27-368

2006
109TH CONGRESS 2ND SESSION
HOUSE OF REPRESENTATIVES
REPORT

109-452

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007

R E P O R T

of the

COMMITTEE ON ARMED SERVICES

HOUSE OF REPRESENTATIVES

on

H.R. 5122

together with

ADDITIONAL AND DISSENTING VIEWS

[Including cost estimate of the Congressional Budget Office]

congress.#13

MAY 5, 2006- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007

27-368

2006
109TH CONGRESS 2ND SESSION
HOUSE OF REPRESENTATIVES
REPORT

109-452

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007

R E P O R T

of the

COMMITTEE ON ARMED SERVICES

HOUSE OF REPRESENTATIVES

on

H.R. 5122

together with

ADDITIONAL AND DISSENTING VIEWS

[Including cost estimate of the Congressional Budget Office]

congress.#13

MAY 5, 2006- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

	HOUSE COMMITTEE ON ARMED SERVICES
	One Hundred Ninth Congress
DUNCAN HUNTER, California, Chairman
CURT WELDON, Pennsylvania JOEL HEFLEY, Colorado JIM SAXTON, New Jersey JOHN M. MCHUGH, New York TERRY EVERETT, Alabama ROSCOE G. BARTLETT, Maryland HOWARD P. `BUCK' MCKEON, California MAC THORNBERRY, Texas JOHN N. HOSTETTLER, Indiana WALTER B. JONES, North Carolina JIM RYUN, Kansas JIM GIBBONS, Nevada ROBIN HAYES, North Carolina KEN CALVERT, California ROB SIMMONS, Connecticut JO ANN DAVIS, Virginia W. TODD AKIN, Missouri J. RANDY FORBES, Virginia JEFF MILLER, Florida JOE WILSON, South Carolina FRANK A. LOBIONDO, New Jersey JEB BRADLEY, New Hampshire MICHAEL TURNER, Ohio JOHN KLINE, Minnesota CANDICE S. MILLER, Michigan MIKE ROGERS, Alabama TRENT FRANKS, Arizona BILL SHUSTER, Pennsylvania THELMA DRAKE, Virginia JOE SCHWARZ, Michigan CATHY MCMORRIS, Washington MICHAEL CONAWAY, Texas GEOFF DAVIS, Kentucky	IKE SKELTON, Missouri JOHN SPRATT, South Carolina SOLOMON P. ORTIZ, Texas LANE EVANS, Illinois GENE TAYLOR, Mississippi NEIL ABERCROMBIE, Hawaii MARTY MEEHAN, Massachusetts SILVESTRE REYES, Texas VIC SNYDER, Arkansas ADAM SMITH, Washington LORETTA SANCHEZ, California MIKE MCINTYRE, North Carolina ELLEN O. TAUSCHER, California ROBERT A. BRADY, Pennsylvania ROBERT ANDREWS, New Jersey SUSAN A. DAVIS, California JAMES R. LANGEVIN, Rhode Island STEVE ISRAEL, New York RICK LARSEN, Washington JIM COOPER, Tennessee JIM MARSHALL, Georgia KENDRICK B. MEEK, Florida MADELEINE Z. BORDALLO, Guam TIM RYAN, Ohio MARK UDALL, Colorado G.K. BUTTERFIELD, North Carolina CYNTHIA MCKINNEY, Georgia DAN BOREN, Oklahoma
ROBERT L. SIMMONS, STAFF DIRECTOR

