer 25mm
cartridge

The budget request included $491,000 in Procurement of
Ammunition, Army, for the M919 armor-piercing fin-stabilized,
discarding-sabot, with tracer (APFSDS-T) 25mm cartridge.
According to the Department of the Army, an unfunded
requirement exists for the M919. Therefore, the committee
recommends an increase of $10.0 million in Procurement of
Ammunition, Army, for the M919 APFSDS-T. This addition will
address shortfalls in APFSDS-T requirements and assist the Army
in achieving C-1 readiness levels.

M789 high-explosive, dual-purpose cartridge

The budget request included $958,000 in Procurement of
Ammunition, Army, for the M789 high-explosive, dual-purpose
(HEDP) cartridge. The committee notes that the Department of
the Army is proceeding with procurement of ammunition,
including the M789 HEDP, necessary to implement the
Department's revised training strategy. Therefore, the
committee recommends an increase of $1.0 million in Procurement
of Ammunition, Army, for the M789 HEDP.

M930 illumination cartridge

The budget request included $2.0 million for the M930
illumination cartridge. The committee supports the efforts of
the Army to increase the war reserve requirement for the M930,
which will have been reduced to about 33 percent by the end of
fiscal year 2003. The Army assess the M930 as a critical end-
item. Therefore, the committee recommends an increase of $2.0
million in Procurement of Ammunition, Army, for M930 120mm
illumination cartridge.

M485 illumination cartridge

The budget request included no funding for the M485
illumination cartridge. The committee supports the Army's
initiative to achieve C-1 level of readiness for the M485
illumination cartridge. Therefore, the committee recommends an
increase of $1.0 million in Procurement of Ammunition, Army,
for the M485 illumination cartridge.

M87A1 Volcano anti-tank mine

The budget request included no funding for the M87A1
Volcano anti-tank mine. The committee notes that this system is
a key component of the Army landmine program. Therefore, the
committee recommends an increase of $5.0 million in Procurement
of Ammunition, Army for the M87 Volcano anti-tank mine.

Modern demolition initiators

The budget request included $25.0 million for modern
demolition initiators (MDIs). MDIs are non-electric detonators
that are used to initiate munitions and explosives. MDIs
provide a safer, more reliable detonation system while
decreasing time on target. The committee recommends an increase
of $1.0 million in Procurement of Ammunition, Army, to procure
additional MDIs.

Dye sets for medium caliber ammunition

The budget request included $33.6 million for the provision
of industrial facilities in Procurement of Ammunition, Army,
including replacement of obsolete or worn production equipment.
The committee notes that the only existing production dye sets
for medium caliber ammunition are nearing obsolescence.
Therefore, the committee recommends an increase of $1.0 million
in Procurement of Ammunition, Army, for the replacement of
production dye sets for medium caliber ammunition.

Modern munitions load, assembly, and pack technology

The budget request included $33.6 million for the provision
of industrial facilities in Procurement of Ammunition, Army,
including the establishment, augmentation, and improvement of
ammunition production capabilities. The committee supports the
plans of the Army's Armament, Research, Development and
Engineering Center (ARDEC) to manage the challenges associated
with the load, assembly, and pack processes of modern
munitions. The committee notes that existing high volume
production facilities can be equipped to support both the
latest explosive formulations and component assemblies to meet
these challenges. Therefore, the committee recommends an
increase of $2.0 million in Procurement of Ammunition, Army,
for equipment requirements in support of modern munitions,
load, assembly and pack technology.

White phosphorous production equipment

The committee understands that the Army Working Capital
Fund Capital Investment Program budget request for fiscal year
2004 included $24.3 million to replace white phosphorous
production equipment at Pine Bluff Arsenal, Arkansas. The Army
supports this upgrade in order to ``reduce health and safety
hazards'' for workers and to provide production flexibility in
support of Army Transformation.
The committee is concerned that funding this project within
the working capital fund could have an adverse impact on the
rates of the smoke, incendiary, and illumination munitions
produced at Pine Bluff Arsenal. Therefore, the committee
recommends a transfer of $24.3 million from Army Working
Capital Fund cash balances to Procurement of Ammunition, Army,
to complete the necessary equipment upgrades of the white
phosphorous production line.

Conventional ammunition demilitarization

The budget request included $77.6 million for the
demilitarization of conventional ammunition. The committee
notes that the stockpile of ammunition requiring
demilitarization is increasing due to inventory aging, Army
modernization, and serviceability issues caused by increased
deployments. Therefore, the committee recommends an increase of
$6.0 million in Procurement of Ammunition, Army, for
conventional ammunition demilitarization.

Other Army Procurement

M871A3 semi-trailer

The budget request included $7.3 million for the
procurement of 158 M871A3 semi-trailers. The M871A3 semi-
trailer is a 22\1/2\=ton flatbed/break bulk (FB/BB) tactical,
dual purpose, bulk and container transporter. The M871A3s are
the primary means of distributing containers and bulk cargo
within the theater of operations. This model trailer corrects
problems of the M871A1 fielded model with load height bridge
clearance and mating with the five-ton variant of the family of
medium tactical vehicle (FMTV). The committee notes that with
the procurement of 158 trailers, the Army will have achieved
only 67 percent of its Army acquisition objective. Without this
new model, containerized loads may be required to bypass supply
routes, which would inhibit mission completion. The committee
recommends an increase of $4.0 million for the procurement of
additional M871A3 semi-trailers, for a total authorization of
$11.3 million.

High mobility multipurpose wheeled vehicles

The budget request included $137.8 million for high
mobility multipurpose wheeled vehicles (HMMWV). The HMMWV
serves as the Army's light tactical wheeled vehicle for command
and control, light cargo, and personnel transport. The
committee notes that the Army's approved acquisition objective
is for over 122,000 HMMWVs, but the Army has procured slightly
over 100,000 to date. The fiscal year 2004 budget request funds
an additional 2,114 HMMWVs, leaving the Army well short of its
stated requirements. The committee recommends an increase of
$23.5 million for procurement of additional HMMWVs, for a total
authorization of $161.3 million.
The committee is concerned with the current condition of
the Army's light tactical wheeled vehicle fleet. The average
age of the light tactical wheeled vehicle fleet, mostly HMMWVs,
is between 10 and 15 years old. These older HMMWV models do not
possess the payload and mobility capabilities of the new model
HMMWVs the Army intends to procure with this budget request.
The Army's Objective Force relies extensively on the light
tactical wheeled vehicle fleet as the prime mover for many
systems including key command, control, communications, and
computers, and intelligence systems. The committee believes
that there may be an extensive investment needed in technology
insertion and block changes to the light tactical wheeled
vehicle fleet to meet transformation requirements.
The committee directs the Secretary of the Army to deliver
a report to the congressional defense committees, no later than
March 31, 2004, identifying critical technology insertions and
block changes to the Army's light tactical wheeled vehicle
fleet that could reduce vehicle aging, improve payload and
mobility capabilities, and reduce operations and support costs.
Further, the Secretary is expected to deliver a light tactical
wheeled vehicle fleet modernization plan to meet these key
requirements at the same time the report is delivered to the
congressional defense committees.

Movement Tracking System

The budget request included $10.4 million for the
procurement of the Movement Tracking System (MTS). The MTS
provides critical near-real time visibility and management of
mobile assets worldwide for a multitude of tactical wheeled
vehicles including the palletized load system, the heavy
expanded mobility tactical truck, and the family of medium
tactical vehicles. The committee notes that for fiscal year
2003, the Army intends to procure 2,619 MTS with $41.7 million,
but has requested only $10.4 million for 636 MTS in fiscal year
2004. The committee is concerned that the Army has not given
higher priority to the procurement and installation of this
vital piece of equipment. The committee recommends an increase
of $25.0 million for procurement of additional movement
tracking systems, for a total authorization of $35.4 million.

SINCGARS radios

The budget request included $39.3 million for the
procurement of the SINCGARS family of radios. The committee
notes that current and programmed funding for the SINCGARS
family of radios procures 245,888 radios out of a total Army
requirement for 252,091 radios. The committee recommends an
increase of $15.0 million for the procurement of SINGCARS
radios, for a total authorization of $54.3 million.

Area Common User System

The budget request included $108.4 million for
modifications to the Area Common User System (ACUS) and its
migration to the Army's war fighting information network-
tactical (WIN-T) program. The ACUS modernization program
supports the downsizing of ACUS legacy systems through the
procurement and fielding of the single shelter switch (SSS) and
the high mobility digital group multiplexer assemblage (HMDA).
The committee notes that SSS and HMDA support the Army's
strategic goals of increasing deployability, security,
capacity, and speed of information distribution by greatly
reducing airlift requirements. However, the Army does not
adequately fund this equipment in the Future Years Defense
Program. The committee recommends an increase of $25.0 million
for ACUS, for a total authorization of $133.4 million.

Land Warrior

The budget request included $94.8 million in other
procurement, Army, for Land Warrior, and $49.2 million in
PE64713A for Land Warrior development. The Land Warrior program
integrates small arms with high-tech equipment and consists of
several subsystems including the weapon, integrated helmet
assembly, protective clothing and individual equipment,
computer, squad radio, and software. With this funding the Army
intends to procure 1,975 Land Warrior systems for the Rangers
and Stryker systems. The committee understands that the Land
Warrior initial-capability system failed developmental tests
primarily due to subsystem reliability issues, but did meet
functionality requirements such as situational awareness,
survivability, and communications. In light of these
developmental test failures, it appears that the Army has taken
measures to improve Land Warrior reliability through risk
mitigation assessments and demonstrations. Accordingly, the
Army has requested that funding be transferred from procurement
accounts to research and development accounts to fund these
activities.
The budget request for Land Warrior development included no
funding for the Integrated Battlefield Combat Situational
Awareness System (IB-CSAS). IB-CSAS proposes to bring
dismounted forces into the battlefield common operating picture
for embedded live-fire training and combat using integrated
technologies including ultra wide band for improved position,
location, and tracking, and small and lightweight soldier
sensors for laser-based combat identification systems. The
committee notes that these technologies are estimated to be at
technology readiness levels three and four and require more
development work.
The committee recommends a transfer of $73.5 million from
Land Warrior procurement to PE64713A project 667, Land Warrior
development, of which $15.0 million is for further IB-CSAS
development, for a total authorization of $122.7 million in
PE67413A for the Land Warrior system, and a decease of the
remaining $21.3 to Other Procurement, Army.

Construction equipment extended service program

The budget request included no funding for the service life
extension program of general construction equipment. The
committee notes that the Army Chief of Staff identified a
fiscal year 2004 unfunded requirement of $10.2 million for the
service life extension of various construction equipment. The
committee recommends an increase of $10.2 million for the
construction equipment extended service program, for a total
authorization of $10.2 million.

Modular Causeway System

The budget request included no funding for the modular
causeway system. The Modular Causeway System (MCS) is an
assemblage of interoperable and interchangeable components
which constitute the Army's primary means of augmenting
existing port facilities, or conducting joint logistics over-
the-shore (JLOTS) operations where no port is available due to
shallow water or low-sloping beach gradients. The MCS is a
critical element of LOTS/JLOTS operations. The committee
recommends an increase of $25.0 million for the procurement of
MCS, for a total authorization of $25.0 million.

Military operations on urban terrain

The budget request included $165.3 million for non-system
training devices, but no funding for the Military Operations on
Urban Terrain (MOUT) Instrumentation System. The committee
understands that this system uses a combination of cameras,
sensors, simulations, and targets to provide realistic training
that is captured for after-action review and analysis, which
provides feedback to soldiers to improve their combat
capabilities in an urban setting. The committee recommends an
increase of $4.8 million for the MOUT instrumentation system,
for a total authorization of $170.1 million for non-system
training devices.

Subtitle C--Navy Programs

Multiyear procurement authority for Navy programs (sec. 121)

The committee recommends a provision that would authorize
the Secretary of the Navy to enter into a multiyear contract
for procurement of the following: (1) the F/A-18 aircraft
program; (2) the E-2C aircraft program; (3) the Tactical
Tomahawk cruise missile program; and, (4) the Virginia-class
submarine program.
This would be the second consecutive multiyear procurement
authorization for the F/A-18 aircraft. A separate multiyear
procurement was authorized for the F/A-18 aircraft engines in
the National Defense Authorization Act for Fiscal Year 2002
(Public Law 107-107). The committee encourages the Navy to
synchronize the multiyear procurement of the F/A-18 aircraft
and its engines at the earliest opportunity.
The E-2C aircraft multiyear procurement would stabilize the
industrial base for low rate production during the development
of the follow-on aircraft, the E-2 Advanced Hawkeye.
The Tactical Tomahawk cruise missile is currently scheduled
to complete Initial Operational Test and Evaluation (IOT&E) in
March, 2004. The committee recommends a limitation in the
provision that would delay award of a multiyear procurement
contract for the Tactical Tomahawk cruise missile until, as a
result of operational testing, the missile is recommended for
use in the fleet.
The first submarine of the Virginia-class is nearing
completion, with delivery scheduled in fiscal year 2004. Its
design stability is evident from the low number of engineering
change orders when compared to any other submarine at this
stage of construction. Substantial savings can be achieved
through an award of a multiyear procurement contract.

Pilot program for flexible funding of Navy vessel conversions and
overhauls (sec. 122)

The committee recommends a provision that would establish a
pilot program to permit flexible funding of conversions and
overhauls of Navy cruisers from October 1, 2003, until
September 30, 2012. The budget request for fiscal year 2004
includes funding for the first of 22 Ticonderoga-class cruiser
conversions.
Ship conversions are currently funded from the Shipbuilding
and Conversion, Navy (SCN) procurement account. It is likely
that, during the course of any ship conversions, items which
were not included in the original work package would be
discovered which could be corrected most efficiently while the
ship is in the conversion process, rather than waiting for a
subsequent shipyard availability period.
The pilot program authorized by this provision would allow
the Navy to transfer appropriated funds from other
appropriations and merge these transferred funds with the SCN
funds available for the conversion. The other appropriations
accounts that could be used for this purpose include: (1) other
programs within SCN; (2) Weapons Procurement, Navy; (3) Other
Procurement, Navy; and, (4) Operation and Maintenance, Navy.
The provision would only allow the Navy to transfer funds
when there is either: (1) an increase in the size of the
workload for conversion or overhaul to meet existing
requirements for the cruiser; or (2) a revision of the original
work package resulting from a new conversion or overhaul
requirement.
The provision would require that the Secretary of the Navy,
30 days before any transfer could take place, report to the
congressional defense committees: (1) the purpose of the
transfer; (2) the amount of the transfer; (3) the account from
which the transfer is being made; (4) the program, project, or
activity from which the transfer is being made; (5) the account
to which the funds are being transferred; and, (6) the
implications of the transfer on the total cost of the cruiser
conversion program.
The provision would also require the Secretary to make a
final report to the congressional defense committees no later
than October 1, 2011, that evaluates the efficacy of the pilot
program.

Other Navy Programs

Navy Aircraft

Airborne low frequency sonar

The budget request included $352.1 million to procure six
MH-60R aircraft in fiscal year 2004 and to pay various non-
recurring charges and production support items for the MH-60R
helicopter program. The budget request does not include any
such funding for the AN/AQS-22 Airborne Low Frequency Sonar
(ALFS), a dipping sonar system that will be part of the MH-60R
helicopter's equipment. The Navy competitively selected ALFS in
fiscal year 1992 to outfit the MH-60R fleet.
The Navy could use additional funds in fiscal year 2004 to
improve logistics support of the ALFS systems by upgrading the
consolidated automated support systems, developing intermediate
technical manuals, qualifying a second source for the ALFS
cable, and upgrading the sonar signal generator. Such efforts
could lead to significant reductions in total life cycle costs
for ALFS. Therefore, the committee recommends an increase of
$3.5 million to pay for these activities to support ALFS system
introduction.

Operational support aircraft

The budget request includes $15.6 million for the
procurement of two UC-35 operational support aircraft for the
Marine Corps. The UC-35 is certified by the Federal Aviation
Administration and has begun to replace the Marine Corps' aging
CT-39 operational support aircraft. The committee recommends an
increase of $15.6 million for the procurement of two additional
UC-35 aircraft.

C-37 aircraft

The budget request included no funds for C-37 aircraft. The
C-37 is a long-range, twin engine, commercially available
transport aircraft. The mission of the C-37 aircraft is to
provide long range executive transport for the Chief of Naval
Operations, unified commanders, and their staff. The Navy has
an inventory objective of five C-37 aircraft. Four of the five
aircraft currently performing this mission have exceeded, or
will exceed, their fatigue life by fiscal year 2006. The
committee is aware that the Future Years Defense Program
includes funding for three C-37 aircraft, with the next
aircraft scheduled to be procured in fiscal year 2005. The
committee recommends an increase of $55.0 million to accelerate
this program by procuring a C-37 aircraft in fiscal year 2004.

Joint Primary Aircraft Training System

The budget request included $2.4 million for the
procurement of certain items supporting the Joint Primary
Aircraft Training System (JPATS) for the Navy, but included no
funding for Navy JPATS aircraft. JPATS is a joint program
between the Navy and the Air Force. The Air Force intends to
procure 52 JPATS aircraft in fiscal year 2004, but the Navy
plans to delay procurement of JPATS aircraft until fiscal year
2007. The committee continues to believe that the Navy should
begin to procure the aircraft for the planned joint primary
pilot training with the Air Force. The committee recommends an
increase of $35.0 million for the procurement of five Navy
JPATS aircraft.

AV-8B aircraft modifications

The budget request includes $20.9 million for modifications
to the AV-8B aircraft, of which $9.9 million is for core
avionics upgrades. No funding was included for Litening
precision strike targeting pods.
As the AV-8B aircraft ages, the Navy is facing diminishing
manufacturing sources and material shortages, resulting in
problems with obsolescence of certain avionics components.
Additional funding could be used to resolve known avionics
deficiencies to improve readiness, availability, and safety.
The committee notes that $13.0 million was included on the
Marine Corps' unfunded priority list for fiscal year 2004 for
this purpose. The committee recommends an increase of $13.0
million for AV-8B core avionics upgrades.
AV-8B aircraft have been using the Litening II targeting
pod to provide precision targeting capability. A recent upgrade
to the Litening II targeting pod has yielded the Litening
advanced targeting (AT) configuration, which would increase the
AV-8B's lethality and survivability by allowing standoff
precision weapons delivery. The upgrade of eight Litening II
targeting pods to the Litening AT configuration and the
procurement of 22 Litening AT pods is included on the Marine
Corps' unfunded priority list for fiscal year 2004. The
committee recommends an increase of $37.0 million for Litening
II targeting pod upgrades and for the procurement of Litening
AT pods, for a total authorization of $70.9 million for
modifications to the AV-8B aircraft.

Navigational Thermal Imaging System

The budget request included $3.5 million for H-1 series
modifications, including $3.4 million for the procurement of
AN/AAQ-22A/C UH-1N Navigational Thermal Imaging Systems (NTIS).
The NTIS is a commercially-available thermal imaging device
which provides significant safety enhancements to the legacy H-
1 series of helicopters. The committee understands that the
Marine Corps has an acquisition objective of 122 NTIS, but can
procure only eight NTIS and some of the associated logistics
with the funding requested in this budget request. Therefore,
the committee recommends an increase of $5.5 million for the
procurement of additional AN/AAQ-22 NTIS, for a total
authorization of $9.0 million for H-1 series upgrades.

EP-3 aircraft service life assessment

The budget request included $31.5 million for modifications
to the EP-3 aircraft, but included no funding to assess the
remaining service life of the aircraft. The EP-3 is a land-
based, long range intelligence aircraft. EP-3s have
historically been among the most heavily utilized aircraft in
the military. This utilization rate has increased significantly
since the beginning of the Global War on Terrorism in 2001.
There are only 12 EP-3 aircraft active in the fleet. The
average service life of these aircraft is currently 29 years.
Preliminary results from a recent strength test, which became
available after the submission of the Navy's fiscal year 2004
budget request, indicate that more than half of the EP-3
aircraft have already exceeded their fatigue life. The fatigue
test results indicate there is a potential near-term crisis in
the operational availability of these scarce intelligence
assets, and operational restrictions have been imposed on the
speed and maneuvering envelopes of some of the EP-3 aircraft.
The committee understands that a program of inspections and
modifications could assess whether or not the EP-3 fleet can
remain at its current inventory level. The committee
understands that this program would not remove the operational
restrictions on the aircraft, but would provide better
knowledge about future EP-3 aircraft availability. The
committee recommends an increase of $4.8 million for a program
of inspections and modifications to assess the remaining
service life of the EP-3 fleet of aircraft.
The committee believes that this situation merits senior-
level review to ensure that the capability being provided by
EP-3 aircraft is not precipitously lost. The committee directs
the Under Secretary of Defense for Intelligence, in
coordination with the Under Secretary of Defense for
Acquisition, Technology, and Logistics, to submit a report to
the congressional defense committees by March 1, 2004. This
report should include an analysis of the following: (1) how the
Department of Defense will maintain the capability currently
being provided by EP-3 aircraft until a suitable replacement
capability is available; (2) when such a replacement capability
might be available; (3) what range of options should be
considered in determining that replacement capability; and (4)
the operational, safety, or effectiveness issues associated
with the required operational restrictions on the EP-3
aircraft, and whether it would be acceptable to continue
operating with such restrictions until a replacement for the
EP-3 aircraft capability is deployed.

P-3C aircraft modifications

The budget request included $95.0 million for modifications
to the P-3C aircraft, which included $58.1 million for the
procurement and installation of Anti-surface Warfare
Improvement Program (AIP) kits. AIP greatly expands the P-3C
aircraft's capabilities to operate in littoral regions with the
addition of advanced technology sensors, expanded
communications, upgraded weapon delivery capabilities,
survivability upgrades, and improved operator situational
awareness. The Navy has a requirement for 146 AIP-equipped P-3C
aircraft. Funding for 69 aircraft has been appropriated, with
56 of those aircraft delivered. The committee recommends an
increase of $39.4 million for the procurement and installation
of three additional P-3 AIP kits.

Aerial targets

The budget request included $70.7 million for the
procurement of aerial targets. The aerial target program
provides powered targets, towed targets, and associated
equipment for fleet training and weapons system testing and
validation. The GQM-163A supersonic sea-skimming target (SSST),
when introduced in the fleet in fiscal year 2004, will provide
the Navy with the only aerial target system capable of
simulating the airframe size, sea-skimming range, speed, and
maneuverability of potential threat aircraft or anti-ship
missiles, to meet fleet testing and weapon system development
requirements. The committee recommends an increase of $15.0
million for the procurement of additional GQM-163A SSSTs.

Navy Weapons

Weapons industrial facilities

The budget request included $7.4 million for various
activities at government-owned, contractor-operated weapons
industrial facilities, but included no funding for the
facilities restoration at the Allegany Ballistics Laboratory
(ABL). The committee recommends an increase of $20.0 million
for the facilities restoration program at ABL.

Close-in weapons system

The budget request included $41.4 million for the Phalanx
close-in weapons system (CIWS), including $15.6 million for the
procurement of seven and the installation of 13 Block 1B CIWS
upgrade kits (CIWS-1B). The Phalanx is a high rate-of-fire
weapon that automatically acquires, tracks, and destroys
aircraft and anti-ship cruise missiles that have penetrated all
other ship defenses. It is the most widely distributed ship
self-defense weapon in the fleet, installed on virtually all
surface ships. The CIWS-1B is an upgrade that uses thermal
imaging and an automatic acquisition video tracker that
provides the additional capability to engage small, high speed,
maneuvering surface craft and low, slow aircraft and
helicopters. This upgrade is essential to provide a defense
against potential terrorist and asymmetric threats as the fleet
operates in the littorals. The committee is aware of the Navy's
plan to accelerate the production of CIWS-1B to 39 upgrade kits
in fiscal year 2005. The committee recommends an increase of
$20.0 million to procure an additional 10 CIWS-1B upgrade kits
to accelerate the program and smooth the ramp-up in production.

Navy and Marine Corps Ammunition

60mm high explosive cartridge

The budget request included no funding in Procurement of
Ammunition, Navy and Marine Corps, for the 60mm high explosive
(HE) cartridge. According to the Marine Corps, the 60mm HE
cartridge is critical to conducting contingency operations in
the Global War on Terrorism. Therefore, the committee
recommends an increase of $2.0 million in Procurement of
Ammunition, Navy and Marine Corps, for procurement of the 60mm
HE cartridge.

Navy Shipbuilding and Conversion

Submarine refueling overhauls

The budget request included no funding for refueling Los
Angeles-class submarines. In the fiscal year 2003 budget
request, the Navy included funding for refueling a single Los
Angeles-class submarine, and projected that it would request
funds for refueling two additional submarines in fiscal year
2004.
The 1999 ``Attack Submarine Study'' conducted by the Joint
Chiefs of Staff concluded that the Navy needed to have a
minimum of 68 attack submarines in fiscal year 2015 to meet all
the requirements of the unified commanders and the national
intelligence community. The 2001 Quadrennial Defense Review
(QDR) determined that 55 attack submarines were the minimum
force necessary to present a moderate operational risk.
In the National Defense Authorization Act for Fiscal Year
2003, one additional Los Angeles-class submarine refueling
overhaul was added, for a total of two, so that attack
submarine force levels would not decrease below the QDR-
recommended level of 55 submarines. The fiscal year 2004 budget
request, however, did not include the two projected refueling
overhauls for fiscal year 2004, deferring one until later and
forcing the decommissioning of the other attack submarine, the
USS Jacksonville (SSN-699).
Although the committee notes that the Navy has included the
refueling overhaul of the USS Jacksonville (SSN-699) on its
unfunded priority list, the decommissioning of the USS
Jacksonville (SSN-699) would again put the Navy below the QDR-
recommended force level for attack submarines. This was exactly
the situation the committee wanted to avoid by funding an
additional refueling in fiscal year 2003. The committee is
concerned that the Navy will continue to defer necessary
refueling overhauls and accept high operational risk.
The committee is reluctant to recommend additional funding
to solve a force structure problem. Nevertheless, the case for
this refueling is compelling. The committee recommends an
increase of $248.0 million for the refueling overhaul of the
USS Jacksonville (SSN-699).

DDG-51 ``Arleigh Burke''-class destroyer modernization program

The budget request included $3.198 billion for the
procurement of three DDG-51 Arleigh Burke-class destroyers,
including $77.6 million in cost for planning. The DDG-51
destroyers are a mainstay of the fleet, and are able to operate
offensively and defensively, independently or as units of
carrier or expeditionary strike groups. Several initiatives are
nearing fruition in the Navy that would improve the
effectiveness of the DDG-51 while reducing manpower
requirements for destroyers.
One such initiative would be the installation of composite
ship louvers. Louvers are used on ships to cover air intake and
engine exhaust areas to reduce exposure of internal equipment
to the weather and to reduce radar signatures. Use of composite
materials instead of steel would greatly reduce maintenance
requirements. The committee believes that the Navy can achieve
significant operations and support savings by accelerating
incorporation of these initiatives.
The committee recommends an increase of $21.0 million for
the engineering and installation planning for DDG-51 Arleigh
Burke-class destroyer modernization and optimized manning
upgrades on new construction ships, of which $1.0 million is
for composite ship louvers.
Additionally, the committee directs the Secretary of the
Navy to submit a DDG-51 modernization plan by March 1, 2004.
The plan should outline the key hull, mechanical, and
electrical system upgrades, selective combat system upgrades,
and potential manning reductions that could be achievable even
with the additional missile defense role that may be assigned
to this ship class.

Integrated Condition Assessment System

The budget request included $124.2 million for the
procurement of ship equipment items of less than $5.0 million,
but included no funding for the Integrated Condition Assessment
System (ICAS). ICAS has been installed on various classes of
surface ships and is a shipboard condition-based maintenance
system. ICAS remotely monitors the operating parameters of
machinery throughout the ship, analyzes the collected data, and
alerts operators to potential performance problems. The
committee recommends an increase of $9.4 million for the
procurement and installation of ICAS in mine warfare ships,
amphibious ships, and surface combatants.

Other Navy Procurement

SPQ-9B radar

The budget request included $9.7 million for the SPQ-9B
radar. The SPQ-9B radar solid state transmitter is designed to
provide early and reliable detection of low flying, small radar
cross section targets in natural and man-made clutter, while
improving its capability to perform its original missions of
anti-surface gunfire support and navigation. The inventory
objective for the SPQ-9B radar is 118 systems for surface
ships. The committee recommends an increase of $9.7 million to
accelerate procurement of the SPQ-9B radar.

Shipboard communications automation

The budget request included $175.1 million in shipboard
communications automation procurement, including $8.3 million
for the automated digital network system (ADNS) project. ADNS
provides procurement and technology enhancements for automated
routing and switching of tactical and strategic voice, video,
and data communications using transmission control protocol/
internet protocol (TCP/IP) networks.
Section 353 of the National Defense Authorization Act for
Fiscal Year 2003 (Public Law 107-314) directed the Secretary of
Defense to establish policy and procedures regarding
installation and connection of telecom switches to the Defense
Switch Network (DSN). The Navy is currently operating a number
of shipboard switches that were installed before this language
was enacted. These switches and associated software are in a
number of configurations that have not been certified as secure
and interoperable within DSN. Having so many disparate
configurations within the fleet raises concerns about security
and increased operating and support costs. The committee
believes that the Navy should upgrade deployed systems to a
DSN-certified configuration, and recommends an increase of $7.3
million for this purpose.

Submarine high data rate antenna

The budget request included $104.9 million in submarine
communications systems procurement, including $15.5 million for
submarine high data rate (HDR) antenna systems.
The submarine HDR antenna program provides submarines with
antennas that have the bandwidth, gain, and flexibility to meet
the stated fleet requirements for HDR communications in the
super-high frequency (SHF) and extremely-high frequency (EHF)
spectrums. Participating fully in the Navy's new efforts to
implement network centric warfare requires that ships have
higher data rate communications than are currently available on
submarines.
Therefore, the committee recommends an increase of $11.0
million to accelerate procurement of submarine HDR antenna
systems.

Joint Engineering Data Management Information and Control System

The budget request included no funding for the Joint
Engineering Data Management Information and Control System
(JEDMICS). JEDMICS is the joint Department of Defense system
for permanently storing, managing, and controlling digital
engineering drawings and associated technical data. JEDMICS
replaced labor intensive engineering drawing repositories with
automated central repositories for all engineering and
manufacturing information for weapons systems. The committee
recommends an increase of $2.5 million for JEDMICS in Other
Procurement, Navy.

Integrated bridge system

The budget request included $105.2 million for AEGIS
support equipment, but included no funding for the integrated
bridge system. The integrated bridge system improves
situational awareness through automation of navigation and ship
control systems, enhancing ship safety while reducing crew
workload. Installation of this system has helped the Navy to
meet its electronic chart and display information requirement.
The committee recommends an increase of $12.0 million for the
procurement and installation of integrated bridge systems on
AEGIS surface combatants.

NULKA anti-ship missile decoy system

The budget request included $44.8 million for anti-ship
missile decoy systems, including $21.9 million for procuring 86
NULKA decoys. Procuring additional NULKA decoys would ensure
that fleet installations remain on a reasonable schedule, would
keep production rates above the minimum sustaining level, and
would achieve more reasonable unit production costs. The
committee recommends an increase of $11.0 million to procure
additional NULKA decoys.

Submarine training device modifications

The budget request included $25.2 million to procure
submarine training device modifications. The Navy has critical
training requirements to support submarines in the fleet and is
beginning to use electronic performance support systems that
would enhance training quality opportunities for deployed
forces. The committee believes that the Navy could use these
systems more extensively to provide on-the-job operation,
maintenance and troubleshooting support normally provided by
journeymen, and advanced schoolhouse training. Therefore, the
committee recommends an increase of $5.0 million to expand the
use of performance support systems in conducting submarine
training.

Other supply support equipment

The budget request included $13.9 million in other supply
support equipment, but included no funding for the Serial
Number Tracking System (SNTS). The SNTS utilizes automatic
identification technology (AIT) to store and retrieve specific
maintenance and supply significant information concerning Navy
repairable assets. AIT devices include bar code and memory
buttons. The committee recommends an increase of $8.0 million
for the additional procurement of the SNTS.

Man overboard indicator system

The budget request included $60.7 million in command
support equipment, but included no funding to continue buying
man overboard indicator (MOBI) systems. The MOBI is a device
that a sailor secures on his/her person while aboard ship. If
the sailor were to fall overboard, the MOBI would activate and
send a distress signal that would permit rescue forces to find
the sailor. Each year, sailors' lives are lost and much time
and fuel is spent by the Navy attempting to locate sailors who
fall overboard. Use of this device could alleviate this
situation. The committee believes that the Navy should continue
the MOBI effort, and recommends an increase of $10.0 million to
procure MOBI systems.

Marine Corps Procurement

Squad automatic weapon

The budget request included $3.1 million for the
procurement of the M249 Squad Automatic Weapon (SAW). The SAW
is an individually portable machine gun which provides
sustained automatic fire capability and increased range. It is
a critical weapon in the Marine Corps rifle squad. The
committee understands that the Marine Corps has an inventory of
12,413 of such weapons, of which 7,642 are fielded, with the
remaining weapons considered unserviceable. The fiscal year
2004 budget request funds for 2,593 to replace these
unserviceable weapons. The committee notes that the Commandant
of the Marine Corps identified a fiscal year 2004 unfunded
requirement of $8.1 million to procure additional SAWs. The
committee recommends an increase of $1.2 million for the
procurement of additional M249 SAWs, for a total authorization
of $5.3 million.

Night vision equipment

The budget request included no funding for the procurement
of AN/PVS-14 night vision devices. The AN/PVS-14 provides
service men in Marine Corps combat infantry units with a
lightweight night vision device that can be used for
observation and surveillance, and a night scope. The Marine
Corps completed its inventory objective of 10,152 AN/PVS-14
devices in fiscal year 2000, but has stated that 1,507 devices
are broken and require replacement. The committee also notes
that the Commandant of the Marine Corps identified a fiscal
year 2004 unfunded requirement of $5.4 million for the AN/PVS-
14. The committee recommends an increase of $5.4 million for
the procurement of 1,507 night vision devices, a total
authorization of $5.4 million for AN-PVS-14.

Lightweight multiband satellite terminal

The budget request included $10.6 million for the
procurement of Marine Corps radio systems but no funding for
the lightweight multiband satellite terminal (LMST). The LMST
upgrades existing Marine Corps satellite radios to extend their
useful life and to provide the Marine commander with greater
access to a wide range of commercial and military satellites.
The committee notes that this program was funded in fiscal year
2003 and in the Future Years Defense Program, but not in fiscal
year 2004. The committee also notes that the Commandant of the
Marine Corps identified a fiscal year 2004 unfunded requirement
of $18.0 million for the LMST. The committee recommends an
increase of $12.0 million for procurement of additional
lightweight multiband radio system upgrades, for a total
authorization of $22.6 million for LMST.

Subtitle D--Air Force Programs

Elimination of quantity limitations on multiyear procurement authority
for C-130J aircraft (sec. 131)

The committee recommends a provision that would eliminate
the restrictions on quantity of C-130J aircraft that were
included in the multiyear procurement authority granted to the
Secretary of the Air Force in section 131(a) of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003 (Public
Law 107-314). The Air Force negotiated its multiyear contract
based on a quantity of 40 C-130J aircraft and 24 KC-130J
aircraft. The committee believes these numbers do not have to
be included in the multiyear authorization since series
production of these aircraft will extend well beyond the
multiyear contract.

Other Air Force Programs

Air Force Aircraft

F/A-22 aircraft

The budget request included $3.7 billion for the
procurement of 22 F/A-22 Raptor aircraft. The F/A-22 aircraft
is stealthy, capable of supersonic cruise without afterburner,
and incorporates multi-sensor integration. The F/A-22 will
provide day and night, all-weather air supremacy and precision
ground attack capability against the most sophisticated
integrated air defense systems.
The F/A-22 program was approved for entry into low-rate
initial production in fiscal year 2002. Due to an over-run in
the cost of the development program, the Department of Defense
imposed a buy-to-budget approach on the program, which caused
the Air Force to shift funding from the production program to
the development program. This transfer, combined with increased
unit cost, resulted in an Air Force decision to reduce the
number of aircraft from 23 to 20 to be produced with fiscal
year 2003 funding. It also resulted in a decrease in aircraft
quantity for fiscal year 2004, from the projected 27 aircraft
to the 22 aircraft in the budget request.
The greatest challenge in the F/A-22 development program is
one of software integration, which has resulted in a software
instability problem that affected both the startup of the
integrated weapons system and the continuity of the system
while in operation. Software stability metrics were established
for both startup and run-time between unintended shutdowns. The
thresholds for commencing training of operational aircrews in
preparation for the start of dedicated initial operational test
and evaluation (DIOT&E) were that the system startup should
work 90 percent of the time, with a run-time of at least 10
hours of operation between unintended shutdowns. To demonstrate
operational suitability during DIOT&E, the software must be
capable of achieving 100 percent startup and 20 hours of
operation between unintended shutdowns.
The first production representative F/A-22 aircraft have
been delivered to Nellis Air Force Base to commence training of
operational aircrews, however the software stability metrics to
commence training have yet to be achieved. In fiscal year 2002,
the committee was briefed that DIOT&E would commence in April
2003. Appearing before the Airland Subcommittee of the Senate
Armed Services Committee in April 2003, the Assistant Secretary
of the Air Force for Acquisition testified that the schedule to
start DIOT&E has now slipped to October 2003. In his approval
of a revised F/A-22 acquisition strategy on April 2, 2003, the
Under Secretary of Defense for Acquisition, Technology, and
Logistics (USD (AT&L)) assessed the strategy to achieve the
required F/A-22 avionics capability as medium-to-high risk. In
an acquisition decision memorandum of the same date, USD (AT&L)
directed the Air Force to define options in the event that the
F/A-22 does not improve to an acceptable level. These options
must identify the cost and schedule implications of open system
integration and identify the relationship to other programs,
such as the F-16 aircraft and F-35 Joint Strike Fighter.
The F/A-22 production program is also experiencing
difficulties. The committee was briefed in fiscal year 2002 on
an aircraft delivery schedule that showed that by the end of
March 2003, the Air Force would have taken delivery of 19 F/A-
22s. At the end of March 2003, only 12 F/A-22s had been
delivered. In February 2003, the committee was briefed on
another aircraft delivery schedule that indicates that the
delivery schedule will catch up to that which is on contract
with the delivery of the 35th aircraft in June 2004. This
aircraft will be the eighth of 13 aircraft awarded in lot two.
Meanwhile, the Air Force has just awarded a contract for the
third lot of 20 F/A-22 aircraft. The committee is concerned
that the production processes and performance to date have not
proven capable of meeting delivery schedules, yet a larger lot
has been awarded, and an even larger number of 22 F/A-22s is
requested in the budget request.
Once the F/A-22 enters the inventory, it will be the most
technically advanced tactical aircraft in the world. There are
a limited number of potential threat aircraft that can
outmaneuver the tactical aircraft currently in the inventory of
the U.S. military. There are also integrated air defense
systems that only the stealthy F/A-22 will be able to penetrate
in both day and night. Testing has already confirmed that the
stealth, supersonic cruise, and maneuverability of the aircraft
meets or exceeds expectations. However, due to the uncertainty
of the approach being taken to the software stability problems,
and the continuing inability of this program to meet production
schedules, the committee believes it would not be prudent to
authorize the ramp-up of procurement of F/A-22s to 22 aircraft
in fiscal year 2004. Therefore, the committee recommends a
decrease of $217.0 million, for a total authorization of $3.5
billion for the procurement of 20 F/A-22 aircraft in fiscal
year 2004.

C-17 aircraft funding transfers

The budget request included $2.03 billion for the
continuing multiyear (MYP) procurement of 11 C-17 aircraft in
fiscal year 2004, $504.1 million for the advance procurement
for 14 fiscal year 2005 C-17 aircraft, and $42.8 million for C-
17 aircraft modifications. After further review of the budget
request material, the Air Force has requested that certain
funding transfers be made in C-17 aircraft program elements to
allow full execution of fiscal year 2004 funding. In accordance
with the request of the Air Force, the committee recommends an
increase of $88.0 million for the C-17 aircraft MYP, a decrease
of $98.0 million from C-17 aircraft advance procurement, and an
increase of $6.3 million for C-17 aircraft modifications.

A-10 aircraft modifications

The budget request included $17.8 million for modifications
to the A-10 aircraft, but included no funds for the procurement
of advanced targeting (AT) pods. The Litening AT pod would
greatly improve the effectiveness and survivability of the A-
10. The committee recommends an increase of $20.0 million for
the procurement of Litening AT pods for A-10 aircraft.

F-15 aircraft modifications

The budget request included $197.6 million for
modifications for the F-15 aircraft, including $67.8 million
for upgrading the engines to the F100-PW-220E configuration.
This engine upgrade yields significant safety, performance, and
support enhancements. The committee recommends an increase of
$25.0 million for additional F-15 engine upgrades to the F100-
PW-220E configuration.

F-15 modifications

The budget request included $197.6 million for
modifications to the F-15 aircraft, including $5.3 million to
begin installing identification friend or foe (IFF) equipment
on F-15 aircraft in the active force. Neither the budget
request nor the Future Years Defense Program includes any
funding to upgrade the IFF systems for F-15 aircraft operating
in the Air National Guard.
The current IFF systems on F-15 aircraft are exhibiting
high failure rates and are becoming an increasing burden on
aircraft maintenance crews. The Air Force estimates that it
will not be able to buy spare parts for the current systems
beginning in fiscal year 2004.
The committee believes that the Air Force should provide an
upgraded IFF capability to the F-15 aircraft operating in the
Air National Guard, particularly in light of the contribution
these aircraft have been making to continental air defense in
the Global War on Terrorism.
Therefore, the committee recommends an increase of $11.5
million in F-15 modifications to buy and install a replacement
for the current F-15 IFF system for active and reserve
component F-15 aircraft.

F-16 aircraft modifications

The budget request included $300.6 million for
modifications to the F-16 aircraft, but included no funding for
the procurement and installation of F100-PW-229 engines or for
the procurement of Litening Advanced Targeting (AT) pods.
The F100-PW-229 engine provides block 42 F-16 aircraft with
thrust and performance which is comparable to block 40 and
block 50/52 F-16 aircraft. The committee recommends an increase
of $48.2 million for F100-PW-229 engines for block 42 F-16
aircraft.
The Litening AT pod has an improved forward looking
infrared sensor which provides greater performance and improved
reliability. These pods enable the F-16 to deliver precision
guided munitions. The committee recommends an increase of $10.0
million for the procurement of Litening AT pods, for a total
authorization of $358.8 million for F-16 modifications.

C-5 aircraft modifications

The budget request included $92.0 million for modifications
to the C-5 aircraft, including $79.9 million for the Avionics
Modernization Program (AMP). The AMP modification consists of a
newly designed avionics suite that will be more reliable and
maintainable, while meeting the requirements of the global air
traffic management (GATM) standards. The committee notes that
additional funding for AMP is requested on the Air Force
unfunded priority list, and recommends an increase of $39.4
million to procure an additional 12 kits and restore the C-5
AMP program to its previous schedule.
The committee has expressed concern in the past that the
Air Force has scheduled the AMP upgrade for the 50 newer C-5B
aircraft, while the 60 older C-5A aircraft are not scheduled
for the AMP upgrade until after the period covered by the
Future Years Defense Program. The committee directs that the 12
additional authorized kits are to be installed in C-5A
aircraft.

C-130 modifications

The budget request included $195.7 million for
modifications to C-130 aircraft, but included no funding for
integrating a very high data rate communications antenna on
certain C-130 aircraft for disseminating streaming video and
signals intelligence data.
In various contingency operations, the Air Force needs to
have the capability to deploy rapidly to a theater of
operations and begin disseminating data to the war fighters.
Such information could be generated from a number of sources,
including the Scathe View C-130 podded imagery reconnaissance
capability and the Predator unmanned aerial vehicle video.
Until the Air Force can establish ground-based operations
centers with full capability, there is a need to support
tactical operations with a more readily deployable capability.
Regular ultra-high frequency satellite data links do not
possess sufficient band width to support these capabilities.
Therefore, the committee recommends an increase of $6.8 million
in C-130 modifications to integrate Ku-band satellite
communications capability on one of the C-130 aircraft capable
of carrying the required pallet.

C-130 radar upgrade

The budget request included $195.7 million for
modifications to the C-130 aircraft, which includes $2.3
million for the procurement and installation of the APN-241
radar for certain aircraft. The APN-241 is the standard radar
for the Air Force C-130H3 and the new C-130J aircraft. The APN-
241 radar meets safety and navigation requirements, and is
certified for the adverse weather aerial delivery system. The
committee recommends an increase of $6.1 million for the
procurement and installation of eight APN-241 radars for C-
130s.

KC-135 aircraft boom operator weapons systems trainer

The budget request included $176.4 million for C-135
aircraft modifications, but included no funds for simulator
upgrades for the KC-135 aerial refueling aircraft.
Currently, KC-135 refueling boom operators are trained on
part-task trainers and on actual flights. High fidelity
aircraft boom operator weapons systems trainers (BOWSTs) would
reduce the training time and the number of aircraft sorties
necessary to train new boom operators, promoting cost
efficiencies. The committee recommends an increase of $3.4
million in PE 41218F in Research, Development, Test, and
Evaluation, Air Force for further development of the BOWST. The
committee further recommends an increase of $8.6 million for
the procurement of the KC-135 aircraft BOWST.

Cobra Ball dual-sided signals intelligence

The budget request included $90.1 million in Aircraft
Procurement, Air Force, for the Defense Airborne Reconnaissance
Program (DARP), but included no funding for the Cobra Ball
aircraft signals intelligence upgrades. The Cobra Ball aircraft
is a unique national asset that provides a highly mobile
capability to collect critical ballistic missile data. The
information collected is used for intelligence analysis, treaty
verification, and theater ballistic missile defense.
Planned measurement and signature intelligence (MASINT)
upgrades to the Cobra Ball aircraft would displace high gain
antennas currently used for signals intelligence collection. In
order to maintain and improve this capability, and to make
various on-board sensors compatible, the Cobra Ball aircraft
must have newly configured antennas, as well as upgrades to
receivers on-board.
The committee recommends an increase of $12.1 million in
Aircraft Procurement, Air Force, for dual-sided signals
intelligence modifications to the Cobra Ball aircraft.

Rivet Joint specific emitter identification

The budget request included $90.1 million in Aircraft
Procurement, Air Force for the Defense Airborne Reconnaissance
Program (DARP), but included no funding for the RC-135 Rivet
Joint specific emitter identification capability. Rivet Joint
is an airborne signals intelligence platform and one of the
highest priority collectors for regional combatant commanders.
The Rivet Joint platform is able to detect radar emissions of
interest, but lacks onboard databases and communications to
achieve detailed, rapid identification of individual emitters.
Additional funding is required to enable Rivet Joint to
correlate and disseminate time critical radar emitter location
information.
The committee recommends an increase of $6.2 million in
Aircraft Procurement, Air Force, for Rivet Joint specific
emitter identification.

Rivet Joint signals intelligence modernization

The budget request included $90.1 million in Aircraft
Procurement, Air Force for the Defense Airborne Reconnaissance
Program (DARP), including $55.3 million for RC-135 Rivet Joint
modernization. Rivet Joint is an airborne signals intelligence
platform and one of the highest priority collectors for
regional combatant commanders. The Rivet Joint's onboard
systems were designed to be an open architecture for upgrades,
but have reached maximum capacity to absorb additional
upgrades. Additional funding is required to upgrade the on-
board architecture and install additional capabilities in
emerging threat areas. This is one of the highest unfunded
priorities for the Chief of Staff of the Air Force.
The committee recommends an increase of $5.5 million in
Aircraft Procurement, Air Force, for Rivet Joint signals
intelligence modernization.

Air Force Missiles

Guidance replacement program

The budget request included $607.0 million in Missile
Procurement, Air Force for the Minuteman III intercontinental
ballistic missile modernization, of which $217.0 million was
for the Guidance Replacement Program. The committee understands
that the overhead rate reported by the contractor has increased
dramatically, and does not believe that this increase has been
adequately justified. Therefore, the committee recommends
authorization of $593.4 million in Missile Procurement, Air
Force, a decrease of $13.6 million.

Titan

The budget request included $91.5 million in Missile
Procurement, Air Force for the Titan space launch vehicle. The
National Reconnaissance Office will assume management of the
Titan program until Titan launches are completed, and the Air
Force budget request is intended to cover close-out costs for
the Air Force contract. The committee understands that the Air
Force has identified $45.0 million in excess prior year funds.
Therefore, the committee recommends a total authorization of
$46.5 million for Titan in Missile Procurement Air Force a
decrease of $45.0 million, and directs the Secretary of the Air
Force to use the excess prior year funds to meet fiscal year
2004 funding requirements for Titan contract close out.

Evolved expendable launch vehicle

The budget request included $609.3 million in Missile
Procurement, Air Force, for the evolved expendable launch
vehicle (EELV), of which $156.9 million is for assured access
to space. The budget request also contained $7.0 million in PE
64853F for assured access research and development.
The EELV program acquires launch services for national
security payloads from two commercial launch vendors, each of
which has developed its own family of launch vehicles. The
Department of Defense supported the development of these launch
vehicles to preserve the benefits of competition and to hedge
against technical problems in either family of vehicles.
The committee is aware that the commercial launch market,
which provided the economic basis to support two launch
vendors, has collapsed. The absence of such a base places in
doubt the ability of either vendor to sustain launch operations
over any extended period.
The Under Secretary of the Air Force, who serves as the
executive agent for Department of Defense space programs, and
the Commander of U.S. Strategic Command have testified to the
Strategic Forces Subcommittee on the significance of assuring
access to space for U.S. national security space payloads and
sustaining two launch vendors. The Air Force budget request
included funding to support the EELV launch infrastructure to
help do so. The committee recognizes that additional government
support and a revised pricing structure will be required to
sustain both vendors in the near term, and that budget
constraints prevented the Air Force from providing the funds
required to sustain the launch vendor base.
Therefore, the committee recommends $669.3 million in
Missile Procurement Air Force, an increase of $60.0 million, to
support assured access to space.

Other Air Force Procurement

Air National Guard jumbo digital transit-cased system

The budget request included $1.7 million for Other
Procurement, Air Force, Intelligence Communications Equipment,
but included no funding for Jumbo Digital Transit-cased Systems
(J-DTS) for Air National Guard intelligence squadrons. J-DTS is
a component of the Distributed Common Ground Station (DCGS)
architecture that enables users in remote locations to receive
imagery and other intelligence information from a variety of
intelligence collection platforms including Global Hawk,
Predator and U-2 aircraft, and in some cases, enables remote
users to actually control the sensors on the intelligence
platform. Fielding of J-DTS to Air National Guard intelligence
squadrons would enable these units to participate in real-world
intelligence operations on a daily basis, providing better
training for Air National Guard intelligence specialists, and
providing some relief to the high operations tempo of active
duty U.S. Air Force intelligence squadrons. The committee
recommends an increase of $12.4 million in Other Procurement,
Air Force, Intelligence Communications Systems, to connect Air
National Guard intelligence squadrons to the DCGS Wide Area
Network and to procure additional Jumbo Digital Transit-cased
systems.

Joint Threat Emitter

The budget request included $23.4 million for the
procurement and installation of training and simulation
equipment for Air Force combat training ranges. This includes
$12.5 million that the Air Force intends to use to procure the
Joint Threat Emitter (JTE) System. The JTE is a high power,
high fidelity emitter capable of replicating more than 1,500
threat signals. The Air Force believes that the JTE system will
modernize range threat simulator capabilities by emulating
signals which simulate the most advanced air defense threat
systems. The committee recommends an increase of $5.0 million
for accelerating procurement and installation of JTE systems.

Base information infrastructure

The budget request included $268.4 million for the
procurement and installation of base information infrastructure
improvements. Within this category, the Air Force provides
upgrades for the Combat Information Transport System (CITS),
including its subsets: (1) the Information Transport System
(ITS); (2) the Network Management System/Base Information
Protect; (3) the Voice Switching System; and, (4) the
Telecommunications Management System.
The Air Force has determined that ITS improvements will
have a direct effect on war fighting and contingency support.
The Air Force has appropriately placed a high priority on
providing enhancements to the ITS portion of the CITS program.
This priority is based on an assessment that the current
infrastructure is inadequate to support information-intensive
command and control systems that support military operations.
The committee recommends an increase of $8.0 million for
accelerating procurement and installation of fiber optic
communications upgrades within the ITS upgrade effort.

Panoramic night vision goggles

The budget request included $5.3 million for the
procurement of night vision goggles for the Air Force, of which
$4.1 million would be for the procurement of panoramic night
vision goggles (PNVGs). Production of PNVGs is scheduled to
begin in fiscal year 2003. The improvement in field-of-view
offered by these devices will greatly enhance aircrew
situational awareness and safety. The committee recommends an
increase of $8.3 million for procurement of additional PNVGs.

Personnel safety and rescue

The budget request included $7.4 million for personal
safety and rescue items less than $5.0 million, including $1.0
million for the procurement of aircrew survival radio test
sets, but included no funding for fixed aircraft standardized
seats (FASS).
Aircrew survival radios have become increasingly complex,
which, in turn, has increased the complexity of the test
equipment necessary to test such radios. Insufficient test
equipment can lead to maintenance backlogs. The committee
recommends an increase of $7.0 million for current generation,
self-contained, transportable, and semi-automated radio test
systems fielded for use by the U.S. military.
The Air Force has begun development and testing of the FASS
crew seats. A production-ready seat for C-130 and KC-135
aircraft will be ready by February 2004. The committee
recommends an increase of $4.8 million for the procurement of
FASS, for a total authorization of $19.2 million for personal
safety and rescue items.

Point of maintenance initiative

The budget request included $13.9 million for mechanized
material handling, but included no funds for the point of
maintenance initiative (POMX). POMX is a data collection
program that increases the timeliness and accuracy of mission
critical data collection and reduces the burden on flight line
personnel. POMX focuses on maintenance and munitions processes
for the aircraft using hand-held computer devices, networks,
and software now in widespread commercial use. The Air Force
intends to start fielding POMX at certain bases in fiscal year
2004. The committee recommends an increase of $12.0 million for
the procurement and fielding of POMX in fiscal year 2004.

Expeditionary medical support packages

The budget request included $13.9 million for Air Force
medical and dental equipment, but included no funding for the
procurement of expeditionary medical support (EMEDS) packages.
EMEDS is the primary tool of the expeditionary Air Force
medical system. It is a highly mobile hospital system designed
to be airlifted to forward positions to provide medical care.
Recent enhancements to EMEDS have integrated chemical-
biological protection into EMEDS to allow medical personnel to
operate without the use of mission-oriented protective posture
gear. Realizing the significant benefits of EMEDS for homeland
defense or during other natural or man-made disasters, the
committee notes that the Air National Guard has proposed
reorganizing and training existing medical assets into EMEDS-
supporting contingency configurations. The committee recommends
an increase of $3.0 million for EMEDS packages for the Air
Force.

Subtitle E--Other Matters

Defense-wide Programs

MH-60L altitude hold

The budget request included no funding for procurement,
Defense-wide, Special Operations Forces Rotary Wing Upgrade,
for the MH-60 altitude hold program. This system allows the
aircraft to maintain a constant altitude, greatly reducing
pilot workload, especially over regions with indistinguishable
terrain features, such as desert, and during long night-vision
goggle missions over water.
U.S. Special Operations Command (SOCOM) has spent $10.3
million over the past two fiscal years to develop and begin to
integrate this capability into 15 MH-60L aircraft. Because of
competing priorities, SOCOM was unable to include this item in
the President's budget request, but it is one of the highest
unfunded priorities for the Commander, SOCOM.
The committee recommends an increase of $3.1 million for
procurement, Defense-wide, SOF Rotary Wing Upgrades, to
complete the procurement of the MH-60L altitude hold equipment.

EC-130J Commando Solo upgrades

The budget request included $214.8 million in procurement,
Defense-wide for Special Operations Command Aviation Programs,
C-130 Modifications account, but included no funding to
complete conversion of one C-130J to the EC-130J, Commando Solo
configuration. The total funding required to convert a C-130J
to the EC-130J configuration is $110.0 million. A total of
$87.0 million was appropriated in fiscal year 2003, leaving a
$23.0 million shortfall in the program. The Department of
Defense recently reprogrammed $23.0 million to fund this
shortfall and avoid a break in production activity, creating a
shortfall in the larger EC-130 program. Commando Solo, a flying
radio and television broadcast capability, has been extensively
used to perform psychological operations missions in Operations
Enduring Freedom and Iraqi Freedom.
The committee recommends an increase of $23.0 million in
procurement, Defense-wide for Special Operations Command
Aviation Programs, C-130 Modifications, to fully fund the EC-
130 aircraft modification program.

Advanced SEAL delivery system

The budget request included $23.6 million for advance
procurement of long lead time items associated with the
Advanced SEAL Delivery System (ASDS). The ASDS is a miniature,
combatant submarine being developed for the infiltration and
exfiltration of naval special operations forces. Unlike current
underwater delivery systems, ASDS would transport Navy SEALs
over longer distances in a dry environment, enhancing the
operators' ability to accomplish their mission once ashore.
Significant technical and financial problems have plagued
this program since its inception. For the past four years, the
committee has expressed increasing concern about the cost of
this system and the significant performance shortfalls the
program continues to exhibit. At the urging of the committee,
the Department of Defense has agreed to designate ASDS as an
Acquisition Category I program and will reinstate a Milestone C
decision to assess affordability and effectiveness, providing
substantially more oversight of this program.
The National Defense Authorization Act for Fiscal Year 2002
directed the General Accounting Office (GAO) to conduct a
comprehensive review of the ASDS program. The recently released
GAO report concludes that ASDS has only fully met three of its
16 key performance parameters (KPP). It has partially met eight
additional KPPs and is making progress on another four. The
boat has significant shortfalls with regard to its acoustic
signature. It also has experienced recurring problems with
battery cell failure rates and limited recharge cycles, raising
doubts about its endurance and life cycle costs.
In August 2001, the Navy program office took
``conditional'' preliminary acceptance of the first boat from
the prime contractor under an agreement that all contractual
requirements needed for final government acceptance would be
completed within one year. To date, the contractor has still
not satisfactorily completed the contract requirements and the
first boat is still not ready for final government acceptance.
The first ASDS boat is scheduled to undergo an operational
evaluation (OPEVAL), starting in April 2003, to determine the
effectiveness and suitability of the boat for use in combat.
The OPEVAL will be a major factor in deciding whether or not to
declare an initial operating capability for ASDS, albeit at
reduced performance standards. The OPEVAL will also be a major
consideration in the Milestone C decision, to be made later in
2003.
The requirement for a SEAL delivery system remains critical
for our special operations forces. Whether this particular ASDS
design is the right one to meet the requirement will be
determined by the OPEVAL and by the Under Secretary of Defense
for Acquisition, Technology and Logistics (USD, AT&L) in the
Milestone C decision process.
This review process may well determine that the ASDS
program needs to be restructured, that the boat needs
significant additional development, or that the program is not
effective and should be terminated. The committee opposes the
commitment of additional advance procurement funding for ASDS
until the Milestone C decision has determined the future
direction of this program. Therefore, the committee recommends
a decrease of $23.6 million in procurement, Defense-wide for
ASDS Advance Procurement. There have been significant changes
to the ASDS design and in the industrial base since the
inception of the ASDS program. The committee directs that the
USD, AT&L review the ASDS sourcing strategy both at the prime
and subcontractor level to maximize the benefits of competition
and ensure the availability of effective production and systems
integration capabilities. If a Milestone C decision determines
that the ASDS program is now, or will be capable of meeting
requirements, the committee directs the Commander, U.S. Special
Operations Command to conduct a full and open competition to
procure additional ASDS boats.

Hand-held reconnaissance and surveillance project

The budget request included $16.5 million in procurement,
Defense-wide for the Special Operations Forces (SOF)
Intelligence Systems, but included only $570,000 to continue
fielding of the hand-held reconnaissance and surveillance
project, commonly called Recce-Pad. Recce-Pad was developed as
a component of the portable intelligence collection and relay
capability (PICRC) program. Fielding of PICRC to headquarters
and support elements has been completed, but fielding to
tactical components is only partially complete. Additional
funding is required to ensure that deployed special operations
teams can have this unique capability that enhances their
operational effectiveness.
The committee recommends an increase of $6.0 million in
Procurement, Defense-wide, SOF Intelligence Systems for the
Recce-Pad hand-held reconnaissance and surveillance project to
continue fielding to tactical SOF elements.

Joint threat warning system

The budget request included $3.6 million in procurement,
Defense-wide, Special Operations Forces Intelligence Systems,
for procurement of the Joint Threat Warning System (JTWS). JTWS
is a modular, lightweight ground signals intelligence system
that can be mounted on a variety of special operations forces
(SOF) delivery platforms, providing threat warning, situational
awareness, and enhanced force protection for SOF elements. JTWS
is an evolutionary acquisition program that builds upon
previous efforts to separately acquire similar warning systems
for air, ground, and maritime applications.
The committee recommends an increase of $5.65 million in
procurement, Defense-wide, SOF Intelligence Systems, to procure
25 additional JTWS systems, completing the basis of issue plan
for all elements of U.S. Special Operations Command.

Advanced lightweight grenade launcher

The budget request included $9.3 million in procurement,
Defense-wide for the Special Operations Forces, Small Arms and
Weapons procurement account for the Advanced Lightweight
Grenade Launcher (ALGL) systems for the U.S. Special Operations
Command (SOCOM).
The ALGL system provides a much improved capability over
the Mark 19 grenade launcher it replaces. The ALGL system
provides a 40 mm grenade launcher first round hit capability on
lightly armored vehicles at ranges beyond 1500 meters, is man-
portable and has an advanced day/night fire control system. It
has proven useful in recent military operations and is the
highest priority of the Commander, SOCOM, for additional
funding.
The committee recommends an increase of $22.2 million in
procurement, Defense-wide for Special Operations Forces Small
Arms and Weapons, to accelerate fielding of this important
weapons system.

Lightweight counter mortar radar

The lightweight counter mortar radar (LCMR) is a man-
portable radar system capable of detecting and determining the
location of opposing force mortar fire and allowing quick,
accurate response from friendly forces to neutralize the
threat. U.S. Light Infantry Forces and Special Operations
Forces have no fielded lightweight system for locating enemy
mortar fire. The National Defense Authorization Act for Fiscal
Year 2003 included $3.0 million in research and development
funds to produce two prototype radars. The prototypes have
proven very capable and require only minor additional
developmental work. Procurement and fielding of the system to
special operations forces could begin in fiscal year 2004 if
sufficient funding is available.
The budget request for fiscal year 2004 included no funding
for LCMR because of competing requirements within U.S. Special
Operations Command (SOCOM), but this program is one of the
highest unfunded priorities of Commander, SOCOM. The committee
recommends an increase of $1.5 million in research,
development, test and evaluation, Defense-wide in PE 1160404BB
to complete development of LCMR, and an increase of $6.5
million in procurement, Defense-wide in Special Operations
Forces Small Arms and Weapons, to begin procurement and
fielding of this important system.