C O N T E N T S

Page

	Explanation of the Committee Amendments	1
	Purpose	2
	Relationship of Authorization to Appropriations	2
	Summary of Authorization in the Bill	2
	Summary Table of Authorizations	3
	Rationale for the Committee Bill	12
	Hearings	16
	DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATION	16
	TITLE I--PROCUREMENT	16
	OVERVIEW	16
	Aircraft Procurement, Army	18
	Overview	18
	Items of Special Interest	22
	AH-64 modern signal processing unit	22
	Joint cargo aircraft	22
	HH-60 aircraft wireless intercom system upgrade	23
	UH-60A to UH-60L helicopter upgrade	23
	Missile Procurement, Army	23
	Overview	23
	Items of Special Interest	26
	Patriot modifications	26
	TOW missile inventory	26
	Weapons and Tracked Combat Vehicles, Army	26
	Overview	26
	Items of Special Interest	30
	Army current to future force modernization strategy	30
	Army modularity	30
	Heavy brigade combat teams	31
	Abrams tank modernization	32
	Bradley base sustainment program	32
	Integrated air burst weapon system	32
	Ammunition Procurement, Army	33
	Overview	33
	Items of Special Interest	37
	Desert optimized equipment	37
	Modernization of .50 caliber ammunition production line	37
	Other Procurement, Army	37
	Overview	37
	Items of Special Interest	48
	Bridge to future networks	48
	Combat medical support	48
	Immersive group simulation	49
	M915A3 production	49
	Simulated combat training capability for Army National Guard	49
	Aircraft Procurement, Navy	50
	Overview	50
	Items of Special Interest	55
	EP-3E service life extension	55
	H-53 series modifications	55
	P-3C modernization	55
	Weapons Procurement, Navy	56
	Overview	56
	Item of Special Interest	60
	Conventional trident modification	60
	Ammunition Procurement, Navy & Marine Corps	60
	Overview	60
	Shipbuilding and Conversion, Navy	63
	Overview	63
	Items of Special Interest	67
	313 ship navy force structure	67
	Aircraft carrier force structure requirements	67
	Arleigh Burke class destroyer modernization	67
	Battleship transfer	68
	Incremental funding for shipbuilding	68
	Littoral combat ship program	69
	Next-generation destroyer	69
	Shipbuilding/ship repair industrial base capacity	70
	Ship cost estimates	71
	Virginia class submarine	71
	Other Procurement, Navy	72
	Overview	72
	Items of Special Interest	82
	AEGIS land based test site modernization	82
	Amphibious ship integrated bridge system	82
	AN/SPQ-9B radar	82
	AN/SPS-48 radar obsolescence, availability and recovery	83
	Boat lifts for small boats	83
	Canned lube pumps for amphibious ships	83
	CVN propeller replacement program	83
	Laser marksmanship training systems	84
	Man overboard identification system	84
	Materials handling equipment	84
	Medical support equipment	85
	Multi-climate protective system	85
	Multi-spectral threat emitter system	85
	Serial number tracking system	86
	Submarine communications upgrades	86
	Submarine non-tactical application delivery interface system shore interface	86
	Ultrasonic maintenance tools	87
	Procurement, Marine Corps	87
	Overview	87
	Items of Special Interest	94
	Envelope protective covers for marine expeditionary unit weapon systems and platforms	94
	Intelligent surveillance systems	94
	Laser perimeter awareness system	94
	Aircraft Procurement, Air Force	95
	Overview	95
	Items of Special Interest	102
	B-1B molecular sieve oxygen generation system	102
	B-2 radar modification program	102
	B-52 force structure	103
	C-130 modifications	103
	C-5 modernization programs	104
	C-9 hush kits	104
	F-22	105
	F-35	105
	KC-135 aerial refueling aircraft recapitalization program	106
	P5 combat training systems	107
	Strategic airlift force structure	107
	T-38 ejection seat upgrade program	108
	Ammunition Procurement, Air Force	109
	Overview	109
	Item of Special Interest	112
	Insensitive munitions upgrade	112
	Missile Procurement, Air Force	112
	Overview	112
	Other Procurement, Air Force	116
	Overview	116
	Items of Special Interest	123
	Cheyenne Mountain complex	123
	Combat survivor radios	123
	Combat training ranges	123
	Enterprise data collection solution	124
	Force protection near real time surveillance	124
	High frequency ground control station antennas	124
	Mobile approach control system	125
	Self-deploying infra-red streamer	125
	Procurement, Defense-Wide	125
	Overview	125
	Items of Special Interest	131
	Advanced SEAL Delivery System	131
	Chemical and biological defense procurement	131
	Special operations forces operational enhancements	131
	Unmanned aerial systems to counter improvised explosive devices	132
	U.S. Special Operations Command aviation modernization	132
	LEGISLATIVE PROVISIONS	133
	Subtitle A--Authorization of Appropriations	133
	Sections 101-104--Authorization of Appropriations	133
	Subtitle B--Army Programs	133
	Section 111--Multiyear Procurement Authority for Family of Medium Tactical Vehicles	133
	Section 112--Multiyear Procurement Authority for MH-60R Helicopters and Mission Equipment	134
	Section 113--Funding Profile for Modular Force Initiative of the Army	134
	Section 114--Bridge to Future Networks Program	134
	Subtitle C--Navy Programs	134
	Section 121--Attack Submarine Force Structure	134
	Section 122--Adherence to Navy Cost Estimates for CVN-21 Class of Aircraft Carriers	135
	Section 123--Adherence to Navy Cost Estimates for LHA Replacement Amphibious Assault Ship Program	135
	Section 124--Adherence to Navy Cost Estimates for San Antonio (LPD-17) Class Amphibious Ship Program	135
	Section 125--Multiyear Procurement Authority for V-22 Tiltrotor Aircraft Program	136
	Section 126--Quality Control in Procurement of Ship Critical Safety Items and Related Services	136
	Section 127--DD(X) Next-Generation Destroyer Program	136
	Section 128--Sense of Congress that the Navy Make Greater Use of Nuclear-Powered Propulsion Systems in its Future Fleet of Surface Combatants	136
	Subtitle D--Air Force Programs	137
	Section 131--Requirement for B-52 Force Structure	137
	Section 132--Strategic Airlift Force Structure	137
	Section 133--Limitation on Retirement of U-2 Aircraft	137
	Section 134--Multiyear Procurement Authority for F-22A Raptor Fighter Aircraft	137
	Section 135--Limitation on Retirement of KC-135E Aircraft During Fiscal Year 2007	137
	Section 136--Limitation on Retirement of F-117A Aircraft During Fiscal Year 2007	138
	TITLE II--RESEARCH, DEVELOPMENT, TEST, & EVALUATION	138
	OVERVIEW	138
	Army Research, Development, Test, & Evaluation	141
	Overview	141
	Items of Special Interest	155
	Advanced hypersonic weapon mission planning and control	155
	Applied communications and information networking	155
	Armored systems modernization	155
	AT4 confined space weapon system enhancements	157
	Center for rotorcraft innovation	157
	Digital array radar	157
	Dominant military operations on urban terrain viewer	158
	Environmental quality technology	158
	Excalibur precision guided artillery munition	158
	Flexible display initiative	159
	Gas-engine driven air conditioning system demonstrations	159
	High assurance secure object proxy	159
	Human systems integration	159
	Integrated digital environment service model	160
	Intelligent surveillance sensor suite	160
	Joint land attack cruise missile defense and micro electro mechanical system	160
	Light utility vehicle	161
	Lightweight small arms technologies	161
	Long-term armoring strategy	161
	Medical advanced technology	162
	Medical materiel/medical biological defense equipment--SDD	162
	Miniaturized sensors for small and tactical unmanned aerial vehicles	162
	Missile recycling capability technology	163
	Mobile assessment detection and response system	163
	Next-generation advanced materials research	163
	Polymer matrix composites for rotorcraft drive systems	163
	Portable and mobile emergency broadband system	164
	Product lifecycle management plus	164
	Radiation hardening initiative	164
	Smart energetics architecture	165
	Stryker vehicle open architecture electronic enhancements	165
	Tactical wheeled vehicle product improvement program	165
	Training-based collaborative research in military consequence management	166
	Transparent armor	166
	Warfighter sustainment	166
	Navy Research, Development, Test, & Evaluation	166
	Overview	166
	Items of Special Interest	181
	Advanced composite riverine craft	181
	Advanced materials for acoustic window applications	181
	Affordable towed array construction/fiber optic towed array construction	181
	Affordable weapon system	182
	Airborne reconnaissance systems	182
	Aircraft carrier launch and recovery and support equipment modernization	182
	Ballistic trajectory extended range munition	183
	Bio-film packaging applied research	183
	Cobra Judy ship replacement	183
	Common submarine radio room	184
	Conventional Trident modification	184
	Defense research sciences	185
	Detection and recovery of unexploded ordnance	185
	Dismounted soldier training test instrumentation	186
	Distributed common ground system	186
	DockShock ship shock test system	186
	DP-2 vectored thrust aircraft	187
	E-2 advanced hawkeye identification friend or foe technology development	187
	Electro-optic passive antisubmarine warfare system	187
	F/A-18 squadrons	188
	Flexible payload module and payload interface module development	189