Night vision and laser targeting devices

The budget request included $4.7 million for special
operations forces night vision and laser targeting devices. Of
this amount, $2.7 million was requested for continued
development of such devices in research, development, test and
evaluation (RDT&E), Defense-wide, PE 1160404BB, and $2.0
million was requested for procurement, Defense-wide, Special
Operations Forces Small Arms and Weapons.
The value of these advanced night vision and laser
targeting devices has been clear in recent military operations.
Special operations forces rely on stealth and secrecy to
successfully conduct their missions. These devices enable them
to operate efficiently under the cover of darkness and
successfully engage high value targets with much lower risk.
The committee recommends an increase of $12.5 million in
procurement, Defense-wide, Special Operations Forces Small Arms
and Weapons, to accelerate fielding of these advanced night
vision and laser targeting devices.

Special operations craft-riverine

The budget request included no funding for Special
Operations Craft-Riverine (SOC-R) procurement. The SOC-R is an
air-transportable, armored craft that is capable of carrying
special operations forces for insertion, extraction, and
reconnaissance mission in riverine and coastal environments.
SOC-R replaces less capable and unsupportable Vietnam-era
craft, meets modern warfare requirements, and is the second
highest priority of Commander, SOCOM, for additional funding.
The committee recommends an increase of $16.5 million in
procurement, Defense-wide for Special Operations Forces
Combatant Craft Systems, to accelerate fielding of the SOC-R
and to complete the objective inventory of this program for
SOCOM.

Joint Service Lightweight Integrated Suit Technology

The budget request included $74.2 million for procurement
of the Joint Service Lightweight Integrated Suit Technology
(JSLIST). This funding level is 17 percent below the fiscal
year 2003 requested level.
The JSLIST program fields a common chemical protective
ensemble (suits, boots, socks, and gloves) to the military
services. JSLIST promotes commonality and standardization to
maximize resources and eliminate redundancy among the services.
The committee notes the efforts of the Department of
Defense to meet requirement objectives for the JSLIST. From
December 2002 through March 2003, JSLIST production was
increased from 79,000 per month to 90,000 per month. The Fiscal
Year 2003 Emergency Wartime Supplemental will fund 110,000 per
month, the maximum estimated capacity of JSLIST production.
The committee supports the efforts of the Department to
ensure that the men and women of the armed forces are fully
protected against a chemical or biological attack. Therefore,
the committee recommends an increase of $36.0 million for
JSLIST to sustain maximum production capacity through fiscal
year 2004.

M45 Army Aircrew Protective Mask

The budget request included $85.0 million in the Defense-
wide procurement account for individual chemical and biological
protection equipment, including funding for several types of
protective masks. The request, however, included no funding for
the M45 Army Aircrew Protective Mask. The M45 fulfills an
interim, Army-unique requirement until the Joint Service
General Purpose Mask is fielded to the services. Therefore, the
committee recommends an increase of $500,000 to procure
additional M45 Army Aircrew Protective Masks.

M291 and M295 decontamination kits

The budget request included no funding for M291 and M295
decontamination kits. The M291 and M295 decontamination kits
provide efficient, proven, and safe methods to remove toxic
chemical agents from skin and equipment. They are used by all
military services and also by civilian personnel for responding
to chemical terrorist attacks. Therefore, the committee
recommends an increase of $1.0 million for the procurement of
M291 decontamination kits and $1.0 million for the procurement
of M295 decontamination kits.

Wide-area decontamination

The budget request included $7.0 million in decontamination
procurement for wide-area decontamination applicators and $8.6
million in PE 64384BP for wide-area decontamination technology
development. The committee recommends a number of increases to
the budget request for the Chemical and Biological Defense
Program to further expand the wide-area decontamination
capabilities of the services. Specifically, the committee
recommends the following: an increase of $8.0 million in
decontamination procurement for wide-area decontamination
applicators; and an increase of $5.7 million in PE 64384BP for
wide-area decontamination technology development, including
decontamination applicators and solutions.
The committee notes that, as U.S. Armed Forces assembled in
Southwest Asia for contingency operations against Iraq, the use
of chemical and biological weapons by Saddam Hussein could not
be discounted. Committee members questioned representatives
from the Department and the military services on the current
chemical and biological defense capabilities of the armed
forces during hearings on the budget request for fiscal year
2004. Of particular concern to committee members was the
preparedness of military combat and supporting units in the
theater to survive a biological or chemical attack and to
sustain operations in a contaminated environment.
The assessments of the service chiefs on this issue were
particularly noteworthy. Each service chief expressed his
unequivocal conviction that the men and women of their
respective services were prepared to respond to an attack with
a chemical or biological agent. According to the service
chiefs, soldiers, sailors, airmen, and marines received the
training and equipment to survive an attack and to sustain
combat operations should that contingency arise.
One particular shortfall, however, noted in written
testimony by both the commander, U.S. Pacific Command, and the
deputy commandant of the Marine Corps for Plans, Policy and
Operations was in the area of wide-area decontamination
technologies and equipment.

Chemical-Biological Protective Shelter

The budget request included $17.6 million in the Defense-
wide procurement account for collective protection in the
Chemical-Biological Defense Program, including funding for the
Chemical-Biological Protective Shelter (CBPS). Specifically,
the budget request included $1.0 million for CBPS system
fielding and engineering support. As noted in the report to
accompany the National Defense Authorization Act for Fiscal
Year 2003 (S.Rpt 107-151), there is an increasing threat of
chemical and biological attack on U.S. military personnel.
Therefore, the committee recommends an increase of $2.0 million
for procurement of additional CBPS.

Automatic Chemical Agent Detector and Alarm

The budget request included $318.5 million for the
procurement of contamination avoidance equipment. The requested
funding supports the procurement of chemical and biological
detection, warning and reporting, and reconnaissance systems,
such as the Automatic Chemical Agent Detector and Alarm
(ACADA).
The committee notes that Army National Guard units that are
deploying worldwide in support of military operations must
possess the same level of defense against chemical agents as
active duty units. Therefore, the committee recommends an
increase of $2.0 million in contamination avoidance equipment
procurement for ACADA.

Chemical Biological Installation Force Protection Program

The budget request included $76.6 million to deploy the
Chemical Biological Installation/Force Protection
Program(CBIFPP) to 15 military installations in fiscal year
2004. The CBIFPP consists of a highly effective suite of manual
and automated chemical and biological detection equipment. The
committee recommends an increase of $76.6 million for CBIFPP to
procure the CBIFPP detection suite for an additional 15
installations in fiscal year 2004.
The committee strongly supports the Department of Defense's
efforts to rapidly deploy chemical and biological detection
equipment to military installations. The committee has
expressed concern over the years regarding the effectiveness of
the Department's force protection initiatives at its
installations at home and abroad.
The committee recognizes that many elements are critical to
an antiterrorism force protection plan. One of the most urgent
is the need for advance warning of a release of chemical or
biological agents. The committee recognizes the threat of a
weapons of mass destruction attack utilizing biological and/or
chemical agents, that could be relatively easy to procure,
produce, and weaponize. Early detection of such an attack is
critical, as it enables local authorities to quickly respond
and provide needed services to residents of, and military and
civilian personnel on, military installations.

Joint Chemical Agent Detector

The budget request included $6.3 million for procurement of
the Joint Chemical Agent Detector (JCAD). The JCAD is an
automatic, lightweight, man-portable, point-sampling chemical
warfare agent vapor detection/warning system. The JCAD will
replace legacy chemical detection equipment, including the
Chemical Agent Monitor, Improved Chemical Agent Monitor,
Automatic Chemical Agent Detector and Alarm, M90s, M8A1s, and
M256A1 kits. Therefore, the committee recommends an increase of
$2.0 million for procurement of JCAD to accelerate replacement
of legacy chemical detection equipment.

Items of Special Interest

Ammunition plant and arsenal modernization

The committee is concerned about the state of the Army's
ammunition plants and arsenals. The committee notes that much
of the material and equipment at these facilities is more than
60 years old. Funding levels have impacted the ability of the
Army to keep pace with advances in manufacturing technologies
in the commercial sector. Systems in some facilities are
controlled by computer systems that were developed in the mid-
1970s. In addition, management of real property maintenance
requirements has impacted the productivity and effectiveness of
ammunition plants and arsenals.
The committee notes that a thorough overview of the Army's
ammunition production and arsenal modernization requirements is
long overdue. Therefore, the committee directs the Army to
develop a comprehensive modernization plan to be funded over
the Future Years Defense Program beginning with its fiscal year
2005 budget submission. The committee directs the Army to place
particular emphasis on modernization of key electrical control
systems, production control and computer systems. In addition,
the committee urges the Army to investigate the possibility of
more fully incorporating real property maintenance requirements
into the future-years facilities contracts. The committee
directs the Army to submit the plan to the congressional
defense committees no later than March 1, 2004.

Ground systems industrial base

Section 113 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105-261)
directed the Army to review heavy tank and armored fighting
vehicle upgrade programs to determine if projected program
terminations would adversely impact the availability of needed
armored systems industrial and technology capabilities. The
Army's report, submitted February 4, 1999, concluded that
current upgrades and limited new procurements were sufficient
to maintain industrial and technological capabilities for the
near term. The report also concluded that, for the period 2005
to 2015, after completion of the Bradley M2A3 upgrade and the
Abrams M1A2 system enhancement programs, uncertainty in Army
requirements would likely affect second and third tier vendors,
may lead to increased costs to qualify new vendors, and may
erode prime contractors' system engineering and design skills.
The committee notes that the Army's report was based on the
assumption that programs such as the M1A2 system enhancement
program, the M1 Wolverine heavy assault bridge, the M1 Grizzly
counter obstacle vehicle, the M2A3 Bradley fighting vehicle,
and the Crusader field artillery system, along with other
legacy force systems, would be in various stages of production
during the 2005-2015 period. Additionally, the Army research
and development expenditures at that time focused on
digitization and the development of Future Scout and Calvary
System and Future Combat Systems (FCS) platforms.
The committee notes that since that time, the scope and
nature of the Army's modernization program has changed. Over
the course of the previous three fiscal years, the Army has
terminated 29 programs and restructured another 20 programs to
generate additional funds for Army transformation. In the
fiscal year 2004 budget request, the Army cancelled 24 legacy
force systems and restructured another 24 systems in order to
shift funding to meet Objective and Interim Force requirements.
The committee understands that the initial operational
capability (IOC) for FCS will be delayed until fiscal year 2012
and that the Army intends to field two Objective Force brigades
per year starting in fiscal year 2015.
The committee notes that the Army's decisions to terminate
and restructure numerous legacy force systems, and to delay the
FCS IOC by two years, may have an adverse impact on the
industrial base for ground combat systems, including subsystems
such as transmissions.
Therefore, the committee directs the Secretary of the Army
to update the Armored Systems Modernization Report directed by
Section 113 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105-261) and
to present to the congressional defense committees, no later
than March 31, 2004, a report on the ground systems industrial
base. The report shall include a description of the current
capability of the industrial base, the capability expected
between 2004 and 2015, the capability required during the same
time period, and actions to be taken, if any, to ensure that
the industrial base retains those required capabilities.

Navy and Marine Corps Tactical Aviation Integration

The budget request included the first phase of the
integration plan for the tactical aviation organizations of the
Navy and the Marine Corps. Under this plan, the combined number
of Navy and Marine Corps tactical aviation squadrons would
decrease from 64 squadrons to 59 squadrons, and the number of
new tactical aircraft necessary to be procured would decrease
from 1,637 aircraft to 1,230 aircraft. The integration would
increase the number of Marine Corps squadrons currently
assigned to Navy airwings from four to ten, and would assign
three Navy squadrons to Marine Corps airwings. The first phase,
in fiscal year 2004, would result in the decommissioning of one
Navy Reserve squadron and one Marine Corps reserve squadron.
The committee directs the Comptroller General of the United
States to conduct an analysis of the Navy and Marine Corps
tactical aviation integration plan to determine: (1) the
validity of the assumptions made in formulating the plan; (2)
the impact on Naval and Marine Corps Reserve force structure if
the plan were to be executed; and (3) the ability of the
smaller force structure to meet operational requirements. This
analysis should be delivered to the congressional defense
committees before December 1, 2003.

Relevancy of the Mobility Requirements Study for Fiscal Year 2005

The Mobility Requirements Study for Fiscal Year 2005 (MRS-
05) was completed in fiscal year 2001. The most significant
finding of this study was the identification of a significant
shortfall in inter-theater airlift. The study identified an
airlift requirement of 54.5 million ton-miles per day in order
to meet the needs established by the unified commanders to
execute the National Military Strategy, which, at the time the
study was completed, was to engage in two nearly simultaneous
major theater wars.
Since the Department completed this study, the United
States was attacked on September 11, 2001, the National
Security Strategy has been changed, and the U.S. military has
been engaged in an ongoing Global War on Terrorism, including
Operation Enduring Freedom in Afghanistan and Operation Iraqi
Freedom. Additionally, the Army has recently introduced the
Interim Brigade Combat Team (IBCT). The goal for an IBCT is to
deploy anywhere in the world within 96 hours, which will
require airlift instead of the sealift that has traditionally
moved the equipment of large Army formations.
The committee is aware that steps are being taken to reduce
the shortfalls in inter-theater airlift identified by MRS-05.
There is currently a multiyear procurement (MYP) of C-17
aircraft, with an option for an additional 42 aircraft above
the 180 aircraft that will be procured at the end of the
current MYP. There are two major C-5 upgrade programs. The
Civil Reserve Air Fleet has been activated when necessary to
provide additional airlift.
The committee is interested in a comparison of the factual
data for inter-theater airlift requirements in fiscal years
2002 and 2003 with the assumptions made in MRS-05 to verify the
relevancy of the MRS-05 study. The committee directs the
Commander, U.S. Transportation Command, to submit a report on
this comparison to the congressional defense committees by
March 1, 2004. The report should compare the assumptions in
MRS-05, which led to a requirement for inter-theater airlift of
54.5 million ton-miles per day, with the data for fiscal years
2002 and 2003. The report should reach a conclusion regarding
whether the 54.5 million ton-mile a day requirement is too low,
too high, or approximately correct, given the changing force
structure and operating environments of the Armed Forces.

Report on conventional ammunition industrial base

The committee is concerned that current munitions stocks
and production levels may be insufficient to meet warfighter
needs and to maintain a healthy industrial base. The House
report to accompany the National Defense Authorization Act for
Fiscal Year 2003 (H. Rept. 107-436) directed the Secretary of
the Army to prepare a report on the conventional ammunition
industrial base requirements to fulfill the ammunition
requirements for the new capabilities-based strategy of the
Department of Defense and the unfunded requirements of the Army
Chief of Staff. The date of submission for the report was
January 15, 2003.
On February 25, 2003, the Assistant Secretary of the Army
for Acquisition, Logistics and Technology (ASA(ALT)) notified
the committee that the Army has completed its analysis of the
ammunition requirements and the ability of the industrial base
to satisfy these requirements, and was finalizing the
industrial base strategy. ASA(ALT) also stated that the
strategy would be briefed to the congressional defense
committees no later than April 25, 2003.
The committee has not received either the congressionally-
mandated report on the conventional ammunition industrial base
or the ASA(ALT) industrial base strategy briefing. The
committee is disappointed that the Army was unable to meet
either congressionally-directed or self-imposed deadlines. The
committee directs the Army to expedite the delivery of the
ammunition requirements and industrial base report to the
committee and to expedite the briefing of the Army industrial
base strategy to the committee.
The committee believes that restoring ammunition stocks to
necessary levels may require significant production of new
rounds, and believes that additional production capacity may
need to be reconstituted. For example, the Army estimates that
they have single suppliers for 71 of 302 critical components
needed to manufacture ammunition. The committee expects that
the report on the industrial base and the Army's strategy for
future ammunition production will consider secondary sources in
the event of unforeseeable incidents or surge production
requirements. Additionally, the committee expects the
aforementioned report and briefing to specifically address the
Army's current bomb production capacity and the consideration
of reconstituting additional manufacturing lines at facilities
such as Crane Army Ammunition Activity and McAlester Army
Ammunition Plant.

Sonobuoys

The budget request included $85.6 million for building all
types of sonobuoys. These funds would be sufficient to procure
approximately 113,000 sonobuoys, thereby increasing the
inventory of sonobuoys to the number needed to support annual
peacetime training requirements. Until this year, the Navy has
been faced with two poor alternatives: (1) curtailing training,
with an attendant adverse effect on readiness; or (2)
continuing training and accepting a reduction in war reserve
assets, making the force less ready to operate at required
higher rates in a conflict.
The committee commends the Navy for taking this action.
However, the Future Years Defense Program (FYDP) includes a
program that would procure approximately 91,000 sonobuoys per
year after fiscal year 2004. Such a low level of investment
would return the Navy to the situation of managing negative
effects on training or war reserves.
Therefore, the committee directs the Secretary of the Navy
to submit a report on the date that the President submits the
budget request for fiscal year 2005 that details: (1)
projections of on-hand inventory by type and model of sonobuoy
for fiscal years 2004 through fiscal year 2007 based on the
current FYDP; (2) projections of the remaining design shelf
life of the inventory for each of those years; (3) total
inventory requirements for each type and model of sonobuoy,
including specific requirements for training and other
readiness activities and for war reserve; and (4) a year-by-
year procurement plan, including funding and quantities, that
would meet these requirements for each type and model of
sonobuoy.

Surface combatant shipbuilding industrial base

The budget request included funding for three DDG-51
Arleigh Burke-class destroyers in fiscal year 2004, and
projects the procurement of another three DDG-51 Arleigh Burke-
class destroyers in fiscal year 2005. Last year, Congress
provided the Navy statutory authority to procure up to six DDG-
51 class ships over the fiscal year 2006 and 2007 period due to
concern over declining major surface combatant force levels and
the critical need to sustain the dual-source surface combatant
shipbuilder industrial base through the transition from DDG-51
to DD(X) destroyer programs. However, the fiscal year 2004
budget and Future Years Defense Program (FYDP) proposes to
procure no additional DDG-51s after fiscal year 2005, and to
procure DD(X) destroyers at a very low rate through fiscal year
2008. The FYDP projects the procurement of a total of four
DD(X) destroyers in fiscal years 2006 through 2008.
In November 2000, the Navy submitted an update to the 1993
``DDG-51 Industrial Base Study'' that reaffirmed that both
Arleigh Burke-class shipyards could remain viable with the
shared, annual workload of three new procurement DDG-51s, plus
additional work. In testimony before the Seapower Subcommittee
in March 2002, the Assistant Secretary of the Navy for
Research, Development, and Acquisition stated that he did ``not
have a current study that looks at the industrial base'', but
that he had ``assumptions, and the earlier studies have changed
the way we are doing business now.''
The 2001 Quadrennial Defense Review (QDR) determined that a
surface combatant level of 116 vessels was necessary to meet
national security requirements. Since that time, the Chief of
Naval Operations has published the Navy's Sea Power 21 vision.
This vision would align naval forces with 12 carrier strike
groups, which require surface combatants, 12 expeditionary
strike groups, which require surface combatants, and a number
of surface combatants for missile defense, with that number yet
to be determined. The committee believes that the demands for
surface combatants are expanding to a level in excess of the
level which was identified in the QDR.
The committee remains concerned about the surface combatant
industrial base, particularly during the transition from
Arleigh Burke-class destroyers to the DD(X) in fiscal years
2006 through 2008. The committee directs the Secretary of the
Navy to deliver an updated surface combatant industrial base
study to the congressional defense committees by March 1, 2004,
which will include: (1) projection of the workload for those
shipyards engaged in the construction of surface combatants
from fiscal year 2005 through fiscal year 2010; (2) an
assessment of the risk for the financial viability of those
shipyards during the same period; and, (3) a plan on how the
Navy intends to sustain the unique technical and production
skills within that industrial base.

T-45 Training System

The budget request included $339.2 million for the
procurement of the T-45 Training System, which includes the
procurement of 15 T-45 Goshawk aircraft in addition to other
elements of the system. In the Department of Defense selected
acquisition reports, the inventory objective of T-45 aircraft
has been increased from 183 to 211. This is reflected in the
Future Years Defense Program (FYDP), with additional purchases
programmed in fiscal years 2005 and 2006. The committee is
aware that the fully integrated T-45 Training System consists
of 234 T-45 aircraft, 18 simulators, and other types of
training aids and material. The committee encourages the Navy
to program for additional aircraft in the FYDP to achieve the
requirements for the fully integrated training system.
TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Explanation of tables
The following tables provide the program-level detailed
guidance for the funding authorized in title II of this Act.
The tables also display the funding requested by the
administration in the fiscal year 2004 budget request for
research, development, test and evaluation programs and
indicate those programs for which the committee either
increased or decreased the requested amounts. As in the past,
the administration may not exceed the authorized amounts (as
set forth in the tables or, if unchanged from the
administration request, as set forth in budget justification
documents of the Department of Defense) without a reprogramming
action in accordance with established procedures. Unless noted
in the report, funding changes to the budget request are made
without prejudice.

Subtitle A--Authorization of Appropriations

Science and Technology
The committee commends the Department of Defense for its
commitment to and robust budget submission for science and
technology across the services and defense agencies. The
Science and Technology Program budget request for fiscal year
2004 is $10.232 billion, or 2.69 percent of the overall
Department of Defense request. Over the past two years the
Department has increased its budget request for science and
technology by nearly 25 percent, up from $7.8 billion in fiscal
year 2002. The Department is moving towards meeting the
Secretary of Defense's goal of funding the Science and
Technology Program at 3 percent of the overall defense budget.
The Department of Defense faces numerous competing
priorities and operational demands. However, the committee
notes that without a stable long-term investment in basic
research and technology development, the recent display of the
armed forces' technological advantages, such as precision
weaponry, unmanned systems, smart munitions and increased
situational awareness, would not have been possible. These
technological success stories stand on the shoulders of decades
of investment in core scientific disciplines such as chemistry,
physics, materials research and information technology.
The men and women of the armed forces rely upon the
scientific and technological innovation funded within this bill
for rapidly increasing capability on the battlefield. The
transformation of the armed services depends upon enhancing our
technological advantages in areas such as unmanned systems and
technologies to combat terrorism and defeat weapons of mass
destruction. Therefore, the committee recommends an increase of
over $130.0 million in unmanned systems and an increase of more
than $150.0 million in technologies to combat the threats of
terrorism at home and abroad.
While the Department is increasing its budget request for
the Science and Technology Program, the committee remains
concerned that the investment in basic research has remained
stagnant and is too focused on near-term demands. Therefore,
the committee recommends an increase of $50.0 million for basic
research. In addition, the committee directs the Director of
Defense Research and Engineering to commission a study by the
National Academy of Sciences to assess the basic research
portfolio of the services and the Defense Advanced Research
Projects Agency (DARPA). This assessment should review the
basic research portfolio in order to determine if the programs
are consistent with the definitions of basic research in DoD
regulation. This report is not intended to rate the worthiness
of the basic research portfolio, but rather to determine
whether the basic research portfolio needs to be realigned to
be more consistent with the goals of traditional fundamental
research activities.
The committee recommends that the Department utilize all
possible means to ensure that awards of grants and contracts
for research and development programs are awarded through
competitive, merit-based selection procedures.

Subtitle B--Program Requirements, Restrictions, and Limitations

Prohibition on transfer of certain programs outside the Office of the
Secretary of Defense (sec. 211)
The committee recommends a provision that would direct the
Secretary of Defense to retain the following five devolved
programs in the Office of the Secretary of Defense (OSD): (1)
Explosive Demilitarization Technology Program; (2) High Energy
Laser Initiative; (3) High Energy Laser Research Program; (4)
High Energy Laser Advanced Development Program; and (5)
University Research Initiative. These programs have particular
congressional interest due to their unique contributions to the
defense science and technology program and the joint nature of
their activities.
The committee remains concerned about the devolution of
numerous research, development, test and evaluation (RDT&E)
programs from OSD to the military services and defense
components. These concerns were articulated in the statement of
managers accompanying the National Defense Authorization Act
for Fiscal Year 2003. Although OSD was directed to halt the
devolution of several specific programs, the Department
continued the process and in the fiscal year 2004 budget
transferred fifteen RDT&E programs from OSD to the military
services and defense components.
Additionally, the statement of managers accompanying the
National Defense Authorization Act for Fiscal Year 2003
required OSD to report to Congress prior to the devolvement of
a number of RDT&E programs. The report failed to answer many
basic questions and did not provide adequate justification for
the devolvement of the programs. The report has done little to
ease the concerns of the committee about the future adequate
funding, oversight, and maintenance of these inherently joint
programs. In addition, the Congress is aware of the heightened
concern in the affected research communities regarding
devolvement, given its possible adverse effects on program
structure and funding.
The committee also notes that two previous attempts to
devolve RDT&E programs from OSD have failed. In fiscal year
2003, both the Medical Free Electron Laser (MFEL) program and
the Armed Forces Radiobiology Research Institute (AFRRI) were
devolved to the National Institutes of Health (NIH). Despite
assurances that the programs would continue their previous
activities, the budgets of both programs were zeroed and
subsequently transferred back to OSD without funding. As a
result, Department of Defense reprogrammed fiscal year 2003
resources to fund these valuable research programs. The
programs have been impacted by discontinuity in important
defense medical research activities, affecting numerous
university, industry, and government research personnel.
The committee directs the Secretary of Defense to submit a
report for each of the remaining ten RDT&E programs which were
devolved, if the current year's budget request for the program
is less than the fiscal year 2004 budget request in constant
dollars. This reporting requirement is intended to be in effect
for the next four fiscal years. This report shall be included
with that year's budget request, and shall contain budget
request and appropriated levels for the program dating back to
fiscal year 2000 in both current and constant dollars, and an
analysis of the impact of the reduced funding on the
development of military capabilities, affected contractors,
technical workforce, and scientific and technological
advancement.
Objective force indirect fires program (sec. 212)
The committee recommends a provision that would direct the
Secretary of Defense to ensure that, not later than October 1,
2003, the Objective Force indirect fires program be planned,
programmed, and budgeted as a distinct program element and that
the funds be administered consistent with the budgetary status
of the program as a distinct program element. The provision
would also prohibit the Army from planning, programming, and
budgeting for the Objective Force indirect fires program in one
program element in combination with the Armored Systems
Modernization program. The Secretary is required to certify in
writing to the congressional defense committees that the
Objective Force indirect fires program is being planned,
programmed, and budgeted as a distinct program element.
Section 216 of the Bob Stump National Defense Authorization
Act for Fiscal Year 2003 (Public Law 107-314), directed the
Secretary to carry out a program to provide the Army, no later
than fiscal year 2008, with a self-propelled Future Combat
Systems (FCS) non-line-of-sight (NLOS) cannon to equip the
Objective Force. Section 216(d) of P.L. 107-314 directed that
of the amount authorized to be appropriated for the Army for
research, development, test and evaluation, $368.5 million was
to be used only to develop and field the FCS NLOS cannon and a
resupply vehicle. The statement of managers accompanying the
Bob Stump National Defense Authorization Act for Fiscal Year
2003 (Public Law 107-314), authorized the $368.5 million in
PE63854A, Armored Systems Dem/Val: F47 FCS NLOS Cannon.
In the fiscal year 2004 budget request, the Army has
proposed moving the FCS NLOS cannon program line to the FCS
program line PE64645A, Armored Systems Modernization, and
proposed renaming the program ``Objective Force Indirect
Fires''. The committee believes that this realignment violates
the intent of the Congress: the FCS NLOS Cannon program should
be carried out as a discrete program. In addition, the
committee believes that the realignment jeopardizes the Army's
ability to develop and field this system by fiscal year 2008,
as required by law. The committee understands that the
Objective Force initial operational capability, including FCS,
will be delayed until fiscal year 2012. The committee is
concerned that aligning the FCS NLOS cannon with FCS will
significantly impact the FCS NLOS cannon program and delay
development and fielding of this important program. The
committee believes that the FCS NLOS cannon must be developed
with the visibility provided by a discrete program element.

Subtitle C--Ballistic Missile Defense

Fielding of ballistic missile defense capabilities (sec. 221)
The committee recommends a provision that would allow the
Department of Defense to use research, development, test and
evaluation funding to develop and field an initial set of
ballistic missile defense capabilities.
The committee notes that this provision would provide the
Missile Defense Agency (MDA) with the necessary flexibility to
manage the timely fielding of missile defense capabilities, and
that the authority provided therein is consistent with section
803 of the National Defense Authorization Act for Fiscal Year
2003 (Public Law 107-107). The committee notes that the MDA
Director testified before the Strategic Forces Subcommittee
that initial fielding of missile defenses can facilitate more
realistic testing, because ``* * * we must have assets and
infrastructure in the field if we are going to begin to test a
system under operationally realistic conditions.'' The
committee continues to believe that robust testing of ballistic
missile defense systems is essential.
Repeal of requirements for certain program elements for Missile Defense
Agency activities (sec. 222)
The committee recommends a provision that would repeal
section 223(a) of Title 10, which currently defines in law the
Missile Defense Agency (MDA) program elements.
The committee is aware of interest in the administration in
submitting an MDA budget request in fiscal year 2005 that
reflects a single program element. This would have the effect
of maximizing management flexibility by allowing the MDA
Director to redirect funds within the one program element
without any reprogramming restrictions (except for projects
designated as congressional interest items). The committee is
sympathetic with the need for management flexibility to achieve
the challenging goal of deploying effective missile defenses as
rapidly as possible, but is concerned that such an approach
would significantly limit the congressional insight into MDA
activities which is required for appropriate committee
oversight of MDA activities.
The committee notes that MDA is currently the only
organization within the Department of Defense for which program
elements are defined in law. The repeal of this section would
restore MDA to the same status as other DOD entities, and would
enhance management flexibility by allowing MDA to restructure
its program elements without requesting legislative relief.
However, the committee believes that submission of future
budget justification materials should be consistent with past
practice, and that any submission reflecting a single MDA
program element would be inappropriate.
Oversight of procurement of ballistic missile defense system elements
(sec. 223)
The committee recommends a provision that would require the
Secretary of Defense to submit certain information related to
ballistic missile defense system elements for which the Missile
Defense Agency is engaged in planning for production and
initial fielding and an estimate of funding necessary for
procurement of BMD system elements in the future-years defense
program.
Renewal of authority to assist local communities impacted by ballistic
missile defense system test bed (sec. 224)
The committee recommends a provision that would renew for
three years the authority of the Missile Defense Agency to use
research, development, test, and evaluation funds for
assistance to communities significantly impacted by the
expanded ballistic missile defense test bed. The provision
would also require the Secretary of Defense to submit a
description of the community assistance projects to be
supported in a given fiscal year along with an estimate of the
total cost of each project.

Subtitle D--Other Matters

Global Research Watch Program in the Office of the Director of Defense
Research and Engineering (sec. 231)
The committee recommends a provision that would establish a
Global Research Watch program and increase the budget request
in PE 65798S by $1.0 million for this program. The goals of the
Global Research Watch program are consistent with initiatives
being undertaken by the Office of the Director of Defense
Research and Engineering, the military services, and the
intelligence community. The program is also consistent with the
October 2002 recommendations of the President's Council of
Advisors on Science and Technology (PCAST), which reported that
the government should ``* * * keep a closer watch on R&D
developments across the globe and provide a bi-yearly
assessment of the impact of those developments on our science
and technology.'' PCAST also noted that ``* * * the consequence
of this evaluation would be suggestions on the allocation of
funds and resources to fields that need bolstering or
reductions from areas that have been more adequately funded.''
The committee believes that this program could provide
important information to assist the Department in making
research investment decisions.
The committee directs the Director of Defense Research and
Engineering to establish this program in coordination with
existing international cooperative activities of the military
services, defense agencies, and intelligence community. The
committee notes and commends the excellent work done by the
various services' overseas research offices and recommends that
this program link the services' overseas offices, scientific
reports in order to provide information to the Department of
Defense as a whole. The committee notes that the Defense Threat
Reduction Agency's Militarily Critical Technologies List may
provide a model for the establishment of this program, but
intends this program to be focused on the promotion of
international cooperation, scientific benchmarking, and
technical analyses of global capabilities, and not the
development of export controls or supporting technology
security activities.
Defense Advanced Research Projects Agency Biennial Strategic Plan (sec.
232)
The committee recommends a provision that would direct the
Defense Advanced Research Projects Agency (DARPA) to strengthen
its strategic planning process and prepare a biennial strategic
plan to accompany the budget request submitted to the
congressional defense committees in alternating fiscal years,
beginning in fiscal year 2006. The strategic plan shall include
an identification of long-term goals, emerging investment
opportunities and an assessment of the current research
portfolio to meet these goals. The plan shall provide an
assessment of technology transition to other defense entities
and the agency's role in supporting service missions. In
addition, the plan shall include a review of the personnel
authorities and processes available to DARPA and an assessment
of the utilization of these authorities.
The committee directs the Secretary of Defense to appoint a
senior review panel to assist in the formulation, review, and
approval of the strategic plan. This panel shall be chaired by
the Director of Defense, Research and Engineering and shall
include six additional senior officials comprised of an equal
mix of government and non-governmental representatives. Each
panel member shall serve two-year terms, with a rotation of
one-third of the panel every two years. The government
representatives shall be senior military officials appointed
from the services and at least equal in rank to the Director of
DARPA. The non-governmental officials shall be senior
representatives from academia, industry, or other non-
governmental organizations. The review panel shall not
interfere with the management of DARPA programs, which remains
the sole responsibility of the Director of DARPA.
The committee notes that the contributions of DARPA to the
national security of the United States are significant.
Throughout its history, DARPA has remained true to its original
mission: to maintain the technological superiority of the U.S.
Military and prevent technological surprise by sponsoring
revolutionary, high-payoff research that bridges the gap
between fundamental discoveries and military use.
The committee commends DARPA on the submission of its
inaugural strategic plan. This plan was recommended in a 1999
Defense Science Board report and directed by the Senate report
accompanying S. 2514 (S. Rept. 107-151). The DARPA strategic
plan identified eight important strategic thrusts that clearly
reflect the DARPA mission. According to the strategic plan, the
thrust areas were formulated by outreach to senior military and
government officials. While such outreach is extremely critical
for receiving invaluable input and sharing information about
the current research portfolio of DARPA, the committee is
concerned that the process of arriving at the long-term
strategic plan is still not the result of in-depth planning and
review.

Enhancement of authority of Secretary of Defense to support science,
mathematics, engineering and technology education (sec. 233)

The committee recommends a provision that would enable the
Secretary of Defense to develop a more comprehensive and
attractive array of educational programs in science,
mathematics and engineering. The committee notes that
educational programs in technical fields serve to help train
the next generation of scientists, engineers, and technical
entrepreneurs, all of whom may contribute to the future
technological superiority of our military forces. The committee
also notes that science, mathematics, and engineering education
is vitally important for all future warfighters as the military
services embrace new technologies to drive transformation.

Department of Defense high-speed network-centric and bandwidth
expansion program (sec. 234)

The committee recommends a provision that would establish a
comprehensive research and development program for advanced
technologies to achieve high-bandwidth wireless communications
for the Department of Defense. The Department is currently in
the process of transformation to a network-centric force, where
the rapid delivery of large amounts of data throughout the
theater of operation will dramatically enhance warfighter
capability and situational awareness. A major aspect of this
transformation would be the ``last mile'' connectivity to the
warfighter and military assets in the battlespace, which can
only be achieved through high-bandwidth communication systems.
An essential element of this communication system would be
efficient utilization of bandwidth, in order to fully exploit
military assets, such as unmanned systems, satellite
communications, and sensors, and to disseminate critical
information throughout the battlefield.
The committee directs the Secretary of Defense to consider
a number of areas for this research and development program.
The first is spectrum access for wireless and mobile systems.
The Department should focus on the efficient use of spectrum,
in order to enhance technologies to improve the individual user
bandwidth and system level capacity. Additional research should
address compression technology, interference issues, resource
management, signal processing, traffic management, software
defined radios, fully adaptive antenna arrays, and spread
spectrum systems. The second area of research and development
is highly networked systems, to include the ability to develop
complex ad hoc network structures to provide for the
connectivity to battlefield assets, and the development of grid
computing and spectrum usage monitoring systems. Another
important research area is end user devices, such as efficient
receivers and transmitter devices, antenna technologies,
advanced digital power management techniques, and signal
processing. Finally, the program should include research on
applications, including robust security, encryption, and
privacy applications, as well as improved human interfaces.
In carrying out the research program, the Department shall
focus on joint systems acquisition and deployment among the
various services and agencies, to coordinate the research and
development areas listed above. Joint experimentation will be
crucial in testing systems and ensuring maximum bandwidth
utilization across the military services. The provision
requires the Department to work in close coordination with
civilian research and development efforts to provide for the
enhancement of military research and development activities on
such communications. This should include identification of the
most promising technologies, as well as the funding for joint
experimentation activities on such technologies.
The provision would require that a report be submitted with
the fiscal year 2005 budget request which describes the
research and development activities carried out under the
program, including current and proposed funding levels for each
research area.

Additional Matters of Interest

Army

Fundamental research for the Army Objective Force

The budget request included $128.8 million in PE 61102A for
basic research leading to new concepts and technologies for the
Army Objective Force. The committee recommends an increase of
$6.0 million in PE 61102A for basic research in support of the
Army Objective Force: $2.0 million for advanced research in
unique low temperature performance, energy and environmental
challenges facing military ground vehicles and power systems;
and $4.0 million for predictive modeling and information
analysis of desert terrain in support of military operations.

Infrastructure protection research

The budget request included $84.8 million in PE 61104A for
University and Industry Research Centers. The committee
recommends an increase of $4.0 million in PE 61104A for basic
research on infrastructure protection of military structures
and installations. The committee notes that this research has
significantly accelerated the reconstruction efforts for
recently damaged military facilities and supports the
continuation of these research efforts.

Ferroelectric nanomaterials fabrication

The budget request included $84.8 million in PE 61104A for
university and industry research centers. The committee
recommends an increase of $1.0 million in PE 61104A for
research on novel ferroelectric nanomaterials fabrication
methods.

Applied materials research

The budget request included $15.2 million in PE 62105A for
applied research in materials technology. The committee
recommends an increase of $6.0 million in PE 62105A for
materials research that would contribute to the development of
the Objective Force: $3.0 million for advanced materials
processing research in polymer composites, metals, ceramics and
superalloys; and $3.0 million for the development of new
multifunctional composite materials and new simulation tools
for use in Future Combat Systems.

Army missile research

The budget request included $43.3 million in PE 62303A for
applied research in missile technology. The committee
recommends an increase of $17.0 million in PE 62303A for the
development of new technologies for future Army missile
systems: $6.5 million for technology development to improve
capabilities for defeating incoming rockets, mortars, and
artillery; $2.5 million for initial demonstrations of critical
component technologies for future missile systems; and $8.0
million for the development of advanced radar architectures and
efficient radar power and transmission technologies.

Advanced Concepts and Simulation Research

The budget request included $15.9 million in PE 62308A for
the development of advanced concepts and simulation research.
The committee recommends an increase of $7.5 million in PE
62308A for technology development for Future Combat Systems:
$5.0 million for advanced photonics detector research; and $2.5
million for development of highly immersive simulation
technologies.

Combat vehicle and automotive technology

The budget request included $80.9 million in PE 62601A for
research on combat vehicles and automotive technologies. The
committee recommends an increase of $12.0 million in PE 62601A
for this research: $3.0 million for advanced electric drives;
$1.5 million for continued research on corrosion-resistant
coatings; $2.0 million for rapid prototyping technologies; $3.0
million for advancing the introduction of affordable advanced
power technologies into military land warfare systems; and $2.5
million for autonomous behavior research for the unmanned
systems component of the Army Future Combat Systems. In a
recent report entitled ``Technology Development for Army
Unmanned Ground Vehicles,'' the National Academy of Sciences
noted that advances in human-robot interaction and the
development of natural user interfaces for controllers of
unmanned vehicles are essential for battlefield use of these
systems.

Single crystal tungsten alloy penetrators

The budget request includes $39.5 million in PE 62624A for
weapons and munitions technology. The committee recommends an
increase of $3.0 million for the research, development, and
testing of single crystal tungsten alloy penetrators for use as
a replacement for depleted uranium armor penetrators.

Flexible displays

The budget request included $33.7 million in PE 62705A for
research in electronics and electric devices. The committee
recommends an increase of $9.0 million in PE 62705A for
flexible display technology to support the Objective Force
Warrior program.

Countermine capabilities

The budget request included $21.3 million in PE 62712A for
applied research on countermine systems. The committee
recognizes the importance of new, innovative technologies for
the detection of landmines and encourages the Army to explore
all possible technological solutions for quicker, more accurate
detection. Therefore, the committee recommends an increase of
$9.5 million in PE 62712A for the further development of
countermine technologies: $2.5 million for chemical vapor
sensing technologies; $5.0 million for advanced technologies
for rapid and reliable countermine capabilities; and $2.0
million for the continued development of the synthetic aperture
radar mine detection systems.

Environmental response and security protection

The budget request included $18.3 million in PE 62720A for
Environmental Quality Technology. The committee recommends an
increase of $1.0 million to enhance ongoing research and
development of a user-friendly computer software system that
would allow military installation security planners and
managers to evaluate health risks and impacts associated with
exposure to hazardous substances as a result of terrorist
attacks.

Geosciences and atmospheric research

The budget request included $45.4 million in PE 62784A for
Military Engineering Technology. The committee recommends an
increase of $3.0 million in PE 62784A for research in the
environmental sciences, including climatology and weather
patterning, which are critical to the determination of agent
dispersion and other important phenomena.

Embedded optical communications

The budget request included $29.4 million in PE 62786A for
Warfighter Technology. The committee recommends an increase of
$4.8 million in PE 62786A for the development of communications
suites that will provide embedded optical communications for
the Objective Force Warrior.

Enhanced anthrax research

The budget request included $58.9 million in PE 62787A for
medical defense research. The committee recognizes the need to
improve the understanding of the genes and proteins produced by
the anthrax bacterium and the human immune response to anthrax.
The committee recommends an increase of $2.5 million in PE
62787A for the U.S. Army Medical Research Institute of
Infectious Diseases to conduct enhanced anthrax research.

Genomics research

The budget request included $35.2 million in PE 63002A for
Medical Advanced Technology. The committee recommends an
increase of $2.0 million in PE 63002A for genomics research to
address disease outbreaks resulting from chemical and
biological attacks.

Medical Advanced Technology

The budget request included $35.2 million in PE 63002A for
the development of advanced medical technologies. The committee
recommends an increase of $10.0 million in PE 63002A for
improved combat casualty care system: $5.0 million for the
development of electronic garments integrated with biosensors
for remote casualty assessment, triage and initial treatment;
and $5.0 million for research on an enhanced collagen based
stable hemostat.

Combat vehicle technology development and support

The budget request included $210.9 million in PE 63005A for
Combat Vehicle and Automotive Advanced Technology. The
committee recommends an increase of $35.0 million in PE 63005A
for research and development to support advanced combat vehicle
technologies: $17.5 million to accelerate state of the art
information and mobility technologies in the 21st Century Truck
Initiative; $2.0 million for research utilizing advanced
collaborative environments; $5.0 million for the development of
on-board hydrogen generation for fuel cells in military ground
vehicle systems; $1.5 million for the development of advanced
technologies to improve the safety, reliability and quality of
mechanically fastened, joined and bonded assemblies; $2.0
million for the development of tactical vehicle design tools;
$1.5 million for research on advanced thermal management
controls; and $5.5 million for research on advanced composite
materials for Future Combat Systems tactical and combat
vehicles.

Interactive training technologies

The budget request included $18.6 million in PE 63015A for
Next Generation Training and Simulation Systems. The committee
recommends an increase of $5.5 million in PE 63015A for the
continued development of interactive technologies to support
training and mission rehearsal exercises. The committee
commends the Army for its innovative approach to highly
immersive training and simulation through the creation of the
Institute for Creative Technologies.

Close-in Active Protection

The budget request included $111.3 million in PE63313A for
missile and rocket advanced technology, but no funding for the
Close-in Active Protection System (CIAPS). The committee
understands that fiscal year 2003 funding for the CIAPS
supports a demonstration consisting of rocket-propelled
grenades and anti-tank guided missiles that are flight tested
against a CIAPS prototype mounted on a testbed Light Armored
Vehicle. The CIAPS was developed to address the survivability
issue inherent in armored vehicles, including the Army's Future
Combat System (FCS). The committee believes that the FCS
platform would benefit from technologies derived from CIAPS.
The committee recommends an increase of $6.0 million for CIAPS,
for a total authorization of $117.3 million in PE63313A.

Warfighter/firefighter position, location, and tracking sensor

The budget request included $47.1 million in PE63710A for
the night vision advanced technology but no funding for the
warfighter/firefighter position, location, and tracking sensor,
which is a system that locates friendly units inside of
buildings. The committee notes that the Army conducted a
demonstration using fiscal year 2003 funds and believes that
this system has applicability in military operations in urban
terrain environments. The committee recommends an increase of
$3.0 million in PE63710A for the continued development of the
warfighter/firefighter position, location, and tracking sensor,
for a total authorization of $50.1 million.

Advanced laser electric power

The budget request included $51.5 million in PE 63305A for
Army missile defense integration, but no funding for advanced
laser elective power.
The committee is aware that the Army is developing high
energy lasers (HELs) with the potential to defeat short range
rockets and missiles, artillery shells, and a variety of aerial
platforms. HEL concepts under development include solid state
lasers. The development of compact, high efficiency fuel cells
will be important to provide a reliable power source for these
lasers.
The committee recommends an increase of $2.9 million in PE
63305A for research and development to improve the robustness
of proton exchange membrane and similar fuel cell systems.

Advanced radars and electro-optical sensors

The budget request included $51.5 million in PE 63305A for
Army missile defense integration, but no funding for advanced
radars and electro-optical sensors. The committee is aware of
ongoing research and development in optical communications,
optical imaging, ultrahigh bandwidth data transmission, digital
radar and optical overhead sensors that have the potential to
develop systems with high resolution, faster data analysis and
processing to users, and to reduce size and power consumption.
Therefore, the committee recommends an increase of $6.5
million in PE 63305A for advanced radars and electro-optical
sensors.

Integrated composite missile structures

The budget request contained $51.5 million in PE63305A,
Army Missile Defense Integration, but no funding for integrated
composite missile structures.
Current missile airframes are complex multi-tiered
structures consisting of a heatshield, a bondline, and a
substructure that can potentially limit missile performance
because of inherent limits in thermal protection, structural
integrity, and electromagnetic shielding properties. The
committee believes, based on prior research and development
efforts, that integrated composite missile structures have the
potential to reduce cost and weight while significantly
enhancing missile performance, including increased range and
better thermal performance. These prior efforts also suggest
that manufacturing such complex composite structures is
feasible. The improved performance offered by such structures
could be valuable for a variety of military applications,
including missile defense.
Therefore, the committee recommends an increase of $5.0
million in PE63305A to demonstrate the feasibility of
manufacturing integrated composite missile structures.

Low cost interceptor

The budget request included $51.5 million in PE 63305A for
Army missile defense integration, but no funding for the low
cost interceptor (LCI).
The LCI project is intended to develop a low cost missile
interceptor to provide a cost effective defense to low cost
airborne threats including cruise missiles and unmanned aerial
vehicles while maintaining substantial capabilities against
more sophisticated missile threats. The program has
successfully completed preliminary design review and is
scheduled to complete critical design in calendar year 2003.
The committee believes that a low-cost adjunct to existing air
and missile defenses would be a sound approach to addressing
the proliferation of low-cost threats.
Therefore, the committee recommends an increase of $6.0
million to PE 63305A for continued design, fabrication, and
testing of the low cost interceptor.

Mobile tactical high energy laser

The budget request included $51.5 million in PE 63305A for
Army missile defense integration, including $39.1 million for
the mobile tactical high energy laser (MTHEL).
The Army, in cooperation with the Israeli Ministry of
Defense, has developed a tactical high energy gas laser
intended to provide defense against short range rockets and
artillery. The Army tested this laser with considerable success
against both types of targets. This prototype laser, however,
is a large stationary facility. To meet Army and Israeli
military air and missile defense needs, a smaller, mobile
directed energy system is needed. To that end, the Army has
requested funding for a joint U.S.-Israeli development program.
The committee notes that this effort has considerable merit as
a pathfinder for the Army's objective of developing a solid
state THEL.
To help sustain the MTHEL effort, the committee recommends
an increase of $7.0 million in PE 63305A.

Radar power technology

The budget request included $51.5 million in PE 63305A for
Army missile defense integration, but no funding for radar
power technology.
The committee believes that wide bandgap electronics for
radars have the potential to significantly increase system
performance, reduce size and weight, and reduce logistics
requirements. Prior year funding for silicon carbide wide
bandgap electronics have supported research, test, experiment
and demonstration of enhanced radar transmit/receive modules
and amplifiers, antennas, and other radar component technology.
The committee understands that additional funds could be used
to support insertion and test of these technologies in current
Army systems, as well as those under development.
Therefore, the committee recommends an increase of $5.0
million in PE 63305A for radar power technology.

Air and missile defense architecture analysis

The budget request included $80.0 million in PE 63327A for
air and missile defense systems engineering. The committee
recommends an increase of $3.0 million for air and missile
defense architecture analysis.

Managing Army Technologies for Environmental Enhancement Program

The budget request included $11.5 million in PR 63779A for
environmental quality technology. The committee recommends an
increase of $4.5 million to complete the development and
validation of the Managing Army Technologies for Environmental
Enhancement (MANATEE) program, a facility-wide integrated
environmental monitoring, management, and control system for
the Radford Army Ammunition Plant. The purpose of MANATEE is to
manage facility activities to prevent hazardous waste spills
and other environmental compliance problems.

Manganese Health Research Project

The budget request included $11.5 million in PE 63779A for
environmental quality technology. The committee recommends an
increase of $2.0 million to initiate a Manganese Health
Research Project to determine the health effects of manganese
and to develop proper worker safeguards. The military
departments are significant customers of manganese. Manganese
is a component of coated welding rods and various steel alloys.
As a result, there can be exposure to manganese during welding
or steelmaking and through the handling of batteries or
petroleum products in which manganese is used as an additive.
Although much is known about the toxicity of manganese, it
would be useful to have additional information on human
exposure assessments and identification of mechanisms for
determining disposition and damage in the human body.

Logistics and engineer equipment

The budget request included $12.0 million in PE63804A for
logistics and engineer equipment advanced development. This
program supports the advanced component development and
prototypes of new and improved technologies for combat support
and combat service support equipment essential to sustaining
combat operations.
Of the $12.0 million for logistics and engineer equipment
advanced development, $3.8 million was requested for marine-
orientated logistics equipment advanced development in support
of the Army's logistics-over-the-shore (LOTS) mission. The
committee understands that the Theater Support Vessel (TSV) is
the primary equipment funded in this program and that the TSV
is the Army's replacement for the logistics support vessel. The
committee notes that the Army and the Navy have cooperatively
leased a commercial fast ferry for development and testing. The
committee believes that both the Army and Navy will benefit
from the prototype, which is built on a composite hull design,
currently under study by the Army.
Of the $12.0 million for logistics and engineer equipment
advanced development, no funding was requested for the Mobile
Parts Hospital (MPH). The MPH is a self-contained, self-
sustaining mobile mini-manufacturing center that can produce
spare parts near the point of need. The committee notes that
the Army used previous year congressionally-directed funding
increases to design and demonstrate an off-site capability to
fabricate parts on demand. The committee believes that advanced
development will enable the rapid repair and return to service
of disabled equipment, and address the military priority of
weapon system readiness.
The committee recommends an increase of $13.5 million for
logistics and engineer equipment of which $7.5 million is for
the continued development of the TSV and $6.0 million for the
advanced development of the MPH, for a total authorization of
$25.5 million in PE63804A for logistics and engineer equipment.

Automated technologies for biodefense

The budget request included $11.0 million in PE 63807A for
advanced development of medical systems. The committee
recommends an increase of $5.0 million in PE 63807A for
research leading to automated and fully networked devices for
detection of biological agents.

Tactical unmanned ground vehicle

The budget request included no funding in PE64641 for the
development of the tactical unmanned ground vehicle (TUGV)
program. The TUGV program includes a family of products
including the Man-Portable Robotic System (MPRS), the Tactical
Unmanned Vehicle-Medium (TUV-M), and Viking, a large flail
system mounted on a bulldozer designed for tactical employment
as a mine clearing system. The committee understands that
fiscal year 2002 and 2003 funding demonstrated the Viking mine
clearing capability but that the system is too wide and heavy
to be air delivered via C-130 aircraft. The committee believes
that this transformational capability should be accelerated to
develop a TUGV which is C-130 transportable. The committee
recommends an increase of $2.8 million in PE64641 for the
tactical unmanned ground vehicle, for a total authorization of
$2.8 million.

Advanced Precision Kill Weapon System

The budget request included $35.1 million in PE64802A for
the Advanced Precision Kill Weapon System (APKWS). The APKWS is
a family of 2.75-inch precision rockets that will be achieved
through a series of block upgrades to the existing HYDRA-70
rocket system. The committee understands that the APKWS Block I
program will enter system development and demonstration in
fiscal year 2003 to develop, test, and qualify a laser guided
2.75-inch munition and complete a limited-user test in fiscal
year 2005. However, future planned enhancements including the
development and qualification of an improved warhead and fuze,
are not planned until fiscal year 2006-2007. The committee
believes that the Army would benefit from an acceleration of
the development of these safety enhancements. The committee
recommends an increase of $20.0 million for the development of
the APKWS, for a total authorization of $55.1 million in
PE64802A.

Viper strike munition

The budget request included no funding in PE64767A for the
development of the Viper strike munition. Viper strike
munitions, using a semi-active laser seeker to find its
designated targets, provide the Army with an armed, unmanned
aerial vehicle (UAV) with pinpoint accuracy against an
unlimited target set operating with man-in-the-loop control.
The committee understands that the Army is developing Viper
munitions as a derivative of the brilliant anti-tank
submunition and, during a March 29 and 30, 2003, demonstration,
dispensed Viper munitions from a Hunter UAV which scored seven
direct hits in nine attempts against targets. The committee
believes that this transformational capability should be
accelerated for fielding to the combatant commanders as soon as
feasible. The committee recommends an increase of $7.5 million
for the continued development of Viper strike munitions, for a
total authorization of $7.5 million in PE64767A.

Army airborne command and control system

The budget request included $23.2 million in PE64818A for
the development of a integrated suite of radios, antennas and
computers aboard a UH-60L Blackhawk helicopter for airborne
command and control. The committee notes that the Army has
deployed two prototypes to the Iraq theater of operations even
though the airborne aviation command and control system (A2C2S)
has not undergone an initial operational test and evaluation
(IOT&E). The Army continues to conduct systems integration
activities while preparing for the IOT&E scheduled for the
fourth quarter of fiscal year 2004. The committee recommends an
increase of $3.9 million for systems integration for A2C2S, for
a total authorization of $27.1 million in PE64818A.

Combat vehicle improvement program

The budget request included $24.5 million in PE23735A for
the Abrams tank improvement program, but no funding for Abrams
track improvement. The committee understands that the tank
track is the top consumable operations and support cost driver
for the Abrams tank. The Army's overall modernization strategy
includes preserving the essential warfighting capabilities and
readiness of current Army units through very limited
modernization and recapitalization efforts. The Army expects to
retain these legacy force units for over 30 years. The
committee notes that the Army has not completed developmental
testing. The committee recommends an increase of $4.7 million
for the continued development of Abrams track, for a total
authorization of $29.2 million in PE23735A.

Full authority digital engine control

The budget request included $3.4 million in PE23752 for the
aircraft engine component improvement program, but no funding
for the continued development of full authority digital engine
control (FADEC). The FADEC would apply to all current and
future Army turbine engines, significantly reducing procurement
costs, improving engine capability, and increasing pilot safety
by reducing pilot workload. The committee recommends an
increase of $5.0 million for the development of the FADEC, for
a total authorization of $8.4 million in PE23752 for the
aircraft engine component improvement program.

Base protection and monitoring system

The budget request included no funding in research,
development, test and evaluation, Army, PE 33028A, for Security
and Intelligence Activities. As threats to military
installations become more complex, effective force protection
measures require improved situational awareness and enhanced
command and control capabilities.
The committee recommends an increase of $8.0 million in PE
33028A to establish a test-bed for a state-of-the-art base
protection and monitoring system operations center, preferably
at a teaching installation that can leverage its ability to
formulate training and doctrine for the optimal employment of
such capabilities, to demonstrate an integrated warning system
to protect critical infrastructure, enhance detection, and
improve physical security.

Document exploitation

The budget request included no funding for PE 33028A,
Security and Intelligence Activities. Portable, rugged document
exploitation equipment is currently not available to military
personnel operating in deployed, austere environments. The
technology exists to develop lightweight equipment that can
scan documents, quickly search for key words in native
languages and transmit potentially valuable documents back to
exploitation facilities quickly, thus providing battlefield
commanders with rapid exploitation of captured information.
Such equipment would have been indispensable in Afghanistan and
Iraq, and will prove invaluable in the global war on terrorism.
The committee recommends an increase of $2.0 million in PE
33028A to develop and begin fielding portable document
exploitation systems.

Navy

Naval basic research

The budget request included $368.5 million in PE 61153N for
basic research to support naval applications. The committee
recommends an increase of $9.5 million in PE 61153N for Defense
Research Sciences: $3.0 million for autonomous robotic
countermine technology in very shallow water and surf zones;
$5.0 million for research in advanced power and propulsion
technology systems; and $1.5 million for advanced research in
neutron detection technologies.

Free electron laser

The budget request included $114.1 million in PE 62114N for
Power Projection Applied Research. The committee recommends an
increase of $10.0 million in PE 62114N for acceleration of the
high power free electron laser (FEL) power scaling project. The
Navy has identified free electron lasers as a possible future
directed energy weapon for the defense of Navy assets. The
committee commends the Navy for the support of the FEL program
and expects the Office of Naval Research to fully fund the
ongoing program to reach the 100 kilowatt power level.

Microelectronics and materials development

The budget request included $114.1 million in PE 62114N for
Power Projection Applied Research. The committee recommends an
increase of $6.0 million in PE 62114N for research in gallium
nitride microelectronics to enhance radio frequency power
performance on Navy radar systems.

Transformational unmanned aerial vehicles capabilities

The budget request included $114.1 million in PE 62114N for
applied research in power projection. The committee recommends
an increase of $10.0 million in PE 62114N for the accelerated
development of transformational UAVs: $2.0 million for the
development of chemical weapon detection capabilities for
small, lightweight UAVs; and $8.0 million for the continued
development and testing of the Silver Fox unmanned aerial
vehicle (UAV). The committee commends the Navy for successfully
building and testing this innovative UAV in less than two
years. The committee notes that the Silver Fox UAV recently
flew missions in Operation Iraqi Freedom and will continue to
develop increased sensing and intelligence, surveillance and
reconnaissance capabilities.

Force Protection Applied Research

The budget request included $75.9 million in PE 62123N for
Force Protection Applied Research. The committee recommends an
increase of $18.3 million in PE 62123N for force protection
research: $5.0 million for advanced fusion processing to enable
the fusion of hyperspectral and panchromatic data; $4.0 million
for reliability-based structural analysis and design of fiber
reinforced polymers for ship structures; $4.8 million to
develop rapid prototype polymeric aircraft components; and $4.5
million for the development of a corrosion modeling software
tool to study discrete structural corrosion.

Advanced research for Naval systems

The budget request included $52.2 million in PE 62236N for
Warfighter Sustainment Applied Research. The committee
recommends an increase of $8.5 million in PE 62236N for applied
research in future warfighter systems: $1.0 million for the
integration of tether technology onto unmanned aerial vehicles
and the demonstration of surveillance and electrodynamic
propulsion capabilities; $6.0 million for the development and
demonstration of high performance low observable materials for
Navy stealth applications; and $1.5 million for the continued
development of low cost composite forms for aerospace
platforms.

Biowarfare detection and diagnosis

The budget request included $52.2 million in PE 62236N for
Warfighter Sustainment Applied Research. The committee
recommends an increase of $8.0 million in PE 62236N for
biowarfare detection and diagnosis technologies: $4.0 million
for the development of mass spectrometric-based instrumental
diagnostic tools for rapid diagnosis of infectious disease; and
$4.0 million for developing inexpensive, sensitive and reliable
detectors for biowarfare agents.

Coastal mapping systems

The budget request included $52.2 million in PE 62236N for
Warfighter Sustainment Applied Research. The committee
recommends an increase of $2.0 million in PE 62236N for the
development of coastal area mapping systems.

Electronics research for naval applications

The budget request included $44.0 million in PE 62271N for
applied research in radio frequency systems. The committee
recommends an increase of $5.0 million in PE 62271N for applied
research in materials and electronics to enable future naval
capabilities: $3.0 million for research on high brightness
electron sources for vacuum electronics applications; and $2.0
million for advanced semiconductor materials research for high
power amplifiers.

Ocean observing program

The budget request included $48.8 million in PE 62435N for
ocean warfighting environment applied research. The committee
recommends an increase of $6.0 million in PE 62435N to continue
efforts to develop an information system to collect, integrate
and disseminate ocean observations and predictions.

Low acoustic signature motors and propulsors

The budget request included $62.6 million in PE 62747N for
applied research to support the development of undersea warfare
technologies. The committee recommends an increase of $2.8
million in PE 62747N for research on high power battery
systems, motors, propulsors, and power converters for
torpedoes.

Office of Naval Research accounting adjustment

The budget request included $173.5 million in PE 63114N for
Power Projection Advanced Technology. The committee recommends
a transfer of $25.0 million into PE 63114N from PE 62114N. This
transfer reflects the correction of an accounting error by the
Office of Naval Research and does not reflect a reduction in
any program.

High temperature superconducting alternating current synchronous motor

The budget request included $55.8 million in PE 63123N for
various force protection advanced technology development
activities, but included no funding to continue development of
a high-temperature, superconducting (HTS), alternating current
(AC), synchronous motor. The Navy is working on the electric
warship program to address electrical and auxiliary system
component technology to provide improvements in system energy
and power density, system operating efficiency, and ability to
recover from casualties.
The Navy is shifting to integrated electric propulsion
approaches for the fleet, most notably in the DD(X) destroyer
program. HTS AC motors and generators hold the potential to be
much smaller, quieter, and less expensive than alternative
systems.
The committee believes that the Navy should continue
development efforts on a large scale HTS motor to determine
whether such a motor could serve as a central component of a
propulsion system. Therefore, the committee recommends an
additional $10.0 million in PE 63123N to build and begin
testing a DD(X)-size HTS AC synchronous motor.

Laser welding for shipbuilding

The budget request included $55.8 million in PE 63123N for
force protection advanced technology, but did not include
funding for the laser welding and cutting program. Transition
and qualification of laser welding and cutting processes would
significantly reduce ship construction costs while affording
ship designers greater flexibility, and ultimately improve ship
performance. The committee recommends an increase of $4.1
million in PE 63123N for the development and qualification of
the laser welding process for naval ship construction.