	High performance FM fiber-optic link	189
	Human systems integration	189
	Integrated shipboard intelligent surveillance	189
	Joint integrated systems for advanced digital networking	190
	Large aperture bow array	190
	Large displacement unmanned undersea vehicle at-sea launch and recovery system	190
	Lightweight multi-threat encapsulated ceramic body armor	191
	Lithium battery technology	191
	Marine expeditionary rifle squad	191
	Maritime identification surveillance technology phased array radar	192
	Maritime technology	192
	National shipbuilding research program	193
	Shipbuilding industrial base improvement grants	193
	Shipbuilding industrial base improvement loan guarantees	193
	Naval surface fire support	193
	Network communication system technology for extreme environments	194
	Next-generation electronic warfare simulator	195
	Next-generation Phalanx	195
	Permanent magnet motor	196
	Retroreflecting optical communications for special operations	196
	Sea fighter (X-Craft)	196
	Secure infrastructure technology laboratory	197
	Shipboard wireless maintenance assistant	197
	Small arms and crew served weapons shot counter	197
	Smart valve	197
	Tactical electric field buoy development program	198
	Validation of prognostic and health management systems	198
	VH-71	198
	Virtual-at-sea training technologies	199
	Warfare protection advanced technology	199
	Wet end installation system element	200
	Wireless maritime inspection system	200
	Air Force Research, Development, Test, & Evaluation	200
	Overview	200
	Items of Special Interest	214
	Active feedback flow control technology	214
	Advanced engine starter/generator system prototype	214
	Advanced optics and laser space technology	214
	Advanced spacecraft technology	215
	Affordable lightweight power supply development	215
	B-52 internal weapons bay upgrade	216
	B-52 stand-off jammer program	216
	Biostatic protective clothing	216
	C-130 airlift squadrons	217
	Combatant commanders' integrated command and control system	217
	Distributed mission interoperability toolkit program	218
	Engineering tool improvement program	218
	High accuracy network determination system	218
	High modulus polyacrylonitrile carbon fiber	218
	Human systems integration	219
	Interactive avionics roadmap	219
	Joint advanced global strike demonstration	219
	Joint strike fighter development	220
	KC-135 aerial refueling aircraft recapitalization program	221
	Large aircraft countermeasures system for AC-130U aircraft	221
	Laser peening fatigue life extension	222
	Low emission hybrid electric engine propulsion	222
	Major test and evaluation investment	222
	Materials	223
	Measurement and signature intelligence (MASINT) visualization tools program	223
	Metals affordability initiative	223
	Nanocrystalline diamond coatings	223
	Operationally responsive space	224
	Radio frequency identification tag rapid adoption initiative, phase2	224
	Small diameter bomb	224
	Space-based radar	224
	Space control test capabilities	225
	Space technology	225
	Tactical automated security system advanced communications module	225
	Transformational satellite communications system	226
	Winglets for in-service aircraft	226
	Defense-Wide Research, Development, Test, & Evaluation	227
	Overview	227
	Items of Special Interest	240
	Accelerated intelligence analyst education and training	240
	Advanced data encryption technololgy	240
	Advanced SEAL Delivery System	240
	Advanced surface radar technologies	241
	Advanced tactical laser program	241
	Ballistic missile defense	241
	Aegis ballistic missile defense	242
	Boost defense segment	242
	Core	243
	Midcourse defense segment	243
	Multiple kill vehicle	244
	System interceptor	244
	Technology	245
	Biological warfare defense	245
	Business transformation agency	246
	Chemical-biological collective protective shelters	246
	Chemical and biological defense program	246
	Advanced technology development	247
	Applied research	247
	Basic research	247
	Combating terrorism technology support	248
	Generic logistics research and development technology demonstrations	248
	Improved suborbital operations	249
	Joint training transformation	249
	Office of force transformation	249
	Special operations advanced technology development	250
	Special operations forces operational enhancements	250
	Special operations intelligence systems development	250
	Special operations tactical systems development	251
	Special operations technology development	251
	Operational Test and Evaluation, Defense	252
	Overview	252
	LEGISLATIVE PROVISIONS	252
	Subtitle A--Authorization of Appropriations	252
	Section 201--Authorization of Appropriations	252
	Section 202--Amount for Defense Science and Technology	252
	Subtitle B--Program Requirements, Restrictions, and Limitations	252
	Section 211--Alternate Engine for Joint Strike Fighter	252
	Section 212--Extension of Authority to Award Prizes for Advanced Technology Achievements	252
	Section 213--Extension of Defense Acquisition Challenge Program	252
	Section 214--Future Combat Systems Milestone Review	253
	Section 215--Independent Cost Analyses for Joint Strike Fighter Engine Program	253
	Section 216--Dedicated Amounts for Implementing or Evaluating DD(X) and CVN-21 Proposals Under Defense Acquisition Challenge Program	253
	Subtitle C--Ballistic Missile Defense	253
	Section 221--Fielding of Ballistic Missile Defense Capabilities	253
	Section 222--Limitation on Use of Funds for Spacebased Interceptor	253
	Subtitle D--Other Matters	254
	Section 231--Review of Test and Evaluation Policies and Practices to Address Emerging Acquisition Approaches	254
	TITLE III--OPERATION AND MAINTENANCE	255
	OVERVIEW	255
	ITEMS OF SPECIAL INTEREST	288
	Budget Request Adjustments--Readiness	288
	Army Knowledge Online Disaster Recovery	289
	Capital Security Cost Share	289
	Combat Enhancement Forces and Combat Communications	290
	Homeland Defense Operational Planning System	290
	Maritime Prepositioning Ship Lease Buyout	290
	Nationwide Dedicated Fiber Optic Network	291
	Navy Marine Corps Intranet	291
	Port of Corpus Christi	291
	Readiness and Environmental Protection Initiative	291
	Weapons of Mass Destruction Civil Support Teams	292
	Environmental Issues	292
	Fuel Tank Replacement at Point Loma, California	292
	Non-thermal Treatment of Asbestos and Asbestos Containing Material	292
	Report on Uranium Located in Gore, Oklahoma	292
	Site Assessment of Former World War II Ordnance Manufacturing Facility, Rosemount, Minnesota	293
	Information Technology Issues	293
	Information Technology Overview	293
	Business Transformation Agency and Enterprise Risk Assessment Model	294
	Readiness Issues	294
	Air Force Transformation	294
	Army Logistics Modernization	295
	Base Operating Support and Facilities Recapitalization Budget Shortfalls	295
	Beryllium Supply Industrial Base	296
	Depot Maintenance Strategy and Implementation Plans	296
	High Altitude Aviation Training	297
	National Space Studies Center Study	298
	LEGISLATIVE PROVISIONS	298
	Subtitle A--Authorization of Appropriations	298
	Section 301--Operation and Maintenance Funding	298
	Section 302--Working Capital Funds	298
	Section 303--Other Department of Defense Programs	298
	Subtitle B--Environmental Provisions	299
	Section 311--Revision of Requirement for Unexploded Ordnance Program Manager	299
	Section 312--Identification and Monitoring of Military Munitions Disposal Sites in Ocean Waters Extending from United States Coast to Outer Boundary of Outer Continental Shelf	299
	Section 313--Reimbursement of Environmental Protection Agency for Certain Costs in Connection with Moses Lake Wellfield Superfund Site, Moses Lake, Washington	299
	Section 314--Funding of Cooperative Agreements Under Environmental Restoration Program	299
	Section 315--Analysis and Report Regarding Contamination and Remediation Responsibility for Norwalk Defense Fuel Supply Point, Norwalk, California	300
	Subtitle C--Workplace and Depot Issues	300
	Section 321--Extension of Exclusion of Certain Expenditures from Percentage Limitation on Contracting for Depot-Level Maintenance	300
	Section 322--Minimum Capital Investment for Air Force Depots	300
	Section 323--Extension of Temporary Authority for Contractor Performance of Security Guard Functions	300
	Subtitle D--Reports	301
	Section 331--Report on Nuclear Attack Submarine Depot Maintenance	301
	Section 332--Report on Navy Fleet Response Plan	301
	Section 333--Report on Navy Surface Ship Rotational Crew Programs	301
	Section 334--Report on Army Live-Fire Ranges in Hawaii	302
	Section 335--Comptroller General Report on Joint Standards and Protocols for Access Control Systems at Department of Defense Installations	302
	Section 336--Report on Personnel Security Investigations for Industry and National Industrial Security Program	302
	Subtitle E--Other Matters	303
	Section 341--Department of Defense Strategic Policy on Prepositioning of Materiel and Equipment	303
	Section 342--Authority to Make Department of Defense Horses Available for Adoption at End of Useful Working Life	304
	Section 343--Sale and Use of Proceeds of Recyclable Munitions Materials	304
	Section 344--Capital Security Cost Sharing	304