Project M

The budget request included $55.8 million in PE 63123N for
force protection advanced technology, but included no funding
for Project M, which would develop active control seats for use
in the Mark V patrol boat. The current seats in the Mark V
patrol boat offer little protection to individuals at high
speed under operational conditions. As a result, injuries are
common. A prototype, active controlled seat has been
demonstrated in the laboratory. The committee recommends an
increase of $4.7 million in PE 63123N for Project M.

Common picture technologies

The budget request included $69.2 million in PE 63235N for
Common Picture Advanced Technology. The committee recommends an
increase of $10.0 million in PE 63235N for common picture
research and development: $4.0 million for development and
certification of undersea situational awareness capabilities;
and $6.0 million for the development of a shipboard automated
reconstruction capability.

Warfighter sustainment advanced technology

The budget request included $54.8 million in PE 63236N for
warfighter sustainment advanced technology. This included
funding for various efforts to support expeditionary logistics,
but included no funding for automated handling of cargo or
containers, or for the emerging/critical interconnection
technologies (E/CIT) program.
The expeditionary logistics investment is intended to
develop and improve transformational Naval surface
distribution/replenishment techniques, and to improve the
situational awareness of readiness and operating logistics
status. The committee believes that the Navy could employ
software products that use decision support planning tools to
process timely, accurate information on tactical equipment and
weapons system on the battlefield. Sensors installed on
equipment could relay diagnostic data that could be used to
determine logistics and supply priorities, while achieving a
much smaller support force footprint ashore. The Navy needs to
continue software development to improve expeditionary
logistics management. Therefore, the committee recommends an
increase of $3.0 in PE 63236N million to continue this
development effort.
An automated cargo and container handling system would
provide the Navy with a capability of offloading supply ships
in support of sea-based operations. The concept would use
multi-point stabilization to overcome the dangerous pendulum
effect that can plague existing shipboard cranes. The committee
recommends an increase of $6.5 in PE 63236N million to initiate
the development, fabrication, and testing of an automated
container and cargo handling system which would be capable of
operating in sea states up to sea state three.
The E/CIT program would strengthen the ability of both the
Department of Defense and industry to support the military's
unique printed circuit board requirements through an integrated
program of research, education, and industrial extension. The
committee recommends an increase of $3.0 million for the E/CIT
program, for a total authorization of $67.3 in PE 63236N.

Precision surveillance and targeting radar

The budget request included $45.5 million in PE 63271N for
radio frequency (RF) systems advanced technology, including
$9.2 million for various developments within the surface and
aerospace surveillance advanced RF systems project. Under the
time-critical strike (TCS) activities within this project, the
Navy completed an initial design of a pod-mounted precision
surveillance and targeting (PS&T) radar system based on AN/APY-
6 technology for in-flight captive carry by Navy F/A-18
aircraft.
Within the past year, the Navy has decided to redirect the
PS&T development effort. Due to changed program requirements,
the Navy intends to reconfigure the design of the PS&T radar
from the previous pod-mounted configuration to an internal
carriage configuration for time-critical targeting
demonstrations on board the Navy's Global Hawk Broad Area
Maritime Surveillance (BAMS) unmanned aerial vehicle (UAV).
The intent of this effort would be to demonstrate a low
cost, lightweight, high resolution synthetic aperture/ground
moving target indicator radar for BAMS and other platforms. The
committee believes that this is a high priority effort for
finding and engaging difficult targets on the battlefield.
Therefore, the committee recommends an increase of $10.0
million in PE 63271N to accelerate development and
demonstration of the PS&T system.

Marine Corps Warfighting Laboratory

The budget request included $56.4 million for PE 63640M for
Marine Corps Advanced Technology Demonstration. The committee
recommends an increase of $12.9 million in PE 63640M for
technology development and transition efforts at the Marine
Corps Warfighting Laboratory (MCWL): $6.0 million for
development of advanced water purification technology; $1.5
million for the Center for Emerging Threats and Opportunities
(CETO); $3.5 million to accelerate the Dragon Eye unmanned
aerial vehicle, a low-cost, light-weight, expendable platform
which recently performed in the Iraqi theater, giving the
Marines vital over-the-hill situational awareness; and $1.9
million for the enhancement of the Sea Viking 2004
expeditionary tactical communications system.
The committee commends the Marine Corps Warfighting
Laboratory for its technology development efforts and quick
reaction capabilities. The MCWL, through the wargaming and
concept of operations analysis capabilities of CETO, has
provided quick situational analysis to the senior warfighting
commanders, thereby preventing operational and tactical
surprise, and has played a critical role in the Global War on
Terrorism.

Modeling and simulation for homeland defense

The budget request includes $13.7 million PE 63757N for
Joint Warfighting Experiments to conduct simulations and
sustain support structures to be used by the Joint Warfighting
Center, U.S. Joint Forces Command (JFCOM) to develop new joint
warfighting concepts and to support efforts to develop the
doctrine and concepts associated with Department of Defense
(DOD) support to homeland security. The budget request did not
include any funding specifically for the purpose of developing
new, alternative modeling and simulations capabilities to
support the homeland defense responsibilities of the DOD and
the armed forces.
The committee urges the Commander, JFCOM, to aggressively
seek alternative modeling and simulation concepts and proposals
that have the potential for adaptation to the unique needs of
the DOD, with their overarching domestic and international
defense responsibilities. Investment must continue in all
aspects of national security simulation to ensure that all of
the components necessary to represent all aspects of the
Department's national security responsibilities are being
developed to ultimately interact with an overall family of
simulations.
The committee recommends an increase of $15.0 million for
research, development, test and evaluation (RDT&E), Navy, PE
63757N, to be used only by the Commander, JFCOM, to develop and
demonstrate models of U.S. urban areas, simulations on the
employment of weapons of mass destruction in these urban areas,
simulations on the capabilities of the Department's civil
support capabilities, interactive capacity for live responses
for local, state and national civil authorities, and the means
to ultimately become part of a larger full-spectrum national
security modeling and simulation architecture. Having such
components and alternatives to existing simulation
architectures will greatly assist the Commander, JFCOM, in
evaluating available alternatives and developing the right
integrating architecture to maximize their training and
readiness potential.

Mine warfare technology

The budget request included $31.7 million in PE 63782N to
support research in mine and expeditionary warfare technology.
The committee recommends an increase of $7.5 million in PE
63782N for this account: $3.5 million for augmented reality
technologies which enhance maritime navigation, operational
security and harbor defense; and $4.0 million for near global
hyperspectral mapping of littoral regions.

Rotorcraft external airbag protection system

The budget request included $6.8 million in PE 63216N for
aviation survivability developments, but included no funding
for the continued evaluation of the rotorcraft external airbag
protection system (REAPS). As noted in the Senate Report
accompanying S.2514 (S. Rept. 107-151), the committee considers
REAPS a viable option for making helicopter crashes
significantly more survivable. The committee recommends an
increase of $8.0 million in PE 63216N for the continued
development of REAPS.

Improved shipboard combat information center

The budget request included $3.4 million in PE 63382N for
advanced combat system technology, but included no funding for
an improved shipboard combat information center (CIC). A
prototype of this system would demonstrate the capability of
emerging technologies to further automate and improve the
warfighting operations of a surface ship combatant. The
improved CIC would integrate a number of technologies that are
reconfigurable depending on mission requirements, with the
objective of enhancing combat capabilities while reducing the
required number of CIC personnel. The committee recommends an
increase of $4.0 million in PE 63382N for developing an
improved CIC.

Advanced battle station/decision support system

The budget request included $145.0 million in PE 63512N for
carrier systems development, but included no funding for the
advanced battle station/decision support system (ABS/DSS). The
ABS/DSS is a suite of information management tools that is
intended to provide the war fighter with a consolidated
situational awareness picture of the battle space. ABS/DSS
automatically prioritizes and reconfigures the battle picture
in real time, and displays information in a manner more easily
understood and absorbed by combat watch standers.
The Navy believes that the ABS/DSS suite will provide a
low-risk decision support capability that has great potential
for multiple Navy platforms, and possible application for other
services. The Navy also believes that benefits could include
reductions in personnel requirements and total operating costs
while improving situational awareness.
The Navy needs to continue software development of ABS/DSS,
including software certification within the defense information
infrastructure/common operating environment (DII/COE) context,
before the suite can be considered for deployment in the fleet.
Therefore, the committee recommends an increase of $7.0 million
in PE 63512N for expanding production efforts on the ABS/DSS
software and for conducting required DII/COE certification.

Carrier system development

The budget request included $145.0 million in PE 63512N for
carrier system development, but included no funding for the
Aviation Ship Integration Center. The aviation ship development
activity is a Navy-unique program to address all technology
areas associated with Navy and Marine Corps aircraft operations
aboard ships. The Aviation Ship Integration Center is intended
to avoid future costs by examining engineering and integration
design changes that can be used on various ships and aircraft.
The committee recommends an increase of $14.0 million in PE
63512N for the Aviation Ship Integration Center.

Surface vessel torpedo tubes

The budget request included no funding in PE 63513N for
developing improved torpedo tube technology for surface ships.
The Navy has been managing a Small Business Innovative Research
(SBIR) project to develop a modular, gas generator launch
canister. This project is employing commercial, off-the-shelf
(COTS), automobile-style air bags for launch energy. Employing
COTS components, with such long shelf life, could greatly
reduce the maintenance burden of keeping the current air flask-
based torpedo tubes in operational condition. Therefore, the
committee recommends an increase of $3.0 million in PE 63513N
to continue development of an improved launch capability for
surface vessel torpedo tubes.

Anti-submarine warfare risk reduction

The budget request included $2.5 million in PE 63553N for
anti-submarine warfare (ASW) advanced development, which
provides demonstration and validation of technology for
potential surface sonar and combat systems applications.
Efforts in this area focus on shallow water and littoral area
undersea warfare (USW) and on demonstration and validation of
USW concepts and technology. The committee believes that an
opportunity exists, with the Navy's consolidation of multiple
ASW system software baselines into a common baseline on
submarines and surface combatants, to apply modern technology
in fusing data from a variety of sources. These sources could
include acoustic, electronic, radar, and network inputs. The
committee believes that risk reduction activities in this area
could significantly enhance the effectiveness of the littoral
combat ship. The committee recommends an increase of $2.5
million in PE 63553N for ASW risk reduction.

Reducing maintenance by improving brushes on electric motors

The budget request included $1.3 million in PE 63561N to
continue a program to conduct full scale, land-based testing of
advanced metal fiber brushes, and to continue the testing on a
submarine of a complete set of advanced metal fiber brushes in
a ship service motor generator set. Metal fiber brushes have
demonstrated, through a Navy-sponsored, phase II Small Business
Innovative Research (SBIR) program, the capability to
significantly enhance performance and reduce maintenance costs
on Navy motors and generators. The systematic approach for
certifying the technology requires certification for varying
motor and generator capacities before the brushes can be
introduced more widely in the submarine fleet. Therefore, the
committee recommends an increase of $8.7 million in PE 63561N
for the following purposes: (1) to test and certify advanced
metal fiber brush technology to reduce maintenance and improve
reliability of motors and generators; and, (2) to accelerate
transition of these brushes to the operating fleet.

Rotary electromagnetic launcher

The budget request included $52.7 million in PE 63561N for
advanced submarine systems development, but included no funding
to develop the rotary electromagnetic launcher (REML) system.
Current submarine launchers, which are based on using
energy from high pressure air sources, are configured to
provide maximum launch effort for heavyweight torpedoes. These
launchers are not well suited to conduct softer launches of
mines or unmanned undersea vehicles (UUVs). The Navy had been
considering a plan to replace the current launcher system on
the Virginia-class submarine as early as fiscal year 2007.
Under the current budget, the Navy will now only be ready to
conduct an integrated system demonstration in fiscal year 2009
or 2010. The committee believes that it is difficult to
understand the relative priority that the Navy has afforded to
improving payload launch systems, particularly in view of the
major initiatives the Navy intends to pursue in UUVs.
The committee believes that additional resources are needed
in fiscal year 2004 to complete the demonstration that was
started in fiscal year 2003, and to accelerate availability of
REML technology for an integrated system demonstration sooner
than the current Navy plan. Therefore, the committee recommends
an increase of $3.0 million in PE 63561N for REML development.

Submarine payloads and sensors

The budget request included $52.7 million in PE 63561N for
advanced submarine systems development, but included no funding
to develop advanced payload and sensor systems. The advanced
submarine systems development program is responsible for
incorporating the recommendations of the Defense Science Board
that the Navy develop new capabilities for our submarine
forces. It is also the mechanism for implementing congressional
intent that the Navy continue a robust technology insertion
program for Virginia-class submarines during production.
The Navy has funded two industry consortia to conduct five
demonstrations in the component advanced development (CAD)
phase of this effort. The demonstrations were started late in
fiscal year 2001 and are scheduled to be complete by fiscal
year 2004. These efforts include: a flexible payload module
(FPM); a stealthy affordable capsule system (SACS); processing;
a small, unmanned aerial vehicle (SUAV); and, broaching
universal buoyant launcher (BUBL).
Under current Navy plans, the consortia will continue an
industry technology incubator effort aimed at defining new
start demonstrations to be selected in fiscal year 2003 with
$16.5 million available in fiscal year 2003 funding. Under the
Navy's plan, with no Navy funding available in fiscal year
2004, no new starts will be possible, and existing efforts may
be impacted.
The committee believes that the Navy should continue these
efforts to support transforming current submarine capabilities.
Therefore, the committee recommends an increase of $25.0
million in PE 63561N to continue advanced payload and sensor
development.

Littoral Combat Ship

The budget request included $158.1 million in PE 63581N for
the development of the Littoral Combat Ship (LCS). The LCS is
intended to be a fast, agile, and stealthy surface combatant
capable of operating in support of anti-access missions against
asymmetric threats in the littorals. The primary, focused
missions for LCS include prosecution of small boats, mine
countermeasures, and littoral anti-submarine warfare. The
secondary missions for LCS include intelligence, surveillance,
reconnaissance, homeland defense, support for special
operations forces, and logistic support. The basic LCS seaframe
will be equipped with core capabilities, and focused mission
modules will enable LCS to perform one of its focused missions.
The concept of operations envisions the LCS as operating
independently, in groups, or in support of a larger force.
After receiving six design concept studies in fiscal year
2003, the Navy released a request for proposals to industry.
The fiscal year 2004 budget request, if authorized and
appropriated, would allow the Navy to select three of the
industry proposals to advance the seaframe design in fiscal
year 2004, with a plan to start building the first ship with
research, development, test and evaluation funds in fiscal year
2005.
The committee is concerned that the analysis underpinning
the LCS requirement is not sufficient. Section 218 of the
National Defense Authorization Act for Fiscal Year 2003 (Public
Law 107-314) required the Secretary of the Navy to submit a
report on LCS which addressed in detail the analytical process
to examine alternatives, and establish relative priorities to
meet valid requirements. The committee believes that the
report, which was delivered pursuant to last year's
requirement, did not provide the necessary analysis.
The Navy believes that this ship would offer a way to
achieve a fleet size of 375 ships, a number that the Chief of
Naval Operations has said is required to support the Sea Power
21 vision. The committee is concerned that the larger surface
combatant force will decline to a number even below that which
is projected in the near term as a result of the acquisition of
LCS. While the cost of the LCS seaframe has been estimated, and
is included in the preliminary design interim requirements
document, there is no firm estimate of what LCS will cost with
its focused mission modules. Overall Navy affordability
constraints may well lead to a fleet with the number of Navy
ships close to the number now in commission, only of lesser
capability.
The committee directs the Comptroller General to submit a
report to the committee by March 1, 2005, that: (1) details the
Navy's progress in further defining the concept of operations
for the LCS; (2) assesses the analytical basis for the
establishment of LCS requirements; (3) assesses the technical
maturity of the focused mission modules for flight zero ships,
and, to the extent possible, for flight one ships; and, (4)
estimates the recurring LCS weapons system cost, to include
seaframe and focused mission modules, at a production rate
similar to that in the Navy plan.
The committee believes that the Navy will have to conduct
significant experimentation to determine the utility of the LCS
concept. The focused mission modules are required to enable
that experimentation, yet the Navy failed to fully fund focused
mission modules in the budget request. The committee believes
that before committing to production of more than a few ships,
the Navy should have determined, through analysis and
experimentation, that this ship will deliver the Navy's
expected capabilities. To accelerate this process, the
committee recommends an increase of $35.0 million in PE 63581N
for LCS modules.

Non-lethal weapons

The budget request included $19.7 million in PE63635M for
Marine Corps ground combat/supporting arms systems but no
funding for non-lethal weapons development. Non-lethal weapons
development includes weaponization of technology, reactive
nanoparticles (RNP) for facility clearing, and the urban
operations laboratory.
The weaponization of technology program explores the Marine
Corps' ability to neutralize facilities and the threats and
personnel associated with these facilities. The committee
understands that this program has the potential to reduce
collateral damage to personnel and property over current man-
power-intensive and destructive operations in urban
environments. The committee notes that the Commandant of the
Marine Corps identified a fiscal year 2004 unfunded requirement
of $3.4 million for weaponization of technology.
The RNP for facility clearing program establishes an urban
operations program that is focused on, but not limited to, the
clearing of facilities with nanoparticles and other non-lethal
weapon technologies. The committee understands that this
program is working extensively on mapping the capabilities of
nanoparticles and other technologies to the unique
considerations within an urban environment and will develop
strategic and implementation plans for recommendation to the
Marine Corps. The committee notes that the Commandant of the
Marine Corps identified a fiscal year 2004 unfunded requirement
of $3.6 million for RNP.
The urban operations laboratory provides the Marine Corps
with the assessment, analysis, and remediation capabilities to
ensure acceptable risk and collateral damage effects on the use
of lethal and nonlethal weapons within the urban environment.
The committee notes that the Commandant of the Marine Corps
identified a fiscal year 2004 unfunded requirement of $5.5
million for the continued operations and expansion of the urban
operations laboratory.
The committee recommends increases in PE63635M of $3.4
million for weaponization of technology, $3.6 million for RNP
for facility clearing, and $5.5 million for the urban
operations laboratory, for a total authorization of $32.2
million.

Distress signaling systems

The budget request included $18.2 million in PE 63713N for
ocean engineering technology development, but included no
funding for distress signaling systems. This program element
funds development efforts to overcome deficiencies that
constrain underwater operations in the areas of search,
location, rescue, recovery, salvage, construction, and
protection of offshore assets. The program also develops
medical technology, diver life support equipment, and the
vehicles, systems, tools, and procedures to permit manned
underwater operations.
The committee understands that survivors in the sea have a
much greater chance for rescue when they can improve their
visibility to rescuers. Some methods for this improved
visibility include streamers, dye markers, and infrared
markers. The committee recommends an increase of $3.5 million
in PE 63713N for the Navy to evaluate distress signaling
systems available on the commercial market.

Marine mammal monitoring and protection system

The budget request included $48.8 million in PE 63721N for
Ocean Warfighting Environment Applied Research. The committee
recommends an increase of $3.0 million for development and
transition of an active integrated marine mammal monitoring and
protection system.

Advanced wireless networks

The budget request included $31.4 million in PE 64707N for
space and electronic warfare architecture research and
development, but no funds for the Navy collaborative integrated
information technology initiative (NAVCIITI).
The committee is aware that past NAVCIITI research has
contributed to high pay-off networking and communications
technologies, including software-reconfigurable radios, smart
antennas, and ultra-wideband systems. The committee understands
that additional funds are required to continue development of
advanced wireless networks. Such wireless network technology
could support warfighters by providing robust voice and data
communications in hostile environments without a fixed local
infrastructure.
The committee recommends $36.4 million in PE 64707N, an
increase of $5.0 million for NAVCIITI to develop advanced
wireless networks.

Advanced cable design

The budget request included $66.8 million in PE 64212N for
other helicopter development, but included no funding for an
advanced cable design for the MH-60S helicopter, an effort
which began in fiscal year 2003. Present tow cable systems used
in mine and undersea warfare sensing and countermeasure devices
use steel-reinforced cables to meet the mechanical strength
requirements. These cables are extremely heavy when deployed.
Current technology would allow the use of synthetic fiber in a
polymer sheath to replace the current cables. This would
significantly reduce the weight and hydrodynamic drag,
increasing on-station time for the helicopter. The committee
recommends an increase of $1.0 million in PE 64212N to continue
the design and development of an advanced tow cable.

AV-8B aircraft engine development

The budget request included $10.5 million in PE 64214N for
development efforts for the AV-8B aircraft, including $2.3
million for the engine life monitoring program (ELMP).
Additional funds in the ELMP could improve the F402 engine's
safety, reliability, and increase the mean time between engine
removal from 275 hours to 800 hours. These additional funds are
noted in the Navy unfunded priority list. The committee
recommends an increase of $7.0 million in PE 64214N for the AV-
8B aircraft ELMP.

P-3 modernization program

The budget request included $7.3 million in PE 64221N for
modernization programs for the P-3 aircraft, primarily to fund
improved sensor integration and readiness improvements. The P-3
Anti-surface Warfare Improvement Program (AIP) was initiated in
1994 to improve the P-3's capability. The P-3 AIP phased
capability upgrade (PCU) program has allowed the aircraft to
systematically add capability to meet new and emerging
operational requirements. Some of the enhancements that could
be realized by the P-3 AIP-PCU include: (1) incorporation of an
integrated tactical picture; (2) link 16; (3) tactical common
data link; and, (4) electro-optic geo-location. The committee
recommends an increase of $12.3 million to fund integration,
first kit installation, and testing of the P-3 AIP-PCU.

Warfare support system

The budget request included $1.5 million in PE 64230N for
development of warfare support systems, but included no funding
for development of deployable autonomous distributed systems
(DADS) for mobile inshore undersea warfare (MIUW). The coastal
warfare units are the primary undersea surveillance resource
for the coastal warfare force. The MIUW units require leading
edge technology to combat mini-submarines, swimmer delivery
vehicles, and swimmer infiltration. Updating MIUW units with
DADS will provide these units with needed technology. The
committee recommends an increase of $3.0 million in PE 64230N
to develop DADS for incorporation into MIUW units.

Extended range active missile

The budget request included $76.9 million in PE 64366N for
standard missile improvements, including $34.2 million for the
development of the extended range active missile (ERAM). The
ERAM will provide capability against manned fixed and rotary
wing aircraft, unmanned aerial vehicles, and land attack and
anti-ship cruise missiles. ERAM will use the technology
developed in the seeker of the Advanced Medium Range Air-to-Air
Missile (AMRAAM) and combine it with the standard missile to
achieve required capabilities. Additional funding in fiscal
year 2004 could be used for wind tunnel testing, self-test and
reliability improvements, and production cost-reduction
efforts. The Navy identified additional funding for ERAM on its
unfunded priority list. The committee recommends an increase of
$46.0 million in PE 64366N to reduce risk and accelerate ERAM
initial operational capability.

Submarine antenna technology improvements

The budget request included $80.8 million in submarine
systems development, including $9.1 million for various
submarine integrated antenna systems developments.
In order to participate fully in the Navy's network centric
warfare efforts, ships must have higher data rate
communications than are currently available on submarines, and
the Navy must develop the capability to permit submarines to
communicate without restricting operations to slow speed at
periscope depth.
One near-term solution could involve using an expendable
two-way satellite communications buoy operating in the ultra
high frequency (UHF) portion of the electromagnetic spectrum.
An approach that would employ fiber optic links between the
submarine and a communications buoy could be compatible with
existing buoy launcher systems.
A longer-term approach would require extending
communications capability to other portions of the
electromagnetic spectrum. A tethered platform could provide
connectivity and could be used to achieve better situational
awareness by employing such sensor technologies as photonics,
electronic support measures, and acoustics. Such a tethered
platform could also take advantage of existing towed buoy
handling mechanisms already installed on submarines.
The committee recommends an increase of $5.0 million in PE
64503N to pursue these developments to provide higher data rate
communications, including: (1) $2.0 million to develop an
expendable two-way satellite communications buoy; and, (2) $3.0
million to develop a tethered communications and sensor
platform.

``Virginia''-class submarine design development

The budget request included $112.4 million in PE 64558N for
Virginia-class submarine design development. This includes the
technology, prototype components, and systems engineering
needed to design and construct the submarine and build its
command, control, communications, and intelligence system. The
budget request included no funding for information assurance.
Submarine combat systems are required to be interoperable with
joint forces and other battle group participants while
maintaining a high level of information security. The committee
recommends an increase of $8.2 million in PE 64558N for
submarine information assurance.
The budget request included no funding to develop the
multi-mission module concept for the Virginia-class submarine.
A payload modular force could bring new capabilities to the
fleet, while increasing payload capacity and flexibility. The
committee recommends an increase of $10.0 million in PE 64558N
for the development of the multi-mission module concept for the
Virginia-class submarine.
The budget request included no funding to develop a network
centric sustainment architecture for the Virginia-class
submarine. This architecture would enable system upgrades,
problem correction, training, and other information related
sustainment activities to be conducted by the crew while a
submarine is deployed and on-station. The committee recommends
an increase of $8.0 million in PE 63558N for the development of
a network centric sustainment architecture for the Virginia-
class submarine, for a total authorization of $138.6 million in
PE 64558N.

Submarine tactical warfare system

The budget request included $32.2 million in PE 64562N for
the submarine tactical warfare system. Submarine command and
control systems for earlier classes of submarines were
originally designed using a closed architecture concept that
severely limited the flexibility needed for adding new or
improved functional capabilities. Beginning with the Virginia-
class submarine, the command, control, communications, and
intelligence system incorporated an open system architecture to
facilitate the use of commercial-off-the-shelf hardware and
software in the subsystems that provide mission essential
functions. The Navy has implemented the submarine warfare
system (SWS) modernization effort to evolve the combat control
system of earlier classes of submarines into the tactical
control system (TCS) and the weapon control system (WCS). The
committee recommends an increase of $10.0 million for the TCS
and an increase of $10.0 million for the WCS to enable future
capability improvements for the SWS on all submarine classes, a
total authorization of $52.2 million in PE 64562N for the
submarine tactical warfare system.

Uninterruptible fuel cell

The budget request included no funding in PE 64710N for the
Navy energy program. The Navy is tri-service lead for the
implementation of renewable/alternative energy systems for the
Department of Defense.
Reliable electric power is important for providing
continuing operations at key operating facilities.
Microprocessor operations are particularly sensitive to short
interruptions. A potential way of dealing with the problem on a
facility-wide basis, rather than piecemeal, would be to supply
loads through uninterruptible substations that could respond
within a few milliseconds to outages.
The committee understands that such a substation with
appropriate response times could be feasible by developing
proton exchange membrane (PEM) fuel cell designs.
Therefore, the committee recommends an increase of $3.5
million in PE 64710N to demonstrate the technical and economic
viability of a set of PEM fuel cells and control unit in daily
operation of a reliable, uninterruptible distributed generator.

NULKA anti-ship missile decoy system development

The budget request included $35.5 million for ship self-
defense soft-kill systems development in PE 64757N, including
$2.3 million to develop various product improvements for the
NULKA system.
The Navy has identified a series of development activities
associated with the NULKA system that are required to
understand and deal with emerging threats:
(1) an improved payload that would provide radio
frequency coverage of more than one band of the
spectrum to deal with anti-ship missiles;
(2) an expanded anti-tampering program effort;
(3) an improved guidance and propulsion system to
allow more precise positioning of the decoy during
operations;
(4) an effort to design an infrared payload to enable
NULKA to deal with newer anti-ship missile homing
technologies; and
(5) design agent support and development of a systems
integration facility.
The committee recommends an increase of $7.0 million in PE
64757N for the NULKA development program to continue these
efforts.

Radar absorbing tiles for ship self defense

The budget request included $35.5 million in PE 64757N for
ship self defense, but included no funding for the development
or testing of radar absorbing tiles to reduce surface ship
radar signatures. The committee recommends an increase of $4.0
million in PE 64757N to develop and test advanced radar
absorbing tiles for Navy ships.

Joint Strike Fighter

The budget request included $2.2 billion in PE 64800N and
$2.2 billion in PE 64800F for the Joint Strike Fighter (JSF)
development program. The total request for the JSF program
included $100.0 million to continue development of the second
source, interchangeable engine for the JSF, designated as the
F136 engine. The fiscal year 2003 F136 program was funded at
$174.7 million.
The committee believes that the interchangeable engine
should be made available for competitive procurement as early
as possible. The result of a reduction to this program would be
to delay the interchangeable engine by at least two years.
Therefore, the committee recommends an increase of $56.0
million in PE 64800N to continue the F136 interchangeable
engine development on its original schedule. The committee
believes that the Department of Defense should make the
financial adjustments to the Future Years Defense Program that
are necessary to restore the original interchangeable engine
schedule.

Wireless sensor technology

The budget request included $30.6 million in PE 65013N for
Information Technology Development. The committee recommends an
increase of $2.0 million for the development of an open
architecture wireless sensor network to reduce naval asset
life-cycle costs.

Fire retardant fibers

The budget request included $4.4 million in PE 65152N for
Naval studies and analysis. The committee recommends an
increase of $1.0 million in PE 65152N for the assessment of
upgraded fire retardant fibers that provide increased flame
protection and durability.

Warfare analysis and education

The budget request included $30.2 million in PE 65853N for
support of wargames and research analysis. The committee
recommends an increase of $3.5 million in PE 65853N for warfare
analysis and education, particularly aimed at current national
security threats and global terrorism.

Thin plate pure lead battery technology

The budget request included $104.8 million in PE 11221N for
strategic submarine and weapons system support, but no funding
for thin plate pure lead (TPPL) battery technology.
The committee is aware of ongoing research to apply well-
understood TPPL technology to submarine batteries. This
technology has the potential to increase submarine battery
energy density, reduce corrosion and associated maintenance
costs, and improve life span, performance, reliability, output,
and recovery from deep discharges.
Therefore, the committee recommends $106.3 million in PE
11221N, an increase of $1.5 million for research and
development for thin plate pure lead battery technology.

Precision terrain aided navigation

The budget request included $71.4 million in PE 24229N for
continued development of the Tomahawk cruise missile weapons
system, but included no funding for precision terrain aided
navigation (PTAN). PTAN would offer an alternative guidance
system for Tomahawk that could be used if the global
positioning system (GPS) currently used was degraded by jamming
or by other means. The committee recommends an increase of
$10.0 million in PE 24229N for development of the PTAN system
for the Tomahawk cruise missile.

Fire Scout RQ-84

The budget request included $56.5 million in PE 35204N for
Tactical Unmanned Aerial Vehicles. The committee recommends an
increase of $46.4 million for the continuation of the Fire
Scout RQ-8A program. Although the Navy has recently expressed
renewed interest in the Fire Scout program as a key unmanned
component for the Littoral Combat Ship, the committee is
concerned by last year's cancellation by the Navy of this
important vertical tactical unmanned platform. The committee
expects the Navy to restore full funding for this platform in
fiscal year 2005.

Airborne reconnaissance systems

The budget request included $13.3 million in PE 35206N for
the development of airborne reconnaissance systems. The
committee is aware that the technologies developed in this
program help satisfy the requirements of the objective
architecture established in the Integrated Airborne
Reconnaissance Strategy and are identified in the Airborne
Reconnaissance Technology Program Plan. Transition of many of
these technologies to podded sensor platforms has been
successful. The committee recommends an increase of $5.1
million in PE 35206N for continued development of podded
sensors.

Verification, validation and accreditation improvements

The budget request included $7.0 million in PE 38601N for
Modeling and Simulation Support. The committee recommends an
increase of $2.0 million in PE 38601N for verification,
validation, and accreditation improvements for risk reduction
and reduced life-cycle costs.

Air Force

Air Force propulsion research

The budget request included $204.8 million in PE 61102F for
Defense Research Sciences. The committee recommends a transfer
of $5.0 million from PE 61102F, Biological Sciences research
programs to PE 61102F, Propulsion research programs, and an
increase of $5.5 million in PE 61102F for basic research in
critical technologies necessary for the next generation of Air
Force systems. Of the $5.5 million increase, $4.0 million would
be used for research on adaptive optics technologies; and $1.5
million for basic research in quantum information processing
and technologies.
The committee notes that the Air Force requested more
funding for basic research in Biological Sciences than in
Propulsion in its core basic research program. The Air Force
made this request despite the fact that the Department of
Defense is proposing a National Aerospace Initiative that will
depend upon scientific advances in propulsion technologies made
by university research. The committee believes that the Air
Force should make funding basic research in propulsion science
and technology a high priority, given the tradition of Air
Force support of these scientific disciplines, and their clear
connection to current and future Air Force missions. The
committee notes that in fiscal year 2004 the Air Force reduced
its request in PE 61102F by $23.8 million, as compared to the
fiscal year 2003 budget request. The Air Force indicates that
this reduction will result in the suspension or non-initiation
of approximately 130 grants that would have otherwise supported
approximately 390 graduate and post-graduate students. The
committee urges the Air Force to increase and sustain its
support of university research and the training of future
scientists and engineers.

Aerospace materials research

The budget request included $68.7 million in PE 62102F for
advanced materials research. The committee recognizes the
critical role that materials research and materials processing
technology play in extending the life of aging equipment.
Therefore, the committee recommends an increase of $17.5
million in PE 62102F for advanced materials research: $4.0
million for developing low-cost composite airframes,
particularly for platforms which require high performance and
light weight such as unmanned aerial vehicles; $6.0 million for
the development and application of a high power, tunable,
ultra-violet laser processing tool for the fabrication of
micro-engineered components; $4.5 million for research in
nanotechnology in support of aerospace materials; $1.0 million
for materials research to support the development of fire
protection systems, directed energy technologies, and
technologies for crash and rescue operations; and $2.0 million
for the development of fire retardant polymer materials.

Space technologies

The budget request included $83.2 million in PE 62601F for
research in space technologies. The committee recommends an
increase of $14.5 million in PE 62601F for novel materials and
computing for space technologies: $3.5 million to develop high-
temperature rigid silicone thin films for solar cells; $4.0
million for furthering technological readiness levels of
elastic memory composite materials; $3.0 million for continued
development of microsatellite cluster technology; and $4.0
million for developing an all-optical, seamless data
communication network for satellite communication.

MASINT warfighter visualization tools

The budget request included $71.7 million in PE 62702F for
command, control, and communications research. The committee
recommends an increase of $7.0 million in PE 62702F for the
development of user-friendly measurement and signature
intelligence visualization tools.

Advanced materials for weapons systems

The budget request included $33.1 million in PE 63112F for
advanced materials research for weapons systems. The committee
recommends an increase of $7.0 million in PE 63112F for
technology development to support affordable defense and
aerospace systems and manufacturing of specialty aerospace
metals.

Aerospace technologies and demonstrations

The budget request included $73.4 million in PE 63211F for
aerospace technology development and demonstration. The
committee recommends an increase of $11.5 million in PE 63211F
for applied research to support improved aerospace structures
and technology demonstrations: $6.5 million for research on the
use of aluminum aerostructures for aerospace components; $3.0
million for the demonstration of fly-by-light photonic
technology; and $2.0 million for an assessment of possible
upgrade options and life-cycle extension alternatives for the
current fleet of tactical aircraft. While making its assessment
of upgrade options and life-cycle extension alternatives, the
Air Force should avail itself of the expertise of the original
aircraft manufacturers.

Fuels, lubrication and turbine engine technology

The budget request included $114.7 million in PE 63216F for
research in aerospace propulsion and power technologies. The
committee recommends an increase of $15.0 million in PE 63216F
for the Integrated High Performance Turbine Engine Technology
(IHPTET) and Versatile Affordable Advanced Turbine Engine
(VAATE) programs: $7.0 million for research dedicated to fuels,
lubrication and turbine engine technology; and $6.0 million for
the advanced turbine engine gas generator program.

B-2 bomber

The budget request included $176.8 million in PE 64240F for
research and development for the B-2 bomber and $76.5 million
in Aircraft Procurement for post production support for the B-2
bomber. The Department of the Air Force has informed the
committee that funds were misaligned in these two accounts.
Consistent with the request by the Air Force, the committee
recommends $152.1 million in PE 64240F, a decrease of $24.7
million, and $101.2 million in Aircraft Procurement for post
production support for the B-2 bomber, a corresponding increase
of $24.7 million.

Advanced spacecraft technology

The budget request included $72.1 million in PE 63401F for
advanced spacecraft technology, of which $2.2 million is for
development and evaluation of space conventional power
generation technologies, such as advanced thin film solar
cells.
The committee is aware of ongoing research on high specific
power thin film multi-junction amorphous silicon arrays on
flexible substrates for space applications. A recent Air Force
report indicated that this technology has the potential to
produce solar arrays that are five times greater in specific
power, five to ten times cheaper, three to five times lighter,
require five times less stowed volume, and offer improved
radiation resistance compared to current solar arrays. The
report also notes that this advanced technology is more mature
than others currently under investigation.
In light of the promise of this technology, the committee
recognizes that the requested funding is insufficient. The
committee recommends an increase of $7.0 million in PE 63401F
for continued development of thin film multi-junction amorphous
silicon arrays on flexible substrates for space applications.

Satellite protection technology

The budget request included $72.1 million in PE 63401F for
advanced spacecraft technology, but no funding for hardening
technologies for satellite protection (HTSP).
The committee continues to be concerned about the potential
vulnerability of U.S. commercial and military satellites,
particularly in light of the increasing reliance of the
military on space assets and foreign efforts to develop the
means to disrupt U.S. exploitation of those assets. The
Director of the Defense Intelligence Agency confirmed in
testimony before the committee that several countries have
programs that could result in kinetic energy, directed energy,
or electronic counter-space capabilities.
The committee is aware that protecting satellites from
space control threats adds to acquisition costs, and that both
commercial and military program managers who must live within
constrained budgets have limited incentive to incorporate
expensive design features to defeat those threats. The
committee notes that high level attention and policy direction
related to space system vulnerability (addressed elsewhere in
this report) is a key first step to providing proper
incentives. Providing lower cost, standardized tools to
satellite designers that will minimize cost and design impact
will also allow measures to reduce vulnerability to be designed
in, rather than added on, to satellites. An effort to develop
an integrated module to the standard Satellite Tool Kit for low
cost laser and radio frequency hardening techniques was
initiated in fiscal year 2001.
The committee recommends an increase of $6.8 million in PE
63401F to continue research and develop on hardening
technologies for satellite protection.

High accuracy network determination system

The budget request included $6.3 million in PE 63444F for
the Maui Space Surveillance program, but no funding for the
high accuracy network determination system (HANDS).
HANDS is intended to develop a network of relatively low
resolution optical sensor systems linked through a central high
performance computing system to improve space situational
awareness. The committee believes that improved space
situational awareness will be important in reducing the
vulnerability of U.S. space assets, and understands that
additional funds for the HANDS project could be used to operate
the network; design and build upgraded optical sensors; and tie
the sensors to the high performance computing system.
The committee recommends $16.3 million in PE 63444F, an
increase of $10.0 million to continue HANDS research and
development.

Global Positioning System III

The budget request included no funding for the Global
Positioning System (GPS) III in PE 63421F.
GPS provides signals that allow users to determine precise
geolocation, a capability critical to a range of military and
civilian applications. The committee notes that current
generation GPS satellites use very low power signals and are
vulnerable to jamming. While the Air Force is incorporating
improvements to unlaunched current generation GPS block II
satellites to provide enhanced anti-jam capabilities, the
Department of Defense has determined that these improvements
will not be sufficient to satisfy future requirements.
GPS also faces the potential for significant international
competition from the European Galileo program. The committee
continues to believe that GPS should be the international
standard for radionavigation and that the GPS III effort is
integral to achieving that end.
To address these needs, the Air Force initiated the GPS III
program. Although $60.2 million was appropriated for this
effort in fiscal year 2003, the fiscal year 2004 budget request
does not sustain this effort. The committee understands that
the Air Force will request additional funds for GPS III in
fiscal year 2005. The committee notes that such a delay will
disrupt ongoing concept definition work and could result in
delays to the planned first launch of GPS III.
In light of these considerations, the committee recommends
$80.0 million in PE 63421F, an increase of $80.0 million, for
continued development of the GPS III satellite. The committee
recognizes that this amount, using a spiral development
approach, could support a first launch of GPS III in 2010. The
committee directs the Secretary of the Air Force to study
options for accelerating the GPS III program, and to report the
results of that study to the congressional defense committees
no later than February 1, 2004.

Advanced extremely high frequency system

The budget request included $778.1 million in PE 63430F for
development of the advanced extremely high frequency (AEHF)
satellite communications system.
Advanced EHF satellites will provide secure, survivable,
jam resistant communications at much higher data rates than is
currently available. At least three AEHF satellites will be
required to support critical military communications, and as
many as five could be needed, depending on progress in the
research and development of next-generation transformational
communications satellites.
The committee notes that the fiscal year 2004 budget
request includes no procurement funding for the third AEHF
satellite and that the Air Force does not intend to request
this funding until fiscal year 2005. This represents a
significant change from the budget projection for AEHF in
fiscal year 2003, when the Air Force planned to request $95.0
million in advanced procurement for the third AEHF satellite in
fiscal year 2004. The committee recognizes that this delay will
result in a significant production gap that will require a
costly requalification of suppliers, a significant increase in
technical risks, and a possible delay in the AEHF schedule.
To address these risks, and to lower the risk to the first
two satellites, the committee recommends $838.1 million in PE
63430F, an increase of $60.0 million, for additional spare
parts for AEHF. The committee directs the Secretary of the Air
Force to study options for restoring the AEHF program schedule,
and to report the results of that study to the congressional
defense committees no later than February 1, 2004.

Space control technology

The budget request included $14.7 million in PE 63438F for
space control technology, but no funding for the kinetic energy
anti-satellite program (KEASAT).
U.S. national security space policy includes a requirement
to develop, operate, and maintain space control capabilities to
ensure freedom of action in space and to deny freedom of action
in space to adversaries. The committee notes that the
Department of Defense focus on space control technology has
increased as a result of the proliferation of satellite
technology and the potential for foreign space assets to pose
serious threats to U.S. military forces.
The committee notes that the Department of Defense invested
about $350.0 million in KEASAT technology throughout the 1990s
and substantial progress was made in the development of KEASAT
hardware and software. The committee is also aware that a
number of other space control technologies may enhance the
KEASAT kill vehicle capabilities.
The committee recommends $18.7 million in PE 63438F, an
increase of $4.0 million, to assess and evaluate KEASAT
technologies as part of a space control architecture, and to
continue development of space control technologies that
leverage KEASAT kill vehicle capabilities and the substantial
investments made in the KEASAT project.

Advanced wideband system/transformational communications architecture

The budget request included $439.3 million in PE 63845F for
the advanced wideband satellite communications system (AWS) and
transformational communications architecture (TCA).
The committee supports the goal of the advanced wideband
system to provide dramatic increases in communications
bandwidth. As information dominance becomes more central to
success in warfare, such increases will be required to support
the voice, data and imagery needs of the U.S. military. To
achieve these advances, AWS/TCA will develop a new, very
complex communications architecture involving laser
communications; internet packet switching; integration of
space, air, and ground networks; new ground terminals; new
security protocols; and multiple users, including the military
services, the intelligence community, and the National
Aeronautics and Space Administration.
The committee is concerned that the technical, cost, and
schedule risks for the AWS/TCA program appear to be very high.
The committee is concerned that: (1) key AWS/TCA technologies,
including multiple access laser communications terminals and
information assurance, are immature; (2) the system engineering
to provide the basis for a successful architecture has not yet
been adequately addressed; (3) the coordination among multiple
agencies and schedules and the technical maturity of many
elements of the AWS/TCA system-of-systems and will be
difficult; (4) the size and weight of the spacecraft have not
been determined, but may exceed the capacity of current launch
vehicles; (5) the budget request would nearly quadruple AWS/TCA
funding, a level that may be difficult to execute; and (6) the
scheduled first launch in 2009 may leave insufficient time to
address these challenges.
The committee believes that AWS/TCA should proceed at an
aggressive but more measured pace that recognizes these
challenges and manages risk in a prudent manner. Consequently,
the committee recommends $389.3 million in PE 63845F for the
advanced wideband satellite communications system and
transformational communications architecture, a decrease of
$50.0 million.

Electronic warfare development

The budget request included $74.0 million in PE 64270F for
electronic warfare development programs in the Air Force, but
included no funding for either the continued development of the
Precision Location and Identification (PLAID) Program or the
Loitering Electronic Warfare Killer (LEWK).
PLAID is entering production as the ALR-69 radar warning
receiver. It will improve survivability of Air Force aircraft
by increasing aircrew situational awareness, providing accurate
ground emitter location and unambiguous identification. Its
installation in F-16 and C-130 aircraft will rectify the
effectiveness and suitability shortfalls of the current radar
warning receivers. Continued development of PLAID is included
on the Air Force unfunded priority list. The committee
recommends an increase of $13.8 million in PE 64270F for the
continued development of PLAID.
LEWK was approved as a joint service advance concept
technology demonstration in fiscal year 2001. LEWK is an
unmanned combat air vehicle, which, when it detects a threat
radar, will itself attack the radar, contributing to the
suppression of enemy air defenses. The committee recommends an
increase of $6.0 million for LEWK, for a total authorization of
$93.8 million in PE 64270F.

Passive Attack Weapon

The budget request included $8.4 million in PE 64602F for
armament and ordnance development, but included no funding for
the Passive Attack Weapon.
The Passive Attack Weapon is a kinetic energy weapon system
designed to defeat targets of special interest, particularly
chemical and biological storage facilities. The weapon
dispenses non-explosive penetrators to destroy the target while
limiting collateral damage and environmental impact. The
committee believes that the Passive Attack Weapon could provide
an important capability in the effort to hold critical targets
at risk.
The committee understands that additional funds are
required to complete engineering and manufacturing development
and to initiate low rate initial production of the passive
attack weapon. Therefore, the committee recommends an increase
of $5.0 million in PE 64602F for continued development of the
Passive Attack Weapon.

Space test program

The budget request included $42.9 million in PE 65864F for
the space test program. This program supports the development
and launch of space experiments. The committee notes that many
of these experiments may be delayed because they are launched
on the space shuttle, which has been grounded for an
indeterminate period of time as a result of the Columbia
accident. Consequently, the committee recommends $39.6 million
in PE 65864F, a decrease of $3.3 million.

F-15C/D aircraft radar upgrade

The budget request included $112.1 million in PE 27134F for
the operational system development of the F-15 series of
aircraft. The request included no funding for non-recurring
development of a radar to replace the current F-15C/D aircraft
radar, the mechanically-scanned APG-63 (V)1. There are 18 F-15
aircraft with an advanced electronically scanned array (AESA)
radar, which provides capability against cruise missiles. The
F-15C/D aircraft are scheduled to remain in the inventory in
considerable numbers beyond fiscal year 2020, and cruise
missile defense is a likely mission the aircraft will have to
perform for homeland defense. Additionally, an AESA radar would
provide significant reliability and maintainability
enhancements to the F-15 C/D aircraft. The committee is aware
that there is ongoing development work in the private sector
for an F-15C/D AESA radar upgrade, and recommends an increase
of $16.5 million in PE 27134F to continue development of an F-
15C/D AESA radar.

Patriot advanced capability-3 spiral development

The budget request included $174.5 million in PE 64865A for
continued development of the Patriot Advanced Capability-3
(PAC-3) air and missile defense interceptor system, $44.5
million in PE 23801A for PAC-3 modifications, and $276.3
million in PE 63869A for development of the Medium Extended Air
Defense System (MEADS). The budget request also included $212.6
million in Missile Procurement, Army, for Patriot
modifications.
The PAC-3 system is intended to provide effective defenses
for forward deployed forces and small areas against hostile
aircraft, cruise missiles, and short and medium range ballistic
missiles. PAC-3 is currently being deployed and, consistent
with Administration policy, funding for and execution of PAC-3
procurement is being transferred from the Missile Defense
Agency (MDA) to the Army. The administration also proposed to
transfer follow-on PAC-3 development from MDA to the Army.
The MEADS program is an international effort of the United
States, Germany, and Italy. MEADS is also intended to provide
effective defenses for forward deployed forces and small areas
against hostile aircraft, cruise missiles, and short and medium
range ballistic missiles. MEADS is intended to be lighter and
more mobile than PAC-3 to meet the need for a mobile air and
missile defense system capable of defending maneuver forces,
while providing 360 degree radar coverage and a thoroughly
integrated command and control system. MEADS is scheduled to
replace PAC-3 starting in fiscal year 2012. The committee
strongly supports international cooperative efforts to develop
effective missile defenses, including the MEADS program.
At the same time, the committee is aware that PAC-3 and
MEADS share the same mission and that efforts continue to
improve the PAC-3 system. PAC-3 development and modifications
are also intended to extend its capabilities, and make the
system lighter, more mobile, and more deployable. These efforts
appear to parallel key aspects of the MEADS program. The
committee is concerned that the parallel pursuit of PAC-3
spiral development and the MEADS development program does not
represent a coherent approach to the further development of
terminal phase ballistic missile defense.
For example, the committee notes that the Army fiscal year
2004 budget request included three separate launcher efforts,
one for PAC-3, one capable of launching both the PAC-3 missile
and the Theater High Altitude Area Defense (THAAD) missile, and
a MEADS launcher that will only launch the PAC-3 missile. The
MEADS program also funded a ``certified missile round'' for
$17.2 million in fiscal year 2003. However, MEADS uses the PAC-
3 missile. The committee notes that these redundancies offer
ample evidence that efficiencies can be achieved by better
coordinating the two programs.
The committee has concluded that greater terminal missile
defense capability can be introduced into the field faster by
developing a plan to use technologies developed by the MEADS
program in successive PAC-3 spiral improvements. This approach
would obviate the need to replace PAC-3 with MEADS. PAC-3 would
take advantage of sequential MEADS developments in PAC-3
spirals and would eventually evolve into a system with all the
attributes the MEADS program is intended to field.
This approach is particularly important given the
shortfalls in PAC-3 development identified by the Army. The
Army unfunded priority list includes $55.5 million for
evolutionary PAC-3 development and another $4.0 million to
reduce the size and weight of the PAC-3 antenna mast, and the
Army identifies about another $100.0 million in needed
improvements for PAC-3 for which funding was not requested in
fiscal year 2004.
Consequently, the committee supports a restructuring of the
MEADS and PAC-3 development programs, integrating the two
efforts to support PAC-3 spiral development. The committee
believes that a restructured program should remain an
international cooperative effort. While such restructuring
would likely cause some disruption to currently planned MEADS
technology development efforts, the committee concludes that
the prospective benefits of such a restructuring outweigh the
potential disadvantages.
The committee also concludes that this spiral development
effort would be best managed by the Missile Defense Agency.
MDA's goal of developing a single integrated missile defense
system, with a seamless tool kit of missile interceptors,
sensors, and battle management systems will require extensive
integration of all elements of the system. The committee notes
that such coordination is best managed centrally, and that
devolution of continuing research and development on deployed
systems to the services will undermine that goal. The committee
also notes that the effective management of the restructured
PAC-3 spiral development program will require continuity in
program leadership and oversight.
The committee, therefore, directs the Secretary to
restructure the PAC-3 development program and the MEADS program
into a coordinated PAC-3 spiral development program and to
engage the MEADS international partners in this restructuring.
To support this goal, the committee recommends the following:
(1) no funding for PE 64865A, a decrease of $174.5
million;
(2) no funding for PE 63869A, a decrease of $276.3
million;
(3) $415.8 million in PE 64865C, an increase of
$415.8 million; and
(4) $48.5 million in PE 23801A, an increase of $4.0
million for the light antenna mast group; and
(5) $223.6 million in Missile Procurement Army, an
increase of $11.0 million to meet unfunded PAC-3
requirements identified by the Army.
The committee directs that of the amount authorized for
appropriation in PE 64865C, $20.0 million shall be available to
meet high priority unfunded PAC-3 evolutionary development
efforts identified by the Army. The committee recommends $221.3
million to support MEADS legacy program efforts, which the
committee expects would be tailored to support PAC-3 spiral
development. The committee notes that this MEADS funding level
would represent a $45.1 million increase compared to fiscal
year 2003.

Global positioning system jammer detection and location system

The budget request included $10.5 million in PE 27247F for
Air Force tactical exploitation of national capabilities, but
no funding for the Global Positioning System Jammer Detection
and Location System (JLOC).
The Global Positioning System (GPS) is a navigational
satellite system that is increasingly central to U.S.
warfighting capabilities. GPS provides signals for accurate
navigation and provides the technical basis for many of the
precision guided weapons in the U.S. inventory. GPS satellites,
however, transmit very low power signals that are susceptible
to jamming. The Department of Defense recognizes the high
priority need to protect GPS signals from jamming.
The JLOC effort is developing a sensor, database, and
predictive tool that will enhance the ability to detect,
locate, identify, and track jamming threats to GPS, and thus
enhance situational awareness, mission tasking and mission
planning. Early assessments have proven the feasibility of the
JLOC system and prior year funding will produce an end-to-end
demonstration. The committee is aware that additional funds are
required to improve the prototype sensor, integrate the sensor
on additional platforms, modify and enhance the JLOC master
station and database, conduct additional testing, and begin
transitioning the system for operational use.
Therefore, the committee recommends an increase of $3.0
million in PE 27247F for JLOC.

Space control test bed

The budget request included $10.5 million in PE 27247F for
Air Force tactical exploitation of national capabilities, but
no funding for the space control test bed.
U.S. national security space policy includes a requirement
to develop, operate, and maintain space control capabilities to
ensure freedom of action in space and to deny freedom of action
in space to adversaries. One element important to achieving
this goal is the ability to assess and integrate new space
control systems, concepts, technologies, methods and training
in operationally realistic environments. The committee notes
that a viable space control test bed could help provide such
operationally realistic environments by linking test and
operational facilities, collecting and analyzing test and
training data, improving system assessment tools and
simulations, and developing warfighting exercises.
The committee recommends an increase of $2.5 million in PE
27247F for the development of a space control test bed.

Eagle Vision

The budget request included $1.9 million in PE 27277F for
research and development of the Air Force Chief of Staff (CSAF)
Innovation Program and $3.6 million in Missile Procurement, Air
Force, line 44, for intelligence command and control. A key
component of the CSAF Innovation Program is Eagle Vision, a
family of systems that provide commercial imagery to
operational commanders. Eagle Vision has been deployed to the
Persian Gulf in support of forces engaged in Operation Iraqi
Freedom.
The committee notes that the President is preparing a
national policy supporting government use of commercial remote
sensing capabilities and that the Director of Central
Intelligence has strongly endorsed the expanded use of
commercial imagery to meet U.S. military and intelligence
needs. In response, the National Imagery and Mapping Agency is
requesting funding to acquire commercial imagery and is
supporting the development of next generation commercial
imagery satellites. The committee believes that enhancing the
warfighters' tools to use this imagery in a timely and
effective manner is important to maximize its military utility.
Therefore, the committee recommends an increase of $8.0
million in PE 27277F to provide improved capability to collect
and process new high resolution commercial imagery, to sustain
and maintain current Eagle Vision systems, and for operational
fielding of Eagle Vision improvements near completion.

Joint air-to-surface standoff missile

The budget request included $31.2 million in PE 27325F for
the continued development of the Joint Air-to-Surface Standoff
Missile (JASSM). JASSM is a long range, conventional,
autonomous, air-to-surface, precision guided cruise missile.
The JASSM is currently going through testing and is in low rate
initial production. An extended range (ER) variant of the
JASSM, known as JASSM-ER, is in development. The JASSM-ER will
provide greater standoff for the launch aircraft. This standoff
is important, especially for the B-1 bomber aircraft: the B-1
defensive systems upgrade program was cancelled in fiscal year
2003. The committee recommends an increase of $17.0 million in
PE 27325F to accelerate the development of JASSM-ER.

Cybersecurity Research

The budget request included $37.7 million in PE 33140F for
the Information Systems Security Program. The committee
recommends an increase of $2.0 million for research on computer
system vulnerabilities and cyberthreats, including the
transition of technologies for operational use.

Civil reserve space service

The budget request included $18.6 million in PE 35110F for
research and development related to the Air Force Satellite
Control Network (AFSCN), but no funding for the civil reserve
space service (CRSS).
The AFSCN provides tracking, telemetry, and control for
U.S. military satellites. The committee notes that by fiscal
year 2006, AFSCN will operate at 96 percent capacity in the
eastern hemisphere, a level that will start to jeopardize the
ability of the Air Force to meet both routine and contingency
requirements. The CRSS effort is intended to demonstrate the
feasibility of augmenting AFSCN capabilities with commercial
satellite control antennas. The committee is aware that the
early experiments have shown that commercial antennas, while
not yet able to meet a full range of military satellite control
requirements, could free AFSCN capacity to help meet critical
warfighter needs. The National Security Space Architect has
recommended investigation of commercial services as a means to
reduce future AFSCN support and modernization costs.
Therefore, the committee recommends $23.6 million in PE
35110F, an increase of $5.0 million, to continue research into
the technical feasibility of CRSS.

Ballistic missile range safety technology

The budget request included $9.7 million in PE 65860F for
the rocket systems launch program, but no funding for ballistic
missile range safety technology (BMRST).
The committee recognizes that new ballistic missile range
safety technology (BMRST) holds significant promise to improve
down range reentry support, increase launch support capability,
lower range support costs, and improve range safety. BMRST is
based on Global Positioning System signals and an inertial
navigation system to track space launch vehicles. Because it is
mobile, the system can be used to support launches from the
Eastern and Western launch ranges (located at Cape Canaveral
and Vandenberg Air Force Base, respectively), as well as others
with varying trajectories, such as missile defense launches.
The significance of this effort is highlighted by the Air Force
termination of several other launch range modernization
initiatives, including flight safety, centralized control and
automation, communications, weather systems, and range
surveillance systems in the fiscal year 2004 budget request.
Three BMRST units have been developed and one is undergoing
certification testing. The committee recommends $25.2 million
in PE 65860F, an increase of $15.5 million for BMRST, to expand
system capability, support mid-course tracking and range
certification, and conduct additional testing requirements to
address issues raised in early certification testing.

U-2 aircraft SENIOR YEAR electro-optical reconnaissance system focal
planes

The budget request included $52.5 million in PE 35202F, for
the Dragon U-2 program, but included no funding for repair or
replacement of SENIOR YEAR electro-optical reconnaissance
system (SYERS-2) focal planes. The SYERS-2 sensor is a very
capable intelligence collection sensor that provides regional
combatant commanders with much of their imagery collection
needs. When the sensor was developed, it was funded with
several spares to replace the focal planes of the sensor, as
age and operational tempo caused deteriorations in performance.
The number of spares has dwindled and new investment in this
long-lead time requirement is critical to maintaining the
SYERS-2 capability. The committee recommends an increase of
$8.0 million in PE 35202F, to establish the capability to
produce, test, and deliver SYERS-2 focal plane assemblies.

U-2 signals intelligence risk mitigation

The budget request included $52.5 million in PE 35202F for
the Dragon U-2 program, but included no funding for
developmental work to integrate existing sensors onto upgraded
U-2 aircraft platforms. Planned upgrades to U-2 airframes have
created compatibility and integration issues with regard to
current generation sensors. Developmental work is required to
make current sensors forward compatible with Block 10 U-2
aircraft. This program is a high priority unfunded requirement
of the Secretary of the Air Force.
The committee recommends an increase of $33.0 million in PE
35202F to reduce the risk associated with integrating various
sensors onto Block 10 U-2 aircraft.

Global Hawk lithium battery demonstration

The budget request included $398.6 million in PE 35205F for
Endurance Unmanned Aerial Vehicles. The committee recommends an
increase of $3.5 million for qualification of a light weight
lithium-ion aviation battery for the Global Hawk platform.

Distributed common ground systems

The budget request included $27.1 million in PE 35208F, for
distributed common ground systems, but included no funding for
Distributed Common Ground/Surface System (DCGS) Block 20, the
next generation system to integrate collection from multiple
intelligence platforms into a single system for deployed
forces.
The Air Force has been pursuing a spiral development
approach for DCGS. The so-called ``Increment 1'' for the
program built on legacy, proprietary systems to add
capabilities and begin the migration to a system based on an
open architecture. The Air Force's goal for DCGS Block 10 is to
field a common exploitation infrastructure with an open
architecture. The Air Force plan for DCGS Block 20 includes
further enhancements providing: (1) collaborative support over
broad geographic areas; (2) fusion and exploitation of multiple
types of intelligence products; and (3) connectivity with
additional intelligence, surveillance and reconnaissance (ISR)
platforms, including national assets.
The services and the intelligence community have been
plagued for many years by individually developed systems that
have hampered overall ISR integration. The committee
understands that the senior leadership of the Army, Navy, and
Air Force have agreed that the services should consolidate
their efforts behind the current Air Force competition for the
latest iteration of the DCGS program, called ``DCGS Block
10.2.'' The committee believes that this represents a positive
step in solving a long standing problem and directs the
Department of Defense to ensure that the services' efforts are
focused on a migration path to the open architecture and
capabilities prescribed for DCGS Block 20.
Because DCGS Block 20 appears to offer genuine progress in
the integrating and expanding use of service and national ISR
capabilities, the committee recommends an increase of $20.0
million in PE 35208F, to accelerate development and fielding of
DCGS Block 20.

Aging aircraft

The budget request included $54.0 million in PE 78611F for
Support Systems Development. The committee recommends an
increase of $3.5 million in PE 78611F for technologies to
address issues related to aging aircraft.

Defense-Wide

Defense Research Sciences

The budget request included $151.0 million in PE 61101E for
Defense Research Sciences. The committee recommends an increase
of $9.0 million in PE 61101E for university based basic
research in this account: $5.0 million for nano- and micro-
electromechanical systems; and $4.0 million for neural
engineering research for autonomous control.

Nanophotonic systems fabrication

The budget request included $151.0 million in PE 61101E for
Defense Research Sciences. The committee recommends an increase
of $2.0 million in PE 61101E for research on the fabrication of
novel nanophotonic systems.

Semiconductor research programs

The budget request included $151.0 million in PE 61101E for
basic research at the Defense Advanced Research Projects Agency
(DARPA). The committee recommends an increase of $10.0 million
in PE 61101E to continue the Government Industry Cosponsorship
of University Research (GICUR) program. Of this amount, the
committee recommends that $1.0 million be used to support the
GICUR Undergraduate Research Assistantship Program, and directs
that this funding be targeted towards increasing the
participation of U.S. citizens in semiconductor research
programs.
The committee notes that the budget request included no
funding for the GICUR program. This program has successfully
partnered industry with DOD in investing in basic research to
develop the next generation of semiconductor microelectronics
technologies. These technologies advance the capabilities of
nearly every defense weapon system, including radars, missile
seekers, and information and communications networks. The
program also supported several university-based
microelectronics research centers that helped maintain the
United States' global advantage in semiconductor technology and
train the next generation of electronics engineers.
The committee is concerned about the serious national
security implications of the decline of the domestic high-end
semiconductor chip manufacturing sector, and the potential
subsequent loss of domestic semiconductor research and design
capabilities. The migration of these capabilities overseas
could potentially hamper the ability of the Department of
Defense to obtain high-end semiconductor integrated circuits
from domestic sources.
The committee directs the Undersecretary of Defense for
Acquisition, Logistics and Technology to submit a report
detailing Department of Defense plans to ensure the retention
of domestic semiconductor chip manufacturing capabilities, as
well as research and design capability. This report should be
submitted by September 30, 2004. The committee notes that it
may be possible to address some of these issues by increasing
funds for research and development, supporting cooperative
government-industry research programs, adjusting U.S. trade
policies, and developing joint production agreements and other
innovative partnership arrangements with the semiconductor
industry.

University Research Initiative

The budget request included no funding for PE 61103D8Z,
University Research Initiative. In the fiscal year 2004 budget
request, this program was devolved to the military services,
however, the committee has reconstituted the program, as
referred to elsewhere in this committee report. The committee
recommends an increase of $16.5 million in PE 61103D8Z: $6.0
million for university based research in advanced carbon
nanotechnology to support the warfighter; $3.5 million for
basic research in photonics and microsystems technology; $5.0
million for development and testing of advanced remote sensing
software; and $2.0 million to develop integrated systems
analysis capabilities for bioterrorism response exercises.

Cell and tissue culture and bacterial growth core research

The budget request included $6.3 million in PE 61384BP for
chemical and biological defense basic research, including
research in the life sciences in support of new and improved
detection technologies for biological agents and toxins. The
committee recognizes the importance of core research in the
areas of cell and tissue culture and bacterial growth.
Recognized follow-on application of this research includes
vaccine development, biosensor production and biological
pharmaceuticals development. Therefore, the committee
recommends an increase of $2.0 million for cell and tissue
culture and bacterial growth core research in PE 61384BP.

Bacteriophage amplification

The budget request included $35.8 million in PE 61384BP for
chemical and biological defense basic research, including
efforts to expand knowledge in the relevant fields for chemical
and biological defense. The committee recognizes the importance
of improving the sensitivity, portability, and effectiveness of
current biological agent detectors, including those
technologies that will analyze for bacteria in food, water,
body fluids and soil. To advance this research, the committee
recommends an increase of $1.5 million for bacteriophage
amplification to improve the analysis of whole cell bacteria in
PE 61384BP.

Medical Free Electron Laser

The budget request included $9.5 million in PE 62227D8Z for
the medical free electron laser program. The committee
recommends an increase of $9.0 million in PE 62227D8Z. The
committee notes elsewhere in this committee report that the
Department of Defense's devolvement of this program to the
National Institutes of Health in fiscal year 2003 produced
disastrous results. While the program was returned to the
Department in fiscal year 2004, the budget request was
decreased by approximately 50 percent. The committee expects
the Department to fully fund the medical free electron laser
program in future years at levels that existed prior to
devolvement.

Computer research projects

The budget request included $404.9 million in PE 62301E for
Computing Systems and Communications Technology. The committee
recommends a decrease of $20.0 million in PE 62301E.

Acoustic wave sensor technology

The budget request included no funding in PE 62384BP for
acoustic wave sensor technology. The committee supports efforts
of the Defense Department to leverage advances in surface
acoustic wave technology for biological agent detector
applications. Therefore, the committee recommends an increase
of $2.0 million to PE 62384BP for such purposes.

Bioinformatics

The budget request included $106.5 million in PE 62384BP
for chemical and biological defense program applied research,
including efforts to improve chemical and biological defense
equipment and material. The committee continues to support
Defense Department research in the field of bioinformatics.
Molecular-level biological data such as pathogen
deoxyribonucleic acid is essential to combat bioweapons and
infectious diseases. The committee understands that the
requirement to process extremely large life science data sets,
to conduct bio-system and genomic information analysis, and to
provide advanced information on descriptive capabilities of
pathogens to end-users in the military present significant
challenges. Therefore, the committee recommends an increase of
$6.5 million in PE 62384BP for bioinformatics research.

Food security technologies

The budget request included $106.5 million in PE 62384BP
for chemical and biological defense program applied research,
including efforts to conduct real-time sensing and immediate
biological countermeasures, but no funding for food security
technologies. The committee notes that the food supply of armed
forces can be a vulnerability unless adequate protective
measures are established. The committee supports initiatives to
address this vulnerability, including the equipping of research
facilities with necessary hardware and instrumentation.
Therefore, the committee recommends an increase of $3.0 million
in PE 62384BP for research and development of food security
technologies to defend against chemical and biological
contamination.

Mustard gas antidote

The budget request included $17.9 million in PE 62384BP for
applied research related to the development and application of
pharmaceuticals for prevention and treatment of the toxic
effects of nerve, blister, respiratory, and blood agents. The
committee is aware of research being conducted by the
Department of Defense for a mustard gas antidote using signal
transduction inhibition antioxidant liposomes (STIMAL). The
committee notes that STIMAL research has demonstrated the
ability to substantially reduce or eliminate the affects of a
range of chemical and biological weapons. Therefore, the
committee recommends an increase of $3.0 million in PE 62384BP
for mustard gas antidote research.

Nerve agent decontamination technology

The budget request included $65.9 million in PE 62384BP for
applied research in chemical-biological defense technologies,
including decontamination technologies. The committee supports
the work of the Department of Defense to develop
decontamination agents that are less toxic and increasingly
``environmentally friendly,'' such as photo-catalytic
decontamination solutions. The committee recommends an increase
of $1.0 million in PE 62384BP to develop a rapid
decontamination system utilizing photo-catalytic technology.

Sensor technologies

The budget request included $106.5 million in PE 62384BP
for chemical and biological defense program applied research,
including conduct of applied research in the area of real-time
sensor networks. The committee supports efforts by the
Department of Defense to enhance real-time detector sensors and
related technologies. The committee notes that of the many
challenges of sensor technologies, those related to deployment
of sensors over a large geographic area are particularly
difficult. Therefore, the committee recommends an increase of
$2.0 million in PE 62384BP to develop a prototype sensor
network that can be deployed over a large geographic region.

Water quality sensors

The budget request included no funding in PE 62384BP for
water quality sensors. The committee notes the military utility
of the real-time monitoring of water quality, including
biological and pollutant agents in drinking water. The
committee recommends an increase of $3.5 million in PE 62384BP
for the development of a hand-held water quality sensing device
for such purposes.

Tactical technology

The budget request included $250.6 million in PE 62702E for
applied research on tactical technology. The committee
recommends a decrease of $11.0 million in PE 62702E for mission
specific processing, water rocket technology and the Varuna
program.

Biology research at the Defense Advanced Research Projects Agency

The budget request included $465.5 million in PE 62712E for
Materials and Electronics Technology. The committee recommends
a decrease of $20.0 million in PE 62712E for research on
biological materials and systems.

Armed Forces Radiobiology Research Institute

The budget request includes $9.2 million in PE 62787D8Z for
applied research in medical technologies at the Armed Forces
Radiobiology Institute (AFRRI). The committee recommends an
increase of $2.5 million in PE 62787D8Z to support the
radiation biology research activities of AFRRI.
The committee commends the efforts of AFRRI to conduct
world class research in radiation biology to support Department
of Defense (DOD) operational missions and homeland defense
activities. The committee notes that AFRRI research is directed
towards responding to nuclear accidents or terrorist incidents,
by developing the medical practices and technologies used in
radiation casualty management. The committee notes that a
terrorist nuclear incident in a major metropolitan center could
result in millions of casualties and would overwhelm the
ability of the government and medical infrastructure to
respond. Despite this threat and the world-class research and
training performed by AFRRI for DOD since 1961, this program
was transferred to the National Institutes of Health (NIH) in
fiscal year 2003, where the program's budget was zeroed.
The committee directs the Secretary of Defense to submit a
report at the time of submission of the fiscal year 2005 budget
request detailing plans for the role of AFRRI in responding to
a terrorist nuclear incident. The report should analyze the
adequacy of AFRRI's staff, resources, and facilities to handle
the inevitable surge in research and medical support activities
following such an event, the organizational structures that
link AFRRI's expertise with the homeland defense activities of
DOD, research and technology development goals of DOD and AFRRI
that will improve national response capabilities for such an
event, and the impact of the lack of funding for the AFRRI
program in fiscal year 2003 budget request. The report should
also consider any lessons learned by the surge in activities at
the U.S. Army Medical Research Institute of Infectious Diseases
following the recent terrorist anthrax attacks.

Explosive demilitarization technology

The budget request included no funding in PE 63104D8Z for
explosive demilitarization technology programs. The budget
request included $16.3 million in PE 63103A for explosive
demilitarization technology programs. The budget request
reflects the decision by the Department of Defense to devolve
explosive demilitarization technology programs to the military
services in fiscal year 2004.
As discussed elsewhere in this report, the committee
disagrees with the recommendation of the Department to devolve
certain research and development programs, such as explosive
demilitarization technology programs, to the services.
Therefore, the committee recommends that explosive
demilitarization technology programs be reconstituted as the
Explosive Demilitarization Technology program, PE 63104D8Z, and
that $16.3 million in PE 63104A be transferred to PE 63104D8Z.
In addition, the committee recommends an increase of $9.5
million in PE 63104D8Z for explosive demilitarization
technology programs. Of this amount, $4.0 million would be used
for demilitarization technology, to include a prototype
production capability that will eliminate the usage of open-
burn/open-detonation for disposing of tactical missiles; $3.0
million to provide technical support and research in the
photocatalytic decommissioning process; and, $2.5 million to
enhance and expand the application of the actodemil process.

Blast mitigation program

The budget request included $60.5 million in PE 0603122D8Z
for Combating Terrorism Technical Support. The committee
recommends an increase of $7.5 million in PE 0603122D8Z for the
blast mitigation program to pursue research and development of
technologies to validate and enhance existing and new
analytical tools that will be available to the armed services,
homeland defense officials, state and local preparedness
groups, and the structural engineering community. The committee
recognizes the importance of understanding the response of
buildings, structures, and housing to explosives and other
weapons of mass destruction to improve the protection of our
nation's infrastructure.

Portable radiation search tool

The budget request included $76.3 million in PE 63160BR for
counterproliferation advanced development technologies,
including efforts to demonstrate integrated nuclear warfare
protection system technologies. The committee notes that the
Defense Threat Reduction Agency included testing of a portable
radiation search tool (PRST) in the congressionally-directed
Unconventional Nuclear Warfare Defense pilot program. The PRST,
a gamma ray and neutron detector based on fiber optic
technology, demonstrated the capability to detect radiological
weapons of mass destruction. In addition, the PRST was
certified by the International Atomic Energy Agency (IAEA) for
exceeding requirements during IAEA's Illicit Trafficking
Radiation Assessment Program. Therefore, the committee
recommends an increase of $10.0 million in PE 63160BR for
continued development of the PRST.

Advanced Aerospace Systems

The budget request included $323.7 million in PE 63285E for
technology development of advanced aerospace systems. The
committee recommends a decrease of $20.0 million in PE 63285E.
This reduction reflects a concern over a lack of coordination
among the Department of Defense's space research programs.

Anthrax and plague oral vaccine research and development

The budget request included $49.9 million for preclinical
development of safe and effective prophylaxes and therapies for
pre- and post-exposure to biological threat agents, including
development of oral vaccines. The committee supports efforts to
exploit advanced vaccine technology to develop a single-dose
oral vaccine that can protect against multiple biological
warfare agents, such as anthrax and plague. Therefore, the
committee recommends an increase of $6.0 million for continuing
development of an oral vaccine in PE 63384BP.

SensorNet

The budget request included $103.7 million in PE 63384BP
for chemical and biological defense program advanced technology
development. The committee is aware of the Department of
Defense initiative, SensorNet, to utilize public cell phone
infrastructure for real-time detection and assessment of
chemical, biological, radiological and nuclear threats. The
committee notes that a pilot program to test an integrated and
interoperable system involving a military installation and a
surrounding civilian community would provide the data necessary
for program evaluation. The committee recommends $5.0 million
in PE 63384BP for a SensorNet pilot program.

Topically applied vectored vaccines

The budget request included $49.9 million in PE 63384BP for
preclinical development of safe and effective prophylaxes and
therapies for pre- and post-exposure to biological threat
agents, but included no funding for topically applied vector
vaccines. Therefore, the committee recommends an increase of
$1.0 million in PE 63384BP to continue efforts initiated by the
Navy on topically applied vectored vaccines.

Logistics technology demonstrations

The budget request included $22.4 million in PE 63712S for
logistical research and development technical demonstrations.
The committee notes the importance of this research and
development in providing possible solutions for the readiness
and sustainment issues facing the Department of Defense.
Therefore, the committee recommends an increase of $16.0
million in PE 63712S for logistics technology demonstrations:
$9.0 million to develop a multi-state manufacturing extension
partnership to assist the Department in the identification of
requirements for product delivery times; and $7.0 million to
develop and maintain a centralized repository for diminishing
manufacturing source information.

Vehicle fuel cell program

The budget request included $22.4 million in PE 63712S for
Generic Logistics Research and Development Technology
Demonstrations. The committee recommends an increase of $7.0
million in PE 63712S to continue the vehicle fuel cell program,
including research and development on reforming technologies
that will allow use of JP-8 fuel in emerging fuel cell
propulsion technologies.

High Altitude Airship

The budget request included $213.4 million in PE 63750D8Z
for Advanced Concept Technology Demonstrations (ACTD). The
committee recommends an increase of $10.0 million in PE
63750D8Z for the acceleration of the High Altitude Airship ACTD
program. The High Altitude Airship will provide long duration
capability, wide area surveillance, large payload capacity and
communication relay functions. The committee commends the
Department of Defense for its investment in innovative
platforms, such as the High Altitude Airship, that offer
transformational capabilities.

All optical transparent switching systems

The budget request included $242.7 million in PE 63760E for
applied research in command, control, and communications
research. The committee recommends an increase of $3.0 million
in PE 63760E for research in all optical transparent switching
systems. The committee recommends DARPA more fully interact
with other services and defense agencies, particularly defense
intelligence agencies, to leverage the research and technology
development opportunities in high-speed, high-data rate,
encrypted networks.

Sensor and guidance technology

The budget request included $342.9 million in PE 63762E for
Sensor and Guidance Technology. The committee recommends a
decrease of $25.0 million in PE 63762E for sensor and guidance
technology. Of this amount, $10.0 million would be reduced from
the Lightfoot radar project and advanced exploitation system
technologies.

Organic micro unmanned aerial vehicles

The budget request included $82.4 million in PE 63764E for
Land Warfare Technology. The committee recommends an increase
of $7.5 million in PE 63764E for the acceleration of the
organic air vehicle (OAV) family of vehicles. This scalable
platform offers autonomous operations, long endurance on
station, and hover or perching capabilities. The OAV is a
critical component of the unmanned systems within Future Combat
System.

Tactical unmanned ground vehicles

The budget request included $11.5 million in PE 63709D8Z
for the Joint Robotics Program. The committee recommends an
increase of $3.0 million in PE 63709D8Z for the development and
demonstration of semi-autonomous capabilities of unmanned
ground systems. The committee notes that the autonomous nature
of unmanned ground vehicles is a particularly challenging
aspect of the platform and supports increased research in this
important technology development area.

Arrow

The budget request included $64.8 million in PE 63881C for
the continued research and development of the U.S.-Israel Arrow
ballistic missile defense program, but no funding for
procurement of the Arrow system for deployment in Israel.
The committee continues to support Israeli efforts to
defend itself from ballistic missile threats posed by its
regional adversaries and recognizes that those threats will
continue to evolve over time. The Arrow system is a key
component of Israel's missile defense efforts. The committee
notes that the importance of missile defense interoperability
was highlighted during the recent conflict in Iraq when the
Patriot air and missile defense system was deployed to Israel
to supplement the Arrow system. To support improved Arrow
system performance, more robust testing, and enhanced
interoperability with U.S. missile defense systems, the
committee recommends an increase of $10.0 million in PE 63881C,
for a total authorization of $74.8 million.
The committee also supports U.S. co-production of the
Arrow, which will allow Israel to deploy this system in a more
timely manner. The committee notes that the Emergency Wartime
Supplemental Appropriations Act, 2003, recently approved by
Congress includes $9.0 billion in loan guarantees and $1.0
billion in foreign military financing to assist Israel in
meeting the cost of defending itself from regional threats. The
committee believes that these sources of funding, in addition
to the foreign assistance provided to Israel annually by the
United States, should allow Israel the flexibility to meet more
effectively the full range of its defense needs, including
defense against ballistic missile attack.
The committee notes that the Department of Defense provided
two thirds of the funding for the development of the Arrow
system and continues to provide funding for Arrow production,
and that the Arrow system embodies U.S. developed technologies.
The committee notes that any sale of the Arrow ballistic
missile defense system to third parties should take place only
after approval by the U.S. Government, pursuant to the
requirements of existing law.

Aegis ballistic missile defense

The budget request contained $3.6 billion in PE 63882C for
midcourse ballistic missile defense, of which $726.2 million
was for Aegis ballistic missile defense. The committee notes
that the request within this program element for Aegis
ballistic missile defense program management has more than
tripled since fiscal year 2002, and has increased by $11.7
million as compared to fiscal year 2003, although program
management personnel levels remained stable. The committee
recommends $714.5 million in PE 63882C for Aegis ballistic
missile defense, a decrease of $11.7 million.

Ground-based midcourse defense

The budget request included $3.6 billion in PE 63882C for
the ballistic missile defense (BMD) midcourse defense segment,
of which $2.8 billion is for ground-based midcourse defense.
The committee supports the President's decision to field an
initial set of missile defense capabilities, including a total
of twenty interceptors at Fort Greely and Vandenberg Air Force
Base by the end of fiscal year 2005. The committee recognizes
that this is an ambitious schedule, which is driven by the
immediacy of missile threats to the United States that were
confirmed by the Director of Central Intelligence, who
testified to the Committee on Armed Services of the Senate that
North Korea has both nuclear devices and the current capability
of reaching the United States with a ballistic missile.
Although the director of the Missile Defense Agency has
testified that the funding requested for ground-based midcourse
defense is adequate to develop and field the system on
schedule, the committee notes that MDA assesses the technical
and schedule risk as medium and the cost risk of the program as
high. The committee notes that an additional intercept test, an
integrated ground test, a second in-flight interceptor
communication system data terminal, and a second mission
computer for the sea-based X-band radar would be useful to
reduce risk and enhance operational availability and
capability.
Therefore, the committee recommends $3.7 billion in PE
63882C, an increase of $100.0 million for an additional
intercept test in fiscal year 2004 and other activities to
reduce technical, schedule, and cost risk and enhance the test
and operational capabilities of the ground-based midcourse
defense system. The committee directs the Director of the
Missile Defense Agency to provide a report to the Armed
Services Committees of the Senate and House of Representatives
by November 1, 2003, on the ground-based midcourse defense test
plan. The report should identify changes to the plan submitted
with the fiscal year 2003 budget, the rationale for those
changes, an explanation of the test planning process, and the
goals of each GMD flight test as of the date of the report.

Airborne infrared system

The budget request included $438.2 million in PE 63884C for
ballistic missile defense sensors, but no funding for the
airborne infrared system (AIRS).
AIRS is a system of six infrared and visible sensors, a
surveillance radar, and adjunct data processing and storage.
Early versions of the system are mounted on aircraft (the High
Altitude Observatory, or HALO, and HALO II), but with
incremental and evolutionary development, could be deployed on
a variety of platforms, including the Global Hawk unmanned
aerial vehicle and potentially, the High Altitude Airship being
developed by the Missile Defense Agency (MDA). HALO and HALO II
have already provided valuable data on infrared signatures of
ballistic missiles. The committee believes that an improved
system, if and when deployed, could meet important operational
and technical intelligence capabilities in support of ballistic
missile defense requirements.
Therefore, the committee recommends an increase of $10.0
million in PE 63884C for AIRS research and development. This
funding will allow MDA to proceed with engineering and concept
studies for a full scale operational prototype sensor suite
suitable for installation on either a manned or unmanned aerial
platform.

E-2 infrared search and track

The budget request included $438.2 million in PE 63884C for
ballistic missile defense sensors, but no funding for infrared
search and track technology for the Navy's E-2 tactical warning
and command and control aircraft.
The Navy has conducted testing of a turreted infrared
search and track (IRST) system on the Navy's E-2's tactical
warning and command and control aircraft that successfully
demonstrated the potential for such a system to receive cues,
and then detect and track short and medium range ballistic
missiles. A more capable system, that includes fixed infrared
arrays and a turret, shows high potential for a robust
capability to detect and track these missile threats early in
flight through mid-course trajectory and to provide accurate
impact point prediction. The committee notes that this project
is best funded through the BMD sensors program element.
Therefore, the committee recommends an increase of $3.75
million in PE 63884C for flight testing and continued
development of the E-2 IRST project. The committee directs the
Director of MDA to assess this sensor technology as a component
of the BMD sensor architecture.

Family of radars

The budget request included $438.2 million in PE 63884C for
ballistic missile defense (BMD) sensors.
The Missile Defense Agency (MDA) has initiated an effort to
validate the concepts of forward based radars, sensor layering
and netting, and the use of such radars to observe ballistic
missiles early in flight to provide precise track information
for use by other elements of the BMD system. The committee is
aware that MDA considered several alternatives for the first
generation of radars to be forward based. These included
several variants of the Theater High Altitude Area Defense
(THAAD) radar and the High Power Discriminator, a smaller X-
band radar suitable for deployment on Aegis cruisers. MDA
concluded that a modified THAAD radar is the alternative that
provides maximum capability in the most cost effective and
timely manner. MDA awarded a $350.0 million contract for
modified and marinized THAAD radars, the first being available
for test in 2005 and operationally available in 2006.
The committee understands the potential advantages of land-
basing forward based radars, including routine availability.
However, the committee is concerned that the U.S. military will
not always know with good fidelity where missile threats will
develop, nor whether basing rights in foreign nations would be
available. Sea basing for these radars could provide
significant flexibility to meet the missile defense
requirements against threat missiles of all ranges and in
multiple theaters. The committee notes that sea-basing of
forward based sensors is particularly significant in light of
the President's decision in December 2002, to field an initial
set of missile defense capabilities. That decision includes
deployment of up to 20 Standard Missile III interceptors on
Aegis cruisers by 2005.
The committee understands that the marinized THAAD radar
variant could be deployed on a variety of sea-borne platforms.
In part because MDA has not selected a basing mode, the current
contract does not include any activities to integrate this
radar on a ship. The committee understands that early design
activities to achieve such an integration could begin in fiscal
year 2004, and integration and deployment on a ship could be
achieved by 2006. Selection of a sea-based platform and the
start of this design work in fiscal year 2004 would be
important to achieving this schedule and supporting early sea-
based missile defense capabilities.
Therefore, the committee recommends an increase of $5.0
million in PE 63884C to initiate design efforts to integrate
the marinized THAAD radar with a sea-based platform by 2006.
The committee urges MDA and the Navy to commit to such a
platform in a timely manner. The committee directs the Director
of MDA, in consultation with the Commander of U.S. Strategic
Command, to develop an appropriate deployment plan and concept
of operations to ensure that sea-based forward based radars can
achieve maximum capability to support both theater and long-
range missile defense missions, and to report to the
congressional defense committees on the plan and concept of
operations no later than February 15, 2004.

Russian American observation satellite program

The budget request included $438.2 million in PE 63884C for
ballistic missile defense sensors, of which $29.6 million was
for the Russian American Observation Satellite (RAMOS) program.
Of the amount requested for RAMOS, $11.4 million is intended to
fund hardware development in the Russian Federation.
The committee continues to support cooperative missile
defense efforts with the Russian Federation. However, the
committee notes that no formal government-to-government
agreement on the RAMOS program yet exists despite years of
negotiation. In the absence of such an agreement, the Russian
Federation hardware development was supported at a level of
$6.0 million in fiscal year 2003.
The committee recommends $29.6 million in PE 63884C for the
RAMOS program, the requested amount. The committee directs
that, of that amount, no more than $24.6 million may be
available for obligation or expenditure until a government-to-
government agreement on the RAMOS program is concluded. The
committee intends this restriction to provide an appropriate
incentive to the Russian Federation to reach an agreement.

Space tracking and surveillance system

The budget request included $300.2 million in PE 63884C for
the space tracking and surveillance system (STSS), of which
$65.7 million was for program management. The committee remains
strongly supportive of the STSS effort, which is intended to
develop space-based infrared sensors capable of detecting,
tracking, and potentially discriminating ballistic missile
warheads in flight. However, the committee notes an unjustified
growth in program management cost since fiscal year 2003.
Therefore, the committee recommends a decrease of $15.5 million
in PE 63884C for STSS.

Ballistic missile defense system interceptors

The budget request included $301.1 million in PE 63886C for
ballistic missile defense system (BMDS) interceptors research
and development. The program is intended to develop an
interceptor missile for boost phase or mid-course intercept of
ballistic missiles that can be ground- or sea-based. It will
also develop boost phase kinetic energy interceptor kill
vehicles for land-, sea-, and space-based systems. The program
is structured to mature ground-based technologies first, and
evolve those technologies over time for sea- and space-basing.
The committee believes that boost phase defenses will be
important in the overall ballistic missile defense architecture
and supports continuing efforts in this area. Further efforts
to develop a common multi-use interceptor could also result in
efficiencies across a number of systems. However, the committee
is aware that the operational concepts for kinetic energy boost
phase intercept systems from land and sea are extraordinarily
challenging in some key respects and that the architecture of a
space based boost system is unclear. The committee also notes
that: (1) the budget request represents a six-fold increase in
funding for the interceptor missile; (2) no path to migrate the
technology to sea-basing has been established; and (3)
political factors related to land-based siting and budget
implications of new sea-based platforms are not clearly
understood.
Consequently, the committee recommends $231.1 million in PE
63886C for BMDS interceptors, a decrease of $70.0 million. The
committee notes that the funding recommended will be sufficient
to proceed with a robust program.

Advanced Research Center

The budget request contained $484.0 million in PE 63890C
for ballistic missile defense system core activities. The
committee recommends an increase of $2.0 million for the
Advanced Research Center.

Ballistic missile defense lethality testing

The budget request included a total of $484.0 million in PE
63890C for ballistic missile defense system core activities,
which provides resources to define and integrate the BMD
system. Of this amount, $21.2 million was requested for
lethality testing and analysis, an amount more than triple the
amount authorized for this purpose in fiscal year 2003. The
committee notes that this increase is excessive, and recommends
a decrease of $5.0 million for the corporate lethality program.

Joint robotics

The budget request included $13.6 million in PE 64709D8Z
for the Joint Robotics program. The committee recommends an
increase of $2.0 million in PE 64709D8Z for the development of
small unmanned ground vehicles to perform counter-intelligence
and counter-terrorist operations.

See and avoid technologies

The budget request included $24.6 million in PE 65116D8Z
for support to command, control, communications and
intelligence. The committee recommends an increase of $3.0
million in PE 65116D8Z for development of see and avoid
technologies, specifically as applicable to unmanned aerial
vehicles.

Information systems security research

The budget request included $476.7 million in PE 33140G for
the Information Systems Security Program. The committee notes
that the Nation's military and commercial information systems
continue to be extremely vulnerable to attack. While funding
for defense information systems security has increased in
recent years, the threat to defense information systems from
other nations, terrorist groups, and private individuals
continues to grow. The committee recommends an increase of $2.0
million in PE 33140G, to facilitate research and collaboration
between industry, government, and academia to share lessons
learned and improve cooperation to solve common defense
information systems security challenges.

Broadcast-Request Imagery Technology Experiment

The budget request included $161.9 million in PE 35102BQ
for the Defense Imagery and Mapping Program, but did not
include funding for the Broadcast-Request Imagery Technology
Experiment (BRITE). BRITE is a unique capability to disseminate
timely, tailored imagery products, including frames of
streaming video from unmanned reconnaissance systems, to
forward deployed tactical military forces via existing
communications architectures. BRITE was developed by the
National Reconnaissance Office (NRO) at the request of U.S.
Special Operations Command, and then transitioned to the
National Imagery and Mapping Agency (NIMA) for sustainment.
BRITE has been used extensively by special operations forces
and others in both Operations Enduring Freedom and Iraqi
Freedom.
The clear utility of this program led the committee to add
additional funding in each of the past two fiscal years to
ensure BRITE remains available to tactical users. Despite the
urging of the Congress, NIMA failed to include funding for
BRITE in its fiscal year 2004 budget request. The committee
understands that NIMA has many funding challenges and that
priorities must be established, but is disappointed that NIMA
does not recognize the need to sustain this important program.
The committee continues its strong support for the BRITE
program and recommends an increase of $4.0 million in PE
35102BQ to continue development of this unique capability and
to sustain the modest infrastructure and functionality that
enables isolated, tactical users to benefit from the BRITE
program. The committee expects NIMA to fund this system in
future budget submissions.

Tasking, processing, exploitation and dissemination for the future
imagery architecture

The budget request included $161.9 million in PE 35102BQ,
but included limited funding for development of the tasking,
processing, exploitation and dissemination (TPED) system to
support the next generation of national imagery assets, the
Future Imagery Architecture (FIA). Although the Department has
been developing FIA for several years, the committee continues
to have concerns about whether the community has devoted
sufficient investment in the TPED architecture that must be
developed to take full advantage of FIA capabilities. Since its
creation in 1997, the National Imagery and Mapping Agency
(NIMA) has had many competing priorities in modernizing its
capabilities and preparing for the future. These competing
priorities have led NIMA to defer a significant portion of the
planned funding for FIA TPED. The committee believes that NIMA
should apply additional funding to ensure that development of
the TPED architecture, especially the portion that will support
regional combatant commanders and tactical users, will keep
pace with the overall development and fielding of FIA.
The committee recommends an increase of $14.0 million in
RDT&E, Defense-wide, PE 35102BQ, to accelerate development of
the FIA TPED components that will support tactical and
operational users.

Laser additive manufacturing initiatives

The budget request included $16.2 million in PE 78011S for
manufacturing technology programs. The committee recommends an
increase of $3.0 million in PE 78011S to develop laser additive
manufacturing technologies to produce high performance military
components.

Multiband multimission radios

The budget request included no funding for Special
Operations Communications Advanced Development for upgrading
the multiband multimission radio. The committee has supported
accelerated fielding of this lightweight communications system
that has proven indispensable in the global war on terrorism
and in Operation Iraqi Freedom. U.S. Special Operations Command
(SOCOM) was only recently alerted to a communications security
obsolescence requirement, requiring replacement of
communications security chips on all fielded radios.
Development and replacement of these chips is important to
ensure deployed special operations forces have secure,
lightweight, versatile communications in the field, and is one
of the highest unfunded priorities for Commander, SOCOM. The
committee recommends an increase of $10.0 million for PE
1160404BB for Special Operations Communications Advanced
Development, Project S700.

Items of Special Interest

Apache Longbow

The committee strongly supports the Army's decision to
include the Apache Longbow as a fully interoperable part of the
Objective Force within the unit of employment (UE). In the case
of the 10-year-old Apache Longbow system, which is planned for
another quarter century of use, the proposed block III
multiyear procurement is an appropriate spiral development to
restore needed power margins, lower operations and support
costs and, most important, incorporate an open architecture-
based digital backbone with the external interfaces for
connecting with the Army's network-centric structure for
massing effects and fires. The committee notes that the block
III concept was endorsed in an acquisition decision memorandum
approved by the Under Secretary of Defense for Acquisition,
Technology, and Logistics.
Once the Army makes a decision regarding the scope and
nature of an Apache Block III program, the committee encourages
the Army to submit a reprogramming request if any non-recurring
engineering is needed in fiscal year 2004, to ensure that the
block III upgrades start production in fiscal year 2006. The
committee understands that a fiscal year 2006 start will
maximize program savings and meet the Objective Force unit of
employment first unit equipped date.

Ballistic protective garments

The committee is aware that in the recently concluded Iraq
conflict, countless lives were saved by the use of protective
fiber outer garments, to include ballistic protective vests.
From the weight and flexibility perspectives, the vests used by
our soldiers in Iraq were a vast improvement over the body
armor used in the 1991 Gulf War. Current research holds the
promise to further enhance ballistic protection using
lightweight materials that will reduce the soldier's load. The
committee understands the value of the ballistic-resistant
materials research being done at universities, small
businesses, and defense labs all over the nation to support
this military need. The committee encourages the Department of
Defense to continue supporting this type of research in
universities, industry, and defense labs to continue this
critical technology development so as to field novel ballistic
resistant clothing in the next five years.

Chemical and biological test facilities

The committee understands that the development of chemical
and biological defense equipment and medical countermeasures
requires adequate test and evaluation (T&E) facilities. The
committee is interested in the degree to which these facilities
support the chemical and biological defense program. Therefore,
the committee directs the Assistant to the Secretary of Defense
for Nuclear, Chemical and Biological Defense Programs
(ATSD(NCB)) and the Director, Operational Test and Evaluation
(DOT&E) to report on the status of the test and evaluation
facilities for chemical and biological defense programs. The
report should include the following: an analysis of the
capacity and versatility of the T&E infrastructure to meet the
requirements of current and planned chemical and biological
defense research and development programs, including facilities
for testing equipment with live agents and simulants and for
animal testing; and, an identification of any actions needed to
meet testing requirements. The report should be completed
jointly by ATSD(NCB) and DOT&E and shall be included in the
``Department of Defense Chemical and Biological Defense
Program: Annual Report to Congress'' submitted for 2004.

Counterproliferation Support Program

The committee notes that the Department of Defense (DOD)
established the Counterproliferation Support Program (CPSP) in
August 1994 to address shortfalls in counterproliferation
operational capabilities. These shortfalls were identified in
the congressionally-mandated ``Report on Nonproliferation and
Counterproliferation Activities and Programs.'' Specifically,
the CPSP leverages DOD acquisition programs to meet the
counterproliferation priorities of the combatant commanders.
The President's budget request for fiscal year 2000,
submitted in February 1999, requested that funding for the CPSP
be transferred from the Office of the Secretary of Defense
(OSD) to the Defense Threat Reduction Agency (DTRA). The budget
request included the funding transfer in order to align CPSP
funding with the CPSP management responsibilities that DOD
assigned to DTRA on October 1, 1998. The National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106-65)
authorized the transfer of CPSP funding from OSD to DTRA.
The committee understands that the DOD is reviewing the
CPSP and is considering options to further enhance
counterproliferation efforts. The committee supports the DOD
review of the CPSP and directs the Assistant to the Secretary
of Defense for Nuclear, Chemical, and Biological Defense to
provide the committee with periodic updates on the status of
the review.

Cruise missile defense

The committee is aware of increasing concern about threats
from cruise missiles to U.S. land and sea forces and the U.S.
coast line. The committee directs the Secretary of Defense to
submit a report to the congressional defense committees, no
later than February 15, 2004, on the U.S. military's ability to
address current cruise missile threats and plans to address
future cruise missile threats.

DD(X) destroyer

The DD(X) will be a multi-mission surface combatant
tailored for land attack and maritime dominance. The DD(X)
program will also provide a baseline for spiral development of
technology and engineering to support a range of future surface
ships such as the future cruiser, CG(X), and the Littoral
Combat Ship (LCS). The Future Years Defense Program includes
funding to build the first DD(X) using research, development,
test, and evaluation funding in fiscal years 2005 and 2006. The
preliminary design review for DD(X) is currently scheduled in
January, 2004.
The DD(X) program evolved from the DD-21 program, which was
cancelled by the Navy. The committee is aware of debate within
the Department of Defense and the Department of the Navy
concerning the size of the DD(X), and that all of the key
performance parameters in the requirements documentation for
the ship are under review. Key performance parameters that
would directly affect the size of the ship would include the
number and type of guns, the volume of the weapons magazines,
and the number of missile cells. At a hearing of the Seapower
Subcommittee of the Senate Armed Services Committee in April,
2003, the Assistant Secretary of the Navy for Research,
Development, and Acquisition testified that it was important to
take the time necessary to ensure that the requirement was
right.
The committee concurs that it is important to ensure that
the requirement for the next family of surface combatants is
based on sound analysis. The committee has supported the Marine
Corps' requirement for the rate, volume, and precision of fires
provided by naval gunfire support, and directs the Navy to
ensure that Marine Corps' requirements are taken into account
in its re-evaluation of DD(X) requirements.

Infrared search and track

The Navy has been developing infrared search and track
(IRST) technology for shipboard application for more than a
decade. Horizon search, for which an IRST system would be
optimized, is an area of relative weakness for active radar.
Shipboard tests of such an IRST system have demonstrated
high potential for improving a ship's ability to detect anti-
ship cruise missiles in the presence of environmental and
geographical conditions that degrade radar system performance.
In prior years, the committee had expressed concern that
the Navy schedule and funding for the IRST development effort
would fail to field any capability in the fleet for the
foreseeable future.
Earlier this year, the Navy cancelled the IRST program that
was being developed within the Ship Self-Defense Program. The
Navy still believes that the surface fleet needs the additional
capability that could be provided by sensors operating in parts
of the electromagnetic spectrum other than that used by radars.
In particular, Navy officials indicated a preference for
continuing science and technology development of other infrared
staring sensors that have the potential of providing acceptable
performance without incurring the drawbacks of the extra
topside weight associated with rotating infrared sensor
systems.
The committee believes that the Navy should focus its
efforts on technologies and systems engineering efforts that
are more likely to yield near-term results for the fleet.
The Navy should fully evaluate hardware solutions that rely
on technologies that could have wider applications within the
military services or commercially before launching another
hardware development effort. For example, the sensors developed
for the Joint Strike Fighter program may have some potential
application for shipboard systems. New developments may
ultimately be required, but an affordable solution with
sufficient capability within a total systems context is far
preferable to a solution that may ultimately prove
unaffordable.
The Navy should take steps to ensure that follow-on IRST
development efforts take full advantage of the activities that
were funded under the recently canceled program, and reflect
whatever lessons that may have been learned from that
experience.
The Navy should employ available sensors to continue
working on signal processing software algorithm development. In
particular, the Navy still needs to complete a significant
effort in improving the ability of an IRST system to reject
false alarms. The Navy can and should continue to make progress
on the software development activities that will support any
sensor suite while sorting through the hardware issues.
The committee expects the Navy to keep the congressional
defense committees fully informed of its plans for maturing and
fielding IRST technologies.

National Aerospace Initiative

The committee agrees with the National Aerospace Initiative
(NAI) goals and the three supporting pillars of this program:
high speed hypersonics; access to space; and space technology.
The committee is concerned, however, that the NAI program is
based on an artificial schedule rather than realistic
assessments of the technological developments and capabilities
necessary to achieve the goals of the program. The success of
NAI appears to rely upon the successful technology
demonstrations within current and future programs rather than
the supporting revolutionary scientific and technological
discoveries that will be necessary to meet the ambitious goals
of the Initiative. The committee remains concerned about
whether there are adequate investments in the basic and applied
research, which are necessary for the technologies needed to
reach the goals of NAI. Therefore, the committee directs the
Director of Defense Research and Engineering (DDR&E) to submit
a report to the congressional defense committees by September
1, 2003, outlining the technology roadmap and capability
requirements, including basic research activities, necessary to
achieve the NAI goals. The report should include current and
future investments in the enabling technologies necessary to
reach the goals of NAI.

Networking technologies

The committee notes the increasing importance of commercial
and military networks for all military operations. Networking
technologies and architectures developed and used by the
Department of Defense (DOD) must be high bandwidth, robust, and
secure in order to support future mission applications and
requirements. To that end, the committee notes that the DOD
should invest in a robust portfolio of technologies to provide
maximum flexibility in the development of future information
systems. The committee directs the Assistant Secretary of
Defense of Command, Control, Communications and Intelligence to
provide an assessment of the relative merits of asynchronous
transfer mode (ATM), Internet protocol (IP), and other
networking architectures in terms of DOD mission needs, quality
of service, cost, encryption capabilities, and compatibility
with commercial systems. The assessment should report on DOD
current and planned investments in research and technology
development for future networking architectures.

Patriot advanced capability-3 testing

The committee notes that the Patriot Advanced Capability-3
(PAC-3) missile defense system has never been tested against a
Scud missile even though such missiles are currently available
in the United States for such testing. The committee also
understands that there are no plans to conduct a test of the
PAC-3 against a Scud target. The committee believes that
realistic live-fire testing against actual threats, when
practical, is important to ensure the effectiveness of weapon
systems. Therefore, the committee directs the Missile Defense
Agency and the Army to plan and budget for a test of the PAC-3
system against a Scud target before the end of fiscal year
2005. The committee encourages the Missile Defense Agency to
incorporate this test into the current plans for PAC-3 testing.

Potential use of hydrogen fuel

The committee directs the Defense Logistics Agency to
examine and report to the committee no later than one year
after the date of enactment of this Act on the potential use of
hydrogen as a defense logistics fuel. The report should include
an examination of potential applications of hydrogen by the
military as a transportation fuel and for power generation;
potential sources of hydrogen fuel for military use
domestically and overseas; potential reductions in the cost and
footprint of deployment for military operations that use
hydrogen fuel and fuel cell technology; and potential
reductions in air emissions from military operations that use
hydrogen fuel and fuel cell technology.

Space based radar and missile defense

The committee is aware of studies done within the
Department of Defense that suggest that Space Based Radar (SBR)
may have some inherent capability to detect, track, and
discriminate ballistic missile warheads in flight. The
committee understands that the primary missions of SBR are
moving target indication and synthetic aperture imaging, but,
in light of the high priority of ballistic missile defense,
believes that an assessment of the potential contributions of
SBR to missile defense is appropriate. The committee,
therefore, directs the Secretary of Defense, through the
Defense Science Board and in consultation with the Missile
Defense Agency, to provide such an assessment to the Committees
on Armed Services of the Senate and House of Representatives no
later than February 15, 2004. The committee would expect such a
review to include: (1) an assessment of the impact of adding a
missile defense mission on the ability of SBR satellites to
conduct their primary missions; (2) how different SBR
architectures and technical approaches might affect the ability
of the satellites to achieve their primary missions and to
contribute to missile defense; (3) an assessment of the value
of potential SBR capabilities in the context of the family of
sensors being developed by the Missile Defense Agency; and (4)
a recommendation concerning any future actions that might be
desirable related to SBR contributions to missile defense.

Space Based Radar architecture

The budget request included $274.1 million in PE 63858F for
the Space Based Radar (SBR) program. This program is designed
to transform surveillance by providing persistent, all-weather
detection, tracking, and imagery of time-critical targets.
The committee supports this effort and is aware that the
Air Force is conducting an analysis of alternatives to identify
an architecture for the SBR program. The committee understands
that there are different proposals for an SBR architecture,
including satellite constellations having Low-Earth Orbits
(LEO), Medium-Earth Orbits (MEO), and mixed constellations
having satellites with LEO and MEO orbits. The committee
supports continued review of a wide variety of SBR
architectures. The committee also notes that a spiral
development approach to the SBR architecture, where the mix of
satellite types and orbits change over time as technology
matures, may be the appropriate approach.
The committee directs the Secretary of the Air Force to
submit a report to the congressional defense committees by
March 30, 2004, and a follow-on report by March 20, 2005, on
the various options for the SBR architecture and spiral
developments. These reports should include, when available, a
description of the initial architecture planned for SBR, the
rationale for choosing the initial architecture and spiral
development planned for the system, and an assessment of the
cost effectiveness of alternative architecture and spiral
alternatives that were evaluated.

Space based infrared system

The committee supports the continuing effort to develop the
Space Based Infrared System, which will replace the Defense
Satellite Program and provide significantly improved early
warning, missile defense, battlespace characterization, and
technical intelligence capabilities. The committee is aware of
the significant efforts taken by the contractor and the
Secretary of the Air Force to restructure the program in the
wake of serious technical problems, schedule delays, and cost
increases. This restructure was approved by the Under Secretary
of Defense for Acquisition Technology and Logistics and the
committee understands that the program was sound.
Consequently, the committee is deeply concerned that, in
the wake of an apparently successful effort to restructure the
program, the fiscal year 2004 budget request reflects another
Air Force restructuring of the program. This latest restructure
will delay the acquisition of the third, fourth and fifth
geosynchronous satellites by two years and leave a three year
gap between the launch of the second and third of these
satellites. The committee is concerned that this restructure is
unwise on multiple grounds: (1) it will increase cost because
production lines will have to close and reopen, and
subcontractors will have to be requalified; (2) technical risk
will increase because of the loss of key personnel and the
subcontractor base; and (3) operational risk will increase
because of the age of the current satellite constellation and
the risk of launch failure in the early replacement satellites.
The committee directs the Secretary of the Air Force to
develop a plan to reduce the production gap in the SBIRS
program from two years to one year. The committee further
directs the Secretary to submit a report to the Committees on
Armed Services of the Senate and the House of Representatives
no later than December 15, 2003, that describes this plan;
compares the program technical, schedule, and cost risk
associated with this plan to the risks of a two year delay;
compares the operational risk of a one year delay compared to a
two year delay; describes steps to mitigate the impact of a one
year production gap; and, if the fiscal year 2005 budget
request does not include full funding for the plan, provides a
detailed rationale for that decision.

Space system vulnerability

The committee notes that the 2001 report of the Commission
to Assess U.S. National Security Space Management and
Organization emphasized the growing reliance of the U.S. civil
economy and the U.S. military on space systems that are
potentially very vulnerable. According to the commission, U.S.
space systems are vulnerable to disruption or attack from a
variety of existing and emerging threats, including attack on
ground stations, denial and deception, jamming, small anti-
satellites, and nuclear detonations in space. Testimony by the
Director of the Defense Intelligence Agency to the committee
indicates that the United States is aware that some nations are
planning and developing the means to attack U.S. space
capabilities.
The commission report also notes that the U.S. ability to
determine if a satellite anomaly is due to an attack, a
hardware failure, or other causes is limited. Further, the
report stated that indicators of threats to U.S. space systems
``* * * have been neither sufficiently persuasive nor gripping
to energize the United States to take appropriate defensive
action.'' The commander of U.S. Strategic Command confirmed in
testimony to the Strategic Forces Subcommittee that
vulnerability of U.S. space systems remains a serious concern.
The committee is encouraged that the issue of the
vulnerability of space systems is starting to receive high
level attention. Nascent efforts are underway to address the
need for collection and distribution of intelligence on threats
to space systems, to establish a coordinated approach to
protect satellites and space systems from those threats, and
the need for continuity of operations in the event of an
attack. The committee strongly approves of these efforts and
encourages the Department of Defense, in conjunction with the
intelligence community when appropriate, to develop a coherent
path forward. The Under Secretary of the Air Force can address
system needs in this context as the executive agent for
Department of Defense space programs. However, the committee
notes that no one in the Department of Defense has overarching
responsibility for developing space policy. Such policy will be
important to guide these efforts.
The committee directs the Secretary of Defense, in
consultation with the Director of Central Intelligence, to
provide a report, in classified and unclassified form, to the
congressional defense committees no later than February 15,
2004, on system level, operational, and intelligence efforts to
address vulnerabilities in space systems and to make any
relevant recommendations.

Spacelift range system

The Air Force maintains the spacelift range system (SLRS),
that consists of east and west coast ranges. The Eastern Range
includes Patrick Air Force Base, Cape Canaveral, and downrange
sites. The Western Range includes Vandenberg Air Force Base and
downrange sites. The SLRS provides tracking, telemetry,
communications, flight analysis, surveillance, and other
support functions to national security, civil, and commercial
space launches, ballistic missile test and evaluation,
aeronautical and guided weapons tests, and space surveillance.
In the early 1990s, the Air Force established five range
modernization requirements to ensure the ranges would remain
safe and viable: (1) preserve and enhance range safety; (2)
provide more reliable and responsive operations; (3)
standardize and automate ranges; (4) reduce life cycle costs by
20 percent; and (5) normalize sustainment and logistics. Phase
I of the modernization effort was started in 1993 and was
completed in 1998. Phase IIA was started in 1995 and was to
have been completed in 2006. That effort, however, was delayed
several years, and the fiscal year 2004 budget request would
terminate these range modernization efforts in fiscal year
2005. Phase IIB was to have started in 2000 but was replaced
with the Space Lift Range System (SLRS) contract. The SLRS
contract was awarded in fiscal year 2000 and was to continue
modernization activities and support proactive recapitalization
projects to sustain the range systems.
In the fiscal year 2004 budget request, the Air Force
requested a reduction of $342.3 million from fiscal years 2004-
2007 the budgets for launch range research and development and
procurement. These reductions would lead to the cancellation of
many of the modernization projects and result in a sustainment
and recapitalization only approach.
The committee is concerned that this approach will be very
detrimental to U.S. space capabilities in the long run. As the
United States continues to increase its reliance on space
assets, failure to modernize the ranges from which these assets
are launched could significantly reduce the ability of the
United States to exploit space based assets in the future.
Moreover, many operational and technical problems at the ranges
are likely to continue or worsen.
The committee directs the Secretary of Defense to conduct a
study on the current conditions of the spacelift ranges and the
modernization requirements to meet all projected national
security launch requirements. This study should include all
aspects of the spacelift range infrastructure, including
downrange sites, to meet anticipated launch requirements for
the next 15 years. The Secretary shall submit to the
congressional defense committees a report on the study and
include all recommendations for modernization that will be
needed to meet the demands of our transformed forces, as well
as other national security space requirements. The committee
directs the Secretary to submit the report no later than
February 15, 2004.
TITLE III--OPERATION AND MAINTENANCE

Explanation of tables
The following tables provide the program-level detailed
guidance for the funding authorized in title III of this Act.
The tables also display the funding requested by the
administration in the fiscal year 2004 budget request for
operation and maintenance programs and indicate those programs
for which the committee either increased or decreased the
requested amounts. As in the past, the administration may not
exceed the authorized amounts (as set forth in the tables or,
if unchanged from the administration request, as set forth in
budget justification documents of the Department of Defense)
without a reprogramming action in accordance with established
procedures. Unless noted in the report, funding changes to the
budget request are made without prejudice.

Subtitle A--Authorization of Appropriations

Armed Forces Retirement Home (sec. 303)

The committee recommends a provision that would authorize
$65.3 million from the Armed Forces Retirement Home Trust Fund
for fiscal year 2004.

Subtitle B--Program Requirements, Restrictions, and Limitations

Armed Forces Emergency Services (sec. 311)

The committee recommends a provision that would authorize
$5.0 million for the American Red Cross to support its Armed
Forces Emergency Services program. The committee recognizes
that the emergency communications services provided by the
American Red Cross have provided an important link between the
men and women of the armed forces and their families in times
of personal emergency. However, the committee notes that in
1994, the Department of Defense and the American Red Cross
agreed upon a goal of ending direct financial assistance to the
Red Cross from the Department. Substantial ``bridge funding''
was authorized in 1995, 1996, and 1997 to facilitate
achievement of this goal. The committee directs the Secretary
of Defense, in consultation with the President of the American
Red Cross, to submit a report to the congressional defense
committees by March 1, 2004, delineating the reasons why the
agreement of 1994 between their organizations, as reflected in
section 383 of the National Defense Authorization Act for
Fiscal Year 1995, has not achieved its stated goal.

Commercial imagery industrial base (sec. 312)

The committee recommends a provision that would require
that: (1) at least ninety percent of the funds authorized for
commercial imagery be available for the acquisition of
commercial space imagery or to support the development of next
generation commercial imagery satellites; and (2) the Secretary
of Defense, in consultation with the Director of Central
Intelligence, submit a report to the Committees on Armed
Services of the Senate and the House of Representatives by
March 1, 2004, on how the Secretary will implement the
President's policy on commercial remote sensing.
The committee remains strongly supportive of the
acquisition of commercial imagery to help meet the low and
medium resolution imagery and geospatial intelligence needs of
the Department of Defense and the intelligence community. The
committee notes that directing funds for commercial imagery in
fiscal year 2004 budget request to acquisition of commercial
space imagery will help sustain the required commercial imagery
industrial base, and will encourage the development of second
generation commercial imagery satellites key to meeting future
needs.

Subtitle C--Environmental Provisions

General definitions applicable to facilities and operations (sec. 321)

The committee recommends a provision that would amend
section 101 of title 10, United States Code, to clarify the
definitions of military munitions, operational range, range,
and range activities in relation to Department of Defense (DOD)
facilities and operations. Currently, these terms are narrowly
defined in relation to the Secretary of Defense inventory of
unexploded ordnance under section 311 of the National Defense
Authorization Act for Fiscal Year 2002 (Public Law 107-107).
This proposal would ensure broader application of these
definitions to the overall management of DOD facilities and
operations.

Military readiness and conservation of protected species (sec. 322)

The committee recommends a provision that would preclude
designation of critical habitat on Department of Defense lands
that are subject to an Integrated Natural Resource Management
Plan (INRMP) prepared under section 101 of the Sikes Act (16
U.S.C. 670a) if the Secretary of Interior determines that such
a plan addresses special management considerations or
protection of endangered or threatened species. The provision
would allow for a balance between military training
requirements and protection of endangered or threatened species
as pertains to pending or future critical habitat designations.
The provision does not retroactively eliminate or change
critical habitat designations that are already in place, as of
the date of enactment of this provision.
Consistent with current practice, the committee would
expect the Secretary of Interior to use established criteria to
determine if an INRMP provides special management
considerations or protection, such as: (1) a current, complete
plan that provides sufficient conservation benefit to the
species; (2) a plan that provides assurances that the
conservation management strategies will be implemented; and (3)
a plan that provides assurances that the conservation
management strategies will be effective.
In recent hearings before the Subcommittee on Readiness and
Management Support of the Armed Services Committee of the
Senate, testimony provided by the Vice Chiefs of the military
services and an official of the Fish and Wildlife Service (FWS)
highlighted the fact that the use of INRMPs is preferred over
existing statutory exclusions or exemptions because the plans
better protect endangered species; application of an exclusion
or exemption increases the risk of species survival. This
provision would codify determinations rendered by both the Bush
and Clinton Administrations that there is no need to designate
critical habitat on a military installation where an INRMP
safeguards endangered species and habitats.
This provision would give the FWS and the military
departments management flexibility in addressing about 150
military installations or sites that are susceptible to
critical habitat designation. In some instances, critical
habitat designations are pending (Guam) or have been approved
(Pacific Missile Range Facility, in Kauai, Hawaii) even though
the species are not currently present on the military lands. A
critical habitat designation on military land poses a problem
because it shifts the core mission focus away from training and
readiness to the protection of endangered species and their
habitats.
Recent court decisions make it necessary to provide
congressional direction that ensures management flexibility on
military lands. At Marine Corps Air Station Miramar and Camp
Pendleton, the FWS excluded both military installations from
substantial critical habitat designations based on a
determination that habitat concerns may be addressed through
completed INRMPs, among other factors. The Federal District
Court disagreed with this approach. As a result, the FWS is now
in the process of revisiting the proposed critical habitat
designations at these installations. The DOD remains concerned
that absent legislative relief, environmental litigation may
result in the designation of substantial areas of these
installations as critical habitat.
The need for flexibility was emphasized in the hearing on
March 13, 2003, before the Subcommittee on Readiness and
Management Support of the Committee on Armed Services of the
Senate. General William L. Nyland, Assistant Commandant of the
Marine Corps, testified that: ``The initial results of the Camp
Pendleton Quantification Study [of Encroachment Impacts] were
surprising. The three combat arms elements [artillery battery,
light armored reconnaissance platoon, and the mortar man] were
able to accomplish only 69 percent of established standards for
non-firing field training. The combat engineer[s] * * * were
able to accomplish 77 percent of established standards for non-
firing field training. In the study, endangered species was the
largest contributing encroachment factor. Endangered species
and their habitat, for example, significantly constrain
individual Marines and Marine units from digging fighting
positions, gun emplacements, vehicle defilade, and for combat
engineers earthmoving and vehicle recovery.'' In the same
hearing, General John M. Keane, Vice Chief of the Army
testified that: ``Designations of critical habitat on Army
installations adds management costs and reduces the
availability of land on which to train.'' According to General
Keane, ``Maneuver land and live-fire ranges are an essential
element of [the] training process--without them, our Soldiers
cannot develop the confidence and the skill demonstrated during
Operation ANACONDA. We must retain those resources that allow
our forces to maintain the level of readiness the American
people have come to expect, and deserve.''
Absent the proposed legislative clarification, critical
habitat could be designated on thousands of acres of valuable
military training lands. Such designations would further erode
the quality of military training, resulting in a direct impact
on readiness.

Arctic and Western Pacific Environmental Technology Cooperation Program
(sec. 323)

The Committee recommends a provision that would authorize
the Secretary of Defense to conduct a cooperative environmental
technology program with countries in the Arctic and Western
Pacific regions. The Secretary, with the concurrence of the
Secretary of State, may provide cooperative assistance on
activities that contribute to the demonstration of
environmental technology in the Arctic and Pacific regions,
with certain limitations and exceptions. The primary focus of
the program would be technology projects and activities related
to radiological contamination. Consistent with this focus, the
provision limits the availability of program funds to no more
than 10 percent for non-radiological matters. The provision
would also require the Secretary to submit an annual report on
the program that would include a discussion of the activities,
the funding, the life-cycle costs of any projects, the
participants, and any contributions from other agencies or
countries.

Participation in wetland mitigation banks in connection with military
construction projects (sec. 324)

The committee recommends a provision that would give the
secretaries of the military departments the authority under
chapter 159 of title 10, United States Code, to participate in
wetland mitigation banking programs or consolidated user sites
(``in-lieu-fee'' programs). The military departments would
participate under the same terms and conditions as other
participants in the mitigation bank program. Currently, there
is no authority for the military departments to participate in
these programs.
Typically, mitigation banks are large areas of constructed,
restored, or preserved off-site wetlands that have been set
aside for the express purpose of providing compensatory
mitigation for adverse impacts to on-site wetlands. The owner
of a mitigation bank is authorized to sell the wetland values
or credits to landowners who need to substitute such wetlands
for those lost to development when avoidance or on-site
mitigation is not feasible. The provision would authorize the
secretaries of the military departments to purchase credits
from an approved mitigation banking program or consolidated
user site.
Section 404 of the Clean Water Act (33 U.S.C. 1344)
requires mitigation to replace aquatic resource functions and
values of wetlands adversely impacted by activities, such as
construction. The wetland mitigation banking programs have been
described under the 1990 Memorandum of Agreement between the
Army Corps of Engineers and the Environmental Protection
Agency, and the 1995 Federal Guidance on the Establishment,
Use, and Operation of Mitigation Banks. In November 2000, the
Army Corps of Engineers, the Environmental Protection Agency
(EPA), the Fish and Wildlife Service (FWS), and the National
Marine Fisheries Service (NMFS) also issued final policy
guidance on ``in-lieu-fee'' arrangements used to provide
compensation for adverse impacts to wetlands. The Army Corps of
Engineers, EPA, FWS, and NMFS all support the use of and
recognize the need for alternatives to on-site mitigation.

Extension of authority to use Environmental Restoration Account funds
for relocation of a contaminated facility (sec. 325)

The committee recommends a provision that would extend for
another three years the authority of the Secretary of Defense
or secretaries of the military departments to use funds
available in the environmental restoration accounts, pursuant
to section 2703 of title 10, United States Code, to permanently
relocate facilities. The authorization remains contingent upon
a secretary's written determination that such permanent
relocation would be part of a response action that: (1) has the
support of the affected community; (2) has the approval of
relevant regulatory agencies; and (3) is the most cost
effective response action available. The committee maintains
the expectation that this authority would be exercised
judiciously and that funds would only be used for legitimate
environmental restoration priorities.

Applicability of certain procedural and administrative requirements to
restoration advisory boards (sec. 326)

The committee recommends a provision that would exempt the
Department of Defense Restoration Advisory Boards (RABs) from
the Federal Register notice requirements of section 10(a)(2),
title 5, United States Code, the Federal Advisory Committee Act
(FACA). The provision would also eliminate any restrictions on
the number of RABs operating at any one time. All other
provisions of FACA would continue to apply. Given the large
number and the purpose of RABs, the Secretary of Defense
determined that strict compliance with these requirements of
FACA is unduly burdensome and costly. In effect, the provision
would facilitate the Secretary's full and efficient utilization
of about 330 Restoration Advisory Boards as a means of
integrating community and regulatory input on environmental
cleanup activities at military installations throughout the
United States.

Expansion of authorities on use of vessels stricken from Naval Vessel
Register for experimental purposes (sec. 327)

The committee recommends a provision that would amend
section 7306a of title 10, United States Code, to authorize the
Secretary of the Navy to retain proceeds from the sale of
material and equipment stripped from vessels stricken from the
Naval Vessel Register. Specifically, contractors or designated
sales agents approved by the Secretary of the Navy would be
allowed to sell the material stripped from these vessels. The
excess funds would be used to pay for environmental remediation
of Navy vessels designated as targets for fleet training
exercises (SINKEX). Absent such authority, stripped materials
and equipment would be removed, stored, and transported to the
Defense Reutilization and Marketing Service for possible sale,
a potentially less cost effective result. The use of on-site
contractors for sale of stripped materials and equipment allows
the Secretary of the Navy to capitalize on the efficiencies of
an integrated stripping and remediation process. Finally, this
provision would clarify that experimental use of vessels
stricken from the Naval Vessel Register includes SINKEX
activities.

Transfer of vessels stricken from the Naval Vessel Register for use as
artificial reefs (sec. 328)

The committee recommends a provision that would authorize
the Secretary of the Navy to transfer vessels stricken from the
Naval Vessel Register to a state, commonwealth, possession of
the United States, municipal corporation, or political
subdivision for use as an artificial reef. Existing authority
specifically excludes battleships, cruisers, aircraft carriers,
destroyers, frigates, and submarines from the definition of
property subject to disposal (40 U.S.C. 102(9)(B)). This
provision would allow the Secretary of the Navy to take
advantage of the full spectrum of ship disposal options for all
vessels stricken from the Naval Vessel Register, consistent
with the Senate report accompanying S. 1416 (S. Rept. 107-62).
This provision would give the Navy authority similar to
that provided to the Maritime Administration (MARAD) under
section 3504 of the National Defense Authorization Act for
Fiscal Year 2003 (Public Law 107-314). The Navy and MARAD are
already working together to develop an integrated process for
use of vessels for artificial reefs in compliance with section
2102 of title 33, United States Code. This provision would
encourage these efforts. Coastal communities can benefit from
these efforts because sunken vessels build reefs that prevent
beach erosion and support marine life, commercial and sport
fishing, and recreational diving.

Salvage facilities (sec. 329)

The committee recommends a provision that would clarify the
authority of the Secretary of the Navy to provide salvage
facilities and to assert claims for salvage services related to
environmental response activities. The provision would amend
sections 7361 and 7363 of title 10, United States Code, for
this purpose.
The Salvage Facilities Act was enacted fifty years ago to
allow for the preservation and recovery of stricken vessels. At
that time, environmental response and pollution prevention were
not considered legitimate elements of salvage activities.
Marine salvage evolved over the years to embrace these issues
of concern. Article 14 of the 1989 International Convention on
Salvage reflects this change. This provision would align
sections 7361 and 7363 of title 10, United States Code, with
international law.

Task force on resolution of conflict between military training and
endangered species protection at Barry M. Goldwater Range,
Arizona (sec. 330)

The committee recommends a provision that would direct the
Secretary of Defense to establish a task force to assess
various means of enabling full use of the live ordnance
delivery areas at Barry M. Goldwater Range while also
protecting endangered species that are present at the Range.
The task force would be composed of the following: (1) the Air
Force range officer (chair); (2) the range officer for
Goldwater Range; Commander of Luke AFB, Arizona; (3) the
Commander of Marine Corps Air Station, Yuma, Arizona; (4) the
Director, U.S. Fish and Wildlife Service; (5) the Manager of
the Cabeza Prieta National Wildlife Refuge, Arizona; (6) a
representative of Department of Game and Fish of the State of
Arizona; (7) a representative of a wildlife interest group of
the State of Arizona; and (8) a representative of an
environmental interest group in the State of Arizona. The task
force would be required to determine or assess the following:
(1) the effects of the presence of endangered species on
military training activities in the live ordnance delivery
areas at Goldwater Range and in any other areas of the range
that are adversely effected by the presence of endangered
species; (2) the various means of addressing any significant
adverse impacts on military training activities on Goldwater
Range that are identified by the task force; and (3) the
benefits and costs associated with the implementation of each
possible solution identified by the task force. The provision
would also require the task force to report to Congress not
later than February 28, 2005.
In recent hearings before the Subcommittee on Readiness and
Management Support of the Armed Services Committee of the
Senate, testimony provided by the Vice Chiefs of the military
services highlighted the fact that the presence of threatened
and endangered species on military installations presents a
testing and training challenge for the Department of Defense.
There are about 190 military installations or sites that are
impacted by the presence of endangered or threatened species.
Once an endangered or threatened species has been listed, the
Secretary of Interior must provide for the conservation of such
species. (16 U.S.C. 1533). Such statutory requirements result
in restrictions on military testing and training activities
that may eventually serve to erode readiness.
The Goldwater Range is one of several ranges within the DOD
where the ability to test and train has been impacted by the
presence of endangered species. At the same time the number of
Sonoran Pronghorn Antelope population has dropped to a critical
level at the Range. As a result, the committee has concluded
that it is appropriate to direct the Secretary of Defense to
establish a task force to assess the problem.

Public health assessment of exposure to perchlorate (sec. 331)

The committee recommends a provision that would require the
Secretary of Defense to provide for an independent study of the
epidemiological and review of the endocrinological effects of
perchlorate. The independent perchlorate study and review would
be conducted through the Centers for Disease Control, the
National Institutes of Health, or another federal entity with
experience in environmental toxicology.
Ammonium perchlorate is manufactured for use as the
oxidizer in the solid propellants for rockets, missiles, and
fireworks. Perchlorates are also used in commercial
applications such as automobile airbags and road flares.
Perchlorate has been found in ground and surface water in about
18 states and is especially pervasive in the western United
States.
Proposed perchlorate standards may expose the U.S.
Government, federal contractors, and other producers and users
of perchlorate to hundreds of millions of dollars in cleanup
costs. Given the health concerns and the potential Department
of Defense liability, the committee believes an independent,
peer-reviewed study and review to be appropriate and necessary.
To the extent practicable, the Secretary shall ensure
expeditious completion of the required study and review.

Subtitle D--Reimbursement Authorities

Reimbursement of reserve component military personnel accounts for
personnel costs of special operations reserve component personnel
engaged in landmines clearance (sec. 341)

The committee recommends a provision that would amend
section 401(c) of title 10, United States Code, to authorize
the use of designated operations and maintenance funds to
reimburse pay and allowances of reserve components members of
Special Operations Command who are called to active duty to
participate in humanitarian landmine clearance operations. This
provision limits the Department of Defense to the expenditure
of $5.0 million annually for this purpose.

Reimbursement of reserve component accounts for costs of intelligence
activities support provided by reserve component personnel
(sec. 342)

The committee recommends a provision that would amend
Chapter 1003 of title 10, United States Code by adding a new
section to authorize the use of operations and maintenance
funds of military departments, combatant commands, and defense
agencies to reimburse pay, allowances and other expenses when
National Guard or Reserve intelligence personnel are called to
active duty to provide intelligence or counterintelligence
support to such military departments, commands or agencies.

Reimbursement rate for airlift services provided to the Department of
State (sec. 343)

The committee recommends a provision that would authorize
the Secretary of Defense to charge the Department of State the
same reimbursement rate for airlift services as charged to
other Department of Defense components. These airlift services
would only be for the transport of armored vehicles necessary
to provide a safe environment for the Secretary of State when
traveling and only when such vehicles are not available in the
foreign country to which the Secretary of State is traveling.

Subtitle E--Defense Dependents Education

Assistance to local educational agencies that benefit dependents of
members of the Armed Forces and Department of Defense civilian
employees (sec. 351)

The committee recommends a provision that would authorize
$30.0 million for continuation of the Department of Defense
(DOD) assistance program to local educational agencies that
benefit dependents of service members and DOD civilian
employees.

Impact aid for children with severe disabilities (sec. 352)

The committee recommends a provision that would authorize
$5.0 million for continuation of the Department of Defense
assistance program to local educational agencies that benefit
dependents with severe disabilities.

Subtitle F--Other Matters

Sale of Defense Information Systems Agency services to contractors
performing the Navy-Marine Corps Intranet contract (sec. 361)

The committee recommends a provision that would enable the
Defense Information Systems Agency (DISA) to sell working-
capital funded services to contractors that are working on the
Navy-Marine Corps Intranet (NMCI) contract. This would allow
NMCI contractors to directly reimburse DISA for use of Defense
Information Systems Network (DISN) wide area network services.
The committee believes that this arrangement will improve the
efficiency of and provide cost savings to the NMCI program.

Use of the Defense Modernization Account for life cycle cost reduction
initiatives (sec. 362)

The committee recommends a provision that would extend the
authorization for the Defense Modernization Account (DMA) and
amend the existing authority to allow the Department to program
funds into this account to provide start-up funds for projects
to improve the life cycle cost of new or existing systems. The
savings resulting from such initiatives would then be used, in
part, to reimburse the DMA.
The term ``life cycle cost'' represents the total cost of a
system, including development, procurement, and testing, as
well as subsequent operations, maintenance, and disposal costs.
Existing Department of Defense directives require that the
acquisition of major systems be managed to minimize life cycle
costs. The committee fully expects this requirement to be
retained in the revision of these regulations that is currently
under way. This provision would complement that requirement by
facilitating targeted investments to reduce the life cycle
costs of new and existing systems.
This provision would require the Secretary of Defense to
prescribe regulations governing the use of the DMA for life
cycle cost reduction initiatives. These regulations would
address procedures for the submission of proposals for life
cycle cost reduction initiatives, the competitive evaluation of
such proposals, and the reimbursement of the DMA out of savings
from such proposals.

Exemption of certain firefighting service contracts from prohibition on
contracts for performance of firefighting functions (sec. 363)

The committee recommends a provision that would allow the
Department of Defense to enter into contracts for up to one
year for the performance of firefighting functions to fill
positions vacated by deployed military firefighters.

Technical amendment relating to termination of Sacramento Army Depot,
Sacramento, California (sec. 364)

The Committee recommends a technical amendment to repeal an
obsolete provision of law related to a closed military
facility.

Exception to competition requirement for workloads previously performed
by depot-level activities (sec. 365)

The committee recommends a provision that would amend
section 2469 of title 10, United States Code, to clarify that
section 2469 does not apply to current depot-level maintenance
and repair workload performed under a public-private
partnership pursuant to section 2474(b). While section 2474
authorizes the establishment of public-private partnerships to
perform work, section 2469, by requiring a public-private
competition, would essentially limit the performance of current
workloads that exceed $3.0 million to either a depot or a
contractor. This provision would amend section 2469 to enable
effective consideration of partnerships for current workload
above $3.0 million.

Support for transfers of decommissioned vessels and shipboard equipment
(sec. 366)

The committee recommends a provision that would enable the
Navy to provide assistance to certain foreign, state, and
municipal governments, organizations, and other entities in
support of certain ship and shipboard equipment transfers. The
provision would only apply to transfers made in accordance with
sections 2572, 7306, 7307, or 7545 of title 10, United States
Code. The provision would also authorize the Navy to be
reimbursed for such assistance.
The Navy maintains decommissioned naval vessels at
government facilities operated by a part of the Navy Inactive
Ships Management Office (NISMO). Periodically, the Navy is
asked to provide services incidental to the transfer of
inactive ships or of material from inactive ships by donation
or by other authority. This provision would allow reimbursement
for these services to be received and retained in Navy
accounts.

Aircraft for performance of aerial refueling mission (sec. 367)

The budget request and the Future Years Defense Program
include plans for the Air Force to retire 68 KC-135E aerial
refueling aircraft. The rationale presented for retiring these
aircraft is that the cost to continue maintaining them is
increasing. What this rationale does not address is the overall
requirement for aerial refueling, nor does it address the
approach that the Air Force will take to meet this requirement,
should the remaining tanker fleet be unable to meet
requirements.
The committee is aware that the Air Force established a set
of criteria for deciding which KC-135E's were proposed for
retirement: (1) mission design series and year group; (2)
proximity to programmed depot maintenance; (3) incorporation
status of structural modifications; (4) incorporation of other
modifications; (5) number of flight hours; (6) type of
environment where aircraft had been stationed; and (7)
condition of remaining fuel tank topcoat.
The committee understands that the number of aircraft the
Air Force wants to retire is based on input from the Air
Mobility Command and the lowering of the numbers of KC-135
aircraft at Air National Guard squadrons from 12 to eight. The
committee realizes that a limited number of these aircraft may
be too difficult to maintain, but does not believe the Air
Force should retire 68 aircraft until an overall approach to
the modernization and recapitalization of the aerial refueling
fleet is better understood.
The committee recommends a provision that would restrict
the Air Force from retiring more than 12 KC-135Es in fiscal
year 2004. The provision also would require an independent
analysis of alternatives for meeting aerial refueling
requirements to be conducted by an independent entity, such as
a federally funded research and development center. The
provision directs the analysis to be delivered to Congress by
March 1, 2004. This analysis of alternatives should consider
all possible alternatives for modernization and/or
recapitalization of the aerial refueling fleet, to include, at
a minimum, those recommended in the tanker requirements study
for fiscal year 2005: (1) re-engining of the KC-135Es; (2)
extending aircraft service life; (3) acquiring commercial-off-
the-shelf aircraft; (4) developing a new tanker; (5) relying on
multi-mission aircraft; (6) operating a high-low mix of
aircraft; (7) pursuing a phased approach; (8) pursuing full
replacement; (9) leasing; and (10) considering future
requirements. Air Force briefings had indicated this analysis
of alternatives would start in fiscal year 2001, but in
testimony before the Airland Subcommittee of the Senate Armed
Services Committee in April 2003, the Assistant Secretary of
the Air Force for Acquisition testified that there was no plan
to conduct a formal analysis of alternatives. The committee
believes it would be unwise to retire so many aerial refueling
aircraft without a re-evaluation of the requirement and an
analysis of alternatives to meet that requirement.

Stability of certain existing military troop dining facilities
contracts (sec. 368)

The committee recommends a provision that would provide for
the continuation and completion of existing contracts
(including any options) awarded to the blind and severely
disabled for the operation of military troop dining facilities,
military mess halls, and other similar military dining
facilities. The provision recommended by the committee would
not address either: (1) laws applicable to any follow-on or
successor contracts to these existing contracts; or (2) laws
applicable to contracts for the operation of military dining
facilities not currently operated by the blind and severely
disabled.

Repeal of calendar year limitations on use of commissary stores by
certain Reserves and others (sec. 369)

The committee recommends a provision that would eliminate
the annual limitation on use of commissary stores by certain
reservists.

Budget Items

Extended Cold Weather Clothing System

The budget request included no funding for the Extended
Cold Weather Clothing System (ECWCS) for the Army, active or
reserve components, or the Air National Guard. The committee
supports initiatives by the services to increase the
survivability and comfort of military personnel in all weather
conditions. Therefore, the committee recommends an increase for
ECWCS in the following operation and maintenance accounts: $5.0
million for the Army; $7.0 million for the Army Reserve; $5.0
million for the Army National Guard; and $2.0 million for the
Air National Guard.

Field battery charging technology

The budget request included $12.6 billion in Operation and
Maintenance, Army for operating forces, but included no funding
for field battery charging equipment. The committee notes a
continuing increase in the Army requirement to support field
electronics such as global positioning systems, man-portable
computers, and communications equipment. Without adequate
battery support, the electronic equipment which serves as a
force multiplier for deployed forces can restrict operations
and limit mobility. Therefore, the committee recommends an
increase of $2.5 million in Operation and Maintenance, Army,
for field battery charging technology, including photovoltaic
arrays using copper indium gallium deselenide technology.

Quadruple shipping containers

The budget request included no funding for quadruple
shipping containers in Operation and Maintenance, Army. The
committee recommends an increase of $4.0 million in Operation
and Maintenance, Army, for quadruple shipping containers.
Quadruple shipping container technology leverages a unique
construction design to maximize shipping flexibility. The
mobilization for Operation Iraqi Freedom demonstrated the
utility of quadruple containers to meet equipment lift
requirements.

Department of Defense foreign language training

The budget request included $600,000 for the Defense
Language Institute in Operation and Maintenance, Army, Budget
Authority (BA) 03, specifically for Satellite Communications
Language training activities (SCOLA). SCOLA is a unique
satellite-based language training activity that provides
television programming in a variety of languages from around
the world. Language students and seasoned linguists have found
this augmentation to their normal language training to be
helpful. SCOLA is developing an internet-based streaming video
capability which will greatly increase the availability of this
training medium to military linguists, virtually anywhere they
can obtain an internet connection. In addition, SCOLA plans to
develop a digital archive that will allow users anywhere to
review and sort language training information, on demand.
The committee recommends an increase of $2.0 million in
Operation and Maintenance, Army, BA 03 for SCOLA, to be used by
all military service language training activities, including
those of U.S. Special Operations Command.

Recruiting and advertising costs

The budget request included over $1.10 billion for
recruiting and advertising. Testimony received from service
personnel chiefs and Reserve chiefs indicated that retention
levels are at historic highs and that recruiting efforts have
been very successful. The committee believes that service
recruiting goals can be achieved at less expense in the areas
of advertising and support costs than the services have
requested. Accordingly, the committee recommends a decrease of
$43.0 million in operations and maintenance funding for
recruiting and advertising costs, divided as follows:
Army--$13.0 million;
Army Reserve--$8.0 million;
Army National Guard--$7.0 million;
Navy--$5.0 million;
Navy Reserve--$1.5 million;
Marine Corps--$2.0 million;
Marine Corps Reserve--$0.5 million;
Air Force--$5.0 million;
Air Force Reserve--$0.5 million;
Air National Guard--$0.5 million.

Flight School XXI

The budget request included $499.4 million in Operation and
Maintenance, Army, for the Army's Flight School XXI program.
The committee strongly supports the Army's plan to create a
more strategically responsive, agile, and versatile aviation
force. In addition, the committee recognizes that Flight School
XXI is an integral component of the Army's overarching
transformation plan. Therefore, the committee recommends an
increase of $15.0 million for the Flight School XXI program.

Corrosion prevention and control

The budget request included no funding in Operation and
Maintenance, Army, for corrosion prevention and control. The
committee recommends an increase of $8.0 million in Operation
and Maintenance, Army, in support of the Army's Corrosion
Prevention and Control Program. The committee recognizes
advancements in Army corrosion prevention efforts and supports
the Army's initiatives to address continuing challenges.

M1A1 Abrams tank transmission upgrade

Of the amount authorized for land systems depot
maintenance, the committee authorizes up to $15.0 million of
Operation and Maintenance, Army, for M1A1 tank transmission
upgrades, and directs the Secretary of the Army to submit a
report to the congressional defense committees, no later than
February 3, 2004, on future plans to sustain the operational
readiness of tank transmissions for the remaining fleet.

Weapons of Mass Destruction-Civil Support Teams

The budget request included no funding for the
establishment of Weapons of Mass Destruction-Civil Support
Teams (WMD-CSTs). The committee authorizes $88.4 million to
establish 12 teams in fiscal year 2004. The committee directs
that the $88.4 million be allocated as follows: National Guard
Personnel Army, $18.3 million; National Guard Personnel Air
Force, $3.9 million; Operation and Maintenance Army National
Guard, $16.0; Procurement Army, $25.9 million; Operations and
Maintenance Army, $23.3; Chemical Biological Defense Program,
$1.0 million.
Currently, 32 teams are certified and operational. Section
1403 of the Bob Stump National Defense Authorization Act for
fiscal year 2003 (Public Law 107-314) directed the Secretary of
Defense to establish 23 additional WMD-CSTs for a total of 55
teams, and to ensure that there is at least one team
established in each State and Territory. This additional
funding will result in a total of 44 WMD-CSTs by the end of
fiscal year 2004. The committee understands that the Department
of Defense is capable of standing up only 12 teams in fiscal
year 2004. The committee expects the Department to include
funding for the remaining 11 teams in its fiscal year 2005
budget request.

Operations in Southwest Asia

The budget request included $1.4 billion in the operation
and maintenance (O&M) and military personnel (MILPERS) accounts
of the services and Defense agencies to cover the incremental
costs of conducting Operation Northern Watch (ONW) and
Operation Southern Watch (OSW) to enforce no fly zones over
Northern and Southern Iraq, and Operation Desert Spring (ODS)
to assist in the defense of Kuwait.
These operations have continued uninterrupted for over a
decade. For the last two years, the Department has requested
funding for the costs of these operations in the O&M and
MILPERS accounts of the military services. These operations
were funded through these accounts, instead of through a
contingency fund or supplemental appropriations, because of
their long-term nature.
The committee notes that on April 15, 2003, the Department
of Defense announced changes to its operations in Southwest
Asia. According to the Secretary of Defense and the Chairman of
the Joint Chiefs of Staff, ONW ended as of April 15, 2003, and
military units involved in ONW were being redeployed to other
locations. They also announced that military units were no
longer conducting ``no fly zone'' operations over Southern
Iraq. Units that had previously been conducting operations in
Southwest Asia were now participating in Operation Iraqi
Freedom (OIF).
The Department has stated that the incremental costs of OIF
would be funded through supplemental appropriations. The
committee, therefore, recommends a decrease of $1.4 billion in
the O&M and MILPERS accounts of the services and Defense
agencies for the costs of ONW, OSW, and ODS, since these funds
are no longer needed for the purposes for which they were
requested. The O&M and MILPERS accounts of the services and
Defense agencies shall be reduced by the following amounts:

------------------------------------------------------------------------
O&M MILPERS
------------------------------------------------------------------------
Army.................................... -$200.4 -$74.2
Navy.................................... -75.8 -1.2
Navy Reserve............................ 0.0 -0.8
Marine Corps............................ -0.3 -0.5
Air Force............................... -707.6 -235.4
Defense-wide............................ -80.1 0.0
------------------------------------------------------------------------

Working Capital Funds

The budget request included $1.7 billion in discretionary
spending for defense working capital funds. To ensure proper
management of the funds, the committee recommends reducing
excess cash balances within the services accounts by $313.5
million, as follows: Army, $107.0 million; Navy, $92.5 million;
and Air Force, $114.0 million.
While the Navy's fiscal year 2004 budget request will not
result in excess cash balances in fiscal year 2004, the Navy
does plan to use working capital fund balances to buy out the
Puget Sound Naval Shipyard (PSNSY) from operating under a
working capital fund. However, when the Pearl Harbor Naval
Shipyard pilot program was initiated, direct appropriations
were used to remove those facilities from operating under a
working capital fund. The committee is troubled both by the
planned transition of the PSNSY out of the Navy's working
capital fund and by the funding mechanism that is proposed for
this purpose.
The transfer of the Pearl Harbor Naval Shipyard out of the
Working Capital Fund, to direct, or mission, funding has not
been adequately studied. The Navy has not updated its report of
the Pearl Harbor experiment in two years. The committee is
concerned that removing the PSNSY will put an undue burden on
the remaining shipyards funded through the working capital
fund. Before changing the funding source for the PSNSY, the
committee directs that the Navy conduct a study on the lessons
learned and the costs and benefits of mission funding the Pearl
Harbor Naval Shipyard. The report should also discuss the
possible effects on the remaining public shipyards if these
shipyards remain inside the working capital fund or are taken
out of the Working Capital Fund. The committee recommends a
decrease of $92.5 million in the Navy Working Capital Fund, the
amount of the working capital fund buy-out costs for the PSNSY
contained in the budget request.

Civilian personnel pay in excess of requirements

Analysis performed by the Government Accounting Office
based on the services' end strength data for civilian personnel
as of January 31, 2003, projects that the Army's civilian
personnel costs are overstated for fiscal year 2004. Therefore,
the committee recommends reducing the Army operation and
maintenance account by $12.4 million.

Condition-based maintenance photonic sensors

The budget request included $7.8 billion in Operation and
Maintenance, Navy, for ship operations, including
organizational level maintenance on gas turbine engines. The
committee supports the development of technology that supports
the Navy's condition-based maintenance program for marine gas
turbine engines. Therefore, the committee recommends an
increase of $6.5 million in Operation and Maintenance, Navy,
for the development of photonic sensor systems for gas turbine
engines.

Lead paint removal

The budget request included $5.0 million in the Operation
and Maintenance, Navy, account for the removal of lead-
contaminated paint from 26 very low frequency (VLF) radio
towers at the Naval Computer and Telecommunications Area Master
Station, Atlantic Detachment. This project, which began in
fiscal year 1997, is 50 percent complete. The Navy has
programmed funding to finish the remainder of the project by
fiscal year 2007.
The committee strongly supports the Navy's continuing
project to remove contaminated paint from the radio towers. The
committee is concerned, however, with the Navy's current level
of progress on this project. Therefore, the committee
recommends an increase of $3.0 million in Operation and
Maintenance, Navy, to expedite the removal of contaminated
paint from VLF radio towers.

Navy excess carryover

The committee is aware that several Navy Working Capital
Fund activities currently exceed the carryover ceiling as
determined under current methodologies established by the
Department. The budget request includes $43.5 million in these
activities that exceed the carryover ceilings as set by the
Department of Defense. Therefore, the committee recommends a
decrease of $43.5 million in Operation and Maintenance, Navy,
to reflect the funds in the Navy Working Capital Fund
activities that cannot be expended during fiscal year 2004.

Naval Station Roosevelt Roads

The budget request included $3.7 billion for Navy base
operations support, including the costs of base operations at
Naval Station Roosevelt Roads (NSRR). The committee notes that
NSRR has an annual operating budget of $58.0 million. The
committee recommends a decrease of $29.0 million for NSRR due
to downsizing of the base.
On April 10, 2003, the Department of the Navy announced
significant changes to NSRR as a result of the end of training
at Vieques. According to the Navy, Vieques-based training
functions have been relocated to continental United States
(CONUS)-based training areas. As a result, the overhead
structure at NSRR is ``* * * significantly oversized for the
remaining missions and must be reduced.'' The Navy, therefore,
is implementing a plan to disestablish or reassign military
administrative and operational units currently located at NSRR
that were previously connected with training at Vieques.
The committee strongly supports the Navy's plan to conform
assigned units at NSRR with mission requirements of the base.
The Navy plan will reduce the number of military operational
and administrative units at NSRR by 60 percent and decrease the
number of personnel assigned to NSRR by 65 percent over an
eighteen month period. Therefore, the committee recommends a
decrease of $29.0 million, a 50 percent reduction to the annual
budget, for base operations support at NSRR.

Chemical-Biological Incident Response Force Family of Incident Response
Systems

The budget request included no funds in Operation and
Maintenance, Marine Corps, for the Chemical-Biological Incident
Response Force (CBIRF) Family of Incident Response Systems
(FIRS). The committee notes that FIRS provides CBIRF with the
technologies needed to conduct reconnaissance, decontamination,
force protection, medical, command-control-communication-
computers-intelligence, urban search and rescue, and general
support missions. Therefore, the committee recommends an
increase of $2.0 million in Operation and Maintenance, Marine
Corps, for CBIRF FIRS.

Initial issue

The budget request included $588.7 million in Operation and
Maintenance, Marine Corps, for operational forces, including
initial issue of personal clothing and equipment. The request,
however, included no funding for the All Purpose Environmental
Clothing System (APECS). According to the Marine Corps, APECS
is of high military value as it provides Marines with the
proper modernized clothing protection to perform and survive in
various environments at maximum efficiency. The Marine Corps
unfunded programs list identified a shortfall of $51.3 million
for initial issue items. Therefore, the committee recommends an
increase of $5.0 million in Operation and Maintenance, Marine
Corps, for initial issue, to include the APECS.

Corrosion prevention and control

The budget request included $5.0 million in Operation and
Maintenance, Marine Corps, for corrosion prevention and
control. The committee notes that Marine Corps equipment is
subjected to extreme conditions due to the operating locations
of the Marine forces. The result is an increase in the degree
of rust and corrosion than would otherwise normally be
expected. Therefore, the committee recommends an increase of
$5.0 million in Operation and Maintenance, Marine Corps, for
the Marine Corps to continue a robust and comprehensive
Corrosion Prevention and Control Program.

Missile maintenance

The budget request included $27.8 billion in Operation and
Maintenance, Air Force, but included no funding to support the
AIM-9X missile. The committee notes that lack of funding will
result in erosion of the availability rate of the AIM-9X.
Therefore, the committee recommends an increase of $4.9 million
in Operation and Maintenance, Air Force, to support maintenance
requirements of the AIM-9X.

Manufacturing Technical Assistance and Production Program

The budget request included $3.1 billion in Operation and
Maintenance, Air Force, for logistics operations, but included
no funding for the Manufacturing Technical Assistance and
Production Program. The committee recognizes the challenges
that small and disadvantaged businesses must overcome when
conducting business with the Department of Defense. Therefore,
the committee recommends an increase of $3.0 million in
Operation and Maintenance, Air Force, for the Manufacturing
Technical Assistance and Production Program (MTAPP) to further
develop productive relationships between the small business
community and the Department of Defense.

Air Force Supply Management Activity Group Working Capital Fund and
Depot Maintenance

The committee is concerned with the current trend in the
Air Force Supply Management Activity Group Working Capital Fund
(SMAG WCF) of building excess balances. Working capital funds
should be managed towards achieving a zero operating balance.
However, the fiscal year 2004 budget request reflects
accumulated operating balances that continue to grow through
fiscal year 2005 ($404.7 million in fiscal year 2003, $668.7
million in fiscal year 2004, and $856.6 million in fiscal year
2005). Therefore, the committee recommends reducing excess
balances in the SMAG WCF by $250.0 million.
The committee is also concerned that the Air Force reports
a backlog of $516.0 million in fiscal year 2004 for depot
maintenance. At the level of funding in the budget request, the
Air Force reports that backlogs in depot maintenance for
critical weapon systems (such as the KC-135, F-15, and B-52)
will grow. Therefore, the committee recommends an increase of
$250.0 million for Air Force depot maintenance activities.

Train and equip program

The budget request for the Defense Security and Cooperation
Agency (DSCA) included $200.0 million for a program that would
allow the Department of Defense to provide military assistance
or support to unspecified foreign nations assisting U.S.
military operations or other activities to combat global
terrorism. Such assistance could include the provision of
equipment, supplies, services, and funding. Use of these funds
would require the concurrence of the Secretary of State. The
committee recommends a decrease of $200.0 million in DSCA for
this purpose. The committee notes that assistance of the type
requested here should more appropriately be provided through
the regular foreign assistance accounts. The committee notes
that, for emergent requirements to support cooperative
activities with foreign nations in combating global terrorism,
the Department has existing authorities that it can utilize,
such as sections 2341 and 2342 of title 10, United States Code,
which were used recently to provide assistance to Pakistan.

Information assurance scholarship program

The budget request included $7.0 million in PE 33140D8Z,
Operations and Maintenance, Defense-wide for the information
assurance scholarship program. This program was established by
section 922 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001.
The committee strongly supports this program and is
encouraged that the Department has established a strong
foundation of participating schools and is receiving
significant interest from prospective students. The need to
develop and sustain a strong, professional corps of information
assurance professionals within the Department of Defense
remains an essential goal.
The committee recommends an increase of $3.0 million in PE
33140D8Z, Operations and Maintenance, Defense-wide for the
information assurance scholarship program, to increase the
number of scholarships and grants that the Department will be
able to award in fiscal year 2004.

Transportation Working Capital Fund

The U.S. Transportation Command charges the military
services for transporting goods and personnel through a working
capital fund arrangement where customers are billed for
services to cover costs. Customer rates are adjusted a year in
advance--including surcharges for administration and overhead
costs--with the goal of breaking even.
Since September 11, 2001, the Global War on Terrorism has
placed high demands on the Department's transportation system,
resulting in large positive operating balances in the
Transportation Working Capital Fund (TWCF). In fiscal year
2002, the excess balances were $680.0 million. Ongoing
operations in support of Operation Iraqi Freedom will again
result in large positive operating balances in the TWCF for
fiscal year 2003, with revenues expected to surpass those in
fiscal year 2002. Therefore, the committee recommends reducing
excess balances in the TWCF by $600.0 million.

Equipment Storage Site initial operations

The budget request included $1.7 billion in Operation and
Maintenance, Army Reserve, for operating forces, but included
no funding for the Equipment Storage Site program. The
committee recommends an increase of $1.0 million in Operation
and Maintenance, Army Reserve, to support initial operations of
Army Reserve Equipment Storage Sites. The committee notes the
equipment storage requirements of the Army Reserve and the
Equipment Storage Site program which is intended to address
those requirements. The committee supports leveraging existing
Army Reserve Strategic Storage Site facilities that provide a
minimum of 1.3 million square feet of controlled humidity
protection for the Equipment Storage Site program.

Cannon bore cleaning

The budget request included $1.7 billion in Operation and
Maintenance, Army National Guard, for operating forces,
including funds to purchase cleaning solvents for cannon bores.
The committee notes the challenges of the Army National Guard
related to artillery, tank, and mortar tube maintenance. The
committee strongly supports Army National Guard cannon bore
cleaning initiatives that will reduce maintenance requirements,
while extending cannon bore life and preserving weapon
accuracy. The committee also notes efforts by the Army National
Guard to minimize the environmental impact that may result from
cannon bore cleaning. Therefore, the committee recommends an
increase of $2.0 million in Operation and Maintenance, Army
National Guard for cannon bore cleaning systems using water and
environmentally ``friendly'' detergents.

Test support program

The budget request included $2.0 million in Operation and
Maintenance, Air National Guard (ANG), for test support. The
committee supports the contributions of the Air National Guard
to defense system testing. The committee notes that the Air
National Guard has performed this function for over thirty
years. The committee recommends an increase of $1.5 million in
Operation and Maintenance, Air National Guard, to support the
evaluation of defense systems.
The committee also directs the Director of the Air National
Guard and the Director, Operational Test and Evaluation (DOT&E)
to report jointly to the congressional defense committees by
February 1, 2004, on the role of the ANG in supporting defense
systems testing and the plan to provide long-term core
sustainment funds for defense systems test support.

Funding for Formerly Used Defense Sites

The budget request included $213.0 million for cleanup of
Formerly Used Defense Sites (FUDS). The committee recommends an
increase of $40.0 million for FUDS cleanup.
The Army is the executive agent for cleanup of FUDS; the
Army Corps of Engineers manages and executes actual remediation
activities. The committee notes that there are over 9,000
properties identified for inclusion in the FUDS program,
hundreds of which could be categorized as former ranges.
Historically, the FUDS program has experienced significant
funding shortfalls, making it difficult to execute much needed
remediation projects at these sites. In an effort to address
this problem, Congress included additional funds for FUDS
remediation in every fiscal year since 2000. These funding
increases merely helped to address a portion of the funding
shortfalls. Once again, the fiscal year 2004 budget request
failed to address this funding problem.
The committee directs the Secretary of Defense and the
Secretary of the Army to address the lack of funding support
for FUDS within the DOD and the Army. This is particularly
important given Congress' ongoing review of environmental
encroachment issues related to the management and cleanup of
operational ranges.
Specifically, the committee is aware that the Avtex Fibers
Facility in Virginia, requires $10.0 million to complete
environmental cleanup and demolition of buildings over the next
two years. The committee recognizes the importance of this work
and expects the Army Corps of Engineers to provide adequate
funding to complete cleanup requirements at the Avtex site and
other FUDS sites in a timely manner.

Overseas Contingency Operations Transfer Fund

The committee has fully funded the administration request
for support of ongoing DoD operations in Bosnia and Kosovo.
These operations are no longer contingency events, and such
contingency lines are funded in the regular appropriations
accounts, as requested by the administration. Contingency
operations that arose in the past year are covered in emergency
supplemental requests, and are not funded through the Overseas
Contingency Operations Transfer Fund (OCOTF) account. As
ongoing operations are accounted for in both the normal budget
process and the emergency supplemental, a contingency
operations transfer fund is not needed and the committee
recommends a reduction of $50.0 million from the Overseas
Contingency Operations Transfer Fund.

Other Legislation

The budget request included $45.0 million for a legislative
provision that the Department of Defense did not send to the
Congress. Therefore, the committee recommends reducing the
budget request by that amount.

Items of Special Interest

Arlington National Cemetery information and planning system

Arlington National Cemetery is the nation's principal
national shrine where public honor and recognition are accorded
those men and women who served in the U.S. Armed Forces. The
committee notes that families, friends, and individuals from
around the world travel to Arlington National Cemetery to honor
their loved ones and their comrades-in-arms. The cemetery
annually conducts more than 6,000 funeral services and
approximately 3,000 non-funeral services, which honor all
veterans and their families. Because the cemetery currently
uses antiquated, labor-intensive management tools to manage
myriad activities, the caretakers are presented with numerous
challenges.
The committee understands that the budget request for the
Department of Veterans' Affairs for fiscal year 2004 includes
$500,000 to develop an information and planning system that
will optimize visitors' experience at the cemetery and improve
employee productivity. The committee notes that an additional
$5.0 million will be necessary to install and operate this
system. Therefore, the committee strongly encourages the
Secretary of Veterans' Affairs to fully fund the Arlington
National Cemetery information and planning system.

Chemical depot airspace security

After the terrorist attacks of September 11, 2001, the
Department of Defense requested, and the Federal Aviation
Administration (FAA) established, temporary flight restrictions
above the chemical weapons stockpile depots, including Newport,
Indiana. The committee has learned that a number of airspace
violations have occurred in the restricted airspace above some
of the depots. The committee encourages the Department of
Defense to work with the FAA to enhance airspace security above
the chemical depots. The committee also encourages the
Department to consider any additional steps needed to avert
airspace violations, possibly including enhanced surveillance
or more stringent airspace restrictions.

Comprehensive management of Department of Defense ranges

The Department of Defense (DOD) manages large areas of the
land, air, and sea for weapons system testing and for military
training. Demand for military range space is increasing due to
weapon system capabilities, technology-enabled dispersion of
forces and non-contiguous operations, increasing focus on joint
operations, and the adverse impacts of environmental
encroachment issues. These demands present numerous challenges
for the DOD.
The committee is aware of the challenges associated with
the use of military test and training ranges, and the need to
optimize the use of existing assets.
The committee commends the efforts of the DOD and local
range commanders to overcome testing and training range
challenges. On January 10, 2003, the DOD issued Directive
3200.15, which articulates DOD policy to promote the
sustainment of test and training ranges. The Defense Test and
Training Steering Group continues to expand cooperation among
the testing and training communities. Range commanders have
forged alliances and informal relationships to leverage range
funding and range utilization.
The committee is interested in the results of the DOD
initiatives to overcome testing and training range challenges.
The committee directs the Secretary of Defense to conduct a
study of the optimal use of test and training ranges DOD-wide.
The study should be submitted to the congressional defense
committees no later than November 1, 2004, and should include
an evaluation of the following: (1) the current and projected
requirement for the land, air, and sea space in support of
testing and training requirements; (2) the funding and
organizational management structures that support range use,
including their advantages and disadvantages; (3) alternative
management structures; and (4) recommendations for specific
regulatory and legislative changes to optimize range capability
and use.

Depot, arsenal and ammunition workforce revitalization

The committee has long been concerned with issues of
workforce revitalization in key areas of national defense,
particularly in the production and maintenance of key military
weapon systems and munitions. The House report to accompany the
National Defense Authorization Act for Fiscal Year 2001 (H.
Rept. 106-616) directed the Army to establish a program to hire
and train new workers at its depots. The committee strongly
supports these efforts and recommends that they be expanded to
include other critical aspects of defense production, such as
Army arsenals and ammunition plants. The committee directs the
Army to include arsenal and ammunition plants in its
apprenticeship programs in order to address the need to
revitalize the highly-skilled arsenal and munitions workforce.

Environmental cleanup for former Navy property on Vieques

The committee is aware that the Secretary of the Navy has
now terminated Navy training activities and transferred
property on Vieques Island, Puerto Rico, to the Department of
Interior (DOI) and the Municipality of Vieques. The former
Naval Ammunition Support Detachment (NASD) on the western side
of Vieques was transferred or conveyed to the Secretary of
Interior, the Municipality of Vieques, and the Puerto Rican
Conservation Trust in April 2001 (Public Law 106-398). As
required by Congress, the cleanup of those portions of NASD
conveyed to the Municipality of Vieques and the Puerto Rican
Conservation Trust are subject to environmental cleanup
requirements of the Comprehensive Environmental Response,
Compensation and Liability Act (CERCLA) and the procedures
outlined in the National Contingency Plan (NCP) (Public Law
106-398).
The committee notes that cleanup designs are developed
through the CERCLA process based upon relative risk to human
health and the environment and future land use. The committee
expects that the CERCLA process at Vieques will involve the
DOI, EPA, Puerto Rico, and the public. The committee is aware
that the function of the existing CERCLA process is to assess
contamination, to design remedies, and to implement remedies in
a transparent, orderly fashion. The committee expects that, as
part of the CERCLA process, EPA and the Navy, with the
assistance of DOI, will produce a Federal Facilities Agreement
(FFA) that will determine how the NCP will be implemented on
Vieques. The committee is aware that implementation and funding
of cleanups are prioritized by relative risk, with the highest
priority based on risk to human health. Consistent with this
practice, the committee expects that Vieques will be subject to
the same prioritization methodology.
Former Navy lands transferred on the eastern side of
Vieques must be managed by DOI as part of the National Wildlife
Refuge System, pursuant to section 1049 of the Nation Defense
Authorization Act for Fiscal Year 2002 (Public Law 107-107). In
addition, the former live impact area must be managed as a
wilderness area and the public must be excluded. (Public Law
106-398; Public Law 107-107). Over the next few years, DOI will
develop Comprehensive Conservation Plan for the Vieques
National Wildlife Refuge, as is done with all other refuges,
that will outline its concept for managing the refuge. The
committee recognizes that until that process is complete, it
will be difficult to reach final decisions on cleanup. Although
some baseline surveys have been completed, it is the
committee's expectation that the Navy would carry out
additional study of potential contamination of some areas.
Vieques Island has been subject to much congressional focus
over the last several years and this committee intends to
remain focused on the progress of cleanup and future use of the
former Navy lands on Vieques. As a result, the committee
directs the Secretary of the Navy to report to the
congressional defense committees on the status of cleanup
related actions for Vieques Island, to include agreements,
remedies, priorities, and milestones, as these actions are
completed. That report may be provided through the Annual
Report to Congress on the Defense Environmental Restoration
Program (10 U.S.C. 2706). The committee expects that such
actions would be developed through a process that involves, as
appropriate, DOI, EPA, and Puerto Rico. The committee notes
that there may be annual updates that would be provided as each
aspect of the CERCLA process unfolds. The committee further
expects the Secretary of the Navy to expeditiously complete all
environmental cleanup actions on Vieques Island, based on
available funds, overall priorities, and applicable laws.

Guaranteed fixed price remediation contracts

The committee is aware that the Army has awarded a total of
nine Guaranteed Fixed Price Remediation (GFPR) contracts in the
amount of $80.0 million, seven contracts at Base Realignment
and Closure (BRAC) installations for $40.5 million and two
contracts at active installations for $39.8 million. The Army
estimates that these nine GFPR contracts yielded a savings of
about $13.0 million, as compared to other contracting
methodologies. GFPR contracts include a statement of objectives
with a performance-based end result of regulatory site closure
for one fixed price. This approach aligns contractor incentives
with achieving fast and efficient environmental remediation,
avoids cost escalation and over-runs, and mobilizes innovative
approaches and technologies.
The committee strongly encourages the Secretary of the Army
to continue exploring appropriate uses of GFPR contracts for
contaminated sites, particularly at Formerly Used Defense Sites
(FUDS) where environmental cleanup efforts have been
underfunded. The Army is the executive agent for the FUDS
Program, and the U.S. Army Corps of Engineers manages and
executes environmental cleanup activities at these sites.
Specifically, the committee is aware of the important
ongoing environmental cleanup activities at the former Lowry
Bombing and Gunnery Range in Arapahoe County, Colorado, and
that it is necessary to complete these actions to ensure
protection of public health and safety. The committee
encourages the Army to utilize the full spectrum of
environmental cleanup methodologies at Lowry Bombing and
Gunnery Range, to include cost effective GFPR contracts.
Moreover, the committee expects the Department of Defense, the
Army, and the Army Corps of Engineers to provide sufficient
resources and funding to support cost effective and expeditious
cleanup activities at the Lowry Bombing and Gunnery Range and
other FUDS sites.

Mail delivery to troops stationed in the Middle East

The committee directs the Comptroller General of the United
States to conduct a review of the delivery of mail to troops in
the Middle East. Specifically, the study should: (1) determine
delivery times, reliability, and losses for mail and parcels to
and from troops stationed in the Middle East; (2) identify and
analyze mail and parcel delivery service efficiency issues
during Operations Desert Shield/Desert Storm, compared to such
services which occurred during Operation Iraqi Freedom; and (3)
identify cost efficiencies and benefits of alternative delivery
systems or modifications to existing delivery systems to
improve the delivery times of mail and parcels.
Not later than 90 days after the date of enactment of this
Act, the Comptroller General of the United States shall submit
a report to the congressional defense committees on the General
Accounting Office's findings and recommendations.

Sea Swap

``Sea Swap'' is a concept of operations for deploying Navy
surface combatants, where the surface combatant is deployed
from homeport for a period of time in excess of the historical
six-month deployment period. Several different crews to operate
the combatant are rotated from homeport to the deployed
location of the combatant during the Sea Swap deployment.
According to the Navy, Sea Swap is intended to maximize the on-
station time of the surface combatant.
The United States Ship Fletcher (DDG 992) is the test ship
for the Sea Swap deployment concept. The United States Ship
Fletcher deployed in August 2002, from Naval Station Pearl
Harbor. The crew of the United States Ship Fletcher rotated in
Western Australia in January 2003. The United States Ship
Fletcher is scheduled to return to San Diego on December 23,
2003, after completing 508 days on deployment.
According to the testimony of the Chief of Naval Operations
(CNO), the Navy intends ``* * * to continue to examine pilot
programs in optimal manning and rotational crewing,'' such as
Sea Swap. The return of the United States Ship Fletcher to
homeport in December 2003 will allow the Navy the opportunity
to fully analyze all data from the deployment and develop
lessons learned from the experience.
The committee is interested in the lessons learned from the
United States Ship Fletcher deployment and the CNO's continuing
examination of the Sea Swap deployment concept. The committee
directs the CNO to provide periodic updates to the
congressional defense committees on the status of Sea Swap,
including the lessons learned from the deployment of the United
States Ship Fletcher.

Summer training for cadets and midshipmen

The committee understands that there are numerous
requirements for professional training placed on cadets and
midshipmen assigned to the United States Military Academy,
United States Naval Academy, and the United States Air Force
Academy. The committee believes that such training, to include
any training procured by contract, should be fully consistent
with the missions and curricula of these institutions, after
careful consideration of the value added by this training to
the necessary development of commissioned officers and its
merit in assuring accomplishment of the service academies'
mission. The committee believes that any course of instruction
procured by contract should be done so competitively and in
full compliance with federal acquisition regulations.

Support for the Joint National Training Capability

The committee strongly supports the Department of Defense's
(DOD) efforts to quickly develop and demonstrate a Joint
National Training Capability (JNTC) to enhance joint
warfighting preparedness. One of the foundations of the JNTC
concept is connectivity between numerous existing training
sites, a requirement that is being pursued by Joint Forces
Command (JFCOM). At the same time, the military services are
improving connectivity between training sites to support
service-specific training, such as the Air Force's Distributed
Mission Training and the Navy's Training Resource Strategy. The
committee commends both JFCOM and the military services for
their efforts to improve training, and encourages the military
services to rely, to the greatest degree possible, on JNTC
infrastructure to support their training needs.
The committee understands that, as Joint Forces Command
seeks to meet bandwidth needs, they are working with the
Defense Information Services Agency (DISA) as the preferred
provider. DISA is pursuing additional bandwidth for numerous
purposes beyond training, to include intelligence sharing and
improved support for research and engineering efforts. The
committee directs DISA to leverage ongoing efforts to the
greatest degree possible in order to provide necessary support
to the JNTC.
The committee also understands that the Department has been
developing joint simulation systems in a large, joint research
and development program to meet service and joint training
requirements. This program has been suspended pending an
analysis of alternatives that should inform decisions on a
technology development plan that supports JNTC needs, as well
as larger joint and service training requirements.
The committee recognizes that a functional joint simulation
system is essential to fully realize the goals and potential of
the JNTC program. The committee urges the Department to ensure
that the simulation systems development programs are structured
to meet current and future joint training and experimentation
requirements. These programs should also be managed and funded
in a manner that is consistent with the technical challenges,
development and deployment schedule, and joint military needs
associated with them.
Accordingly, the committee directs that the Department
report on the results of the analysis of alternatives and
provide a joint program and funding plan for establishment of a
new development and acquisition program within 90 days of the
conclusion of the ongoing analysis of alternatives.

Visual language translators

The committee commends the Department of Defense for
utilizing visual language translators for military field
operations. The committee notes that visual language
translators enable service members to greatly improve
communications by eliminating language barriers. These devices
are currently being used by service personnel in Operation
Iraqi Freedom. The committee supports the use of visual
language translators and urges the Department of Defense to
expand the use of this important tool.

War reserve stocks of Meals Ready to Eat

The committee understands that recent operations have
greatly reduced the Department of Defense's stocks of Meals
Ready to Eat (MRE). The committee directs the Defense Logistics
Agency to review the adequacy of current and planned inventory
levels to meet war plan requirements, and to recommend any
necessary funding adjustments to the Undersecretary of Defense
(Comptroller) (USD(C)).
TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

End strengths for active forces (sec. 401)
The committee recommends a provision that would authorize
active duty end strengths for fiscal year 2004, as shown below:

----------------------------------------------------------------------------------------------------------------
Fiscal year--
-----------------------------------------------
2003 2004
authorization 2004 request recommendation
----------------------------------------------------------------------------------------------------------------
Army............................................................ 480,000 480,000 480,000
Navy............................................................ 375,700 373,800 373,800
Marine Corps.................................................... 175,000 175,000 175,000
Air Force....................................................... 359,000 359,300 359,300
----------------------------------------------------------------------------------------------------------------

Increased maximum percentage of general and flag officers on active
duty authorized to be serving in grades above brigadier general
and rear admiral (lower half) (sec. 402)
The committee recommends a provision that would modify
section 525 of title 10, United States Code, to increase from
50 percent to 55 percent the number of active-duty general and
flag officers who may serve in grades above O-7.
Extension of certain authorities relating to management of numbers of
general and flag officers in certain grades (sec. 403)
The committee recommends a provision that would extend: (1)
authority for the process by which the Secretary of Defense and
Chairman of the Joint Chiefs of Staff fill vacant senior joint
four-star general and flag officer positions; (2) the exemption
of the senior joint four-star general and flag officers
appointed by that process from the general and flag officer
limits that apply to the military services; and (3) the process
by which the Chairman of the Joint Chiefs of Staff designates
and fills 12 general and flag officer positions on the joint
staff and 10 reserve component general and flag positions on
the staff of the commanders of the unified and specified
combatant commands.

Subtitle B--Reserve Forces

End strengths for Selected Reserve (sec. 411)
The committee recommends a provision that would authorize
Selected Reserve end strengths for fiscal year 2004, as shown
below:

----------------------------------------------------------------------------------------------------------------
Fiscal year--
-----------------------------------------------
2003 2004
authorization 2004 request recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States.................... 350,000 350,000 350,000
The Army Reserve................................................ 205,000 205,000 205,000
The Naval Reserve............................................... 87,800 85,900 85,900
The Marine Corps Reserve........................................ 39,558 39,600 39,600
The Air National Guard of the United States..................... 106,600 107,000 107,000
The Air Force Reserve........................................... 75,600 75,800 75,800
The Coast Guard Reserve......................................... 9,000 10,000 10,000
----------------------------------------------------------------------------------------------------------------

End strengths for Reserves on active duty in support of the reserves
(sec. 412)
The committee recommends a provision that would authorize
the full-time support end strengths for fiscal year 2004, as
shown below:

----------------------------------------------------------------------------------------------------------------
Fiscal year--
-----------------------------------------------
2003 2004
authorization 2004 request recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States.................... 24,562 25,386 25,599
The Army Reserve................................................ 14,070 14,374 14,374
The Naval Reserve............................................... 14,572 14,384 14,384
The Marine Corps Reserve........................................ 2,261 2,261 2,261
The Air National Guard of the United States..................... 11,727 12,140 12,191
The Air Force Reserve........................................... 1,498 1,660 1,660
----------------------------------------------------------------------------------------------------------------

The committee recommends an increase of 213 in the Army
National Guard and 51 in the Air National Guard to support the
activation of 12 additional Weapons of Mass Destruction--Civil
Support Teams during fiscal year 2004.

End strengths for military technicians (dual status) (sec. 413)

The committee recommends a provision that would authorize
the minimum level of dual status technician end strengths for
fiscal year 2004, as shown below:

----------------------------------------------------------------------------------------------------------------
Fiscal year--
-----------------------------------------------
2003 2004
authorization 2004 request recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States.................... 24,102 24,589 24,589
The Army Reserve................................................ 6,599 6,699 6,699
The Air National Guard of the United States..................... 22,495 22,806 22,806
The Air Force Reserve........................................... 9,911 9,991 9,991
----------------------------------------------------------------------------------------------------------------

Fiscal year 2004 limitations on non-dual status technicians (sec. 414)

The committee recommends a provision that would establish
numerical limits on the number of non-dual status technicians
who may be employed in the Department of Defense as of
September 30, 2004, as shown below:

----------------------------------------------------------------------------------------------------------------
Fiscal year--
-----------------------------------------------
2003 2004
authorization 2004 request recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States.................... 1,600 1,600 1,600
The Army Reserve................................................ 995 895 895
The Air National Guard of the United States..................... 350 350 350
The Air Force Reserve........................................... 90 90 90
----------------------------------------------------------------------------------------------------------------

Subtitle C--Other Matters Relating to Personnel Strengths

Revision of personnel strength authorization and accounting process
(sec. 421)

The committee recommends a provision that would authorize a
change to the method used by the Department of Defense to
measure the strength for active duty and reserve component
personnel from strength at the end of the fiscal year to
average strength throughout the year.

Exclusion of recalled retired members from certain strength limitations
during period of war or national emergency (sec. 422)

The committee recommends a provision that would exclude
retirees recalled to active duty from annual personnel end
strength and grade strength limitations during a period of war
or national emergency in which members of a reserve component
are serving on active duty pursuant to an order to active duty
under sections 12301 or 12302 of title 10, United States Code.

Subtitle D--Authorization of Appropriations

Authorization of appropriations for military personnel (sec. 431)

The committee recommends a provision that would authorize a
total of $99.2 billion for military personnel, an increase of
$286.0 million over the budget request. This includes $428.0
million for increases in the family separation allowance and
special pay for duty subject to hostile fire or imminent
danger, $38.0 million for a minimum 3.7 percent pay raise for
all eligible personnel, $45.0 million for assignment incentive
pay for duty in Korea, $11.0 million for an increase in the
death benefit, and $22.0 million for increases in Army and Air
National Guard full-time support personnel to implement
additional weapons of mass destruction-civil support teams. The
provision would also authorize reductions of $46.0 million from
the services' personnel accounts for selective reenlistment
bonuses and $312.0 million for personnel costs related to
Operation Northern Watch and Operation Southern Watch.
TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Retention of health professions officers to fulfill active duty service
obligations following failure of selection for promotion (sec.
501)
The committee recommends a provision that would require
officers serving in the health professions who are not selected
for promotion, but who have not completed their obligated
active duty service, to complete their active duty service
obligation unless the secretary of the military department
concerned determines that completion of that service obligation
would not be in the best interest of the military department.
Eligibility for appointment as Chief of Army Veterinary Corps (sec.
502)
The committee recommends a provision that would modify
section 3084 of title 10, United States Code, to require that
the Chief of the Veterinary Corps of the Army be appointed from
among officers of the Veterinary Corps of the Army.

Subtitle B--Reserve Component Personnel Policy

Expanded authority for use of Ready Reserve in response to terrorism
(sec. 511)
The committee recommends a provision that would modify the
language of section 12304(b) of title 10, United States Code,
to authorize the use of reserves for all terrorist attacks or
threatened terrorist attacks in the United States that result,
or could result, in loss of life or property.
Streamlined process for continuing officers on the reserve active-
status list (sec. 512)
The committee recommends a provision that would eliminate
the requirement for selection boards under sections 14101 and
14701 of title 10, United States Code, to continue reserve
component officers on the reserve active-status list.
National Guard officers on active duty in command of National Guard
units (sec. 513)
The committee recommends a provision that would modify
section 325 of title 32, United States Code, to allow officers
of the Army or Air National Guard, called to active duty for
the purpose of commanding a unit composed of both active duty
and reserve component personnel, to retain and exercise their
Army or Air National Guard state commissions if authorized by
the President and the governor. Such National Guard officers
would have the authority to command subordinate active duty
personnel by virtue of their own active duty status and also
retain the authority to command National Guard personnel in a
nonfederal status.

Subtitle C--Revision of Retirement Authorities

Permanent authority to reduce three-year time-in-grade requirement for
retirement in grade for officers in grades above major and
lieutenant commander (sec. 521)
The committee recommends a provision that would modify
section 1370 of title 10, United States Code, to make permanent
the authority to reduce the three-year time-in-grade
requirement for retirement in grade for officers in grades
above major and lieutenant commander.

Subtitle D--Education and Training

Increased flexibility for management of senior level education and
post-education assignments (sec. 531)
The committee recommends a provision that would modify
section 663 of title 10, United States Code, by repealing the
requirement that the principal course of instruction offered at
the Joint Forces Staff College as Phase II joint professional
military education must be at least three months in duration.
Additionally, the provision would repeal requirements related
to mandatory assignment to joint duty of officers completing
joint professional military education. Although greater
flexibility for officer assignments would result from this
provision, the committee expects that a significant number of
graduates from joint professional military education schools
would be assigned to joint duty upon graduation.
Expanded educational assistance authority for cadets and midshipmen
receiving ROTC scholarships (sec. 532)
The committee recommends a provision that would authorize
the secretaries of the military departments additional
flexibility to use Senior Reserve Officers' Training Corps
(ROTC) scholarship funds to pay for room, board, and other
expenses required by cadets and midshipmen for classes. This
provision would ensure that Senior ROTC scholarship funds are
more responsive to students' individual financial needs by
allowing an alternative use of these funds when tuition costs
are covered in whole or in part by other sources.
Eligibility and cost reimbursement requirements for personnel to
receive instruction at the Naval Postgraduate School (sec. 533)
The committee recommends a provision that would permit
assignment of enlisted members of the armed forces, who have
completed undergraduate studies and been awarded a
baccalaureate degree, to the Naval Postgraduate School for the
purpose of full-time instruction in the field of information
assurance. Additionally, this provision would authorize senior
enlisted members of the armed forces to attend certain
executive level seminars conducted at the Naval Postgraduate
School.
Actions to address sexual misconduct at the service academies (sec.
534)
The committee recommends a provision that would direct the
service secretaries, under guidance provided by the Department
of Defense, to direct the superintendents of their respective
service academies to prescribe a policy on sexual misconduct
applicable to the personnel of their academy. Additionally, the
provision would direct the Secretary of Defense, through the
service secretaries and service academy superintendents, to
conduct annual assessments, including surveys of academy
personnel, to determine the effectiveness of academy policies,
training, and procedures on sexual misconduct. The Secretary of
Defense would be directed to submit annual reports to the
Committees on Armed Services of the Senate and the House of
Representatives for five years on sexual misconduct involving
academy personnel.

Subtitle E--Decorations, Awards, and Commendations

Subtitle F--Military Justice

Extended limitation period for prosecution of child abuse cases in
courts-martial (sec. 551)
The committee recommends a provision that would amend
Article 43 of the Uniform Code of Military Justice (UCMJ) (10
U.S.C. 843) to apply a modified version of the federal criminal
statute of limitations found in section 3283 of title 18,
United States Code, which applies to offenses involving the
sexual or physical abuse of a child under 18, to trial by a
court-martial of a person for such offenses under the UCMJ. The
modification would limit the application of the extended
limitation period to cases involving children under the age of
16 years, the limit for such offenses under the substantive
criminal provisions of the UCMJ. The extended limitation period
would permit trial by court-martial if sworn charges and
specifications were received before the child reached the age
of 25 years. This would replace the present five-year statute
of limitations for this category of offenses.
Clarification of blood alcohol content limit for the offense under the
Uniform Code of Military Justice of drunken operation of a
vehicle, aircraft, or vessel (sec. 552)
The committee recommends a provision that would clarify the
blood alcohol content limit for the offense of drunken
operation of a vehicle, aircraft, or vessel under Article 111
of the Uniform Code of Military Justice (10 U.S.C. 911). The
provision would make explicit that a blood alcohol content
equal to the applicable state limit, or the 0.10 limit set out
in Article 111, whichever is applicable, would constitute an
offense under Article 111.

Subtitle G--Other Matters

High-tempo personnel management and allowance (sec. 561)
The committee recommends a provision that would modify
section 991 of title 10, United States Code, and section 436 of
title 37, United States Code, with respect to management of
deployments of members and payment of a high-tempo allowance.
In the National Defense Authorization Act for Fiscal Year 2000,
the Congress initially required high deployment tracking
systems and additional compensation for eligible members. The
Department of Defense submitted a report, pursuant to
congressional direction, and has recommended legislative
changes that are consistent with the goals of tracking
deployments of individual service members and compensating
those individuals who experience unusually high deployment
tempo. This provision would require payment of up to $1000 each
month during which a member has been: (1) deployed for at least
401 days out of the preceding 730 days; (2) deployed
continuously for more than 191 days; or (3) in the case of a
Reservist, called or ordered to active duty for a period of
more than 30 days, if such period begins within one year after
the date on which the member was released from previous service
on active duty for a period of more than 30 days under a call
or order to active duty. The committee urges the Department to
promptly implement this high-tempo allowance upon enactment of
the National Defense Authorization Act for Fiscal Year 2004.
Alternate initial military service obligation for persons accessed
under direct entry program (sec. 562)
The committee recommends a provision that would permit the
Secretary of Defense to establish a direct entry program for
persons with critical military skills. The requirements of
section 651(a) of title 10, United States Code, pertaining to
the duration of initial military service obligation, would not
apply to persons who enter the armed forces for an initial
period of active duty under this program. Upon implementing
this program, the Secretary of Defense must report to the
congressional defense committees on the critical military
skills designated for inclusion under this program. This
program would commence on October 1, 2003, and end on September
30, 2005.
Policy on concurrent deployment to combat zones of both military
spouses of military families with minor children (sec. 563)
The committee recommends a provision that would require the
Secretary of Defense to prescribe the policy of the Department
of Defense on concurrent deployment to a combat zone of both
spouses of a dual-military family with one or more minor
children within 180 days of enactment of the National Defense
Authorization Act for Fiscal Year 2004.
Enhancement of voting rights of members of the uniformed services (sec.
564)
The committee recommends a provision that would modify
section 1973ff-1 of title 42, United States Code, by
prescribing standards to be used by state officials in
validating ballots submitted in elections for federal office by
absent uniformed services voters. Additionally, the provision
would establish procedures to facilitate voting by recently
separated military members.

Items of Special Interest

Assisting non-citizen service members
The committee recognizes the contribution to national
security of the many non-citizen service members in the armed
forces and particularly the ultimate sacrifice made by those
non-citizen service members who lost their lives during
Operation Iraqi Freedom and the global war on terrorism. The
committee strongly supports the decision by the President,
retroactive to September 11, 2001, to exempt military members
from the requirement to have served three years on active duty
before applying for citizenship during the period of the war
against terrorists. The committee urges the Department of
Defense and the military services to review its policies to
determine if any additional measures can be taken to assist and
expedite the naturalization of qualified service members and
their families. Specifically, the Department of Defense is
directed to examine the feasibility of allowing military
personnel to receive official orders and utilize government
transportation and lodging in order to carry out naturalization
requirements.
Computer-based assistance for survivors of military decedents
The committee strongly supports the efforts of the military
services in continuing to improve casualty assistance services
for the families of military members who die while in the
military service of their nation. One aspect of casualty
assistance that requires further emphasis and innovative
leadership by the Department of Defense is providing a means to
assure prompt, accurate, and detailed information specific to
individual decedents about survivor benefits and how those
benefits may change over time. The committee urges the
Department to consider contracting for or rapidly developing a
reliable computer-based service of this nature, including
calculators and links to helpful web sites. This service should
be available on line to survivors, the casualty assistance
officers who are assigned to advise them, leaders in the chain
of command, and, ideally, to all military members to assist
them in understanding how benefits, such as Serviceman's Group
Life Insurance, Dependency and Indemnity Compensation, and the
Survivor Benefit Plan, among others, operate.
Education for service members in preventing identity theft
The committee is pleased at the ongoing efforts by the
Department of Defense (DOD) and the military services to
provide training for military members in financial
responsibility. The committee is aware that service members can
be particularly vulnerable to identity theft and recommends
that the DOD and military services include instruction on this
problem in their financial responsibility courses.
Additionally, the committee urges the Department to review its
policy of using social security numbers as individual members'
service numbers in view of the potential for abuse.
Family surveys
The operational demands on the men and women of the armed
forces and their families, and the extraordinary value of the
service they render require the Department of Defense and the
military services to employ various means to identify potential
sources of dissatisfaction that might adversely affect
retention in both the active and reserve components. The
committee believes that surveys of military members and their
spouses have particular value in this regard and looks forward
to receiving the results of surveys being conducted by the
Walter Reed Army Institute of Research, the Air Force Community
Assessment, and the Marine Corps' quality of life assessment
conducted in 2002. The committee urges the military services to
continue their efforts in this regard aimed at improving the
attractiveness of military careers for active duty, reserve,
and Guard military families.
Impact of reserve mobilization on state and local first responder units
The committee is aware that the heavy reliance on
reservists and National Guardsmen during Operation Enduring
Freedom, Operation Noble Eagle, and Operation Iraqi Freedom has
had a significant impact on individual members and their
employers across the country. The committee expresses its
gratitude and admiration for those employers who have supported
their reserve component employees. The unique demands of the
global war on terrorism for reserve component personnel with
expertise in physical security, force protection, and law
enforcement have resulted in the mobilization of many
Reservists and Guardsmen who are employed as first responders.
Concerns have been expressed that mobilization of such
Reservists and Guardsmen could have an adverse impact on the
state and local communities that rely upon them.
In testimony responding to these concerns, representatives
of the Department of Defense have noted that administrative
procedures do exist in the Department for employers to request
exemption from mobilization for key employees based on the
public safety requirements of individual communities. The
committee urges the Department to use the valuable services of
the National Committee for Employer Support of the Guard and
Reserve and other means to disseminate information about the
availability of this procedure.
The committee understands that the Department does not
currently have sufficient information in its possession to
determine the extent of this problem. In part this is due to
the fact that many state and local first responders,
particularly firefighters, are volunteers. The committee is
pleased that the Department has undertaken a comprehensive
survey in order to determine the occupations of those who serve
in the Reserves and their volunteer activities, insofar as they
are related to first responder status. The committee urges the
Department to identify concentrations of reservists and
National Guardsmen who serve in first responder roles and to
determine the effects of mobilization on the communities served
by these first responders.
Increased reliance on warrant officers
The committee expects the military services to make
increased and better use of warrant officers. The committee
notes that the Army has long depended on the use of warrant
officers, but the Navy's use of such officers is limited, and
the Air Force does not have a cadre of warrant officers.
The Congressional Budget Office submitted a paper in
February 2002 entitled, ``The Warrant Officer Ranks: Adding
Flexibility to Military Personnel Management.'' This study
underscored the potential for increasing the number of warrant
officers, who currently account for just over one percent of
active duty personnel, to alleviate concerns about the ability
of the enlisted force to recruit well-qualified individuals, to
ensure the best performers in the enlisted force have career
opportunities commensurate with their abilities, and to retain
personnel in technical occupations for active duty careers that
may extend past 30 years of total service. The committee urges
the Navy to increase its use of warrant officers and the Air
Force to consider creating a cadre of warrant officers to
address the foregoing concerns and to assist in meeting the
demand for highly skilled technical area expertise, including
pilots for unmanned aerial vehicles.
Joint training of Department of Defense personnel in the Code of
Conduct
The experience of the men and women of the armed forces in
the recent conflict in Iraq and the realities of the global war
on terrorism increasingly underscore the danger of U.S. service
members being held as prisoners of war, as detainees by hostile
governments, or as hostages.
The committee is aware that the military services train
their personnel in the Code of Conduct for Members of the
United States Armed Forces and that through this training the
services strive to prepare every soldier, sailor, airman, and
Marine for the possibility of being taken prisoner by hostile
forces. The committee also understands that Commander, Joint
Forces Command, is responsible for setting training standards
for military personnel who may confront captivity.
The committee directs the Secretary of Defense to submit a
report by March 1, 2004 on the training standards required for
Department of Defense personnel who are assigned duties in
their areas of operational responsibility and how the training
to meet those standards is provided by the military services
and the Joint Forces Command. The committee requests that the
report also include information about the percentage of forces
currently meeting the training standards and a discussion of
how the Department of Defense plans to enhance the ability of
U.S. service members to fulfill their duties under the Code of
Conduct.
Panel to review sexual misconduct allegations at the United States Air
Force Academy
Section 501 of the Emergency Wartime Supplemental
Appropriations Act, 2003, established a panel of civilian
experts to review sexual misconduct allegations at the United
States Air Force Academy. The panel is required to study the
policies, management and organizational practices, and cultural
elements of the United States Air Force Academy that were
conducive to allowing sexual misconduct (including sexual
assaults and rape) at the United States Air Force Academy. The
panel is required to submit a report on the study to the
Secretary of Defense and to the Committees on Armed Services of
the Senate and the House of Representatives.
The committee encourages the panel to include in its report
an assessment of responsibility and accountability for the
policies, management and organizational practices, and cultural
elements of the Air Force Academy that were conducive to
allowing sexual misconduct at the Academy.
Pre-enlistment screening of applicants for military service
The committee is aware that the services have experimented
with different screening programs to predict potential success
of candidates for enlistment. Because historical data show that
about one-third of enlistees for military service fail to
complete their initial term of service, the committee is
interested in ensuring that successful pre-screening programs
are shared with all the services and are used to reduce first-
term attrition wherever feasible.
The committee directs the Secretary of Defense to report by
January 31, 2004, to the Committees on Armed Services of the
Senate and the House of Representatives on the screening
programs that have been tested by the military services. The
report should include an evaluation of whether each program
test provided meaningful information about recruits' propensity
to complete their basic training and initial terms of
enlistment.
Report on implementation of recommendations of the Defense Task Force
on Domestic Violence
The Defense Task Force on Domestic Violence has submitted
its final report to the Secretary of Defense. In its three
annual reports, the Task Force made nearly 200 recommendations
to improve prevention of and response to domestic violence in
the military. The Department of Defense has agreed with the
majority of the Task Force's recommendations included in two
interim reports. The Secretary of Defense is required to submit
to the committees on Armed Services of the Senate and the House
of Representatives an evaluation of the final report within 90
days of receipt. The committee looks forward to receiving this
evaluation.
The committee encourages the Secretary of Defense to
implement appropriate recommendations of the Task Force as soon
as practicable. The Secretary of Defense is directed to submit
a report to the Committees on Armed Services of the Senate and
the House of Representatives on the implementation of the Task
Force recommendations. This report should be submitted no later
than one year after the Secretary submits the Department of
Defense evaluation on the final report of the Task Force. The
report shall include a description of the recommendations that
were implemented and a description of the recommendations that
were not implemented, including a statement of the reason for
not implementing the recommendation.
TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Increase in basic pay for fiscal year 2004 (sec. 601)
The committee recommends a provision that would authorize
an across the board military pay raise of 3.7 percent,
consistent with the standard set forth in section 602 of the
National Defense Authorization Act for 2000 (Public Law 106-
65), which requires that pay increases through fiscal year 2006
for all members equate to the Employment Cost Index plus 0.5
percent. The provision would authorize an additional targeted
pay raise for certain experienced mid-career personnel that
would have the effect of raising the average pay raise to 4.15
percent.
Revised annual pay adjustment process (sec. 602)
The committee recommends a provision that would modify
section 1009 of title 37, United States Code, to require an
annual adjustment of basic pay for members of the uniformed
services that would provide all eligible members with an
increase in the monthly basic pay that is the equivalent
percentage (rounded to the nearest one-tenth of one percent) of
the annual increase in the Employment Cost Index (ECI). The
provision would maintain the existing requirement in law that
annual pay raises in fiscal years 2004, 2005, and 2006 equal
the annual increase in ECI plus 0.5 percent.
Computation of basic pay rate for commissioned officers with prior
enlisted or warrant officer service (sec. 603)
The committee recommends a provision that would modify
section 203 of title 37, United States Code, to authorize
commissioned officers who have accrued at least 1,460 points
for reserve service as a warrant officer, an enlisted member,
or as a warrant officer and an enlisted member, to receive
basic pay at the same rate as commissioned officers credited
with over four years of active-duty service as an enlisted
member.
Pilot program of monthly subsistence allowance for non-scholarship
Senior ROTC members committing to continue ROTC participation
as sophomores (sec. 604)
The committee recommends a provision that would authorize
non-scholarship cadets and midshipmen in the Senior Reserve
Officers' Training Corps (ROTC) program, who have completed the
first year of the senior ROTC program, to voluntarily contract
to serve for the period required by the program and, commencing
in the second year of training, receive a monthly subsistence
allowance at the same level as scholarship cadets and
midshipmen.
Basic allowance for housing for each member married to another member
without dependents when both spouses are on sea duty (sec. 605)
The committee recommends a provision that would allow two
members of the uniformed services in a pay grade below E-6 who
are married to each other, have no other dependent, and are
simultaneously assigned to sea duty to each receive a basic
allowance for housing.
Increased rate of family separation allowance (sec. 606)
The committee recommends a provision that would increase
the family separation allowance under section 427 of title 37,
United States Code, from $100 per month to $250 per month.

Subtitle B--Bonuses and Special and Incentive Pays

One-year extension of certain bonus and special pay authorities for
reserve forces (sec. 611)
The committee recommends a provision that would extend,
until December 31, 2004, the authority to pay the Selected
Reserve enlistment and reenlistment bonus, the Selected Reserve
affiliation bonus, the special pay for enlisted members
assigned to certain high priority units in the Selected
Reserve, the Ready Reserve enlistment and reenlistment bonus,
and the prior service enlistment bonus.
One-year extension of certain bonus and special pay authorities for
certain health care professionals (sec. 612)
The committee recommends a provision that would extend for
one year the authority to pay the nurse officer candidate
accession bonus, the accession bonus for registered nurses,
incentive special pay for nurse anesthetists, special pay for
Selected Reserve health professionals in critically short
wartime specialties, the accession bonus for dental officers,
and to repay education loans for certain Selected Reserve
health professionals.

One-year extension of special pay and bonus authorities for nuclear
officers (sec. 613)

The committee recommends a provision that would extend,
until December 31, 2004, the authority to pay the special pay
for nuclear-qualified officers extending their period of active
service, the nuclear career accession bonus, and the nuclear
career annual incentive bonus.

One-year extension of other bonus and special pay authorities (sec.
614)

The committee recommends a provision that would extend,
until December 31, 2004, the authority to pay the aviation
officer retention bonus, the reenlistment bonus for active
members, the enlistment bonus for active members, the retention
bonus for members with critical military skills, and the
accession bonus for new officers in critical military skills.

Special pay for reserve officers holding positions of unusual
responsibility and of critical nature (sec. 615)

The committee recommends a provision that would make
reserve component officers eligible for special pay under
section 306 of title 37, United States Code.

Assignment incentive pay for service in Korea (sec. 616)

The committee recommends a provision that would require
payment of assignment incentive pay in the amount of $100 per
month to all military members stationed in the Republic of
South Korea. The committee continues to be concerned about
substandard living and working conditions in Korea and
recognizes a need for additional incentives for military
members ordered to duty in Korea. The committee notes the
Army's failure to use the existing authority for assignment
incentive pay to respond to congressional expectations
expressed in the Senate report accompanying S. 2514 (S. Rept.
107-151) and the recommendations by the Commander, United
States Forces Korea, for improvements in the compensation for
soldiers stationed in Korea.

Increased maximum amount of reenlistment bonus for active members (sec.
617)

The committee recommends a provision that would authorize
an increase in the reenlistment bonus. The bonus payable under
this provision would not exceed $70,000.

Payment of Selected Reserve reenlistment bonus to members of Selected
Reserve who are mobilized (sec. 618)

The committee recommends a provision that would clarify
that members entitled to a bonus under section 308b of title
37, United States Code, who are called or ordered to active
duty, may be paid any amount of such bonus that is payable
during the period of active duty without regard to the fact
that the member is serving on active duty pursuant to such call
or order to active duty.

Increased rate of hostile fire and imminent danger special pay (sec.
619)

The committee recommends a provision that would increase
the rate of special pay for duty subject to hostile fire or
imminent danger under section 310 of title 37, United States
Code, from $150 per month to $225 per month.

Availability of hostile fire and imminent danger special pay for
reserve component members on inactive duty (sec. 620)

The committee recommends a provision that would authorize
payment of hostile fire and imminent danger pay under section
310 of title 37, United States Code, to reserve component
members performing inactive-duty training under regulations
prescribed by the Secretary of Defense. The provision would be
effective as of September 11, 2001.

Expansion of overseas tour extension incentive program to officers
(sec. 621)

The committee recommends a provision that would extend
benefit eligibility under section 314 of title 37, United
States Code, and section 705 of title 10, United States Code,
to all service members, including officers, who extend duty at
designated overseas locations.

Eligibility of warrant officers for accession bonus for new officers in
critical skills (sec. 622)

The committee recommends a provision that would amend
section 324 of title 37, United States Code, to allow members
appointed in the grade of warrant officer (W1) to receive the
accession bonus for new officers in critical skills.

Incentive bonus for conversion to military occupational specialty to
ease personnel shortage (sec. 623)

The committee recommends a provision that would authorize
the service secretaries to offer a lump sum bonus of up to
$4000 to eligible enlisted members, in pay grade E-6 with less
than 10 years of service or pay grade E-5 and below, regardless
of years of service, who successfully convert from ratings or
occupational specialties designated by the secretary concerned
as adequately manned or overmanned to one in which there is a
designated shortage of trained and qualified personnel. Members
would have to agree to incur a minimum obligated service of
four years in the new specialty to be eligible to receive this
bonus.

Subtitle C--Travel and Transportation Allowances

Shipment of privately owned motor vehicle within continental United
States (sec. 631)

The committee recommends a provision that would allow
service members to contract personally for the transportation
of a motor vehicle in permanent change of station moves within
the continental United States instead of relying exclusively on
the government to arrange such transport. The amount of the
allowance for such transportation would not be more than the
amount that would have been paid if the member or a dependent
had driven the vehicle between duty stations.

Payment or reimbursement of student baggage storage costs for dependent
children of members stationed overseas (sec. 632)

The committee recommends a provision that would modify
section 430 of title 37, United States Code, to allow military
dependents who are students to store baggage one time per
fiscal year at government expense at or in the vicinity of
their school during their annual trip between school and their
sponsors' duty station or during a different period in the same
fiscal year.

Contracts for full replacement value for loss or damage to personal
property transported at Government expense (sec. 633)

The committee recommends a provision that would authorize
the Secretary of Defense to require by contract that household
goods carriers pay the full replacement value for loss or
damage to the property of members of the armed forces moved
under such a contract. Additionally, in the event a carrier
does not settle a claim for loss or damage within a reasonable
period of time, this provision would authorize deduction of an
amount equal to the full replacement value from the amount owed
by the United States to the carrier under the contract, and
remission of the amount so deducted to the claimant.

Subtitle D--Retired Pay and Survivor Benefits

Special rule for computation of retired pay base for commanders of
combatant commands (sec. 641)

The committee recommends a provision that would increase
the rate of retired pay for combatant commanders to correspond
with that of the chiefs of service.

Survivor Benefit Plan annuities for surviving spouses of Reserves not
eligible for retirement who die from a cause incurred or
aggravated while on inactive-duty training (sec. 642)

The committee recommends a provision that would extend
benefits under the Survivor Benefit Plan to surviving spouses
of reservists not eligible for retirement who die from an
injury or illness incurred or aggravated in the line of duty
during inactive-duty training. This provision would be
effective as of September 10, 2001.

Increase in death gratuity payable with respect to deceased members of
the Armed Forces (sec. 643)

The committee recommends a provision that would increase
the death gratuity from $6000 to $12,000, effective as of
September 11, 2001.

Subtitle E--Other Matters

Retention of accumulated leave (sec. 651)

The committee recommends a provision that would amend
section 701 of title 10, United States Code, to authorize the
Secretary of Defense to permit eligible military members to
retain up to 120 days of accumulated leave under prescribed
conditions. Leave in excess of 60 days accumulated would be
lost unless it is used by the member before the end of the
third fiscal year following the end of the qualifying service.

Other Programs

Selective reenlistment bonuses

The budget request included over $2.4 billion in funding
for special and incentive pays, including increases for
selective reenlistment bonuses. The committee is concerned
about such increases at a time when rates of retention are
robust and benefits of service increasing overall. The
committee believes that service retention goals can be achieved
with less reliance on the selective reenlistment bonus.
Therefore, the committee recommends a decrease of $46.0 million
in fiscal year 2004 divided as follows:
Army: $14.5 million;
Navy: $14.5 million;
Marine Corps: $2.5 million;
Air Force: $14.5 million.
TITLE VII--HEALTH CARE

Medical and dental screening for members of Selected Reserve units
alerted for mobilization (sec. 701)
The committee recommends a provision that would authorize
the Secretary of Defense to provide medical and dental
screening and care for members of the Selected Reserve who are
assigned to a unit that has been alerted or notified that
members of the unit will be mobilized for active duty in
support of an operational mission or contingency operation
during a national emergency or time of war. The committee is
aware that under current law there is often inadequate time to
ensure necessary medical and dental evaluation and care can be
provided until members are actually on active duty.
TRICARE beneficiary counseling and assistance coordinators for reserve
component beneficiaries (sec. 702)
The committee recommends a provision that would direct the
Secretary of Defense to establish TRICARE beneficiary
counseling and assistance coordinators for reserve and National
Guard service members and their families.
The Department of Defense relies heavily on the million
plus men and women of the reserve and National Guard to expand
the capabilities of our active duty forces. Recent world events
have required greater reliance on our Guard and reserve forces.
A recent General Accounting Office study determined that nearly
80 percent of reservists have health care coverage when not on
active duty, but transitioning from private sector plans to
TRICARE, and back, is often disruptive and confusing. Further,
reserve and National Guard members have less experience with,
and knowledge of, the TRICARE program than active duty
personnel. Reserve and Guard beneficiaries need help working
through the complex TRICARE system.
The National Defense Authorization Act for Fiscal Year 2000
directed the Department of Defense to establish TRICARE
beneficiary counseling and assistance coordinators that have
proven to be extremely beneficial to service members, retirees,
and family members. Coordinators trained in the unique
challenges of moving into and out of the TRICARE system and
specific reserve and National Guard benefit issues would be
extremely helpful to reserve members and their families. The
committee believes that a parallel system of beneficiary
counseling and assistance coordinators, exclusively for reserve
and Guard members and their families, with comprehensive
knowledge of reserve issues could greatly improve access to
health care for these service members and their families.
Extension of authority to enter into personal services contracts for
health care services to be performed at locations outside
medical treatment facilities (sec. 703)
The committee recommends a provision that would extend for
five years the authority of the Secretary of Defense to enter
into personal services contracts to carry out health care
responsibilities, such as the provision of medical examinations
at Military Entrance Processing Stations, at locations outside
medical treatment facilities. This provision would allow the
U.S. Military Entrance Processing Command to continue to hire
Fee-Basis practitioners to meet surge requirements.
Department of Defense Medicare-Eligible Retiree Health Care Fund
valuations and contributions (sec. 704)
The committee recommends a provision that would authorize
the Secretary of Defense to establish actuarially appropriate
cost contributions to the Department of Defense Medicare
eligible retiree health care fund for each or any of the
uniformed services participating separately from the other
participating uniformed services if the Secretary determines
that a more accurate and appropriate actuarial valuation would
be achieved by doing so.
Surveys on continued viability of TRICARE standard (sec. 705)
The committee recommends a provision that would require the
Secretary of Defense to survey and determine health care
provider acceptance of the TRICARE Standard benefit by market
area, and to designate a senior official to take the actions
necessary to achieve and maintain adequate levels of provider
participation in the TRICARE Standard program. The provision
would direct the Comptroller General to review the processes,
procedures, analyses, and actions taken by the Department of
Defense to ensure ready access to the TRICARE Standard program.
The committee is aware of increasing concerns from military
health care system beneficiaries about access to the TRICARE
Standard benefit. Lack of information about benefits and
reimbursement rates are causing confusion for both
beneficiaries and providers. Further, the committee is
concerned that there is no responsible party within the
Department of Defense charged with ensuring that there are
health care providers willing to accept TRICARE Standard
beneficiaries. If the Department continues to offer a ``triple
option'' health care plan, three viable options must be
available.
Elimination of limitation on covered beneficiaries eligible to receive
health care services from former public health service
treatment facilities (sec. 706)
The committee recommends a provision that would eliminate
the current legislative restriction on ``designated providers''
enrolling otherwise eligible beneficiaries who have other
health insurance in U.S. Family Health Plans. Other TRICARE
health plan options administered through managed care support
contracts do not have the same restrictions. The committee
notes that it is important that equity exist through the
TRICARE program.
Modification of structure and duties of Department of Veterans
Affairs--Department of Defense Health Executive Committee (sec.
707)
The committee recommends a provision that would amend
section 8111(c) of Title 38, United States Code, which provides
for establishment of a Department of Defense--Veteran's
Administration Health Executive Committee. The provision would:
(1) expand the scope of the committee to include review of
health and other benefit issues; (2) eliminate the requirement
that the chair of the committee alternate annually between the
Deputy Secretary of Veterans Affairs and the Under Secretary of
Defense; (3) eliminate the requirement that the two departments
share equally the costs of personnel and administrative support
and services; and (4) eliminate the direction to the committee
chairman to require the Inspector General of either or both
departments to assist in the review of the implementation of
activities designed to promote the coordination and sharing of
health care resources between the departments.

Items of Special Interest

Children's hospitals
The committee has been concerned with reports from health
care providers and institutions of insufficient reimbursement
rates by the TRICARE program. This issue is exacerbated when
children's hospitals provide care to TRICARE beneficiaries with
high-cost, complex medical needs where TRICARE reimbursement
rates do not cover the cost of care provided.
The committee encourages the Department of Defense to
review and consider alignment of the TRICARE payment schedule
with Medicare's ``disproportionate share'' payment adjustment
to these hospitals.

Chiropractic health care

The committee is concerned about effective implementation
of the chiropractic health care program in the Department of
Defense (DOD). The committee understands that the Chiropractic
Oversight Advisory Committee, which was created to provide
advice to the Secretary of Defense on the development and
implementation of this program, has not met in over a year. The
committee encourages the DOD to continue to seek the advice and
expertise of the Chiropractic Oversight Advisory Committee as
implementation of the chiropractic health care program
continues throughout the military health care system.
The committee encourages the Department to accelerate the
number of military treatment facilities that provide
chiropractic care to active duty service members. Accordingly,
the committee directs that the Department provide the
chiropractic benefit at no fewer than 45 sites by the end of
fiscal year 2004. The Department should make information
readily available to members of the military departments
concerning access to chiropractic services.
Further, every effort should be made by the Department to
recognize chiropractors as the health care professionals that
they are. The committee recommends that chiropractors, given
their extensive medical training, should report to a physician
rather than a physician's assistant or other specialty
practitioner.

Force health protection

Experience with illnesses among veterans of the 1991
Persian Gulf War highlighted deficiencies in the Department of
Defense's (DOD) force health protection capabilities. Thousands
of military personnel returned from serving their country in
the Persian Gulf and reported a variety of symptoms for which
no cause has been determined. Many of their symptoms are
similar to those of patients in the general population
suffering from chronic fatigue syndrome, fibromyalgia, and
multiple chemical sensitivity. Although environmental exposures
cannot be ruled out as a cause, many believe that deployment
stress and its affect on the central nervous system is a likely
factor in triggering or intensifying at least some of the Gulf
War illnesses.
The committee is pleased with changes the Department has
made in force health protection based on lessons learned from
the first Gulf War. These include an assessment of the medical
condition of members of the armed forces prior to deployment,
better records of health care services and events that may
affect the health of deployed service members, and procedures
for follow-up medical care based on individual health
assessments and review of deployment health records.
The committee encourages the DOD to continue to support
programs that lead to early identification of military
personnel who may be suffering from undiagnosed illnesses and
that quickly provide appropriate and supportive intervention.
The committee urges the Department to continue on-going
research into post-deployment illnesses and to support
promising research into pharmaceutical remedies that may help
prevent or address this spectrum of illnesses.

Population based medical research

The committee recognizes the need that has existed over the
past decade for a combined Departments of Defense (DOD) and
Veterans Affairs (VA) patient population study. Much progress
has been made in data sharing and joint planning, but a full
population research capability does not yet exist. The
committee urges the DOD to collaborate with the VA to
demonstrate a joint DOD-VA population health research
capability.
TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS

Subtitle A--Acquisition Policy and Management

Temporary emergency procurement authority to facilitate the defense
against or recovery from terrorism or nuclear, biological,
chemical, or radiological attack (sec. 801)
The committee recommends a provision that would extend by
two years temporary emergency procurement authority to assist
the Department of Defense in facilitating the defense against
terrorist biological or chemical attack. This provision would
also expand the scope of this authority to include recovery
from terrorism and the defense against nuclear or radiological
attack.
Special temporary contract close-out authority (sec. 802)
The committee recommends a provision that would allow the
Secretary of Defense to settle the financial accounts for
contracts executed prior to September 30, 1996, that have
unreconciled balances of less than $100,000. This section would
give the Secretary of Defense three fiscal years to execute
this authority.
Settlement of contracts with unreconciled balances often is
necessary where a contractor has been overpaid, but neither the
contractor nor the Government has any evidence of under or
overpayment aside from the fact that the accounts do not
reconcile. In many circumstances, the time and effort required
to determine the cause of the out-of-balance condition may be
disproportionate to the amount of the discrepancy.
This provision would allow DOD to terminate further
reconciliation efforts or collection efforts if, after
analysis, the cost of the effort is disproportionate to the
amount of the discrepancy.
Defense acquisition program management for use of radio frequency
spectrum (sec. 803)
The committee recommends a provision to require the
Secretary of Defense to revise the acquisition policies
relating to the management and use of the radio frequency
spectrum and ensure that planning for spectrum usage is
conducted as early as practicable in a program's development.
In order to prevent the significant costs associated with
redesign and delays due to insufficient spectrum planning,
acquisition programs would be required to evaluate radio
frequency usage prior to moving forward in the acquisition
process.
At the request of the committee, the General Accounting
Office (GAO) reviewed the Department of Defense's (DOD)
spectrum management process. The GAO found that during the
early phases of acquisition, DOD program managers often failed
to obtain, consider, or act on concerns related to the
availability of adequate spectrum to support planned weapon
systems. According to GAO, a majority of program managers try
to address this issue at the later stages of a program, after
key system development decisions have been made. As a result,
GAO found that some programs experienced significant delays,
reduced operational capabilities, or the need for expensive
redesign. GAO also found that the DOD policy directive (DOD
Directive 4650.1) relating to the management and use of the
radio frequency spectrum has not been updated since 1987,
despite significant changes to the Department's acquisition
process and regulations.
National Security Agency modernization program (sec. 804)
The committee recommends a provision that would establish
formal acquisition management oversight by the Secretary of
Defense over the National Security Agency's acquisition
process. As the National Security Agency (NSA) began to fully
appreciate the rapidly changing information and
telecommunications environment within which it must effectively
operate, the need to fundamentally modernize and transform the
collection, collection management, and processing capabilities
of NSA became apparent. While the requirement has been clear,
progress toward achieving this fundamental reorganization has
been slow.
In its first 50 years as one of the most important,
productive elements of the United States intelligence
community, NSA found that an internal, decentralized
development and acquisition process served it well, both
because of security considerations and because few commercial
businesses had any expertise or enduring interest in the area
of signals intelligence until recent years. As the manner in
which the world communicates and shares information has changed
over the past decade, however, the advantage of buying many new
capabilities from commercial experts in telecommunications and
information management and quickly upgrading as technology
evolves, compared to making new capabilities internally, has
become obvious.
Over the past three years, the committee has expressed
increasing concern about the acquisition processes NSA is using
to guide its massive modernization challenge. Concerned that
significant funding was being consumed by a myriad of programs
and projects that did not appear to be clearly linked to an
overall modernization and acquisition strategy, the committee
has regularly urged NSA to adopt the more disciplined
acquisition management processes required within the Department
of Defense for major programs. By any measure, NSA
modernization efforts such as Groundbreaker and Trailblazer are
major programs.
Concurrently, the committee has regularly urged the
Secretary of Defense to apply more acquisition oversight to
NSA. Troubled that insufficient progress was being made in
enforcing discipline on the acquisition process, the Congress
informed the Secretary of Defense and the Director, NSA, in the
Joint Explanatory Statement of the Committee of Conference
accompanying the National Defense Authorization Act for Fiscal
Year 2002 that NSA's modernization effort would be designated a
major defense acquisition program (MDAP) with milestone
decision authority residing with the Under Secretary of Defense
for Acquisition, Technology and Logistics (USD (AT&L)) unless
significant progress was made in several specific areas by
December 1, 2002.
In a report to the congressional defense and intelligence
committees on February 28, 2003, the Assistant Secretary of
Defense for Command, Control, Communications, and Intelligence
(ASD (C3I)) and the Deputy Director for Central Intelligence
for Community Management (DDCI (CM)) stated, ``Although NSA has
made progress in establishing structures and defining processes
to enable sound acquisition practices, significant refinement
and practice are needed before results become mature and
repeatable.'' In nine categories requiring improvement, five
were rated as ineffective and four were rated as immature and
inconsistent in application and effectiveness.
Given the importance of NSA's mission to the overall
national security of the United States, the enormity of the
modernization effort NSA faces, and the resources being
expended, disciplined management practices must be rapidly
enacted and matured. However, three years into the effort to
modernize business practices and transform NSA, insufficient
progress has been made.
The committee is convinced that NSA's senior acquisition
executive (SAE) has the experience and ability to substantially
improve NSA's business practices. He must be empowered to do
that job. Currently, major NSA program managers do not report
directly to the SAE, thus undermining his ability to exercise
authority and enforce discipline over the entire acquisition
enterprise. The program managers are subordinate to their
operational lines of authority, who are responsible for
developing and prioritizing the operational requirements. This
is contrary to standard acquisition practices in the Department
of Defense (DOD). This situation creates a conflict of interest
on funding management between operations and acquisition,
prevents the SAE from controlling the necessary resources to
execute his acquisition authority, and results in uncoordinated
and potentially unstable program baselines.
Establishment of USD (AT&L) milestone decision authority
over NSA's modernization program will require NSA to establish
direct lines of acquisition authority and acquisition funding
control from the SAE to the program managers. Further, it will
reinforce the requirement to conform to standard DOD
acquisition practices. The committee recommends that this
milestone decision authority be assigned to the USD (AT&L) for
a minimum of two years, and may not be reassigned to the
Director, NSA, before October 1, 2006. At the discretion of the
USD (AT&L), in consultation with the Under Secretary of Defense
for Intelligence and the DDCI (CM), milestone decision
authority may only be reassigned to the Director, NSA when, in
the judgment of the USD (AT&L), NSA has implemented acquisition
structures and management practices that are sufficiently
mature to ensure a sound, efficient acquisition enterprise. The
USD (AT&L) shall provide prior notification to the
congressional defense and intelligence committees, with full
justification, before exercising this discretionary authority.
Quality control in procurement of aviation critical safety items and
related services (sec. 805)
The committee recommends a provision that would require the
establishment of a policy for quality control in the
procurement of critical aircraft spare parts. Aviation critical
safety items are those parts for which the risk of failure is
unacceptable because of the potential catastrophic results.
Within the Department of the Navy, approximately two
percent of aviation spare and repair parts are aviation
critical safety items. Because of the extreme consequences of
failure, rigorous evaluations are conducted on both the item
design and potential suppliers' manufacturing processes to
ensure safe and reliable flight safety parts can be repeatedly
produced. Aviation critical safety items are typically
evaluated during the development of a system to determine the
specific circumstances that would cause a failure and the
effects of such a failure on safety and performance. These
evaluations help establish design and manufacturing
requirements and life and operational limits. The process of
validating the design and manufacturing details of aviation
critical safety items, and subsequently confirming the
manufacturing capability and controls of potential sources, is
essential to ensure operational safety and effectiveness. The
process is comparable to requirements established by the
Federal Aviation Administration prior to issuing production
certification or parts manufacturer approval for civil aircraft
parts.
The Department of Defense's (DOD) logistics management
practices centralize management and acquisition of spare and
repair parts. As a result, aviation critical safety items are
often purchased by a DOD organization other than the
organization that understands the item's design intent,
criticality, limitations, and manufacturing characteristics.
DOD logistics management practices result in the procurement of
flight safety critical aircraft parts from other than qualified
sources, and without the knowledge or approval of the cognizant
design control activity. The DOD Inspector General has reported
that the Department lacks adequate staff to perform the audits
and certifications required to properly maintain Qualified
Manufacturer's Lists and Qualified Products Lists. As a result,
almost half of the vendor manufacturing lines needing
certification have not been properly audited, and some of the
certifications were as much as 8 years overdue. The Inspector
General also reported that inadequate staffing of the
Department's quality control programs has resulted in as many
as 1.4 million potentially nonconforming items in the inventory
for the Navy alone.
The provision recommended by the committee would require
the Department to ensure that parts essential for flight safety
are procured only from sources approved by the design activity
and in accordance with technical requirements established by
the design activity.

Subtitle B--Procurement of Services

Expansion and extension of incentive for use of performance-based
contracts in procurements of services (sec. 811)
The committee recommends a provision that would extend the
incentive for the Department of Defense to adopt performance-
based contracting techniques. The provision would also increase
(to $10.0 million) the threshold for those performance-based
contracts for services that can be treated as contracts for a
commercial item under this authority.
Public-private competitions for the performance of Department of
Defense functions (sec. 812)
The committee recommends a provision that would establish a
pilot program to allow the Department of Defense (DOD) to base
its competitive sourcing decisions for information technology
services on best value criteria. The ability for agencies to
base contract awards on a best value cost/technical tradeoff
was a recommendation of the Commercial Activities Panel
established by section 832 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001. The pilot
program would allow DOD to test best value approaches for
public-private competitions that consider quality, as well as
cost, as a selection factor. It would also allow DOD to take
advantage of the newly revised Office of Management and Budget
(OMB) Circular A-76 when it is finalized, which, for example,
would allow for best value cost-technical tradeoff source
selections for information technology functions.
The committee understands the Department will comply with
the requirements of section 2305(a)(2) and (3) of title 10 to
the maximum extent practicable in any public-private
competition conducted pursuant to this pilot program. These
provisions require the Department to include in a solicitation
basic information about the significant factors and subfactors
to be considered in evaluating proposals and the relative
weights that will be assigned to these factors and subfactors.
In addition, the committee expects the Department to take
reasonable steps to ensure that both public sector and private
sector competitors are included in the competitive range and
are provided reasonable opportunities to revise their bids to
offer cost-technical trade-offs in the ``final round'' of a
public-private competition under the pilot program. These
reasonable efforts, however, should not be used to excuse late
submissions of proposals.
The provision would also ensure that schedules for the
completion of public-private competitions within DOD are based
on DOD analysis of the availability of sufficient personnel,
training, and technical resources to conduct such competitions.
The Comptroller General in his comments on proposed revisions
to OMB Circular A-76 recommended that the administration set
more realistic timelines for the length of time it takes to
conduct an A-76 cost comparison and ensure that agencies
provided sufficient resources to comply with new A-76
requirements. This provision would ensure that DOD can provide
this assurance. The committee expects that, if resources are
insufficient to adequately conduct A-76 cost comparisons, DOD
will obtain these resources and use the flexible acquisition
workforce authority provided elsewhere in this bill to realign
the acquisition workforce.
Authority to enter into personal services contracts (sec. 813)
The committee recommends a provision that would authorize
elements of the Department of Defense within the Intelligence
Community and the U.S. Special Operations Command to enter into
contracts for personal services if an appropriate official
determines in writing that the services to be procured are
unique and that it would not be practicable to obtain such
services by other means. The committee recognizes the unique
circumstances faced by the intelligence community and the
Special Operations Command, and the difficulty these DOD
elements may occasionally have in obtaining needed support
through more conventional contracting mechanisms.

Subtitle C--Major Defense Acquisition Programs

Certain weapons-related prototype projects (sec. 821)
The committee recommends a provision that would extend for
three years the other transaction prototype authority under
section 845 of the National Defense Authorization Act for
Fiscal Year 1994. This provision would also include a
clarification that other transaction prototype authority can be
used for prototype projects related to fielded systems. This
would allow non-traditional contractors greater opportunities
to participate in modernizing fielded systems with new
technologies that improve capability and reduce operating and
support costs.
Finally, this provision would enable the Department of
Defense to capitalize on successful prototype projects by
bringing the prototypes into production under standard
procurement contracts. The provision would establish a three-
year pilot program to ease the transition of nontraditional
defense contractors from prototype transactions to standard
procurement contracts. Under the pilot program, the Department
would be authorized to enter into contracts of $50.0 million or
less that would treat items or processes developed by
nontraditional defense contractors under prototype
transactions: (1) as commercial items subject to the
streamlined contracting procedures established in Part 12 of
the Federal Acquisition Regulation; and (2) as items or
processes that are developed with mixed funds for the purpose
of negotiating rights in technical data under section 2320 of
title 10, United States Code.
Applicability of Clinger-Cohen Act policies and requirements to
equipment integral to a weapon or weapon system (sec. 822)
The committee recommends a provision that would clarify
responsibility within the Department of Defense for applying
the requirements of the Clinger-Cohen Act (as codified in
chapter 113 of title 40, United States Code) to equipment
determined by the Secretary of Defense to be an integral part
of a weapon or weapon system. This provision would provide the
senior acquisition officials in the Department of Defense the
flexibility to establish effective information technology
management policies and to alter these policies as necessary to
take advantage of rapidly changing information technologies in
weapons and weapon systems.
Under this provision, Clinger-Cohen Act requirements for
capital planning, investment control, and performance and
results-based management processes and requirements would
continue to apply to weapons and weapon systems. However, these
requirements would be administered by a board of senior
acquisition officials instead of the Chief Information Officer
(CIO) of the Department of Defense. The Board would be chaired
by the Under Secretary of Defense for Acquisition, Technology
and Logistics and would include the three service acquisition
executives and the CIO.
The provision would recognize that the Under Secretary of
Defense for Acquisition, Technology, and Logistics and the
service acquisition executives with overall responsibility for
the acquisition of weapons and weapon systems, are best able to
develop and implement information technology policies for such
weapons and weapon systems. The CIO would be included on the
Board to ensure that the policies implemented by the Board are
consistent with the Department's overall approach to
information technology issues. In addition to implementing
responsibilities under the Clinger-Cohen Act, the Board would
be responsible for ensuring effective spectrum availability,
interoperability, information security, evolutionary and spiral
development, and implementation of software development
policies and practices for information technology integral to
weapon systems.
The General Accounting Office recently informed the
committee that despite having a long-standing spectrum
certification process, DOD has failed to follow this process,
leading to problems in weapon systems development and
operations. The committee expects the Board established by this
provision to be instrumental in updating and revamping the
guidance and process for spectrum supportability in light of
recent changes to relevant DOD acquisition directives. In
addition, the Board should ensure that spectrum supportability
is adequately considered during weapon systems development.
Applicability of requirement for reports on maturity of technology at
initiation of major defense acquisition programs (sec. 823)
The committee recommends a provision that would make a
technical change to a reporting requirement, to conform to
changes made in the Department of Defense's acquisition
regulations and instructions.

Subtitle D--Domestic Source Requirements

Exceptions to Berry Amendment for contingency operations and other
urgent situations (sec. 831)
The committee recommends a provision that would clarify the
requirements of section 2533a of title 10, United States Code,
to facilitate timely purchases of products needed to support
contingency operations and for other circumstances of unusual
and compelling urgency when the use of procedures other than
competitive procedures have been approved.
Inapplicability of Berry Amendment to procurements of waste and
byproducts of cotton and wool fiber for use in the production
of propellants and explosives (sec. 832)
The committee recommends a provision that would eliminate
domestic source restrictions for gun cotton lintners used in
the production of propellants and explosives.
Waiver authority for domestic source or content requirements (sec. 833)
The committee recommends a provision that would provide the
Secretary of Defense the authority to waive the application of
statutory domestic source requirements and domestic content
requirements, provided that: (1) the application of the
requirements would impede the reciprocal procurement of defense
items under a Memorandum of Understanding between the United
States and another country; and (2) the other country does not
discriminate against items produced in the United States to a
greater degree than the United States discriminates against
items produced in that country. This proposed standard is
consistent with the standard previously adopted by the
committee for products covered by the domestic content
restrictions in section 2534 of title 10, United States Code.
Buy American exception for ball bearings and roller bearings used in
foreign products (sec. 834)
The committee recommends a provision that would amend
section 2534(a)(5) of title 10, United States Code, which
places limitations on the procurement of ball bearings and
roller bearings other than those produced in the national
technology and industrial base, by creating an exemption for
ball bearings and roller bearings used in an end product or
component of non-domestic origin.
For most non-domestic end products or components, the only
acceptable source for ball bearings and roller bearings, and
replacement ball bearings and roller bearings is the non-
domestic original equipment manufacturer or its non-domestic
supplier. When this occurs, DOD must process waivers to allow
procurement of the necessary ball bearings and roller bearings.
This provision would relieve DOD of this requirement. At the
same time, this provision would be consistent with the purpose
of the domestic source restriction in that it does not seek to
replace the domestic ball bearings and roller bearings that are
normally found in domestic end products or components with non-
domestic ball bearings and roller bearings.

Subtitle E--Defense Acquisition and Support Workforce

Flexibility for management of the defense acquisition and support
workforce (sec. 841)

The committee recommends a provision that would amend the
Defense Acquisition Workforce Improvement Act (DAWIA) to give
the Secretary of Defense greater flexibility in managing the
acquisition and support workforce. Specifically, the provision
would give the Secretary the flexibility to establish different
experience, educational, and tenure requirements for
acquisition positions; require the establishment of a single
acquisition corps; and streamline obsolete and outdated
provisions of DAWIA.

Limitation and reinvestment authority relating to reduction of the
defense acquisition and support workforce (sec. 842)

The committee recommends a provision that would establish a
moratorium on further cuts in the acquisition workforce for
three years. The Secretary of Defense would be given the
flexibility under this provision to realign positions in the
acquisition workforce to reinvest in higher priority
acquisition positions.
More than a decade of downsizing has left the Department of
Defense (DOD) with a smaller workforce that is rapidly
approaching retirement. Workload has increased with the
acquisition workforce today managing contracts valued over $1.7
million per person in total acquisition dollars, a 40 percent
increase from 1998. The Undersecretary of Defense (Acquisition,
Technology, and Logistics) testified before the Subcommittee on
Readiness and Management Support that: ``* * * we believe that
our workforce is where it should be today to manage our
workload.''
Additional workforce reductions would increase the risk
identified in a February 2000 report by the DOD Inspector
General (DOD Acquisition Workforce Reductions: Trends and
Impacts), which noted the following impacts from acquisition
workforce reductions: (1) increased backlog in closing out
contracts; (2) increased program costs due to contracted vice
in-house technical support; (3) insufficient personnel to fill-
in for employees on deployment; (4) insufficient staff to
manage requirements; (5) reduced scrutiny and timeliness in
reviewing acquisition actions; (6) difficulty in retaining
personnel; (7) skill imbalances; and (8) lost opportunities to
develop cost saving initiatives. In addition, the DOD Inspector
General, in the second Semiannual Report to the Congress for
Fiscal Year 2002, states that reductions in personnel and funds
are adversely affecting the Department's quality assurance
programs.
The Department is implementing a human resource strategic
planning effort to address acquisition workforce issues. The
committee notes that no further cuts should be made until the
Department comprehensively addresses critical skills shortfalls
in the workforce.

Clarification and revision of authority for demonstration project
relating to certain acquisition personnel management policies
and procedures (sec. 843)

The committee recommends a provision that would strengthen
the acquisition workforce pilot program established in section
4308 of the National Defense Authorization Act for Fiscal Year
1996. In particular, the provision would: (1) relax the
existing requirement that the entire workforce of a
participating organization consist of members of the
acquisition workforce and supporting personnel assigned to work
directly with the acquisition workforce; (2) increase the total
number of civilian personnel permitted to participate in the
pilot program; and (3) ensure that an organization that is
properly designated to participate in the pilot program would
continue to do so, notwithstanding any reorganization,
restructuring, realignment, consolidation, or other
organizational change.

Subtitle F--Federal Support for Procurement of Anti-Terrorism
Technologies and Services by State and Local Governments

Federal support for procurement of anti-terrorism technologies and
services by state and local governments (secs. 851, 852, 853)

The committee recommends a series of provisions that would
require the establishment of a program where state and local
governments could buy anti-terrorism technology solutions from
Federal Government contracts. The executive branch would be
authorized to apply to these contracts discretionary
indemnification authority (50 U.S.C. 1431 et seq.; Public Law
85-804) on a case-by-case basis, if it is determined necessary.
The committee expects that the litigation risk for many of
these technologies would be managed under authorities of
subtitle G of the Homeland Security Act of 2002 (Public Law
107-296). Contractors could be indemnified under procedures
determined by the President only when necessary to ensure that
critical technologies developed for the Department of Defense
and other agencies could be rapidly purchased by state and
local governments.

Subtitle G--General Contracting Authorities, Procedures, and
Limitations, and Other Matters

Limited acquisition authority for commander of United States Joint
Forces Command (sec. 861)

The committee recommends a provision that would give the
Commander, U.S. Joint Forces Command (JFCOM), the authority to
acquire systems with research, development, test and evaluation
expenditure levels up to $10.0 million or procurement
expenditure levels up to $50.0 million for the purpose of
facilitating joint operations or enhancing interoperability.
The successful use of the Special Operations Command
acquisition authority below the acquisition category (ACAT) 1
level illustrates the transformation benefits of having a joint
buyer, close to the user, maintain a streamlined acquisition
process to deliver low dollar threshold systems rapidly to the
warfighter.
The committee is concerned that urgent joint warfighting
requirements are not always conceived, developed, and fielded
in the most expeditious manner. Such long-standing requirements
include: a joint, comprehensive blue force tracking capability;
a joint, interoperable air, sea, and ground combat
identification system; and a joint simulations and modeling
capability essential for evaluating joint warfighting concepts
development. Recent military operations have further
demonstrated the high risk of fratricide on the modern
battlefield and re-emphasized the need for comprehensive,
interoperable combat identification and blue force tracking
architectures. The committee urges the Secretary of Defense,
through the Commander, JFCOM, to use this limited acquisition
authority to address such joint warfighting challenges. As the
command responsible for joint experimentation and joint
concepts development, JFCOM, through this authority, would have
the ability to rapidly respond to the joint warfighting needs
JFCOM identifies, as well as to satisfy the requirements of the
regional combatant commanders for solutions that otherwise may
not be provided by the individual services.

Operational test and evaluation (sec. 862)

The committee recommends a provision that would clarify
certain provisions regarding operational test and evaluation in
the Bob Stump National Defense Authorization Act for Fiscal
Year 2003. First, the provision would authorize the Secretary
of Defense to appoint a civilian, rather than a commissioned
officer, as Director of the new Defense Test Resource
Management Center (DTRMC). Second, the provision would clarify
that the Director of Operational Test and Evaluation (DOT&E)
would remain independent of the Under Secretary of Defense for
Acquisition, Technology and Logistics, as provided in section
139 of title 10, United States Code, and that for this reason
the DOT&E budget is not subject to review by the DTRMC. Third,
the provision would clarify that DOT&E access to records and
data would include relevant operational records and data for
systems that are deployed prior to the completion of the
operational test and evaluation. Access to such records and
data, however, would be provided only in a time and manner
provided by the Secretary of Defense and in accordance with
operational security and other relevant operational
requirements.

Multiyear task and delivery order contracts (sec. 863)

The committee recommends a provision that would amend
section 2304a of title 10, United States Code, to limit to five
years the period of time for which task and delivery order
contracts may be awarded. The provision also includes a
conforming change to repeal section 2306c(g) of title 10,
United States Code.

Repeal of requirement for contractor assurances regarding the
completeness, accuracy, and contractual sufficiency of
technical data provided by the contractor (sec. 864)

The committee recommends a provision that would eliminate
the requirement for contractors providing technical data to the
government to furnish written assurances that the technical
data is complete, accurate, and satisfies the requirements of
the contract.
The committee understands that the elimination of this
requirement will only reduce paperwork and will not in any way
diminish either the contractor's obligation to provide
technical data that meets contract requirements or the
government's ability to enforce this requirement. The committee
expects that the Defense Contract Management Agency will
continue to monitor contractor technical data programs in order
to protect government data rights and to ensure the government
receives timely and accurate information regarding contractor
processes, practice, and controls for developing technical
data.

Reestablishment of authority for short-term leases of real or personal
property across fiscal years (sec. 865)

The committee recommends a provision that would restore the
authority of the Department of Defense (DOD) to enter into 12-
month leases at any time during a fiscal year. Since 1997, DOD
has not been permitted to enter leases for real and personal
property that begin in one fiscal year and end in another.
Consequently, all DOD leases have been written to expire on the
last day of a fiscal year, subject to renewal on the first day
of the subsequent fiscal year. By addressing this problem, the
provision would reduce the administrative burden on lease
administration and reduce the risk of Anti-deficiency Act
violations.

Items of Special Interest

Applicability of the Trade Agreements Act to commercially available
off-the-shelf items

The Federal Acquisition Streamlining Act (FASA) of 1994
(Public Law 103-155) and the Clinger-Cohen Act of 1996
(divisions D and E of Public Law 104-106) included significant
reforms to make it easier for the government to acquire
commercial items.
FASA created a new system for the acquisition of commercial
items and authorized the waiver of certain statutes identified
as barriers to government utilization of the efficiencies of
the commercial marketplace. Section 4203 of the Clinger-Cohen
Act granted the Office of Federal Procurement Policy additional
authority to waive statutes for items specifically defined as
``commercial-off-the-shelf items'' (COTS), a subset of
commercial items. The intent of this provision was to enable
federal agencies to purchase COTS products that might not be
available in the absence of such waivers. No statutes have been
waived for COTS products under this authority.
The committee has been made aware that certain government
unique requirements under the Trade Agreements Act (Public Law
96-39) have created additional burdens on information
technology companies selling COTS products to the government.
These requirements may have reduced the number of sources and
products available to the Department of Defense (DOD) and may
have driven up information technology costs.
In the interest of further streamlining the procurement
process, the committee requests that the DOD and the Office of
Federal Procurement Policy review whether the Trade Agreements
Act should be waived under the authority provided in the
Clinger-Cohen Act, and report to Congress by February 1, 2004,
on the results of this review.

Contracting for overseas logistics support

U.S. forces deployed overseas for peacekeeping or combat
missions require a wide range of logistics support. Such
support includes the construction and maintenance of temporary
housing and other facilities, engineering services,
transportation, and equipment maintenance. The demand for
logistics support has increased in recent years together with
the pace of deployments.
The Department of Defense (DOD) has relied on active units,
reserve units, and private contractors to provide support to
deployed combat units. Contractors played a particularly
important role in supporting U.S. forces in the Balkans, and
contractors could play an even greater role in the future as
DOD seeks to limit the number of military personnel engaged in
functions that could be performed by civilians.
To better understand the advantages and disadvantages of
increasing reliance on contractor support, the committee
directs the Congressional Budget Office (CBO) to examine
alternative approaches to providing logistics support to
deployed forces and report to the committee by March 1, 2004,
on the results of this analysis. The alternatives to be
examined should include the use of active logistics units,
reserve units, civilian employees, and contractors, as well as
the potential use of contractors whose personnel are required
to retain a reserve affiliation. The CBO analysis should
consider both budgetary and non-budgetary factors. CBO shall
coordinate its efforts with the ongoing review by the General
Accounting Office that seeks to identify the kinds of logistics
tasks that contractors now perform.

Department of Defense anti-tamper program

Critical U.S. technologies may be exposed to the threat of
exploitation if they are developed with or sold to foreign
governments or fall into enemy hands. Exploitation through
reverse engineering or countermeasure development can result in
unintended transfer of technological advances, which can
degrade U.S. combat effectiveness. In 1999, the Department of
Defense established the anti-tamper program to protect selected
weapon systems that contain critical program information. The
anti-tamper program is intended to delay or deter exploitation
attempts if the system falls into enemy hands.
The committee directs the General Accounting Office to
review the Department's anti-tamper program and determine: (1)
the process and status of the Department's anti-tamper program;
(2) how the acquisition community implements the anti-tamper
program; and (3) the challenges, if any, the acquisition
community faces when implementing the anti-tamper program and
the process for addressing these challenges.

National Industrial Security Program

The Defense Department's National Industrial Security
Program oversees government contractors that administer
security programs to protect classified information in their
possession. Through this program, over 11,000 contractor
facilities have been deemed eligible to receive classified
information, with an estimated 11 million classified documents
in their possession. The program is also responsible for
monitoring security agreements when there is foreign
involvement at a contractor facility. As the defense industry
becomes increasingly globalized, it is no longer uncommon for
U.S. defense contractors to have partnerships and joint
ventures with foreign companies or for foreign companies to
acquire or establish facilities in the United States.
The committee directs the General Accounting Office (GAO)
to review the National Industrial Security Program and the
Department of Defense's oversight of contractors' programs to
protect sensitive information and technology. This review
should include an assessment of the department's process for:
(1) approving industrial security programs for cleared
facilities; and (2) monitoring compliance with industrial
security requirements.
The committee also directs the GAO to review the measures
the department takes to protect sensitive information and
technology when a contractor is foreign-owned or has foreign
business relationships. This review should include an
assessment of how the Defense Department determines which type
of protective agreement is appropriate when foreign involvement
exists at a contractor facility and the mechanisms used to
assure compliance with such agreements.

Evolutionary acquisition strategies

In testimony to the committee over the last several years,
Department of Defense witnesses stated that the Department is
seeking to reduce weapon systems acquisition cycle time by
using incremental acquisition strategies. The committee shares
the Department's view that better cost, schedule, and
performance outcomes can be achieved by using a properly
managed evolutionary or phased approach in developing weapon
systems. At the request of this committee, the General
Accounting Office (GAO) has developed a model for evolutionary
acquisition that includes measures for success, which are
defined for critical junctures of the product development
process. These measures provide decision makers with the
knowledge they need about technology, design, and production
before they commit to additional time or money investments.
The committee supports the Department's efforts to build
more flexibility into its acquisition process and the policies
they have developed to do so. At the same time, the committee
recognizes that ensuring a consistent and disciplined
application of policies and regulations will be key to
achieving the outcomes desired by the Department and the
committee. Therefore, the committee directs the GAO to assess
current acquisition policies and regulations and to determine
whether: (1) the policies support knowledge-based, evolutionary
acquisitions; (2) the regulations enforcing these policies
provide the necessary controls to ensure the Department's
intent is followed; and (3) the policies are responsive to
concerns expressed by the committee in the Bob Stump National
Defense Authorization Act for Fiscal Year 2003.

Improvement of software acquisition processes

Existing major defense acquisition programs are heavily
reliant on computer software. In many cases, poor management of
software development is the cause of substantial cost overruns
and delayed schedules. Section 804 of the National Defense
Authorization Act for Fiscal Year 2003 requires the secretary
of each military department and the head of each defense agency
that manages a major defense acquisition program with a
substantial software component to establish a program to
improve its software acquisition processes.
In a review requested by this committee, the General
Accounting Office (GAO) recommended that the Department of
Defense (DOD) institute software process improvement programs.
To ensure that the DOD and the services are establishing
processes that will result in better and more affordable
software for major weapon systems, the committee directs the
GAO to establish a set of knowledge-based metrics from best
software development practices, to apply those metrics in
evaluating the success of software development improvements on
the Department's major weapon system acquisitions, and to
report its findings to the committee by March 1, 2004.

Performance contracts

The General Accounting Office (GAO) reported to the
committee in December 2002, on the Department of Defense's
(DOD) business transformation initiatives. This GAO report
identified the Department's use of performance contracts as a
means of improving the oversight and operations of defense
agencies that provide numerous products and services to the
military services and other defense agencies. Performance
contracts are formal agreements entered into by a defense
agency which delineates improvement goals related to cost,
productivity, quality, and responsiveness to customers.
According to GAO, the Department's intent is to strengthen
performance management and outcomes through the use of
performance contracts. The committee directs the GAO to assess
the effectiveness of performance contracts as management tools,
from the time of introduction in November 1997, to the present.
In particular, GAO should: (1) identify the specific defense
agencies that use performance contracts; (2) consider whether
contract requirements include clearly defined performance
objectives and metrics; (3) review any changes made over time
and lessons learned; and (4) evaluate the potential for wider
application of such contracts in the Department. The committee
is also interested in the relationship between the Department's
efforts to implement performance contracts and its broader
effort to develop Defense-wide performance goals, measures, and
outcomes.
TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department Offices and Agencies

Clarification of responsibility of military departments to support
combatant commanders (sec. 901)
The committee proposes a provision that would clarify the
responsibility of the secretaries of the military departments
to fulfill the current and future operational requirements of
the combatant commands, subject to the authority, direction and
control of the Secretary of Defense. Existing law requires the
secretaries of the military departments to provide such support
``to the maximum extent practicable.'' Elimination of this
phrase would clarify the responsibility of all elements of the
Department of Defense to support the war fighting function of
the combatant commanders.
Redesignation of National Imagery and Mapping Agency as National
Geospatial-Intelligence Agency (sec. 902)
The committee recommends a provision that would change the
name of the National Imagery and Mapping Agency (NIMA) to the
National Geospatial-Intelligence Agency (NGA), and introduce,
as a matter of law, the term ``geospatial intelligence.'' When
NIMA was formed in 1997 it combined several components of
national and military service-related imagery interpretation
organizations with the Defense Mapping Agency. The name,
``National Imagery and Mapping Agency,'' was a natural
outgrowth of this process.
The traditional role of mapping has evolved into a much
more sophisticated and highly technical discipline, including
collection and analysis of sophisticated geodetic data and
statistical data. This activity provides insight into not only
where things are on the earth, but what that location means.
This has given rise to the term ``geospatial information.''
The introduction of the term ``geospatial intelligence,''
which encompasses the analysis and visual representation of
characteristics of the earth and activity on its surface, will
better describe and represent the unified activities of the
NGA.
Standards of conduct for members of the Defense Policy Board and the
Defense Science Board (sec. 903)
The committee recommends a provision that would require the
Secretary of Defense to promulgate standards of conduct for the
members of the Defense Policy Board and the Defense Science
Board. These standards are to be promulgated not later than 30
days after the enactment of the National Defense Authorization
Act for Fiscal Year 2004, and are to be reported to the Armed
Services Committees of the Senate and the House of
Representatives immediately upon promulgation.

Subtitle B--Space Activities

Coordination of space science and technology activities of the
Department of Defense (sec. 911)
The committee recommends a provision that would provide the
Under Secretary of the Air Force appropriate oversight of space
science and technology (S&T) projects. The provision would
require the Under Secretary, in consultation with the Director
of Defense Research and Engineering, to develop a space S&T
strategy, and allow the Department S&T entities to proceed with
space S&T projects only with the concurrence of the Under
Secretary of the Air Force. The provision would also require
the Under Secretary to submit a report on the strategy to the
Committees on Armed Services of the Senate and the House of
Representatives not later than March 15, 2004, and a review of
the strategy and coordination by the Comptroller General.
The committee notes that the Department of Defense is
justified in increasing its investment in space science and
technology, but is concerned that these efforts are not
adequately coordinated. The committee notes that, according to
the Air Force, a half dozen processes are currently used to
coordinate space related S&T projects. According to testimony
by the Under Secretary of the Air Force to the Strategic Forces
subcommittee, ``We must improve our S&T planning to ensure we:
(1) encourage an operational pull that conveys to the S&T
community a clear vision of the capabilities we need for the
future; (2) address the full spectrum of future needs in a
balanced and well-thought out manner; and (3) determine ways to
demonstrate and spin-off promising technologies to programs.''
The committee notes that the Under Secretary of the Air Force
is the official responsible for coordinating all Department of
Defense space programs, and consequently has the proper
perspective to ensure the effective coordination of S&T efforts
that support future space system requirements.
Space personnel cadre (sec. 912)
The committee recommends a provision that would require the
Secretary of Defense to develop a human capital resources
strategy for personnel of the Department of Defense with space
expertise that would ensure that the space career fields for
the military services are integrated to the maximum extent
possible. The provision would also require the Secretary to
submit a report to the Committees on Armed Services of the
Senate and House of Representatives on the strategy, an
assessment of the progress in integrating the space career
fields of the military services, and an assessment of the
adequacy of the Air Force space career field. Finally, the
provision would require a review and assessment by the General
Accounting Office.
The 2001 report of Commission to Assess U.S. National
Security Space Management and Organization expressed concern
about ``a lack of focused career development in the space
community'' and contended that ``[t]he Department of Defense is
not yet on course to develop the space cadre the nation
needs.'' Consequently, Congress approved section 912 of the
National Defense Authorization Act for Fiscal Year 2002 (Public
Law 107-107) requiring the Air Force to establish a space
career field that included development of space systems;
concepts of operations and doctrine; and space operations.
However, in a February 2003, review of the Department of
Defense implementation of the Commission's recommendations, the
U.S. Comptroller General was critical of the military services'
lack of progress in establishing space cadre plans. The
Comptroller General noted that the Department of Defense lacks
a strategic approach to the task of building and maintaining a
cadre of space professionals. While the Air Force, Army, and
Navy are developing space cadre plans, the committee believes
an integrated, strategic approach will improve coordination
between the services, and thereby help provide a common
expertise, eliminate redundancies or overlaps in training and
education, and minimize any critical gaps that may exist in
those areas.
The committee is aware that the Air Force has developed a
space career field plan pursuant to section 912 of the
Department of Defense Authorization Act for Fiscal Year 2002
(Public Law 107-107). The committee directs the Secretary of
the Air Force to provide of copy of this plan to Committees on
Armed Services of the Senate and the House of Representatives
no later than July 15, 2003.
Policy regarding assured access to space for United States national
security payloads (sec. 913)
The committee recommends a provision that would establish
as the policy of the United States that the President undertake
actions appropriate to ensure that United States has the
capacity to launch national security payloads when such
payloads are needed in space. These steps would include
resources and policy guidance to sustain two launch vehicles or
families of launch vehicles capable of delivering national
security payloads to space and a robust space launch
infrastructure.
The committee continues to believe that assuring access to
space for national security payloads is a vital national
security interest, and that maintaining the necessary
infrastructure and industrial base to do so must be a high
priority of the Department of Defense. This view was strongly
endorsed in testimony before the Subcommittee on Strategic
Forces by the Under Secretary of the Air Force and the
Commander of Strategic Command.
The committee understands that the Department of Defense
sought, through the Evolved Expendable Launch Vehicle (EELV)
program, to sustain two launch providers for the Department.
The EELV program led to the development of two new families of
space launch vehicles, capable of launching a full range of
national security payloads. Sustaining two vendors provides the
Department with the benefits of competition and a hedge against
significant technical problems in either of the EELV variants.
The committee notes that the rationale for sustaining two
vendors remains compelling.
The committee is aware, however, that the commercial launch
market, the health of which served as the economic basis for
sustaining two launch vendors, has collapsed. The contraction
of the commercial market impacts the Department's ability to
assure access to space for national security payloads. In light
of this circumstance, the committee believes that establishing
a policy that supports assured access is a necessary first step
to sustaining the required industrial base and launch
infrastructure.

Pilot program to provide space surveillance network services to
entities outside the United States government (sec. 914)

The committee recommends a provision that would authorize
the Secretary of Defense to establish a three year pilot
program to establish procedures for the Department of Defense
to provide satellite tracking services to commercial entities,
state and local governments, and foreign governments, and to be
reimbursed for those services by commercial entities and
foreign governments. Analysis of satellite data could be
included in such transactions if the Secretary determined that
to be in the national security interests of the United States.
The committee understands that the Department of Defense
receives requests from non-federal entities for space
surveillance information, including space track and object
identification. This provision would provide authority to
establish regular procedures to satisfy these requests and for
commercial and foreign government entities to reimburse the
Department of Defense for services, information, and analysis
provided.

Content of biennial global positioning system report (sec. 915)

The committee recommends a provision that would modify an
existing reporting requirement on the operational status and
effectiveness of the Global Positioning System (GPS).
The committee remains convinced of the significance of GPS
to the U.S. military and U.S. economy and of ensuring that GPS
services remain available and effective. The committee also
remains strongly supportive of GPS as the international
standard for radionavigation. However, GPS faces several
challenges in the near- to mid-term. These include potential
disruption from jamming, competition for spectrum, and the
potential for competition from the European Galileo system. In
view of these challenges, the committee acknowledges that
regular reporting to Congress on GPS remains timely and
important.

Subtitle C--Other Matters

Combatant Commander Initiative Fund (sec. 921)

The primary purpose of the combatant commander initiative
fund (CCIF) is to support unforeseen contingency requirements
critical to the combatant commanders' joint warfighting
readiness and national security interests. In two of the last
three years, the $7.0 million ceiling on funds used for
procurement items with unit costs in excess of $15,000 was
reached. Additionally, the $2.0 million ceiling on authority to
provide military education and training was reached.
The committee believes that the environment in which
today's combatant commander operates is vastly different from
that which existed when these statutory limitations were
established. In order to enable the Chairman, Joint Chiefs of
Staff, to meet unforeseen contingency requirements of the
combatant commanders, the committee recommends a provision that
amends section 166(a) of title 10, United States Code, by
establishing an additional category of joint warfighting
capabilities to the list of authorized activities for which
these funds can be expended. Additionally, the provision amends
the limitations contained in title 10: allowing up to $15.0
million for procurement of items with a unit cost in excess of
$15,000; allowing up to $10.0 million to pay for expenses of
foreign countries participating in joint exercises; and,
allowing up to $10.0 million to provide military training and
education to military and related civilians of foreign
countries.
The budget request included $25.0 million in Operation and
Maintenance, Defense-wide, for the CCIF. The committee
recommends an increase of $10.0 million for the CCIF, to be
used only by Commander, U.S. Joint Forces Command to rapidly
develop and acquire inherently joint capabilities that have the
potential to significantly improve the joint warfighting
capabilities of combatant commanders.

Authority for the Marine Corps University to award the degree of master
of operational studies (sec. 922)

The committee recommends a provision that would amend
section 7102 of title 10, United States Code, to authorize the
President of the Marine Corps University to confer the degree
of master of operational studies upon graduates of the School
of Advanced Warfighting of the Command and Staff College.

Report on changing roles of United States Special Operations Command
(sec. 923)

The committee recommends a provision that would direct the
Secretary of Defense to prepare a report on implementation of
direction by the Secretary to the U.S. Special Operations
Command (SOCOM) to assume an expanded role in the global war on
terrorism, and to restructure SOCOM so it will be able to
function as a supported combatant commander for planning and
executing operations, as well as its current role as a
supporting combatant commander.
In January 2003, the Secretary of Defense directed SOCOM to
assume greater responsibility for conducting the global war on
terrorism. The Secretary directed the SOCOM Commander to
develop a counterterrorism plan, to restructure the SOCOM staff
to include a fully capable contingency planning staff, and to
augment SOCOM component commands at the headquarters of
geographic combatant commanders. The department requested $6.7
billion for fiscal year 2004 for SOCOM, an increase of
approximately thirty-four percent. This would fund a personnel
increase of 1,890 individuals in fiscal year 2004, including
headquarters planning staff positions, two SEAL teams, a
special operations helicopter aviation battalion, and
additional Civil Affairs and Psychological Operations elements.
Most of the $1.1 billion in procurement would be used to
replace aircraft lost in the global war on terrorism and to
acquire MH-47 helicopters for the new battalion.
Special Operations Forces (SOF) are uniquely qualified to
conduct counterterrorism missions, and the National Defense
Authorization Act for Fiscal Year 1987 that established the
command provided authority for the command to function as a
supporting, and supported command. Until now, the ``supported
command'' authority has only rarely been used. The committee
supports the Secretary's decision to expand SOCOM's role in the
global war on terrorism, to expand SOCOM's role as a supported
command, and to request additional funding for the command to
develop the required capabilities to do so.
However, the committee needs additional information on how
this new responsibility will impact upon SOCOM's nine statutory
missions, in particular the traditional mission of foreign
internal defense, and training foreign militaries in general,
which provide SOF with critical training, and access to
countries of interest. In addition, the committee is concerned
that implementation of this new authority occur within the
parameters of existing international and U.S. law, with full
civilian executive and legislative oversight.
The committee directs the Secretary to provide the
congressional defense committees with a report that includes
information on the following: (1) the military strategy to
employ SOCOM to fight the global war on terrorism and how that
contributes to the overall national security strategy with
regard to the global war on terrorism; (2) the scope of the
authority granted to SOCOM to act as a supported command and to
prosecute the global war on terrorism; (3) the operational and
legal parameters within which SOCOM will exercise its authority
in foreign countries when taking action against foreign and
U.S. citizens engaged in terrorist activities; (4) the decision
making mechanisms, to include any consultations with the
Congress involved in authorizing, planning, and conducting
individual missions; (5) the mechanism SOCOM will use to
coordinate with other combatant commands, especially geographic
commands; (6) future organization plans and resource
requirements for conducting the global counterterrorism
mission; and, (7) the impact on other SOF missions, including
foreign internal defense, psychological operations, civil
affairs, unconventional warfare, counterdrug activities, and
humanitarian activities.
The report, in classified and unclassified versions, shall
be submitted to the congressional defense committees no later
than 180 days after enactment of this Act.

Integration of Defense intelligence, surveillance and reconnaissance
capabilities (sec. 924)

The committee recommends a provision that would require the
Under Secretary of Defense for Intelligence (USD (I)) to
establish an Intelligence, Surveillance, and Reconnaissance
(ISR) Council, composed of the senior intelligence officers of
the military services, the directors of the Defense
intelligence agencies, and the Director for Operations, J3, the
Joint Staff, to provide a permanent forum for the discussion
and arbitration of issues relating to the development and
integration of Defense-wide ISR capabilities. The provision
also would require the USD (I) to develop a comprehensive plan
to guide the development, fielding, and integration of
Department of Defense (DOD) ISR capabilities over the next 15
years.
The committee has no doubt that the DOD and the larger
intelligence community have the most capable ISR system in the
world. This system has been assembled and evolved, over time,
at great effort and at great expense. As good as this system
is, however, it is often plagued by gaps, competition for
assets, unavailability at the required level, and parallel
systems (so-called ``stovepipes'') that do not fully complement
one another. Because of the mechanism by which requirements
have been generated from multiple sources to meet a specific
need, the Department has continued to develop some capabilities
without regard to their place within an overarching ISR
architecture. Collection managers and intelligence users have
done a commendable job of formulating ways to make systems work
together and complement one another, but little has been done,
in a comprehensive, Defense-wide enterprise manner, to require
that new intelligence capabilities being developed by the
military services and the Defense intelligence agencies are
conceived as part of a larger system of systems.
The Congress established the position of USD (I) in the Bob
Stump National Defense Authorization Act for Fiscal Year 2003.
A clear intent of this action was that the USD (I) would
exercise comprehensive oversight of the Defense intelligence
enterprise and guide the development of new intelligence
capabilities, particularly within the military services, so as
to maximize capability and minimize duplication of effort. The
increased urgency of homeland security has made this concept
even more important, as the DOD seeks the means to enhance its
capabilities to fulfill its responsibilities in supporting
homeland security efforts.
Traditionally, much effort has been expended on conceiving
and developing intelligence collection platforms, but
development of the means to process, analyze, and disseminate
the resulting intelligence information has sometimes lagged
behind. Providing the needed information to the battlefield
commander--``the last tactical mile''--in an austere
communications environment has been especially challenging.
Ensuring that capabilities in all intelligence disciplines are
fully integrated with interoperable communications and
processing systems is absolutely essential.
The committee has confidence that the USD (I) will confront
these challenges and bring needed discipline to well-intended
efforts across the entire Department. The committee intends to
review very carefully any recommendations of the USD (I) on how
best to structure intelligence funding for the various levels
of the Department. The report shall be delivered to the
congressional defense and intelligence committees no later than
September 30, 2004.

Establishment of the National Guard of the Northern Mariana Islands
(sec. 925)

The committee recommends a provision that would authorize
the Secretary of Defense to cooperate with the Governor of the
Northern Mariana Islands to establish the National Guard of the
Northern Mariana Islands and integrate into the Army National
Guard and Air National Guard of the United States the members
of the National Guard of the Northern Mariana Islands who are
granted federal recognition under title 32, United States Code.
TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Transfer authority (sec. 1001)
The committee recommends a provision that would provide for
the transfer of funds authorized in Division A of this act to
unforeseen higher priority needs in accordance with normal
reprogramming procedures. Additionally, in recognizing the need
to provide the Secretary of Defense with the necessary
flexibility to manage the Department of Defense, the committee
includes a provision to increase the transfer authority
limitation to $3.0 billion.
United States contribution to NATO common-funded budgets (sec. 1002)
The resolution of ratification for the Protocols to the
North Atlantic Treaty of 1949 on the Accession of Poland,
Hungary and the Czech Republic contained a provision (section
3(2)(C)(ii)) that requires a specific authorization for U.S.
payments to the common-funded budgets of the North Atlantic
Treaty Organization (NATO) for each fiscal year, beginning in
fiscal year 1999, in which U.S. payments exceed the fiscal year
1998 total. The committee recommends a provision to authorize
the U.S. contribution to NATO common-funded budgets for fiscal
year 2004, including the use of unexpended balances from prior
years.
Authorization of supplemental appropriations for fiscal year 2003 (sec.
1003)
This provision would authorize the supplemental
appropriations for fiscal year 2003 enacted in the Emergency
Wartime Supplemental Appropriations Act, 2003 (Public Law 108-
11).

Subtitle B--Improvement of Travel Card Management

Mandatory disbursement of travel allowances directly to travel care
creditors (sec. 1011)
The committee recommends a provision that would make
mandatory the requirements of section 2784a(a) of title 10,
United States Code, that require direct payment to the issuer
of a Department of Defense (DOD) travel card for official
travel or transportation expenses charged on the travel card by
a DOD employee or member. The committee is disappointed in the
progress made by the Department in fully implementing this
provision which is designed to provide better accountability
over the use of the travel card.
Determinations of creditworthiness for issuance of Defense travel card
(sec. 1012)
The committee recommends a provision that would require the
Secretary of Defense to establish a program for evaluating the
creditworthiness of individuals prior to the issuance of a
Department of Defense travel card. The provision would prohibit
the issuance of a travel card to an individual determined not
credit worthy under this program.
Disciplinary actions and assessing penalties for misuse of Defense
travel cards (sec. 1013)
The committee recommends a provision that would require the
Secretary of Defense to prescribe guidelines and procedures for
making determinations regarding the taking of disciplinary
action, including the assessment of penalties, against
Department of Defense personnel for improper, fraudulent, or
abusive use of defense travel cards by such personnel.

Subtitle C--Reports

Elimination and revision of various reporting requirements applicable
to the Department of Defense (sec. 1021)
The committee recommends a provision that would repeal or
modify a number of obsolete or superceded reporting
requirements presently imposed by statute upon the Department
of Defense.

Global strike plan (sec. 1022)

The committee recommends a provision that would require the
Secretary of Defense to prepare a global strike plan that would
be updated annually, and to provide an annual report on the
roadmap through fiscal year 2006 to the congressional defense
committees.
The 2001 Nuclear Posture Review (NPR), recognizing that the
international security environment had changed dramatically
over the past decade, recommended a reduction of deployed
strategic nuclear forces from the current level of
approximately 6,000 warheads to 1,700 to 2,200 operationally
deployed warheads by 2012. The NPR also determined that, rather
than relying exclusively on strategic nuclear forces for
deterrence, the nation should rely on a new ``triad''
consisting of offensive weapons, defensive systems, and a
robust infrastructure to support a full range of defense needs.
The committee notes that much of the debate concerning the
NPR has focused on nuclear weapons. However, the committee also
notes that the NPR sought to devise a strategic construct that
would reduce reliance on nuclear weapons by providing a broader
array of military tools to national command authorities and
military commanders. These tools are to include advanced
conventional weapons capable of striking a wider array of
targets, active defenses capable of defeating attacks after
they have been launched, and passive defenses capable of
minimizing the effects of attacks.
The Commander of U.S. Strategic Command repeatedly
emphasized in his testimony to the Strategic Forces
Subcommittee the importance of this broad array of tools to the
ability of Strategic Command to conduct missions in support of
national command authorities. In this context, he stated his
intent ``* * * to provide a wide range of advanced options to
the President in responding to time-critical, high threat,
global challenges and, thereby, raise even higher the nuclear
threshold.'' He also noted the need to explore new conventional
and nuclear technologies and cited several ongoing studies by
the Department of Defense to examine future systems to meet
strategic needs.
The committee concurs that further analysis of future
systems needs is required and that integrating this broader
array of capabilities will require significant coordination
within the Department. The committee believes that a
comprehensive effort to link planning and programs for advanced
conventional munitions, nuclear concepts, and advanced strike
platforms in a coordinated global strike roadmap would be
important to achieving a coherent force structure in the
future. Such a roadmap would help fulfill the NPR goals of
providing a full range of military alternatives to military and
political leaders and further reduce reliance on nuclear
weapons.

Report on the conduct of Operation Iraqi Freedom (sec. 1023)

The committee recommends a provision that would require the
Secretary of Defense to submit to the congressional defense
committees a comprehensive report on the conduct of Operation
Iraqi Freedom not later than March 31, 2004. The provision
would require the Secretary to emphasize the accomplishments
and the shortcomings noted during preparations, conduct, and in
the aftermath of military operations and to highlight any
lessons learned.

Report on mobilization of the Reserves (sec. 1024)

The committee recommends a provision that would require the
Secretary of Defense, not later than 90 days after enactment of
this Act, to submit to the Committees on Armed Services of the
Senate and the House of Representatives a report on the
mobilization of reserve component forces during fiscal years
2002 and 2003. The report would include numbers and specialties
of Reserves mobilized, the known effects on the reserve
components, and any changes in the armed forces envisioned as a
result of these effects.

Subtitle D--Other Matters

Blue forces tracking initiative (sec. 1031)

The committee recommends a provision that would direct the
Secretary of Defense to coordinate developmental activities
aimed at fielding a capability to maintain information on the
location of U.S. and allied forces, sometimes called ``blue
forces tracking.'' The provision would further direct the
Commander, U.S. Joint Forces Command (JFCOM), to conduct a blue
forces tracking joint experiment in fiscal year 2004. The goal
of the experiment would be to demonstrate and evaluate
available technologies, and to recommend an achievable solution
for Defense-wide fielding. The provision would also require the
Secretary of Defense to submit a report to the congressional
defense committees on the results of the blue forces tracking
experiment with a plan for how the Department would proceed
with the development, acquisition and fielding of a functional,
near real time blue forces tracking system. The committee urges
the Commander, JFCOM, to combine this experiment with the
ongoing advanced concept technology demonstration called
``Joint Blue Forces Situational Awareness (JBFSA).''
The committee is concerned that, despite significant
lessons learned in military operations over the past 13 years
and despite the availability of relevant technologies, the
Department has made insufficient progress in developing a
military service-wide, near real-time, blue forces monitoring
or tracking capability. Different groups within the Department
are using a variety of interim and ad hoc solutions, but these
solutions employ technologies that create interoperability
problems, suffer from limited coverage, and, in some cases,
consume considerable space-based communications bandwidth.
With casualties attributable to friendly fire continuing to
be a significant portion of overall casualties in recent
conflicts, the urgency of developing and fielding a
comprehensive, joint system for all military services is clear.
Although the Department has designated the U.S. Army as the
lead service for developing a blue forces tracking capability,
the committee is concerned that the effort lacks urgency and is
not fully endorsed by the other services, or the U.S. Special
Operations Command. The Department has been spending resources
in a fragmented manner on a series of advanced concept
technology demonstrations, service-preferred systems, and
special operations systems. Without better coordination of the
ongoing developmental activities, the committee is concerned
that the Department will not achieve a solution to the problem
of friendly fire incidents.
The committee strongly urges the Secretary of Defense to
ensure all funding for blue forces tracking development within
the Department of Defense is scrutinized by the Commander,
JFCOM, until such time as a Defense-wide standard and strategy
for acquisition of blue forces tracking capability is
determined.

Loan, donation, or exchange of obsolete or surplus property (sec. 1032)

The committee recommends a provision that would authorize,
for fiscal years 2004 and 2005, the Secretaries of the military
departments to exchange obsolete or surplus property with an
individual, organization, institution, agency, or nation if the
exchange would directly benefit the historical collection of
the armed forces.

Acceptance of gifts and donations for Asia-Pacific Center for Security
Studies (sec. 1033)

The committee recommends a provision that would expand the
authority of the Asia-Pacific Center for Security Studies to
accept gifts from domestic sources as well as foreign sources.

Provision of living quarters for certain students working at National
Security Agency Laboratory (sec. 1034)

The committee recommends a provision that would allow the
National Security Agency (NSA) to provide, and if necessary,
subsidize, living quarters for cooperative education (co-op)
program and summer intern program students working in NSA
research laboratories. There is a shortage of affordable,
short-term housing in the Fort Meade, Maryland area. The
availability of affordable, short-term housing will ensure that
NSA continues to attract the most qualified students for its
co-op and intern programs.
Over the years, NSA has been able to eventually hire and
retain over 80 percent of the graduates that have participated
in its student programs. Competition for these highly skilled,
highly qualified students is significant. NSA needs to be able
to continue to attract students of this level of competence.
Such students should not be deterred from seeking a valuable
and mutually beneficial student-employee opportunity with NSA
because of the unavailability of affordable, short-term
housing.

Protection of operational files of the National Security Agency (sec.
1035)

The committee recommends a provision that would authorize
the Secretary of Defense to withhold from public disclosure the
operational files of the National Security Agency. This
provision would authorize the protection of such files from
public disclosure, under the Freedom of Information Act or
otherwise, to the same extent as provided for the operational
files of the Central Intelligence Agency under section 701 of
the National Security Act of 1947 (50 U.S.C. 431).

Transfer of administration of National Security Education Program to
Director of Central Intelligence (sec. 1036)

The committee recommends a provision that would transfer
responsibility for the National Security Education Program
(NSEP), a scholarship, fellowship, and grant program
established in 1991, from the Department of Defense to the
Director of Central Intelligence. The Director of Central
Intelligence administers similar student fellowship and grant
programs and has expressed interest in administering this
program. The committee believes the transfer of this program to
the Director of Central Intelligence will enhance the
efficiency and effectiveness of the NSEP.

Report on use of unmanned aerial vehicles for support of homeland
security missions (sec. 1037)

The committee recommends a provision that would require the
President to provide a report no later than April 1, 2004, on
the potential use of Unmanned Aerial Vehicles (UAVs) for
homeland security. The report would be produced in consultation
with all relevant federal agencies.
The committee has long supported the expanded use of UAVs
by the U.S. military and notes reports from soldiers in the
field regarding the usefulness of UAVs as ``eyes in the skies''
in the global war on terrorism. The committee notes that UAVs
have potential application in the area of homeland security.
Long-endurance, land-based UAVs could be used to monitor remote
areas along our northern and southern borders; to assist the
Coast Guard in its efforts to patrol our country's 95,000 miles
of waterways and aid in its drug interdiction mission; to
support NORTHCOM's mission to defend our national battlespace;
to monitor the safety and integrity of critical infrastructure
within the United States; and to track transportation of
hazardous cargo. In addition, the report should evaluate the
ability of UAV manufacturers to produce at higher rates, if
necessary, to meet any increased demands for UAVs for homeland
security and homeland defense missions.
The committee recognizes that there are important issues of
safety, privacy and civil liberties, as well as overlapping
jurisdictional issues that must be carefully considered prior
to operating UAVs over U.S. territory in support of homeland
security missions, and therefore the provision would require
that the report include a discussion of these issues.

Conveyance of surplus T-37 aircraft to Air Force Aviation Heritage
Foundation, Incorporated (sec. 1038)

The committee recommends a provision to authorize the
Secretary of the Air Force to convey a surplus T-37 aircraft to
the Air Force Aviation Heritage Foundation of Georgia. This
authority is discretionary and the conveyance of an aircraft
authorized by this provision would be made at no cost to the
United States.

Budget Items

Information technology investments to support effective financial
management

The committee recommends a general reduction of $200.0
million in information technology development modernization for
functional area applications in:
Other Procurement, Army--$22.4 million;
Other Procurement, Navy--$20.9 million;
Other Procurement, Air Force--$13.5 million;
Other Procurement, Defense-Wide--$8.9 million;
Research and Development, Army--$18.2 million;
Research and Development, Navy--$15.2 million;
Research and Development, Air Force--$11.5 million;
Research and Development, Defense-Wide--$10.5
million;
Defense Health Programs--$14.0 million;
Defense Working Capital Fund Operations--$60.2
million;
Operation and Maintenance, Defense-Wide--$4.7
million.
This reduction is based on the delay in developing the
Department of Defense's financial systems architecture and the
lack of progress in provided adequate justification for new
business information systems investments, and was calculated in
the same manner as the reduction taken in the National Defense
Authorization Act for Fiscal Year 2003.
The committee expects the Department to achieve these
reductions by: (1) implementing the requirements of section
1004 of the National Defense Authorization Act for Fiscal Year
2003; (2) restricting the development of Department of Defense
business systems until the Department has completed its
proposed architecture and transition plan and is in a position
to ensure that business system expenditures will be consistent
with that architecture and plan; and (3) restricting spending
on those programs that do not meet the capital planning and
investment control criteria of the Clinger-Cohen Act (40 U.S.C.
1412 and 1422).
Two years ago, the Department of Defense (DOD) initiated an
ambitious effort to address shortcomings in the Department's
financial management systems, operations, and controls. The
Department planned to develop a comprehensive enterprise
architecture and a transition plan for implementing the
proposed architecture by April 2003. The proposed architecture
would then be implemented over a period of four years or more.
The committee continues to strongly support the Department's
efforts to address shortcomings in its financial systems on a
comprehensive basis.
Unfortunately, the General Accounting Office recently
reported to the committee that DOD ``* * * had yet to provide a
clear definition of the intended purpose of the April 30, 2003,
architecture * * *'' and determined that ``* * * the
architecture will not fully satisfy the requirements contained
within Section 1004 of Public Law 107-314.''
The inability of the Department to develop a comprehensive
architecture calls into question the need for proposed levels
of expenditures for new investment in business information
systems. Until the proposed architecture has been fully
developed, increased spending on such systems could be
wasteful. Last year, the Comptroller General of the United
States testified before the Subcommittee on Readiness and
Management Support that the Department should limit the
additional business systems development that the Department
undertakes until a new enterprise architecture has been
approved. The DOD Comptroller agreed with the Comptroller
General's recommendation.
Section 1004 of the National Defense Authorization Act for
Fiscal Year 2003 was designed to help enforce spending
limitations by requiring that any defense financial information
system improvement expenditure over $1.0 million be approved in
advance by the DOD Comptroller. The GAO has indicated that DOD
has done very little in limiting spending on business systems
development until the proposed architecture and transition plan
have been completed. In a February 2003 report to the
committee, GAO stated:

DOD has yet to establish the necessary departmental
investment governance structure and process controls
needed to adequately align ongoing investments with its
architectural goals and direction. Instead, DOD
continues to allow its component organizations to make
their own parochial investment decisions, following
different approaches and criteria. This stovepiped
decision-making process has contributed to the
department's current complex, error-prone environment
of over 1,700 systems. In particular, DOD has not
established and applied common investment criteria to
its ongoing IT system projects using a hierarchy of
investment review and funding decision-making bodies,
each composed of representatives from across the
department. DOD also has not yet conducted a
comprehensive review of its ongoing IT investments to
ensure that they are consistent with its architecture
development efforts. Until it takes these steps, DOD
will likely continue to lack effective control over the
billions of dollars it is currently spending on IT
projects.

The Associate Director for E-Government and Information
Technology at the Office of Management and Budget recently
testified before the House Government Reform Committee that
about 771 projects included in the FY04 budget request with a
total cost of $20.9 billion are ``at risk'' and will not be
allowed to move forward by OMB until agencies present a
successful business case. The committee is concerned that a
number of DOD systems may not have an effective business
justification and urges the Secretary of Defense to ensure that
sufficient economic justification is provided prior to
investing in business systems at DOD.
DOD's budget request included more than $5.2 billion for
business systems development and modernization. This is in
addition to the over $18.0 billion spent to operate and
maintain the existing business information systems
infrastructure. The amount planned to be spent on systems
development and modernization includes funding for a large
number of programs that may require fundamental restructuring
depending on the outcome of the Department's current financial
management review and the system architecture that the
Department develops.

Refined Petroleum Products, Marginal Expense Transfer Account

The administration requested the establishment of a Refined
Petroleum Products Marginal Expense Transfer Account to cover
the difference between the funds the Department of Defense
budgets for the purchase of refined petroleum products and the
actual market prices the Department pays for fuel (i.e. the
additional marginal expense). Under this proposal, an
indefinite appropriation would be available for the Department
to cover those additional marginal expenses. The Congressional
Budget Office (CBO) estimates that this transfer account would
cost $675.0 million in fiscal year 2004. That amount has been
included in the fiscal year 2004 budget resolution for this
purpose.
The committee does not support the establishment of a
Refined Petroleum Products Marginal Expense Transfer Account. A
marginal expense transfer account may have unintended
consequences. The committee believes that fuel costs should
continue to be funded through the Defense Working Capital Fund.

Items of Special Interest

Terrorist threat integration center

The committee is concerned that the information developed
by the various components of the intelligence community and the
information developed by the disparate elements of the local,
state, and federal law enforcement community is not quickly and
efficiently shared in order to respond to significant terrorist
threats to the United States. The President has directed the
establishment of a terrorist threat integration center (TTIC)
to correct this problem, but exactly how this organization will
operate remains unclear. Because of the large responsibilities
of the Department of Defense (DOD) within the intelligence
community and the Department's important role in homeland
defense, the Department will be involved in the organization
and operation of the TTIC.
The committee directs the Under Secretary of Defense for
Intelligence (USD(I)), in consultation with the Assistant
Secretary of Defense for Homeland Defense, to provide a report
to the congressional defense and intelligence committees that
details: the mission of the TTIC; the DOD commitment to the
TTIC in terms of personnel, equipment, infrastructure and
related support; the funding that will be required to meet
DOD's responsibilities to the TTIC; and the relationship of the
TTIC to U.S. Northern Command. In addition, the committee
requests the assessment of the USD(I) as to the impact of this
commitment to the TTIC on the overall defense intelligence
mission, and a review of any issues associated with foreign
intelligence activities supporting domestic law enforcement, as
well as any issues associated with active duty military
personnel supporting civil law enforcement activities. This
report shall be delivered to the congressional defense and
intelligence committees no later than December 1, 2003.
TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Authority to employ civilian faculty members at the Western Hemisphere
Institute for Security Cooperation (sec. 1101)
The committee recommends a provision that would amend
section 1595 of title 10, United States Code, to add the
Western Hemisphere Institute for Security Cooperation (WHINSEC)
as a covered institution of the Department of Defense at which
the Secretary of Defense may employ civilians as professors,
instructors, and lecturers, and may prescribe their
compensation. The action is taken pursuant to a recommendation
of the congressionally established Board of Visitors for
WHINSEC.
Pay authority for critical positions (sec. 1102)
The committee recommends a provision that would give the
Department of Defense (DOD) critical pay authority for up to 40
administrative, technical, or professional positions. This
authority would be identical to the authority given the
Internal Revenue Service in 1998 to attract critical personnel
to manage and support the modernization of IRS computer
systems. DOD has embarked on a similar endeavor to reform its
financial management computer systems. The committee
anticipates that DOD will use this authority to attract an
experienced program manager to run the Department's financial
systems modernization, as well as for attracting people for
other critical programs that require individuals with an
extremely high level of managerial and technical experience.
Extension, expansion, and revision of authority for experimental
personnel program for scientific and technical personnel (sec.
1103)
The committee recommends a provision that would extend and
expand the Defense Advanced Research Projects Agency (DARPA)
Experimental Personnel Program. The committee recognizes the
successful utilization of the experimental personnel program by
DARPA and recommends extending the program for that reason. In
addition, the provision would increase by ten the positions
available to DARPA under this authority.
The committee supports the agility and flexibility of DARPA
management and personnel policies. In addition, the committee
notes the effectiveness of the Director of DARPA in recruiting
scientists and technologists from cutting edge disciplines who
are motivated to make a contribution to the nation by working
on ``DARPA-hard'' problems. These individuals provide a
valuable contribution to the national security and economic
vitality of the United States.
Transfer of personnel investigative functions and related personnel of
the Department of Defense (sec. 1104)
The committee recommends a provision that would authorize
the Secretary of Defense, with the consent of the Director of
the Office of Personnel Management (OPM), to transfer the
personnel security investigations functions that are performed
by the Defense Security Service of the Department of Defense to
the OPM.
The committee notes that this change would make OPM the
central provider of these services for the Federal Government.
The committee also recommends that those personnel security
investigation activities currently performed by the Defense
Security Service be acquired from OPM on a reimbursable basis.
The proposed transfer of personnel assets would ensure that
skilled investigators currently performing these functions
would be available to address the critical need for these
services in a centrally managed and administered entity.

Items of Special Interest

Laboratory Personnel Demonstration Projects
The committee has strongly supported the Department of
Defense's efforts to provide flexibility to the defense
laboratories in order to allow these laboratories to attract
and retain the finest technical talent. The committee urges the
Department to continue to work to ensure that the defense
laboratories are of the highest quality and can continue to
support and accelerate the transformation of our armed forces.
The committee commends the recent efforts undertaken by the
Office of the Undersecretary of Defense for Acquisition,
Technology and Logistics (USD, AT&L) to revitalize the
innovation and functions of the defense laboratories. In
particular, the committee recognizes the commitment and
dedication of the Deputy Undersecretary of Defense for
Laboratories and Basic Sciences (DUSD(LABS)) in engaging and
communicating with laboratory directors on personnel issues
that impact the defense laboratory system. The committee
further notes that the Office of the USD, AT&L has initiated
the Laboratory Quality Improvement Program, allowing for an
extensive review of the defense laboratories and the various
issues facing them. The committee also notes that two recent
reports, the DUSD(LABS)'s ``DOD Laboratory Scientist and
Engineer Workforce: Framework of Human Resource Features for
the Alternative Personnel System'' and the Naval Research
Advisory Council's ``Science and Technology Community in
Crisis'' provide an excellent overview and interesting
recommendations on laboratory issues.
TITLE XII--MATTERS RELATING TO OTHER NATIONS

Authority to use funds for payment of costs of attendance of foreign
visitors under regional defense counterterrorism fellowship
program (sec. 1201)
The committee recommends a provision that would make
permanent the Regional Defense Counterterrorism Fellowship
(RDCTF) Program established under section 8125 of the Defense
Appropriations Act for Fiscal Year 2002. Under current law, the
program will expire upon expenditure of the $17.9 million
originally appropriated to establish the program.
The Secretary of Defense has determined that the RDCTF
program has been useful in increasing cooperation with partner
nations in the global war on terrorism. Moreover, the program
has provided valuable training to enable coalition partners in
the global war on terrorism to improve their training programs
in counterterrorism tactics, techniques, and procedures.
Institutionalizing the RDCTF program will enable the Department
to offer this training opportunity to a broader audience of
counterterrorism officials and enable the Department to engage
in long-term planning for the educational assistance of
friendly nations and allies in the global war on terrorism. The
provision limits the annual expenditure of funds for this
purpose to no more than $20.0 million.
The committee expects the Department to ensure that the
program conforms to the spirit of statutory guidelines
governing the administration of related programs. The provision
requires the Secretary to formulate formal guidelines within
appropriate Department regulations for administration of the
RDCTF program, not later than December 1, 2003, and notify the
congressional defense committees when the formal guidelines are
promulgated. Additionally, the provision requires the Secretary
to submit an annual report to the congressional defense
committees that summarizes counterterrorism training activities
conducted under the auspices of the RDCTF program, as well as
an assessment of the effectiveness of the program in increasing
cooperation with other nations in the global war on terrorism.
This report will be submitted not later than 60 days after the
end of each fiscal year, beginning with the conclusion of
fiscal year 2004.
Availability of funds to recognize superior noncombat achievements or
performance of members of friendly foreign forces and other
foreign nationals (sec. 1202)
The committee recommends a provision that would amend
chapter 53 of title 10, United States Code, to expressly
authorize the Department of Defense to expend operations and
maintenance funds to recognize superior noncombat achievements
or performance by members of foreign forces and other foreign
nationals that significantly enhance or support the national
security strategy of the United States.
Currently, the Department's authority to expend
appropriated funds to recognize superior achievements for
foreign nationals is limited. Military decorations may be
awarded to certain foreign military officials and
representational gifts may be given to certain foreign
dignitaries. However, the Secretary and subordinate military
commanders are inhibited in their ability to provide meaningful
recognition to foreign nationals, military and civilian, who
provide valuable service to the United States. This authority
will provide the Secretary a valuable tool in establishing
goodwill that may improve security relationships with many
friendly nations in the future.

Check cashing and exchange transactions for foreign personnel in
alliance or coalition forces (sec. 1203)

The committee recommends a provision that would authorize a
disbursing official of the U.S. Government to allow military
personnel from allied nations to cash checks and certain
negotiable instruments and exchange foreign currency, provided
these individuals are participating in military training
activities with U.S. Military Forces. This authority would be
subject to the approval of the senior U.S. military commander
assigned to the joint operation or mission and would only be
exercised when the government of the foreign nation has
guaranteed payment for any deficiency resulting from the use of
this authority.

Clarification and extension of authority to provide assistance for
international nonproliferation activities (sec. 1204)

The committee recommends a provision that would recognize
the U.N. Monitoring, Verification and Inspection Commission
(UNMOVIC) as the successor organization of the U.N. Special
Commission (UNSCOM), and extend the authority of the Department
of Defense to continue to provide support for critical weapons
inspections and monitoring in Iraq for an additional year. Even
though the regime of Saddam Hussein has been removed from Iraq,
the United States and its coalition partners will continue to
conduct extensive inspection of suspected weapons development
and storage sites and conducting verification and monitoring
activities for many months. The expertise and experience of
UNMOVIC may be useful in these activities. Extension of this
authority for one year is a prudent step to give the Secretary
of Defense and the Commander, U.S. Central Command access to
all relevant bodies of experience and information with regard
to weapons of mass destruction activities in Iraq.

Reimbursement costs relating to national security controls on satellite
export licensing (sec. 1205)

The committee recommends a provision that would amend
section 1514 of the National Defense Authorization Act for
Fiscal Year 1999 to clarify that only costs directly related to
monitoring the launch of a satellite in a foreign country shall
be reimbursed by contractors to the Department of Defense
(DOD). The committee is concerned that the Department may
currently be requiring reimbursement by contractors for items
and overhead that are only tangentially related to monitoring
specific launches. These costs may be more suitably funded
through direct appropriations. This provision would require the
General Accounting Office (GAO) to conduct a study of the
Department's costs for monitoring launches of satellites in a
foreign country and report to the Committees on Armed Services
of the Senate and the House of Representatives by April 1,
2004, on findings and recommendations of the GAO.

Annual report on the NATO Prague capabilities commitment and the NATO
response force (sec. 1206)

The committee recommends a provision that would require the
Secretary of Defense, in consultation with the Secretary of
State, to submit a report on implementation of the North
Atlantic Treaty Organization (NATO) Prague Capabilities
Commitment and development of the NATO Response Force. The
report would be submitted no later than January 31 of each
year. The committee notes its recommendation to repeal the
requirement of the Department of Defense to report annually on
the NATO Defense Capabilities Initiative.

Expansion and extension of authority to provide additional support for
counter-drug activities (sec. 1207)

The committee recommends a provision that would extend the
authority contained in Section 1033 of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-84), for
support to Columbia, and would renew authority for support to
Peru that expired at the end of fiscal year 2002, starting in
fiscal year 2003 through the end of fiscal year 2006.
Additionally, the provision would authorize the same support,
through the end of fiscal year 2006, for seven additional
countries, including: Afghanistan; Bolivia; Ecuador; Pakistan;
Tajikistan; Turkmenistan; and Uzbekistan. Because of the
expanded number of nations being supported, the provision would
increase the amount of funding that could be utilized for
support of these nine nations to $40.0 million in any fiscal
year.
Section 1033 of the National Defense Authorization Act for
Fiscal Year 1998 (Public Law 105-85), as amended, authorized
the Department of Defense to provide specific types of counter-
drug support, not to exceed $20.0 million during fiscal years
1999 through 2002, to the Government of Peru, and to the
Government of Colombia during fiscal years 1999 through 2006.
This program has proven valuable and effective in disrupting
illegal drug trafficking in Colombia and Peru. While Colombia
continues to receive counter-drug support through this and
other authorities, the original authority to provide this non-
lethal support to Peru expired at the end of fiscal year 2002.
The establishment of a friendly government in Afghanistan,
committed to reducing drug trafficking, is an encouraging
development. Opium cultivation in Afghanistan represents a
large portion of the world's opiates production, and
Afghanistan has long been a haven to smugglers and drug
traffickers. Recent United States military cooperation with
nations in the area surrounding Afghanistan and their desire
for improved relations with the United States offers a unique
opportunity to further disrupt drug trafficking in the South
Asia and Middle Eastern region.
The committee supports these efforts to make progress in
disrupting the flow of illegal drugs. However, the committee
wants to ensure that the funds authorized to be expended for
these purposes are used prudently. Therefore, the committee
directs the Secretary of Defense to provide a comprehensive
report on how these counter-drug funds are expended in each of
these nine countries, not later than 60 days following the
conclusion of each fiscal year for which this program is
authorized.

Use of funds for unified counterdrug and counterterrorism campaign in
Colombia (sec. 1208)

The committee recommends a provision that would extend, for
two additional years, the expanded authority to use Department
of Defense counterdrug funds to support a unified campaign
against narcotics cultivation and trafficking, and against
terrorist organizations in Colombia.
Section 8145 of the Defense Appropriations Act for Fiscal
Year 2003 (Public Law 107-248) gave the Department of Defense
expanded authority for the use of counterdrug funds to conduct
unified counterdrug and counterterrorism activities in Colombia
in fiscal year 2003. This expanded authority will expire on
September 30, 2003, in the absence of an extension of authority
by the Congress.
The committee is encouraged by reports from the U.S.
Ambassador to Colombia, the Secretary of Defense, and the
Commander, U.S. Southern Command about progress being made in
eradicating drug cultivation and in combating the narco-
terrorist groups that have terrorized much of rural Colombia
for years, financed largely by money from drug trafficking. The
Colombian government and the Colombian military appear to have
reacted positively to the financial and military assistance
provided by the United States and are making tangible progress
in lowering drug production and in re-establishing control over
large portions of the country. The leadership of President
Uribe appears to have produced positive momentum in this long,
unfortunate struggle. Much remains to be done, however, and the
three major terrorist groups remain clear and present dangers
to peace and security. The effort must be sustained until the
terrorists have been defeated.
TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER
SOVIET UNION

Specification of Cooperative Threat Reduction programs and funds (sec.
1301)
The committee recommends a provision that would define the
Cooperative Threat Reduction (CTR) programs, define the funds
as those authorized to be appropriated in section 301 of this
Act, and authorize the CTR funds to be available for obligation
for three fiscal years.
Funding allocations (sec. 1302)
The committee recommends a provision that would authorize
$450.0 million, the amount included in the budget request, for
the Cooperative Threat Reduction (CTR) program. This provision
would also authorize specific amounts for each CTR program
element, require notification to Congress 30 days before the
Secretary of Defense obligates and expends fiscal year 2004
funds, and provide limited authority to vary individual amounts
of specific CTR program elements.
Annual certifications on use of facilities being constructed for
Cooperative Threat Reduction Program projects or activities
(sec. 1303)
The committee recommends a provision that would require the
Secretary of Defense to provide the congressional defense
committees with an annual certification that all Cooperative
Threat Reduction (CTR) Program construction projects and
activities will be used for their intended purpose by the
country of concern and that the country has demonstrated a
commitment to do so. The period of time covered by the
certification would be the previous fiscal year. The provision
would apply to construction projects and activities that are
ongoing, as well as any that begin after the date of enactment
of this Act. The first certification would be due on the first
Monday in February 2004, and would cover fiscal year 2003. The
certification should be submitted with the CTR annual report.
The committee is concerned that the CTR program management
and oversight of CTR funded construction projects is weak,
leading to construction expenditures in Russia that provide no
national security benefit. Specifically, as described in the
Department of Defense Inspectors General's report, Cooperative
Threat Reduction: Cooperative Threat Reduction Program Liquid
Propellant Diposition Project, dated September 20, 2002, one
CTR construction project involved the expenditure of over
$100.0 million for a new operational facility to neutralize
liquid fuel taken from CTR funded dismantled Russian missiles.
After the facility was completed and ready to begin
neutralizing fuel, the Russian Government informed the U.S.
Government that the facility would not be needed because the
fuel that had been intended to be neutralized had, since 1996,
been diverted to and used by the Russian commercial space
launch program. Because this facility used unique technology
and had a single purpose, the CTR Program could not use the
facility or its components for any other purpose.
The committee is troubled by the failure of the Russian
Government to inform CTR management that the facility was no
longer needed. Further, the failure of CTR management to engage
the Russian Government on a regular basis to obtain assurances
that the project was still required exacerbated the situation.
It is the committee's expectation that this provision will help
to avoid such a situation in the future.
Authority to use Cooperative Threat Reduction funds outside the Former
Soviet Union (sec. 1304)
The committee recommends a provision that would authorize
the President to obligate and expend Cooperative Threat
Reduction (CTR) funds for a fiscal year and any CTR funds that
remain available for obligation from any previous fiscal year
for projects in countries beyond the states of the Former
Soviet Union (FSU). These funds would be available only for
proliferation threat reduction projects and activities that
would assist the United States in the resolution of critical
emerging proliferation threats or permit the United States to
take advantage of available opportunities to achieve long-
standing nonproliferation goals. Not more than $50.0 million
may be obligated in any fiscal year for these projects or
activities. All requirements for prior notification and
limitations applicable to the obligation and expenditure of
existing CTR funds apply to the CTR projects and activities
permitted by this new authority.
If this provision is exercised, the committee expects the
Department of Defense to undertake projects and activities that
are consistent with ongoing projects and activities in the CTR
program. This provision would not permit the Department to
provide cash directly to any CTR recipient country for any CTR
project or activity.
One-year extension of inapplicability of certain conditions on use of
funds for chemical weapons destruction (sec. 1305)
The committee recommends a provision that would extend by
one year the President's authority to waive certain conditions
with respect to the chemical weapons destruction facility at
Shchuch'ye, Russia.
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Explanation of funding tables
Division B of this Act authorizes funding for military
construction projects of the Department of Defense. It includes
funding authorizations for the construction and operation of
military family housing and military construction for the
reserve components, the defense agencies, and the North
Atlantic Treaty Organization (NATO) Security Investment
program. It also provides authorization for the base closure
account that funds environmental cleanup and other activities
associated with the implementation of previous base closure
rounds.
The following tables provide the project-level
authorizations for the military construction funding authorized
in Division B of this Act and summarize that funding by
account. The tables also note as ``Budget Amend'' the projects
contained in a fiscal year 2004 amended budget request
submitted by the administration on May 1, 2003 to realign
certain military construction and family housing projects.
The administration originally requested authorization of
appropriations for military construction and housing programs
totaling $8,965,181,000. The committee transferred $119,815,000
in authorization requested by the administration in the
Chemical Agents and Munitions Destruction program Defense-wide
account to the Military Construction, Defense-wide account.
The administration's budget amendment proposed a transfer
of $25,500,000 from the Procurement, Defense-wide, Special
Operations Command account into the military construction,
Defense-wide account. The committee did not make this transfer.
The amended budget request included the use of $153,373,000
in fiscal year 2003 military construction authorization for
rescinded projects. A list of these projects are located in a
budget item entitled ``Military Construction at Overseas
Locations'' located elsewhere in this division. The committee
acknowledges this authorization as a separate entry at the end
of the table.
The amended administration's request for authorization of
appropriations for military construction and family housing
construction is $8,990,681,000.

Military construction at overseas locations

On May 1, 2003, the Department of Defense submitted an
amendment to the fiscal year 2004 budget request that would
implement the first stage of adjustments to the global
positioning of U.S. forces and their supporting infrastructure.
The amended budget request includes changes to the Bob Stump
National Defense Authorization Act for Fiscal Year 2003 by
realigning project authorizations within the Republic of Korea
to new locations without changes to the authorization of
appropriations. The amended budget request would also rescind
the fiscal year 2003 authorizations for projects in Germany,
Iceland, and Korea and reduced the authorization of
appropriations for world-wide unspecified housing improvement
accounts as follows:

[In thousands of dollars]
------------------------------------------------------------------------
Authorization Location Amount
------------------------------------------------------------------------
Recisions:
Child Development Center...... Bamberg, Germany.... 7,000.0
Barracks Complex.............. Bamberg, Germany.... 10,200.0
Upgrade Access Control........ Coleman Barracks, 1,350.0
Germany.
Modified Record Fire Range.... Darmstadt, Germany.. 3,500.0
Barracks Complex.............. Mannheim, Germany... 42,000.0
Central Wash Facility......... Schweinfurt, Germany 2,000.0
Elementary School Addition.... Spangdahlem, Germany 997.0
Combined Dining Facility...... Keflavik, Iceland... 14,679.0
Replace Family Housing........ Yongsan, Korea...... 3,100.0
Reductions:
Army Housing Construction World-wide 49,200.0
Improvements. Unspecified.
Air Force Housing Construction World-wide 19,347.0
Improvements. Unspecified.
---------------
Total....................... .................... 153,373.0
------------------------------------------------------------------------

The amended budget request would also withdraw requests for
fiscal year 2004 project authorizations for numerous projects
in Germany and proposed realignment of locations for project
requests in Korea. The amended budget request included new
projects both inside and outside the United States, as well as
increased world-wide unspecified housing construction
improvement accounts.
This committee reviewed the budget amendment with the
understanding that the Department is currently reevaluating
current plans and developing a comprehensive and integrated
presence and basing strategy for overseas locations in response
to numerous congressional requests. The committee recommends
the acceptance of line items in the amended budget request that
would authorize additional projects in the United States from
savings that result from withdrawn overseas project
authorization requests. All additional projects that are the
result of realignments are noted in the budget table.
In light of the uncertainty of the Department's future
overseas force structure and basing strategy, the committee
recommends that additional project authorizations totaling
$173.1 million in Germany, Italy, and Turkey be withheld for
fiscal year 2004.
TITLE XXI--ARMY

Summary
The Army requested authorization of appropriations of
$1,536.0 million for military construction and $1,399.9 million
for family housing for fiscal year 2004. This request was
amended on May 1, 2003 by the administration due to revised
overseas requirements. The Army's amended budget request
included $1,602.1 million for FY04 military construction and
$1,452.2 million for FY04 family housing.
The committee recommends authorization of appropriations
for $1,539.4 million for military construction and $1,441.0
million for family housing for fiscal year 2004. Within this
total, the committee recommends decreases to housing operations
accounts as a result of savings from housing privatization. The
budget amendment resulted in a net decrease to the world-wide
unspecified housing construction improvement account as
follows:

[In thousands of dollars]
------------------------------------------------------------------------
Location Project Amount
------------------------------------------------------------------------
Reductions by Project to Housing
Improvement Account

Ansbach, Germany.................. Family Housing 18,973.0
Improvement.
Mannheim, Germany................. Family Housing 16,500.0
Improvement.
Weibaden, Germany................. Family Housing 14,400.0
Improvement.
---------------
Decrease.................... .................... 49,873.0
===============
Additions by Project to Housing
Improvement Account

Dugway Proving Grounds, Utah...... Family Housing 8,100.0
Replacement.
---------------
Increase.................... .................... 8,100.0
===============
Decrease total.............. .................... 41,773.0
------------------------------------------------------------------------

Authorized Army construction and land acquisition projects (sec. 2101)
This provision contains the list of authorized Army
construction projects for fiscal year 2004. The authorized
amounts are listed on an installation-by-installation basis.
The state list contained in this report is the binding list of
the specific projects authorized at each location.
Family housing (sec. 2102)
This provision would authorize new construction and
planning and design of family housing units for the Army for
fiscal year 2004. It would also authorize funds for facilities
that support family housing, including housing management
offices and housing maintenance and storage facilities.
Improvements to military family housing units (sec. 2103)
This provision would authorize improvements to existing
Army family housing units for fiscal year 2004.
Authorization of appropriations, Army (sec. 2104)
This provision would authorize specific appropriations for
each line item contained in the Army's military construction
and family housing budget for fiscal year 2004. This provision
would also provide an overall limit on the amount the Army may
spend on military construction projects.
Termination of authority to carry out certain fiscal year 2003 projects
(sec. 2105)
The committee recommends a provision that would amend
sections 2101 and 2104 of the Military Construction Act for
Fiscal Year 2003 (division B of Public Law 107-314) to rescind
project authority from five installations in Germany and one in
Korea, resulting in a total decrease of $118.4 million.
Modification of authority to carry out certain fiscal year 2003
projects (sec. 2106)
The committee recommends a provision that would amend
sections 2101 and 2104 of the Military Construction Act for
Fiscal Year 2003 (division B of Public Law 107-314) to transfer
project authority from three separate installations in Korea to
Camp Humphreys, Korea, to increase the total authorization for
Camp Humphreys, Korea, to $107.8 million.
Modification of authority to carry out certain fiscal year 2002
projects (sec. 2107)
The committee recommends a provision that would amend
sections 2101 and 2104 of the Military Construction Act for
Fiscal Year 2002 (division B of Public Law 107-107) as further
amended by section 2105 of the Military Construction Act for
Fiscal Year 2003 (division B of Public Law 107-314) to increase
the funding authorization for barracks projects at Fort
Richardson, Alaska by a total of $2.0 million.
Modification of authority to carry out certain fiscal year 2001
projects (sec. 2108)
The committee recommends a provision that would amend
sections 2101 and 2104 of the Military Construction Act for
Fiscal Year 2001 (division B of Pub. L. 106-1398) as further
amended by section 2105 of the Military Construction Act for
Fiscal Year 2002 (division B of Pub. L. 107-107) to increase
the funding authorization for a project to construct a saddle
road at the Pohakoula Training Facility, Hawaii by a total of
$10.0 million.
TITLE XXII--NAVY

Summary
The Navy requested authorization of appropriations of
$1,132.9 million for military construction and $1,037.0 million
for family housing for fiscal year 2004. The administration
submitted an amended budget request on May 1, 2003 due to
revised overseas requirements. The Navy requested an amended
authorization of appropriations for $1,147.5 million for FY04
military construction. The Navy's request for family housing
did not change.
The committee recommends authorization of appropriations of
$1,182.6 million for military construction and $997.4 million
for family housing for fiscal year 2004.
The authorization for family housing includes decreases to
operations accounts as a result of savings from housing
privatization.
Authorized Navy construction and land acquisition projects (sec. 2201)
This section contains the list of authorized Navy
construction projects for fiscal year 2004. The authorized
amounts are listed on an installation-by-installation basis.
The state list contained in this report is the binding list of
the specific projects authorized at each location.
Family housing (sec. 2202)
This section would authorize new construction and planning
and design of family housing units for the Navy for fiscal year
2004. It would also authorize funds for facilities that support
family housing, including housing management offices and
housing maintenance and storage facilities.
Improvements to military family housing units (sec. 2203)
This section would authorize improvements to existing Navy
and Marine Corps family housing units for fiscal year 2004.
Authorization of appropriations, Navy (sec. 2204)
This section would authorize specific appropriations for
each line item in the Navy's military construction and family
housing budget for fiscal year 2004. This section also provides
an overall limit on the amount the Navy may spend on military
construction projects.
Termination of authority to carry out a certain fiscal year 2003
project (sec. 2205)
The committee recommends a provision that would amend
sections 2201 and 2204 of the Military Construction Act for
Fiscal Year 2003 (division B of Public Law 107-314) to rescind
a project authorization of $14.7 million for a dining facility
at Keflavik, Iceland.
TITLE XXIII--AIR FORCE

Summary
The Air Force requested authorization of appropriations of
$772.8 million for military construction and $1,530.1 million
for family housing for fiscal year 2004. This request was
amended on May 1, 2003 by the administration due to revised
overseas requirements. The Air Force's amended budget request
included $830.7 million for FY04 military construction and
$1,491.5 million for FY04 family housing.
The committee recommends authorization of $1,035.5 million
for military construction and $1,469.8 million for family
housing for fiscal year 2004.
The authorization for family housing includes decreases to
operations accounts as a result of savings from housing
privatization and a decrease to the housing construction
improvement account based on the Department of Defense's
amended budget request, which deleted a project to improve
family housing at Spangdahlem, Germany for $21.1 million.
Authorized Air Force construction and land acquisition projects (sec.
2301)
This section contains the list of authorized Air Force
construction projects for fiscal year 2004. The authorized
amounts are listed on an installation-by-installation basis.
The state list contained in this report is the binding list of
the specific projects authorized at each location.
Family housing (sec. 2302)
This section would authorize new construction and planning
and design of family housing units for the Air Force for fiscal
year 2004. It would also authorize funds for facilities that
support family housing, including housing management offices
and housing maintenance and storage facilities.
Improvements to military family housing units (sec. 2303)
This section would authorize improvements to existing Air
Force family housing units for fiscal year 2004.
Authorization of appropriations, Air Force (sec. 2304)
This section would authorize specific appropriations for
each line item in the Air Force's budget for fiscal year 2004.
This section would also provide an overall limit on the amount
the Air Force may spend on military construction projects.
Modification of fiscal year 2003 authority relating to improvement of
military family housing units (sec. 2305)
The committee recommends a provision that would amend
sections 2301 and 2304 of the Military Construction Act for
Fiscal Year 2003 (division B of Public Law 107-314) to decrease
authorization for the family housing construction world-wide
unspecified account by $19.3 million for a housing improvement
project at Spangdahlem, Germany.
TITLE XXIV--DEFENSE AGENCIES

Summary
The defense agencies requested authorization of
appropriations of $597.2 million for military construction and
$49.8 million for family housing for fiscal year 2004. This
request was amended on May 1, 2003 by the administration due to
revised overseas requirements. The defense agencies amended
budget request included $623.7 million for FY04 military
construction. The defense agencies budget request for FY04
family housing did not change.
The committee recommends authorization of $733.9 million
for military construction and $49.8 million for family housing
in fiscal year 2004.
The committee supports the decision of the Department to
request funding for the Chemical Agents and Munitions
Destruction program in a defense-wide account. However,
military construction projects supporting the demilitarization
program have in past years been authorized in Division B to
maintain consistent oversight of construction activities.
Therefore, the committee recommends a transfer of $119.8
million from the Chemical Agents and Munitions Destruction
Program in Title III to Title XXIV and the authorization of
appropriations necessary to continue chemical agent and
munitions destruction program military construction projects at
three locations.
Authorized defense agencies construction and land acquisition projects
(sec. 2401)
This section contains the list of authorized defense agency
construction projects for fiscal year 2004. The authorized
amounts are listed on an installation-by-installation basis.
The state list contained in this report is the binding list of
the specific projects authorized at each location.
Family housing (sec. 2402)
This section would authorize new construction and planning
and design of family housing units for the Department of
Defense for fiscal year 2004. It would also authorize funds for
facilities that support family housing, including housing
management offices and housing maintenance and storage
facilities.
Improvements to military family housing units (sec. 2403)
This provision would authorize improvements to existing
defense agency family housing units for fiscal year 2004.
Energy conservation projects (sec. 2404)
This section would authorize the Secretary of Defense to
carry out energy conservation projects.
Authorization of appropriations, defense agencies (sec. 2405)
This section would authorize specific appropriations for
each defense agency military construction program for fiscal
year 2004. This provision also would provide an overall limit
on the amount that may be spent on such military construction
projects.
Termination of authority to carry out certain fiscal year 2003 projects
(sec. 2406)
The committee recommends a provision that would amend
sections 2401 and 2404 of the Military Construction Act for
Fiscal Year 2003 (division B of Public Law 107-314) to rescind
project authority from one installation in Germany, resulting
in a total decrease of $997,000.
Modification of authority to carry out certain fiscal year 2003
projects (sec. 2407)
The committee recommends a provision that would amend
sections 2101 and 2104 of the Military Construction Act for
Fiscal Year 2003 (division B of Public Law 107-314) to transfer
project authority for a Department of Defense Dependents
Schools from Seoul, Korea, to Camp Humphreys, Korea.
TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

Summary
The Department of Defense requested authorization of
appropriation of $169.3 million for the North Atlantic Treaty
Organization (NATO) Security Investment Program for fiscal year
2004. The committee recommends an authorization of
appropriations of $169.3 million for fiscal year 2004.
Authorized NATO construction and land acquisition projects (sec. 2501)
This provision would authorize the Secretary of Defense to
make contributions to the North Atlantic Treaty Organization
(NATO) Security Investment Program in an amount equal to the
sum of the amount specifically authorized in section 2502 of
this title and the amount of recoupment due to the United
States for construction previously financed by the United
States.
Authorization of appropriations, NATO (sec. 2502)
This provision would authorize appropriations of $169.3
million for the United States' contribution to the North
Atlantic Treaty Organization (NATO) Security Investment Program
for fiscal year 2004.
TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Summary
The Department of Defense requested a military construction
authorization of appropriation of $369.5 million for fiscal
year 2004 for National Guard and Reserve facilities. The
committee recommends authorizations of appropriations for
fiscal year 2004 of 657.6 million to be distributed as follows:

Millions
Army National Guard..................................... $276.8
Air National Guard...................................... 208.5
Army Reserve............................................ 74.5
Air Force Reserve....................................... 53.9
Naval and Marine Corps Reserve.......................... 34.1
Total................................................... 647.8

Authorized Guard and Reserve construction and land acquisition projects
(sec. 2601)

This provision would authorize appropriations for military
construction for the National Guard and Reserve by service
components for fiscal year 2004. The state list contained in
this report is the binding list of the specific projects
authorized at each location.
TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Expiration of authorizations and amounts required to be specified by
law (sec. 2701)
This provision would provide that authorizations for
military construction projects, repair of real property, land
acquisition, family housing projects, contributions to the
North Atlantic Treaty Organization infrastructure program, and
National Guard and Reserve military construction projects would
expire on October 1, 2006, or the date of enactment of an act
authorizing funds for military construction for fiscal year
2007, whichever is later. This expiration would not apply to
authorizations for projects for which appropriated funds have
been obligated before the later of October 1, 2006, or the date
of enactment of an act authorizing funding for military
construction for fiscal year 2007.
Extension of authorizations of certain fiscal year 2001 projects (sec.
2702)
This section would extend the authorizations for certain
fiscal year 2001 military construction projects until October
1, 2004, or the date of enactment of an act authorizing funds
for military construction for fiscal year 2005, whichever is
later.
Extension of authorizations of certain fiscal year 2000 projects (sec.
2703)
This provision would extend the authorizations for certain
fiscal year 2000 military construction projects until October
1, 2004, or the date of enactment of an act authorizing funds
for military construction for fiscal year 2005, whichever is
later.
Effective date (sec. 2704)
This provision would provide that titles XXI, XXII, XXIII,
XXIV, XXV, and XXVI of this Act shall take effect on October 1,
2003, or the date of enactment of this Act, whichever is later.
TITLE XXVIII--GENERAL PROVISIONS

Subtitle A--Military Construction Program and Military Family Housing
Changes

Modification of general definitions relating to military construction
(sec. 2801)
The committee recommends a provision that would amend
section 2801 of title 10, United States Code, to clarify
definitions for military construction and military
installations. Under this provision, military construction
would include any temporary or permanent construction,
development, conversion, or extension of any kind carried out
with respect to a military installation. The scope and duration
of the operational requirement necessitating military
construction does not affect the definition. This provision
would also clarify the definition of military installations.
The committee believes that these clarifications are
necessary to respond to interpretations by the Department of
Defense that current statutes allow military construction
projects over $750,000 to be funded from operations and
maintenance accounts without specific authorization or
notification to Congress if:
(1) the military construction project meets an urgent
military operational requirement of a temporary nature;
(2) the construction will not be carried out at a
military installation as previously defined under
section 2801 of title 10, United States Code, or at a
location where the United States is reasonably expected
to have a long-term interest or presence;
(3) the United States has no intent to use the
construction after the operational requirement has been
satisfied; and
(4) the nature of the construction is the minimum
necessary to meet the temporary operational need.
The committee is aware of, and fully supports, operational
flexibility and the ability of commanders to satisfy urgent
requirements in support of contingency operations. Existing
authorizations exist specifically to facilitate these
activities without prior notification to Congress. If these
authorizations do not provide the necessary flexibility, the
Department should seek to amend existing law.
For military construction carried out in fiscal years 2002
and 2003 under the Department's interpretation to support
contingency operations, the Secretary of Defense shall provide
a report by December 30, 2003 to the congressional defense
committees with detailed information on each project executed
under the aforementioned interpretations. The report shall
include the country, project title, amount, date awarded, fund
source, and a brief justification of the requirement.
Increase in number of family housing units in Italy authorized for
lease by the Navy (sec. 2802)
The committee recommends a provision that would amend
section 2828(e) of title 10, United States Code, to increase,
from 2,000 to 2,800, the number of family housing units the
Secretary of the Navy may lease in Italy for which the maximum
annual lease cost per unit is $25,000.
The committee directs the Secretary of the Navy, as
executive agent for housing in Italy, to coordinate with the
Commander, United States European Command, to ensure that total
housing requirements meet the Department's force protection
guidelines and support overseas force structure and basing
plans.

Subtitle B--Real Property and Facilities Administration

Increase in threshold for reports to Congress on real property
transactions (sec. 2811)
The committee recommends a provision that would amend
section 2662 of title 10, United States Code, by raising from
$500,000 to $750,000 the threshold in real property
transactions which requires notification to the congressional
defense committees.
Acceptance of in-kind consideration for easements (sec. 2812)
The committee recommends a provision that would amend
section 2668 and section 2669 of title 10, United States Code,
to authorize the secretaries of the military departments to
accept in-kind payments in connection with modification of
existing and the granting of new easements for rights-of-way
and utilities. This provision would implement the same
processes for the acceptance of in-kind considerations, as
directed in section 2667, subsection (c) of title 10, United
States Code, pertaining to the lease of property.
Expansion to military unaccompanied housing of authority to transfer
property at military installations to be closed in exchange for
military housing (sec. 2813)
The committee recommends a provision that would amend
section 2905 of the Defense Base Closure and Realignment Act of
1990 (part A of title XXIX of Public Law 101-501; section 2687
of title 10, United States Code) to expand the authority to
allow for the transfer of property in exchange for
unaccompanied housing. Current law authorizes the secretaries
of the military departments to transfer property at a military
installation, closed or pending closure, in exchange for
military family housing at other installations not closed or
pending closure.
This provision would grant the same authority to military
unaccompanied housing thereby accelerating initiatives to
improve the conditions and to correct the shortage of
unaccompanied housing units.
Exemption from screening and use requirements under McKinney-Vento
Homeless Assistance Act for Department of Defense property in
emergency support of homeland security (sec. 2814)
The committee recommends a provision that would amend
section 11411 of title 42, United States Code, to provide an
exemption for Department of Defense property from the
requirement to screen excess or surplus property for other uses
when the Secretary of Defense determines that such DOD property
should be made available for use by a State or local government
or private entity on a temporary basis to support homeland
security. Private entities are limited to non-profit relief
organizations and other entities that make a commitment to use
the property exclusively for homeland security purposes.
While the committee recognizes the value and benefits of
the McKinney-Vento Homeless Assistance Act, this provision is
intended to facilitate expedient and effective contingency
responses for homeland security activities on a temporary
basis. The property should return to its previous legal status
when the Secretary of Defense determines the property is no
longer needed for homeland security.

Subtitle C--Land Conveyances

Transfer of land at Fort Campbell, Kentucky and Tennessee (sec. 2821)

The committee recommends a provision that would authorize
the Secretary of the Army to transfer to the State of Tennessee
a parcel of real property (right-of-way) for the purpose of
realigning and upgrading United States Highway 79 running
through Fort Campbell from two lanes to four lanes. In
exchange, the Secretary would receive approximately 200 acres
of replacement land, resulting in no net loss of real estate or
training capability at Fort Campbell. The provision would also
authorize the reimbursement by the State of all administration,
survey, and other costs incurred by the Secretary into the
account from which they originated.

Land conveyance, Fort Knox, Kentucky (sec. 2822)

The committee recommends a provision that would authorize
the Secretary of the Army to convey, without consideration, a
parcel of real property consisting of approximately 93 acres at
Fort Knox to the Department of Veterans Affairs of the
Commonwealth of Kentucky. The purpose of the conveyance would
be to establish a state-run cemetery for veterans of the armed
forces.
This provision would also direct the Department of Veterans
Affairs to reimburse the Army for administrative costs related
to the conveyance.

Land conveyance, Marine Corps Logistics Base, Albany, Georgia (sec.
2823)

The committee recommends a provision that would authorize
the Secretary of the Navy to convey through negotiated sale a
parcel of property consisting of approximately 11 acres to the
Preferred Development Group Corporation. The purpose of the
conveyance would be for economic development.
This provision would also authorize the Secretary of the
Navy to receive reimbursement for costs incurred by surveys,
administration and other activities to be deposited into base
closure accounts for use in accordance with section 2905 of the
Defense Base Closure and Realignment Act of 1990.

Land conveyance, Army and Air Force Exchange Service property, Dallas,
Texas (sec. 2824)

The committee recommends a provision that would authorize
the Army and Air Force Exchange Service (AAFES) to sell
property at 1515 Roundtable Drive, Dallas, Texas and to retain
the funds within AAFES-controlled accounts. This property was
purchased with nonappropriated funds derived from AAFES
operations. AAFES funds are generated from sales of goods and
services to military members and expended to support the
morale, welfare, and recreation of military members. Proceeds
from the sale of the property should continue to benefit
military members. This provision would also exempt this land
disposal from the Federal Property and Administrative Services
Act.

Subtitle D--Review of Overseas Military Facility and Range Structure

Review of overseas military facility structure (secs. 2841-2848)

The committee recommends a provision that would establish a
commission to conduct a thorough study of matters related to
U.S. military facility structure overseas. The Commission on
the Review of the Overseas Military Structure of the United
States would consist of nine members, one of whom would be
appointed by the Secretary of Defense and eight of whom would
be appointed by the congressional leadership. The Commission
would be authorized to hold hearings and receive information
from federal agencies in order to assess whether the current
U.S. overseas basing structure is adequate to execute current
missions, and to assess the feasibility of closures,
realignments, or establishment of new installations overseas to
meet emerging defense requirements. The Commission would not
take the place of or preclude in any way the ongoing efforts by
the Department of Defense to conduct its own review and to
develop a comprehensive and integrated global presence and
basing strategy.
The Commission would submit a report to the Committees on
Armed Services of the Senate and House of Representatives, as
well as the Subcommittees on Military Construction of the
Committees on Appropriations of the Senate and House of
Representatives on August 30, 2004, containing findings,
conclusions, and recommendations for legislation and
administrative actions, as well as a proposal for an overseas
basing strategy to meet current and future requirements.
This provision would also authorize up to $3.0 million from
the Department of Defense operations and maintenance account to
be available to the Commission to carry out its specified
responsibilities.
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

National Nuclear Security Administration (sec. 3101)

The committee recommends a provision that would authorize a
total of $8.9 billion for the Department of Energy (DOE) in
fiscal year 2004 for the National Nuclear Security
Administration (NNSA) to carry out programs necessary to
national security.

Weapons activities

The committee recommends $6.5 billion for weapons
activities, a $79.3 million increase above the amount requested
for fiscal year 2004. The committee authorized the following
activities: $1.4 billion for directed stockpile work; $2.4
billion for campaigns; $1.7 billion for readiness in the
technical base, an increase of $79.3 million; $182.4 million
for secure transportation assets; $585.8 million for safeguards
and security; and $265.1 million for facilities and
infrastructure.

Directed stockpile work

The committee recommends $1.4 billion for directed
stockpile work, the amount of the budget request. The directed
stockpile account supports work directly related to weapons in
the stockpile, including day-to-day maintenance as well as
research, development, engineering, and certification
activities to support planned life extension programs. It also
includes fabrication and assembly of weapons components,
advanced concepts, weapons dismantlement and disposal,
training, and support equipment. This amount includes $21.0
million for advanced concepts of which $15.0 million is
authorized to continue the feasibility study on the Robust
Nuclear Earth Penetrator.

Campaigns

The committee recommends $2.4 billion for campaigns, the
amount of the budget request. The campaigns focus on science
and engineering efforts involving the three weapons
laboratories, the Nevada Test Site, and the weapons plants.
Each campaign is focused on a specific activity to support and
maintain the stockpile without underground nuclear weapons
testing. These efforts maintain and enhance the safety,
security, and reliability of the existing stockpile. The
campaigns are divided into three major categories: science
campaigns, readiness campaigns, and engineering campaigns.
The advances in science tools, which make the stockpile
stewardship program possible, were discussed in the 2003
Report, Expectations for the U.S. Nuclear Stockpile Stewardship
Program, by the Panel to Assess the Reliability, Safety, and
Security of the United States Nuclear Stockpile, also known as
the Foster Panel. While the Panel did offer constructive
criticism of how the NNSA can make improvements in several
areas of the nuclear weapons program, the Panel offered a more
favorable view of how development in computational and
experimental tools is advancing. The Panel was ``* * *
encouraged to find that the laboratories are doing a much
better job in defining the contributions that these tools can
make to directed stockpile work and ongoing warhead
refurbishments.'' Specifically, the Panel found that the
laboratories ``* * * have made considerable progress in
developing more formalized and systematic methodologies for
estimating warhead performance margins.''

Readiness in the technical base

The committee recommends $1.7 billion in readiness in the
technical base and facilities (RTBF), a $79.3 million increase
above the budget request. This account funds facilities and
infrastructure in the weapons complex to ensure the operational
readiness of the complex and includes construction funding for
new facilities.
The $79.3 million increase in RTBF is directed to the
Office of Operations of Facilities to limit any additional
deferred maintenance. The committee is concerned that RTBF's
responsibility to meet current and future maintenance
requirements is not receiving the priority and resources
required to avoid expanding the enormous maintenance backlogs
which developed throughout the decade of the 1990s. There is
additional legislation in this Act to address the committee's
concerns with the RTBF program.

Secure transportation asset

The committee recommends $182.4 million for the secure
transportation asset, the amount of the budget request. The
secure transportation asset is responsible for transportation
of nuclear weapons, weapons materials and components, and other
materials requiring safe and secure transport.
The committee is aware that the demand for secure
transportation assets will increase to meet both expanding work
within the stockpile life extension program and the accelerated
cleanup work in the environmental management program. This
places increased demand on existing assets, and highlights the
need for additional assets, and the need to hire, train, and
deploy additional security personnel. This latter activity
takes at least 18 months. At a recent hearing before the
Strategic Forces Subcommittee, Dr. Everet Beckner, Deputy
Administrator for Defense Programs at the NNSA, testified that
NNSA has a plan to deal with these increased demands.

Safeguards and security

The committee recommends $585.8 million for weapons
safeguards and security, the amount of the budget request. The
weapons safeguards and security account provides funding for
all safeguards and security at all the NNSA complex sites.

Facilities and infrastructure

The committee recommends $265.1 million for the facilities
and infrastructure recapitalization program (FIRP), the amount
of the budget request. The committee has been impressed with
the management of FIRP and encourages NNSA to continue to
maintain this high level of organization and discipline to
revitalize the nation's nuclear weapons complex. There are
additional comments on FIRP in this Act as they are related to
proposed legislation on RTBF.

Defense Nuclear Nonproliferation Program

The committee recommends $1.3 billion for the Defense
Nuclear Nonproliferation Program, the amount of the budget
request. The National Nuclear Security Administration (NNSA)
has management and oversight responsibilities for the
nonproliferation programs of the Defense Nuclear
Nonproliferation Program. The committee authorized these
programs, as follows: $203.8 million for nonproliferation and
verification research and development; $101.7 million for
nonproliferation and international security; $226.0 million for
international nuclear materials protection and cooperation;
$40.0 million for Russian transition initiatives; $18.0 million
for highly-enriched uranium transparency implementation; $14.0
million for international nuclear safety and cooperation; $50.0
million for elimination of weapons-grade plutonium production;
$30.0 million for accelerated materials disposition; and $656.5
million for fissile materials disposition.
The committee notes that the nonproliferation mission of
the NNSA is important to U.S. National Security. For this
reason, the committee believes it is important that the NNSA
improve its management focus to expend its budget in a timely
and efficient manner to ensure that the United States receives
the promised national security benefit from these programs. In
this regard, the committee encourages the NNSA to utilize all
capabilities available to facilitate more effective management
of these programs, in particular by developing robust
information technology systems that can enable the program to
better track accomplishments and expenditures.

Naval Reactors

The committee recommends $788.4 million for Naval Reactors,
an increase of $20.0 million above the budget request. The
$20.0 million increase is for the Naval Reactors Facilities and
Operations budget to be used to decommission older facilities.
As the committee looks across the atomic energy activities
at the Department of Energy, the one program that consistently
performs to a level of excellence is the Naval Reactors
program. Naval Reactors has not created a legacy that needs to
be cleaned up by Environmental Management. Naval Reactors has
not deferred maintenance for decades at a time thereby avoiding
enormous maintenance backlogs and emergency recapitalization
projects. The Naval Reactors program has always made it a
priority to include in their original design and budget
planning for a facility plans as to how they will eventually
decommission that facility when it is beyond its useful life.
However, the committee is concerned that Naval Reactors has
not received adequate consideration in the budget process. When
Naval Reactors program sought to accelerate the decommissioning
of some facilities, which would have created substantial cost
savings, the project did not receive FIRP funding from DOE.
The committee would urge NNSA, including the Office of
Operations and Facilities, to study the management and
maintenance performance at Naval Reactors. The committee would
urge NNSA to raise the bar for maintenance and recapitalization
expectations across NNSA to the standard set by Naval Reactors.

Office of Administrator

The committee recommends $348.0 million for program
direction for the National Nuclear Security Administration, the
amount of the budget request. This account includes program
direction funding for all elements of the National Nuclear
Security Administration with the exception of the Naval
Reactors Program and the Secure Transportation Asset.

Defense environmental management (sec. 3102)

The committee recommends a provision that would authorize a
total of $6.8 billion for the Department of Energy (DOE) in
fiscal year 2004 for environmental management (EM) activities,
the amount of the budget request.

Defense site acceleration completion

The budget request included funding for the following
activities: $1.2 billion for 2006 accelerated completions; $2.2
billion for 2012 accelerated completions; $2.0 billion for 2035
accelerated completions; $300.0 million for safeguards and
security; and $64.0 million for technology development and
deployment. The committee recommends $5.8 billion for Defense
site acceleration completion, the amount of the budget request.
The committee supports the new budget format for the EM
program. When the EM program first began, and for most of its
existence, its efforts have been primarily focused on
compliance milestones, not cleanup milestones. Under the
accelerated cleanup plan, in the same manner as was achieved at
Rocky Flats, Mound, and Fernald, EM is reducing risk to the
environment, workers and the community, shortening cleanup
schedules, and saving tens of billions of dollars across the EM
complex. Now all EM sites have a closure date with the last of
the cleanup to be completed no later than 2035. This schedule
reduces the original time lines for closure by half or more.
Many of these gains have been through innovations and new
technologies which were developed by EM. However, most of the
gains were reached by adding flexibility and incentives into
the cleanup contracts. The committee encourages EM to continue
looking for ways to advance and accelerate cleanup of our
former defense nuclear facilities.

Defense environmental services

The budget request included funding for the following
activities: $189.7 million for non-closure environmental
activities; $61.3 million for community and regulatory support;
$452.0 million for the federal contribution to the uranium
enrichment decontamination and decommissioning fund; and $292.1
million for program direction. The committee recommends $995.2
million for Defense environmental services, the amount of the
budget request.
The committee encourages EM to continue to look for ways to
reduce as much funding as is possible and practical on defense
environmental services so that these resources can, instead, be
focused on the defense site accelerated completion activities.

Accelerate completion of 2012 and 2035 closure sites

The committee encourages DOE to use any EM funding, which
becomes available due to the closure of Rocky Flats, Fernald,
Mound or any other 2006 closure sites, to help accelerate
closure of the remaining EM sites. The committee is concerned
that there are some officials at DOE who are no longer
supporting a policy to roll over savings realized as EM sites
are closed, as was originally proposed in 1996 when the first
three closure sites were chosen to be closed by 2006. The four
remaining, major EM sites--Hanford Site, Idaho National
Environmental and Engineering Laboratory, Oak Ridge Reservation
and Savannah River Site--were ensured that if they stood by
while the first three 2006 closures were completed, then the
remaining sites could use those savings to accelerate their own
closure. By closing Rocky Flats, Fernald, and Mound, there is
approximately a combined $1.0 billion per year freed up to
accelerate completion of the remaining EM sites.
The budget model used to accelerate closure at Rocky Flats,
Mound, and Fernald was to use an increase of funding at the
beginning to focus on reducing high risk cleanup tasks first.
This model greatly reduced the overhead costs needed to monitor
and guard the high risk areas, providing a windfall of funds to
accelerate cleanup, and substantially reduce life cycle costs.
With an additional $1.0 billion per year available by 2007,
following the closure of the first three closure sites, this
should provide the momentum needed to substantially accelerate
closure of the remaining EM sites.

Other defense activities (sec. 3103)

The committee recommends a provision that would authorize
$465.1 million for the Department of Energy (DOE) other defense
activities, $29.3 million below the budget request, as
explained below.

Energy Security and Assistance

The budget request included $4.3 million for Energy
Security and Assistance. The committee recommends no funds for
these activities. These funds are requested for program
direction costs for an operational component of this office
that was transferred to the Department of Homeland Security
(DHS) in fiscal year 2003. The committee notes that funding for
this component should be included in the DHS budget.

Office of Security

The committee recommends $211.8 million for the Office of
Security, the amount of the budget request. The committee notes
a $27.5 million, or 15 percent, increase for this account
compared to the level of funding in fiscal year 2003. However,
the committee also notes that the request is still $42.2
million, or 20 percent, below the level of funding in fiscal
year 2002.

Intelligence

The committee recommends $39.8 million for intelligence,
the amount of the budget request.

Counterintelligence

The committee recommends $46.0 million for
counterintelligence, the amount of the budget request. The
committee encourages the Office of Counterintelligence to
continue to focus on the current and emerging challenges in
cyber-security.

Independent Oversight and Performance Assurance

The committee recommends $22.6 million for the Office of
Independent Oversight and Performance Assurance, the amount of
the budget request.

Environment safety and health

The committee recommends $107.7 million for environment,
safety and health, the amount of the budget request.

Worker and community transition

The committee recommends $15.0 million for worker and
community transition, the amount of the budget request.

National nuclear security administrative support

The budget request included $25.0 million for national
security programs administrative support. The committee
recommends no funds for this purpose. The committee notes that
the NNSA program direction adequately supports NNSA.

Defense nuclear waste disposal (sec. 3104)

The committee recommends a provision that would authorize
$360.0 million for defense nuclear waste disposal, $70.0
million below the budget request, but $47.0 million above the
fiscal year 2003 appropriated level. The committee is concerned
about whether the defense nuclear waste disposal program could
absorb the entire budget request level of $430.0 million in
fiscal year 2004, which is a $112.0 million increase over the
fiscal year 2003 appropriated level. However, there is no
intention by this reduction to delay or otherwise impact the
opening of Yucca Mountain.

Defense energy supply (sec. 3105)

The committee recommends $110.5 million, the amount of the
fiscal year 2004 request, for defense energy supply.

Subtitle B--Program Authorizations, Restrictions, and Limitations

Repeal of prohibition on research and development of low-yield nuclear
weapons (sec. 3131)

The committee recommends a provision that would repeal
section 3136 of the National Defense Authorization Act for
Fiscal Year 1994 and thereby end the prohibition on research
and development of low-yield nuclear weapons. This provision
would also state that nothing in the provision should be
construed as authorizing the testing, acquisition or deployment
of a low-yield nuclear weapon.
The committee notes the recent testimony before the
Subcommittee on Strategic Forces by Ambassador Linton Brooks,
the Acting-Administrator of the NNSA, in which he discussed the
reasons for the administration's request to repeal the ban on
low-yield nuclear weapon research. According to Ambassador
Brooks, ``Repeal of the restriction simply removes the chilling
effect on scientific inquiry that could hamper our ability to
maintain and exercise our intellectual capabilities and to
respond to needs that one day might be articulated by the
President.'' Ambassador Brooks further testified, ``We are, in
examining these concepts, seeking to free ourselves from
intellectual prohibitions against exploring the full range of
technical options to meet potential future needs just because
some options might imply a hypothetical weapon with a yield
below an arbitrary value.'' Ambassador Brooks clarified that
the repeal of low-yield research restrictions ``* * * falls far
short of committing the United States to developing, producing,
or deploying new, low-yield warheads.'' Finally, Ambassador
Brooks stressed that ``* * * such warhead concepts could not
proceed to full-scale development, much less production and
deployment, unless Congress authorizes and appropriates the
funds required to do this.''
The committee also refers to a recently released report,
Expectations for the U.S. Nuclear Stockpile Stewardship
Program, by the Panel to Assess the Reliability, Safety, and
Security of the United States Nuclear Stockpile, also known as
the Foster Panel. In this report, the Panel found the ``* * *
proscription on [research and development] casts doubt on the
permissibility of important areas of research, and perpetuates
troubling gaps in our knowledge. The Executive Branch and
Congress should continue to discharge their responsibilities by
exercising control over Phase III (and Phase 6.3) decisions for
commencing full-scale development, and at subsequent decision
points. This permits necessary oversight and control without
hamstringing the laboratories' ability to perform needed
intellectual work in the interests of national security.''
The committee encourages the NNSA to challenge their
scientists and engineers to think, explore, discover, and
innovate. By removing the prohibition on research and
development of low-yield nuclear weapons, our experts will
expand their own understanding and capabilities, without
artificial restrictions. Broader U.S. defense capabilities
increase the credibility of deterrence.

Readiness posture for resumption by the United States of underground
nuclear weapons tests (sec. 3132)

The committee recommends a provision that would require the
Secretary of Energy to achieve, and thereafter maintain, a
readiness posture of 18 months for resumption by the United
States of underground nuclear tests. The Secretary of Energy
should achieve this readiness posture by October 1, 2006. If
through the review conducted to comply with section 3142(c) of
the Bob Stump National Defense Authorization Act for Fiscal
Year 2003, the Secretary determines that a different readiness
posture is feasible and advisable, then the Secretary should
achieve, and thereafter maintain, that optimal test readiness
posture.
The Secretary shall submit to Congress a report if the
Secretary determines a different readiness posture is feasible
and advisable. Included in this report, the Secretary shall
state the new readiness posture and explain reasons for the
Secretary's determination. Nothing in this provision shall
affect the reporting requirements included in section 3142(c)
of the Bob Stump National Defense Authorization Act for Fiscal
Year 2003.
In the 2003 report entitled Expectations for the U.S.
Nuclear Stockpile Stewardship Program by the Panel to Assess
the Reliability, Safety, and Security of the United States
Nuclear Stockpile (more commonly known as the Foster Panel),
the Panel reflected back to the 2001 report which ``* * *
emphasized the need for significant improvements in test
readiness.'' The Panel recommended a readiness posture of
``three months to a year.'' In the 2003 report, the Panel
``expressed concern that the ``NNSA's planning assumptions for
test readiness are overly conservative, and consequently
exceptionally long preparation times become a self-fulfilling
prophecy.'' To shorten their test readiness posture, ``[t]he
Panel recommends that the NNSA and DOD coordinate through the
Nuclear Weapons Council on a few specific steps to create a
useful test-readiness posture.'' The Panel provided several
specific steps, including identifying the tests that are most
likely to be needed, preparing the appropriate test articles
and instrumentation, and deploying long-lead items to the
Nevada Test Site (NTS). The Panel also focused on the benefits
for test readiness served by sub-critical experiments in a
vertical hole at the NTS. The Panel asserted, ``[t]o sustain
high confidence in test readiness, it is important to have a
regularly scheduled series of high fidelity sub-critical
tests.'' The committee would encourage the NNSA to embrace
these views and recommendations offered by the Foster Panel.

Technical base and facilities maintenance and recapitalization
activities (sec. 3133)

The committee recommends a provision that would require the
Administrator for Nuclear Security to add discipline and
criteria to the operations and facilities program within the
readiness in technical base and facilities (RTBF) program. The
committee is concerned that the maintenance and repair
backlogs, which have plagued the National Nuclear Security
Administration (NNSA) complex for over a decade and that led to
the need to establish the facilities and infrastructure
recapitalization program (FIRP), have not yet been corrected.
Since the creation of FIRP in the National Defense
Authorization Act for Fiscal Year 2002, funding to eliminate
the backlog of deferred maintenance across the NNSA complex has
totaled $437.0 million for the last two years, and $265.0
million is requested for fiscal year 2004. However, the budget
requests for the operations of facilities program, which is
responsible for current and future maintenance needs, are
barely keeping pace with inflation, and the fiscal year 2004
budget request is almost $50.0 million below the fiscal year
2003 appropriation. This funding level will only continue to
add to the amount of deferred maintenance, which will result in
FIRP never reaching its primary mission, the elimination of the
maintenance backlog in ten years.
Although the committee is concerned that NNSA is not
requesting adequate funding for operations and facilities
within RTBF to stem the tide of deferred maintenance, it is
also the committee's view that other systemic problems need to
be addressed. This provision would require the Administrator of
NNSA to complete the selection of FIRP projects by September
30, 2004. No additional projects could be added to FIRP after
that time.
The FIRP program was originally envisioned and introduced
to Congress as a ten-year program with a narrow and specific
goal of eliminating the enormous maintenance backlog, which had
accumulated over many years. Accordingly, this provision would
sunset the FIRP program on September 30, 2011, at the end of
the FIRP's tenth year. By including this provision, the
committee intends to send a clear signal to NNSA that FIRP is
only a temporary fix to the maintenance backlogs and NNSA must
plan to meet current and future maintenance requirements in the
ordinary course of business.
The committee is concerned that the current facilities and
operations program is so intertwined in the larger RTBF program
that it does not receive the priority or oversight it requires.
The committee believes NNSA should set up a program similar to
FIRP to address current and future maintenance needs. This
provision would include several requirements to ensure NNSA
moves toward this type of disciplined structure.
This provision would require the Administrator to set up
the operations and facilities program as a separate program,
independent of the RTBF. The operations and facilities program
would be managed by the Associate Administrator for Facilities
and Operations or another official within NNSA in a manner
similar to the way FIRP is set up and managed.
Additionally, the provision would require the Administrator
to submit a report to the congressional defense committees
setting forth guidelines on how NNSA's current and future
maintenance needs shall be met, including the types of criteria
to be used. The goal of the guidelines included in the report
should be to ensure NNSA avoids maintenance backlogs.
The committee was apprehensive about authorizing such large
increases to NNSA when the FIRP program began. The concerns
were that at the end of the ten year period, NNSA would have
spent billions of dollars without revitalizing their
infrastructure. It was clear to the committee then and remains
clear today that the only way to ensure the infrastructure will
be revitalized and the maintenance backlog eliminated is with
dedication and discipline.

Continuation of processing, treatment, and disposition of legacy
nuclear materials (sec. 3134)

The committee recommends a provision that would amend
section 3137 of the National Defense Authorization Act for
Fiscal Year 2001 to prohibit the Department of Energy (DOE),
from beginning to decommission the F Canyon facility at the
Savannah River Site (SRS) until the Secretary of Energy and the
Defense Nuclear Facility Safety Board (DNFSB) jointly submit to
the Committees on Armed Services of the Senate and the House of
Representatives a report setting forth an assessment whether or
not all materials present in the F Canyon are safely stabilized
and future needs for fissile materials disposition can be met
through H Canyon. Section 3137 of the National Defense
Authorization Act for Fiscal Year 2001 is amended by deleting
the requirement that F Canyon be maintained in a high state of
readiness.
The committee believes there is no compelling future
mission for F Canyon. All material remaining in the F Canyon
facility has been or soon will be safely stabilized. All
additional fissile materials that must be processed through a
canyon for stabilization or disposition purposes can be
processed in the newer and more flexible H Canyon facility at
SRS. Furthermore, maintaining F Canyon in a high state of
readiness would require the expenditure of significant funds
for surveillance and maintenance, which, in the absence of any
need for F Canyon, could better be applied to other important
risk reduction and cleanup activities.
The Department and the DNFSB both agree the H Canyon can
safely process all the material that remains in the F Canyon or
that the materials can be safely disposed of in another manner.
The Department and the DNFSB also both agree that there is no
programmatic requirement for maintaining the F Canyon.
The provision would eliminate the DNFSB certification
requirement, and would require the DOE to submit a report to
the congressional defense committees and the DNFSB before
commencing the decommissioning of F Canyon. The provision would
retain the requirement that H Canyon be maintained in a high
state of readiness. This change would ensure the availability
of H Canyon for any future canyon processing needs.

Subtitle C--Proliferation Matters

Expansion of International Materials Protection, Control, and
Accounting Program (sec. 3141)

The committee recommends a provision that would authorize
the Secretary of Energy to conduct nuclear nonproliferation
threat reduction activities and projects outside the states of
the former Soviet Union for the International Materials,
Protection, Control, and Accounting Program. The Secretary of
Energy would be required to notify the Committees on Armed
Services of the Senate and the House of Representatives 15 days
prior to obligating funds for activities in or with respect to
countries outside the Former Soviet Union. The notification
would include the amount to be obligated, specific details of
the project, and any other federal agencies or private sector
entities that may be involved.
While the committee supports the expansion of the
geographic scope of this Program and expects that all expansion
projects and activities will be detailed in the annual report,
the committee believes that the original intent behind the
creation of the Program must remain intact. Because the
original mission of the International Materials Protection,
Control, and Accounting Program is far from complete, the
committee urges the Department to undertake any geographic
expansion judiciously to avoid diverting the necessary funds
and program focus away from completing the Program's original
mission of securing and accounting for weapons usable nuclear
materials in the Former Soviet Union.

Semi-annual financial reports on Defense Nuclear Nonproliferation
Program (sec. 3142)

The committee recommends a provision that would require the
Administrator for Nuclear Security to provide semi-annual
financial reports to the Committees on Armed Services of the
Senate and the House of Representatives for the Department of
Energy (DOE) Defense Nuclear Nonproliferation Program. The
reports are due to the committees 30 calendar days after the
end of each half of the fiscal year, beginning in fiscal year
2004. The first report would be due April 30, 2004, and would
cover the first six months of fiscal year 2004.
The committee believes that the DOE Defense Nuclear
Nonproliferation Program should provide greater transparency
regarding the financial management of the Program to improve
congressional oversight. Because of the committee's concern
over uncosted, or unexpended, balances for this important
nonproliferation program, the committee believes semi-annual
financial reporting will assist the committee with tracking
program expenditures to ensure that the national security
benefit proposed by this nonproliferation program can be
realized. This information facilitates committee monitoring of
the expenditure of Defense Nuclear Nonproliferation Program
funds. Therefore, the committee directs the Administrator for
Nuclear Security to provide semi-annual financial reports
detailing the total obligation authority per program, the
amounts obligated, unobligated, committed to contracts, and
disbursed.

Report on reduction of excessive uncosted balances for defense nuclear
nonproliferation activities (sec. 3143)

The committee recommends a provision that would require the
Administrator for Nuclear Security to provide the Committees on
Armed Services of the Senate and the House of Representatives
with a plan to reduce the amount of uncosted, or unexpended,
balances for the Defense Nuclear Nonproliferation Program if,
at the end of fiscal year 2004, the Program's uncosted balances
exceed 20 percent. This plan would be due not later than
November 30, 2004. The purpose of the plan would be to provide
the committees with the Department of Energy's (DOE) strategic
approach to addressing the low expenditures of defense nuclear
nonproliferation funds from current and previous fiscal years.
The committee believes the Defense Nuclear Nonproliferation
Program should strive to attain the DOE-wide average of 15
percent uncosted, or unspent levels, per fiscal year.
Currently, the Defense Nuclear Nonproliferation Program is
averaging uncosted balances of nearly 50 percent of the
Program's total appropriated budget. In some instances, such as
the Russian Transition Initiatives Program, these balances
exceed 70 percent. According to the Department, these levels
are higher than the Program's historical average of 30 percent
due to the additional funds the Defense Nuclear
Nonproliferation Program received in the fiscal year 2002
emergency supplemental, and the Program's inability to absorb
these additional funds in a timely manner. The committee
believes these circumstances will be replicated again, as a
result of the fiscal year 2003 emergency supplemental, and the
Program will have the same uncosted balances situation in the
current fiscal year.
The committee believes the Defense Nuclear Nonproliferation
Program must address these expenditure challenges immediately.
Therefore, the committee directs program management to adopt a
more aggressive, focused approach to expending these funds
without sacrificing accountability, management, and oversight.
The committee urges the Department to consider innovative
methods in developing and implementing such an approach and to
take action immediately.

Subtitle D--Other Matters

Modification of authorities on Department of Energy personnel security
investigations (sec. 3151)

The committee recommends a provision that would amend
section 145 of the Atomic Energy Act of 1954 to provide the
Secretary of Energy the authority to refer security
investigations to either the Federal Bureau of Investigations
(FBI) or the Office of Personnel Management (OPM). Current law
requires the FBI to investigate all initial personnel security
investigations and all reinvestigations for DOE federal and
contractor employees assigned to a DOE Special Access Program
(SAP) or a Personnel Security and Assurance Program.
Since the attacks of September 11, 2001, the DOE increased
its security needs at the same time the FBI faced significantly
increased demands on its resources. The result has been
significant delays in completing security investigations needed
by DOE to accomplish its mission in a timely fashion.
This provision would allow the Secretary of Energy to chose
either the FBI or the OPM to conduct the investigations. The
committee notes that the FBI and the OPM both use contractor
personnel to perform their security investigations, and often
they use the same contractors. They both conduct their
investigations in a similar manner and scope.
The committee recommends that the Secretary, in exercising
his discretion, choose those personnel with access to highly
classified materials to be investigated by the FBI for their
initial security clearances or, if those personnel already have
their security clearance, any subsequent five-year or periodic
re-investigations. The committee recommends the Secretary set
forth a policy clearly identifying which investigations should
be conducted by the FBI.
The committee is also concerned that some security breaches
could have been prevented if there had been more coordination
between the FBI and other security agencies, including the
Central Intelligence Agency. The committee encourages the
Department to look for more ways to cross check their security
information against other agencies as an added security tool,
where appropriate.

Responsibilities of Environmental Management program and National
Nuclear Security Administration of Department of Energy for
environmental cleanup, decontamination and decommissioning, and
waste management (sec. 3152)

The committee recommends a provision that would require the
Secretary of Energy to establish a policy to clarify the shared
or overlapping responsibilities between the environmental
management (EM) program and the National Nuclear Security
Administration (NNSA). The types of roles and responsibilities
that need clarification include environmental cleanup,
decontamination and decommissioning, and waste management. In
each of these cleanup categories policy questions remain
whether EM will retain these tasks permanently, or whether EM
will only complete cleanup work they are currently assigned and
then whether EM--as a Department of Energy program--would
thereafter cease to exist. In this latter approach, NNSA would
then be assigned these responsibilities as part of their
operations and budget decisions.
When asked about the advantages of making NNSA responsible
for its own cleanup, Jessie Roberson, the Assistant Secretary
for Environmental Management, recently compared the benefits to
those found by industry. Before the Subcommittee on Strategic
Forces, Ms. Roberson testified, ``In industry the view is
normally that if a generator has to make cost-benefit
decisions, then they are likely to generate less to be more
aggressive about pollution prevention. In the past, EM and NNSA
have been very intertwined at these sites, but I believe that
there is a benefit to tying pollution prevention principles to
the generation of materials directly.'' While Ms. Roberson's
view is compelling, an alternative view may be that the EM
program already has the cleanup expertise and should continue
to conduct the cleanup activities for the NNSA complex.
The committee is concerned that there is confusion about
DOE's policy, now and for the future. Clarification is needed.
Accordingly, this provision would require the Secretary to
include a report declaring DOE's policy on these matters. The
report should be submitted with the administration's budget
request for fiscal year 2005.
The provision would also require the Secretary of Energy,
to prepare a plan to implement the new policy, including any
recommendations for legislation to help delineate
responsibilities between EM and NNSA. The plan would be
presented with the administration's budget request for fiscal
year 2006.

Update of report on stockpile stewardship criteria (sec. 3153)

The committee recommends a provision that would require the
Secretary of Energy to submit a report to the congressional
defense committees, by March 1, 2005, on clear and specific
criteria for judging whether the science-based tools being used
by the Department of Energy for determining the safety and
reliability of the nuclear weapons stockpile are performing in
a manner that will provide an adequate degree of certainty that
the stockpile is safe and reliable. This is an update of the
report required in section 3158 of the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999.
The report required by this provision was recommended in
the 2003 report by the Foster Panel--the Panel to Assess the
Reliability, Safety, and Security of the United States Nuclear
Stockpile--entitled Expectations for the U.S. Nuclear Stockpile
Stewardship Program. The Panel also recommended that the report
include a list of new tools to be deployed within the
production facilities. Additionally, the Panel recommended that
for each tool, the ``* * * report should identify critical
contributions for stockpile stewardship and how the tool is to
be validated.'' All of these Panel recommendations have been
included in this provision.

Progress reports on energy employees occupational illness compensation
program (sec. 3154)

The committee recommends a provision that would require the
National Institute for Occupational Safety and Health (NIOSH)
to submit a report to the congressional defense committees, the
Committee on Government Affairs, and the Committee on Health
Education, Labor and Pensions in the Senate, and the Committee
on Government Reform and the Committee on Education and the
Workforce in the House of Representatives, on the ability of
NIOSH to obtain, in a timely, accurate, and complete manner,
information necessary for the purpose of carrying out radiation
dose reconstructions under the Energy Employees Occupational
Illness Compensation Program Act of 2000 (EEOICPA). The report
should be submitted within 90 days of enactment of this Act.

Subtitle E--Consolidation of General Provisions on Department of Energy
National Security Programs

Consolidation and assembly of recurring and general provisions on
Department of Energy national security programs (sec. 3161)

The committee recommends a provision that would combine
recurring and general provisions on Department of Energy (DOE)
national security programs with a goal of consolidating and
organizing these provisions into a single Act intended to
comprise the principal Act of the recurring and general
provisions on these programs. The committee has taken great
care to ensure that this effort would not make any substantive
changes to the existing laws. The provision includes technical
and conforming amendments of a non-substantive nature.

Budget Items

Nonproliferation and Verification Research and Development Program

The budget request included $203.8 million for the
Nonproliferation and Verification Research and Development
Program. The committee supports the vital technologies
developed by this Program to detect and deter weapons of mass
destruction proliferation and to monitor nuclear explosions
world-wide. The committee believes that one of the key missions
of this Program should be to identify new technologies that can
support the Department of Energy's ongoing nonproliferation
programs and the Department of Defense's Cooperative Threat
Reduction Program activities. In this regard, the committee
encourages the Nonproliferation and Verification Research and
Development Program to use up to $2.0 million of the funds
available to accelerate a technology that will identify the
isotopic and chemical signatures of concealed materials located
inside containers or storage sites.

Items of Special Interest

Academic evaluation of environmental management accelerated cleanup
technologies

The committee notes that the environmental management
program technology development and deployment program provides
technical solutions and alternative technologies to assist with
the accelerated cleanup of the Department of Energy (DOE)
complex. Key to this success is moving the technologies that
have been developed into the field where they can be fully
utilized to accelerate cleanup. DOE also seeks to adapt
existing technologies for application in DOE cleanup plans. DOE
is constantly looking at alternative cleanup options to reduce
costs and to accelerate cleanup. In carrying out these
technology transfer activities DOE has successfully relied on
the academic community to help develop fundamental data needed
to evaluate new remediation and treatment technologies. The
academic community has provided unbiased recognized technical
experts to assist DOE in evaluating new technologies, resolving
technical issues and working with regulators and stakeholders
to ensure that the new technologies are accepted and
incorporated into the cleanup plans as quickly as possible. The
committee urges the Secretary of Energy to continue these
beneficial relations with the academic community.

Consolidation of the Office of Worker and Community Transition and the
Office of Legacy Management

The committee supports the establishment of the Office of
Legacy Management as proposed by the Department of Energy's
(DOE) budget request for fiscal year 2004. The Office of Legacy
Management (LM) will be responsible for assuming long-term
environmental stewardship responsibilities after the cleanup
work by Environmental Management (EM) is complete.
Additionally, LM will be responsible for ensuring the EM
workforce has quick and easy access to their records, and to
their pension and medical benefits.
The committee recommends that the Secretary merge the
Office of Worker and Community Transition, and its
responsibilities as set out in Section 3161 of the Defense
Authorization Act of 1993, into the Office of Legacy
Management. The functions of the Office of Worker and Community
Transition include, but are not limited to, mitigating the
impacts of changing conditions on the workers and communities
affected by departmental mission changes.
The end of the Cold War brought fundamental changes to the
DOE's mission. The Department has shifted from nuclear weapons
production to other missions, such as environmental management
and the eventual cleanup and closure of sites. The committee
notes that by consolidating the workforce and community
functions of the Office of Worker and Community Transition in
the Office of Legacy Management, one dedicated office, the
Department will achieve significant efficiencies and protect
the workforce.
Mr. Mike Owens, Director of the Office of Worker and
Community Transition, and designated to become the Director of
the Office of Legacy Management, testified before the Strategic
Forces Subcommittee. Mr. Owens said, ``[c]learly many of the
things that the Worker and Community Transition Office is doing
is a very natural glove fit to have it run by the same Office
of Legacy Management. They are out there dealing with local
communities, which will be a big responsibility of Legacy
Management. They take the worker up to that last split second
when he goes off the payroll and Legacy Management picks him up
and carries him on through retirement. So it seems very logical
that the two offices be merged together.''

Facilities and infrastructure recapitalization program

The facilities and infrastructure recapitalization program
(FIRP) was originally created in the National Defense
Authorization Act for Fiscal Year 2002 to address a backlog of
deferred maintenance across the facilities and infrastructure
which supports the Defense Programs of the National Nuclear
Security Administration (NNSA). The original provision required
NNSA to create firm criteria against which projects would be
judged and priorities established. The chosen projects were to
place a high priority on worker and community health and
safety, compliance with environmental requirements, safeguards
and security requirements, and ensure the mission of defense
programs is maintained on a timely basis. The original
provision also included a mechanism for sites to have their
priorities integrated into a complex wide priority projects
list. The priority projects were to be based on their
individual merits, not any requirement for an equitable
distribution of the funds by site. Finally, the committee
expressed their support for NNSA efforts to address the
maintenance backlog at NNSA sites, and directed NNSA to plan
and budget adequately in the future for maintenance. NNSA was
to ensure that maintenance costs were included in their five
year budget plan for new construction, and that all new
construction was planned to include funds to tear down the
facilities they are replacing.
The committee believes that the NNSA successfully set up
the FIRP program as envisioned in the National Defense
Authorization Act for Fiscal Year 2002. The FIRP program has
adopted criteria with discipline and a vision for eliminating
the deferred maintenance backlog. The management of the FIRP
program has received some criticism from NNSA facilities that
FIRP imposes too much discipline and a lack of flexibility. The
committee asserts that it was a lack of discipline and too much
flexibility which created the maintenance backlog in the first
place. The committee encourages NNSA and the facilities to work
to ensure that the current and future maintenance in the
readiness in technical base and facilities (RTBF) program
receive as much priority and discipline as FIRP. RTBF is still
deferring maintenance, adding scope to the FIRP program, and
placing success of the FIRP program at risk.

Need for an enhanced schedule for the modern pit facility

The committee urges that the Department of Energy (DOE) to
evaluate options for the acceleration of modern pit facility
(MPF) design and construction. Considerations for a modern pit
facility should include consolidation of design and
environmental review activities, the effect of different MPF
designs on construction schedules, and the potential
compression of proposed construction schedules. The Department
should also evaluate the loss of technical expertise in pit
production due to the closure of Rocky Flats, and assess
options to ensure that the Nation's experience in this area is
not further degraded until the MPF becomes operational.
Finally, the Department should indicate how their plan for
keeping the production program agile and how their engineering
design will create a flexible facility to meet ever changing
military requirements in a world fraught with emerging threats.
The committee directs the Secretary to submit a report
detailing its findings, and the steps it is taking to
accelerate the MPF and protect its institutional knowledge of
production processes, to the congressional defense committees
together with the fiscal year 2005 budget request. The report
should also include a schedule to establish a requirement by
pit type by year, and any other requirements. The DOE must have
a requirement established to ensure that the MPF is
appropriately sized.
The Department's current schedule does not envision
operations at the proposed MPF until the year 2020. While the
Department expects to conduct limited pit production at the Los
Alamos National Laboratory in the interim, the expected
production levels at this laboratory will be of limited value
in maintaining the Nation's strategic arsenal. As the
Department has not had a viable pit production facility since
the closure of Rocky Flats in 1989, the committee is concerned
with a proposed 2020 operations starting date for the new MPF.

Recruiting and retaining critical skills in the nuclear weapons complex

The committee has received several expressions of concern
about the continued ability of the national laboratories and
nuclear weapons plants to attract and retain a workforce
meeting the Manhattan Project standard of ``the best and the
brightest.'' In response, the committee directs the General
Accounting Office (GAO) to conduct a study of the National
Nuclear Security Administration (NNSA) and its contractor's
efforts to attract and retain new scientific and engineering
talent.
A key factor to maintaining a safe and reliable nuclear
weapons stockpile is attracting and retaining our nation's best
scientists, engineers and technicians. Since the late 1990s,
numerous groups have recognized that recruiting and retention
is becoming a critical problem for the nuclear weapons complex.
Specifically, in February 1999, the Commission on Maintaining
United States Nuclear Weapons Expertise--often called the
Chiles Commission--found that while the problems of an aging
nuclear weapons workforce were well recognized, there were
``few initiatives to change in any basic way'' the manner in
which the design labs and production plants approached
recruitment, career management, or retention. The Commission
recommended that DOE and its contractors develop on a priority
basis a detailed and long-term complex-wide plan for
replenishing the essential scientific, engineering, and
technical nuclear weapons workforce. More recently, in fiscal
year 2001, as part of an effort to improve the critical skills
at the Los Alamos and Lawrence Livermore National Laboratories,
the National Nuclear Security Administration (NNSA) required
the two labs--through a contract mechanism known as Appendix
O--to develop a consolidated plan for recruiting, training and
retaining employees with critical skills.
While planning is important, the committee notes that given
the vital nature of this long-recognized problem, the national
laboratories and nuclear weapons plants should go beyond the
planning stage and should be heavily involved in implementing
programs to attract and retain our nation's best scientific,
engineering and technical minds. The committee is concerned
that while recent initiatives have been started by the NNSA and
the individual facilities, it appears that their efforts and
coordination remain fragmented.
In an effort to quantify the various educational grants and
outreach programs and establish a recruitment program baseline,
the committee directs the GAO to include in the study, the
following:
(1) an overview of the NNSA programs and initiatives
to attract and retain scientific, engineering and
technical skills;
(2) an inventory and description of the programs
developed by the national weapons labs and nuclear
weapons plants to attract and retain scientific,
engineering and technical skills, including education
grants and scholarship programs;
(3) an assessment of how well these programs are
functioning individually and as part of the larger
program;
(4) an identification and assessment of ``best
practices'' in other high tech industries that could be
used by NNSA and its contractors; and
(5) an identification and assessment of any other
alternative approaches, such as the forgiveness of
educational expenses, that could be used to attract and
retain new scientific and engineering talent.
GAO should complete this study within six months of the date of
enactment of this act and report its findings to the
congressional defense committees.

Treatment of construction projects for the environmental management
program

The committee supports the Department's proposed treatment
of environmental management (EM) program line item projects
with the expectation that the same level of project management
and oversight will occur, and that this accommodation will
further accelerate the cleanup of legacy waste from the EM
sites.
The committee notes that the EM Program has been very
successful in accelerating site closure plans by reducing risk
to the environment, workers and communities, which in turn
shorten cleanup schedules, and will potentially save tens of
billions of dollars upon completion.
In order to introduce additional flexibility and
efficiencies, the EM budget request for fiscal year 2004
included a proposal that would change the way the Department
would treat line item construction projects within the EM
program. In lieu of requesting all projects for authorization
and subsequent base table control, in some cases the Department
proposed treating construction projects as subprojects to a
larger project and funded as a normal operating funded item. In
making the EM program itself a project, any line item
construction project at a particular site becomes a part or
portion of a larger project. This arrangement would provide the
project manager with the latitude and discretion to make real
time cost and schedule tradeoff decisions regarding how best to
utilize the total dollar and worker resources of that project
to optimize both cost and schedule.
The ability to make timely decisions regarding available
resources and assets are vitally critical to the EM accelerated
cleanup initiative. The committee notes the obvious success of
a similar arrangement at Rocky Flats some years earlier.
Likewise, the committee notes the Department remains committed
to providing a similar level of detail--in both the President's
budget and in project execution--that would be provided if the
construction activity were a traditional line item construction
project.
TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Defense Nuclear Facilities Safety Board (sec. 3201)
The committee recommends $19.6 million, the amount of the
fiscal year 2004 budget request, for the Defense Nuclear
Facilities Safety Board (DNFSB).

LEGISLATIVE REQUIREMENTS

Departmental Recommendations

By letter dated March 3, 2003, the General Counsel of the
Department of Defense forwarded to the President of the Senate
proposed legislation ``To authorize appropriations for fiscal
year 2004 for military activities of the Department of Defense,
to prescribe military personnel strengths for fiscal year 2004,
and for other purposes.'' The transmittal letter and proposed
legislation were officially referred as Executive Communication
1428 to the Committee on Armed Services on March 3, 2003.
Executive Communication 1428 is available for review at the
committee. Senators Warner and Levin introduced this
legislative proposal as S. 747, by request, on March 31, 2003.
Committee Action
The committee ordered reported a comprehensive original
bill and a series of original bills for Department of Defense,
military construction and Department of Energy authorizations
by voice vote.
The roll call votes on amendments to the bill which were
considered during the course of the markup have been made
public and are available at the committee.
Congressional Budget Office Cost Estimate
It was not possible to include the Congressional Budget
Office cost estimate on this legislation because it was not
available at the time the report was filed. It will be included
in material presented during floor debate on the legislation.
Regulatory Impact
Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate requires that a report on the regulatory impact of the
bill be included in the report on the bill. The committee finds
that there is no regulatory impact in the case of the National
Defense Authorization Bill for Fiscal Year 2004.
Changes in Existing Law
Pursuant to the provisions of paragraph 12 of rule XXVI of
the Standing Rules of the Senate, the changes in existing law
made by certain portions of the bill have not been shown in
this section of the report because, in the opinion of the
committee, it is necessary to dispense with showing such
changes in order to expedite the business of the Senate and
reduce the expenditure of funds.

ADDITIONAL VIEWS OF SENATORS CHAMBLISS, CORNYN, GRAHAM OF SOUTH
CAROLINA, AND INHOFE

While the Committee has produced a good bill that will
provide a much needed pay raise for the men and women who serve
in our military, increased benefits for our military families,
and critical resources to give our military the tools which
they need to protect and defend our nation, we strongly
disagree with the Committee's decision to reduce the production
of the F/A-22 aircraft by 2 aircraft and decrease the fiscal
year 2004 funding for the F/A-22 by $217 million.
The F/A-22 is our next generation tactical fighter aircraft
to replace the aging aircraft currently in our inventory. With
its stealth design, capability for supersonic cruise without
afterburners, exceptional maneuverability, and advanced
integrated avionics, the F/A-22 will give our military the
ability to provide 24 hour all weather air superiority. The F/
A-22's ability to give our pilots first-look, first-shot,
first-kill capability will guarantee U.S. air dominance well
into the 21st century. Further, the F/A-22 will require less
maintenance support and lower deployment support requirements
than our current fighters. In the face of sophisticated air
defense systems, increased advanced fighter aircraft being
developed and sold around the world, and enhanced air to air
and surface to air missile threats, the F/A-22 will be one of
our most critical military assets in the future.
In the fiscal year 2004 budget request for the Department
of Defense, the President recommended $3.727 billion for the
procurement of 22 F/A-22 Raptor aircraft. In fiscal year 2003,
the Air Force plans to purchase 21 F/A-22 aircraft. Reducing
the President's fiscal year 2004 budget request will only serve
to raise questions about our commitment to the program,
unsettle the confidence of the subcontractors and suppliers,
ultimately increasing the costs to the entire program and
making it subject to further criticism.
The Committee is correct in closely monitoring the program
and attempting to ensure that the taxpayer's money is used
wisely and efficiently. However, in extensive testimony before
the Airland Subcommittee this year, the Subcommittee heard from
the Air Force that the program is doing extremely well. Over
the past few years, the Congress has carefully watched the
program and implemented milestones to ensure that the aircraft
meets the needs of our military. The F/A-22 is one of the most
sophisticated and complex systems in the military. Given the
complexities, the program has performed exceedingly well,
meeting or exceeding technical and operational requirements.
The program completed a successful OSD Defense Acquisition
Board review in March 2003. With only one exception, all
technical challenges which the aircraft has encountered have
been effectively resolved.
One issue currently being addressed is the avionics
stability. The F/A-22 avionics suite is some of the most
sophisticated and advanced software being developed today. Run-
time for the current software has improved from 1.3 to 3.2
hours in the past month alone. Further software improvements
can be expected in the coming months. Additionally in December,
2002, the Department of Defense Acquisition Executive,
Secretary Aldridge, certified that the avionics hardware and
architecture are sound and unrelated to the software
instability. There is also no retrofit risk associated with
maturing software. The only retrofit requirement related to
avionics for aircraft currently being produced would be a
software update. The cost of such an update is minimal and the
Air Force does similar updates for every aircraft in the
inventory on a recurring basis. The current avionics problem is
isolated to software that is being tested now, while the Lot 4
aircraft which the Committee chose to reduce will not even
deliver until 2006. There is no relationship between the
proposed reduction in aircraft and the avionics issues
currently being addressed.
Although it is true the F/A-22 production effort is behind
in its original schedule, the proposed reduction in funding
will further hinder that schedule. Aircraft number 4013,
scheduled to be delivered in April 2003, experienced foreign
object debris damage during its last test flight requiring an
engine to be replaced and delaying delivery of that aircraft.
Furthermore, the Air Force has no funding obligation or
execution issues on the current aircraft being delivered.
Aircraft number 4013 was delivered to the Air Force on 8 May,
as the Committee was completing its mark. It is expected that
aircraft numbers 4014 and 4015 will be delivered by the end of
May.
Additionally, the Air Force recently announced that they
would purchase one additional F/A-22 during the fiscal year
2003. Their ability to do this was based on increasing program
efficiencies, increased supplier confidence, and hard work by
the F/A-22 team. By decreasing the funding in FY04, the
program's progress will only be hurt and will ultimately result
in a per plane cost increase of approximately $3 million with a
corresponding decrease in the number of aircraft delivered by
as much as 10 aircraft.
The F/A-22 program is essential to the future security of
the United States and to our nation's ability to defend freedom
around the Globe. Full funding for this program is important to
keep costs stable and the program on track. Production
stability is vital to achieving future program affordability
goals. The avionics challenges and any future technical issues
will be overcome, but reducing procurement now will damage
supplier confidence and increase supplier costs, further
reducing the number of aircraft the Air Force will be able to
buy.
Saxby Chambliss.
John Cornyn.
Lindsey O. Graham.
James M. Inhofe.

ADDITIONAL VIEWS OF SENATOR REED

NUCLEAR WEAPONS

Under the guise of maintaining flexibility and keeping all
options open, this bill approves and encourages the Bush
Administration to continue its push to develop, test, deploy
and possibly use, nuclear weapons. Not since the days of the
Cold War, when the United States turned to nuclear weapons as
its only option to counter the superior conventional forces of
the Soviet Union, have we even thought about nuclear weapons as
a usable option. Now, in this bill, the pieces of a new nuclear
policy are beginning to come together. This new policy
represents a dramatic shift in direction away from
nonproliferation, away from our commitments under the Nuclear
Nonproliferation Treaty, and away from efforts to delegitimize
nuclear weapons. Today, because we are concerned that the
current stockpile of over 8,000 nuclear weapons might not deter
others, because we might be self-deterred from using those
nuclear weapons, we embark on a path toward new nuclear
weapons, to use.
The progress toward this policy shift in nuclear policy has
been steady and has occurred largely out of the public view.
The December 2001 Nuclear Posture Review, a classified
document, was advertised as reducing nuclear weapons and as an
effort to reduce reliance on nuclear weapons. Unfortunately it
did neither. No nuclear weapons were slated for destruction
under this document, and, worse, the line between nuclear and
non-nuclear was blurred. The new triad adopted by the Bush
Administration was not a nuclear triad in the traditional sense
of land, sea, and air weapons, but rather, it was a triad of
concepts: offensive strike, defense, and infrastructure.
Nuclear and non-nuclear weapons were grouped in the strike leg.
Nuclear weapons would now be incorporated in strike plans and
the nuclear weapons infrastructure was to be revitalized. The
revitalization was not just to maintain the current stockpile
of nuclear weapons and not just to maintain a capability to
manufacture new nuclear weapons, but to be able to design,
produce, and test new nuclear weapons and to modify existing
nuclear weapons for new purposes.
In this bill, the Armed Services Committee has approved a
requirement to develop a plan for global strike capabilities
that would include new nuclear weapons, money to reduce the
time needed to conduct a nuclear weapons test and a mandate to
do just that, and to move more quickly on a facility to build
hundreds of plutonium pits per year, a key component of nuclear
weapons. This bill also includes money to modify existing large
nuclear weapons to be new earth penetrators, money for advanced
nuclear weapons concepts, and the repeal, as requested by the
Bush Administration, of a ten year old ban on the research and
development of low yield nuclear weapons.
This is the wrong direction to take the country. The Cold
War is over. The United States is the most powerful country in
the world. We have demonstrated the skill, the precision, and
awesome capability of our conventional weapons and the brave
men and women of our armed forces. We need a strong military,
we need to fight the war on terrorism, and we need to prevent
the proliferation of nuclear weapons. But we accomplish none of
these goals by resuming a new nuclear arms race.
When this bill is considered by the full Senate it is my
hope that the debate on nuclear weapons will continue and the
subtle but dramatic shift in nuclear weapons policy will be
fully aired. There is still time to change this dangerous
direction.

MISSILE DEFENSE

In the area of ballistic missile defense, the committee is
recommending some positive changes, such as the restoration of
a national missile defense intercept test in 2004 that the Bush
Administration recently cancelled and a provision which would
require the Department of Defense to provide an estimate of the
costs to procure missile defenses in the future.
Overall, however, I continue to have serious concerns about
the Bush Administration's ballistic missile defense program.
President Bush has announced his intention to begin fielding a
national missile defense system in 2004, despite the fact that
the Pentagon's Director of Operational Test and Evaluation
concluded in his FY2002 Annual Report that the system ``has yet
to demonstrate significant operational capability.'' The
planned fielding date is September 2004, weeks before the
Presidential elections, but years before the system is
scheduled to conduct any realistic operational testing to prove
that it actually works. So the plan is to field the system
before we even know if it will work.
As the events of 9/11, the wars in Afghanistan and Iraq,
and the continuing global operations against terrorism continue
to demonstrate, the imminent threats to this country are not
from long-range intercontinental ballistic missiles. Rather,
they come from shadowy networks of terrorists without the means
or the desire to acquire a long-range missile. This situation
will not change by September 2004. Therefore, deployment of an
unproven national missile defense by then will not increase our
nation's security. Instead, what the deployment is more likely
to do is significantly delay the time when we may have an
operationally effective national missile defense capability.
To add insult to injury, the national missile defense
system the President has decided to field does not have a radar
capable of distinguishing between a warhead and a decoy. While
President Clinton had planned to build such a radar, President
Bush intends to field the system without one. The radar
represents the all important ``eyes'' of the system, and the
system to be fielded by President Bush is partially blind.
After repeatedly and harshly criticizing the Clinton
Administration's national missile defense program, the Bush
Administration has decided to deploy a system far less capable
than the system President Clinton had proposed.
The only way to demonstrate that we have an effective
national missile defense is to conduct realistic intercept
tests of the system, during which a defensive interceptor
actually engages a target made to look like an incoming threat
missile. As the Pentagon's Director of Operational Testing
stated in his FY2002 Annual Report, the national missile
defense system has yet to complete intercept tests ``against
targets with signatures, countermeasures and flight dynamics
more closely matching the threat.''
One of the astonishing by-products of the President's
decision to field a national missile defense is that the number
of scheduled intercept tests for the system has plummeted to
just over half what it had been prior to the deployment
decision. Prior to the President's December 2002 decision to
field the system, 20 national missile defense intercept tests
had been scheduled to occur between mid-2002 and 2007.
Following the President's decision, 9 of these 20 tests were
cancelled. No explanation was given by the Bush Administration
for this drastic reduction in test content. Furthermore, the
scheduled date to complete this new, minimalist test plan is
now 2009 instead of 2007. The decision to field an unproven
system has thus been accompanied by a decision to eliminate or
delay the very testing that must be conducted to show whether
the system is effective.
This is all the more astonishing because the Bush
Administration sold its ``new'' missile defense program on the
central premise of building a sophisticated ``test bed'' and
conducting unprecedented levels of rigorous, realistic tests to
learn what would work--and only then decide what to deploy.
These assurances have proven to be completely hollow. The Bush
Aministration intends to deploy missile defenses long before
they have been shown to work.
In addition to cancelling almost half of the planned
national missile defense intercept tests, the Bush
Administration proposed legislation in the fiscal year 2004
budget request that would have allowed operational testing to
be waived for national missile defense. Rigorous, realistic
operational testing is required by law for all major weapons
systems to ensure that they work prior to being deployed to our
military in the field. The proposal to waive such testing for
missile defense displays a disregard for a law which for over
20 years has been critical to ensuring our military gets
equipment that will actually work in battle. Thankfully, the
committee bill does not provide any waivers for operational
testing of missile defenses, but the Bush Administration has
yet to say when such realistic testing will in fact be done for
national missile defense.
The Bush Administration's ballistic missile defense program
is the single largest acquisition program in the entire
Department of Defense, with a budget request of more than $9
billion in fiscal year 2004 alone. For perspective, this amount
of funding could buy 9 DDG-51-class destroyers, 45 F-22 Raptor
fighter aircraft, or more than 2800 Stryker Armored Vehicles.
Despite this huge amount of funding, however, the Bush
Administration cannot describe what sort of missile defense
systems will ultimately be deployed, when they will be
deployed, or what types of missile threats they will defend
against.
Over the last two years Congress has passed a number of
laws requiring the Bush Administration to provide basic
information on its plans for missile defense. The Bush
Administration has ignored many of these laws.
For example, at the beginning of fiscal year 2002 Congress
required the Bush Administration to establish cost, schedule,
testing and performance goals for missile defense and directed
the General Accounting Office (GAO) to review whether progress
was being made towards the established goals. By the end of
2002 the Bush Administration had still not established any
meaningful goals for missile defense. Consequently, in November
2002 the Director of Acquisition and Sourcing Management at the
GAO wrote to the committee to say that since no goals had been
established, GAO could not complete its review.
There are still no meaningful cost, schedule, testing or
performance goals associated with the vast majority of the
missile defense funding. This lack of an overall plan for
missile defense has resulted in the Bush Administration
allocating no funding at all to actually procure any missile
defense system. Aside from the ``fielding'' of a few unproven
missile defense interceptors starting in 2004, there are no
firm plans to ever deploy any missile defense system.
The American taxpayers have paid close to $20 billion over
the last two years, and will likely pay more than $9 billion
more next year, all for a missile defense program with no
specified end date, no identified military requirements, and no
identified products. The Bush Administration uses buzzwords
like ``spiral development'' and ``evolutionary acquisition'' to
defend this lack of planning. But that fact remains that it is
not clear when, if ever, the administration's missile defense
program will actually produce and deploy a new missile defense
system that is proven to be effective.
I have been and remain a strong supporter of theater
missile defenses such as the Patriot PAC-3 system deployed in
the Iraq war. The PAC-3 system was developed under President
Clinton and operationally tested prior to being fielded. Such
systems, once proven by testing, will provide our deployed
troops and allies overseas with protection from the thousands
of short-range theater missiles known to be deployed in a
number of potential conflict areas. I also support prudent
research, development and testing of a national missile defense
to defend the U.S. from the potential of a long-range,
intercontinental ballistic missile attack.
But I cannot support the Bush Administration's approach to
missile defense. Their program seems designed primarily to
spend huge amounts of money to field unproven systems on a
political time table. It cuts back on needed testing and
contains no plan to fund or deploy effective missile defenses.
Jack Reed.