	Section 345--Prioritization of Funds Within Navy Mission Operations, Ship Maintenance, Combat Support Forces, and Weapons System Support	304
	Section 346--Prioritization of Funds Within Army Reconstitution and Transformation	305
	TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS	306
	OVERVIEW	306
	LEGISLATIVE PROVISIONS	306
	Subtitle A--Active Forces	306
	Section 401--End Strengths for Active Forces	306
	Section 402--Revision in Permanent Active Duty End Strength Minimum Levels	307
	Section 403--Additional Authority for Increases of Army and Marine Corps Active Duty End Strengths for Fiscal Years 2008 and 2009	307
	Subtitle B--Reserve Forces	307
	Section 411--End Strengths for Selected Reserve	307
	Section 412--End Strengths for Reserves on Active Duty in Support of the Reserve Components	308
	Section 413--End Strengths for Military Technicians (Dual Status)	308
	Section 414--Fiscal Year 2007 Limitation on Number of Non-Dual Status Technicians	309
	Section 415--Maximum Number of Reserve Personnel Authorized to be on Active Duty for Operational Support	309
	Subtitle C--Authorization of Appropriations	309
	Section 421--Military Personnel	309
	Section 422--Armed Forces Retirement Home	310
	TITLE V--MILITARY PERSONNEL POLICY	310
	OVERVIEW	310
	ITEMS OF SPECIAL INTEREST	312
	Academy Language Training	312
	Closure of Article 32 Investigations in Cases of Sexual Assault or Domestic Violence	312
	Department of the Navy Personal Responsibility and Values: Education and Training Program	313
	Educational Opportunities in Interagency Coordination at the Military War Colleges	313
	Joint Advertising, Market Research and Studies	314
	Operation of Army Air Ambulance Detachments	314
	Permanent Identification Cards for Adult Disabled Children	315
	Personnel Plan for Linguists	315
	Process for Restructuring the Army National Guard	315
	Social Security Numbers on Military Identification Cards	316
	Trafficking in Persons	316
	Victim Service Organization Privilege in Cases Arising Under Uniform Code of Military Justice	317
	Web-based Enhancement to Support Family Readiness Programs	318
	LEGISLATIVE PROVISIONS	318
	Subtitle A--Officer Personnel Policy	318
	Section 501--Authorized Strength of Navy Reserve Flag Officers	318
	Section 502--Standardization of Grade of Senior Dental Officer of the Air Force with that of Senior Dental Officer of the Army	318
	Section 503--Management of Chief Warrant Officers	319
	Section 504--Reduction in Time-in-Grade Requirement for Promotion to Captain in the Army, Air Force, and Marine Corps and Lieutenant in the Navy	319
	Section 505--Military Status of Officers Serving in Certain Intelligence Community Positions	319
	Subtitle B--Reserve Component Management	319
	Section 511--Revisions to Reserve Call-up Authority	319
	Section 512--Military Retirement Credit for Certain Service by National Guard Members Performed While in a State Duty Status Immediately After the Terrorist Attacks of September 11, 2001	320
	Section 513--Report on Private Sector Promotion and Constructive Termination of Members of the Reserve Components Called or Ordered to Active Service	320
	Subtitle C--Education and Training	320
	Section 521--Authority to Permit Members Who Participate in the Guaranteed Reserve Forces Duty Scholarship Program to Participate in the Health Professions Scholarship Program and Serve on Active Duty	320
	Section 522--Junior Reserve Officers' Training Corps Instruction Eligibility Expansion	320
	Section 523--Authority for United States Military Academy and United States Air Force Academy Permanent Military Professors to Assume Command Positions While on Periods of Sabbatical	321
	Section 524--Expansion of Service Academy Exchange Programs with Foreign Military Academies	321
	Section 525--Review of Legal Status of Junior ROTC Program	321
	Subtitle D--General Service Authorities	322
	Section 531--Test of Utility of Test Preparation Guides and Education Programs in Enhancing Recruit Candidate Performance on the Armed Services Vocational Aptitude Battery (ASVAB) and Armed Forces Qualification Test (AFQT)	322
	Section 532--Nondisclosure of Selection Board Proceedings	322
	Section 533--Report on Extent of Provision of Timely Notice of Long-Term Deployments	322
	Subtitle E--Authorities Relating to Guard and Reserve Duty	323
	Section 541--Title 10 Definition of Active Guard and Reserve Duty	323
	Section 542--Authority for Active Guard and Reserve Duties to Include Support of Operational Missions Assigned to the Reserve Components and Instruction and Training of Active-Duty Personnel	323
	Section 543--Governor's Authority to Order Members to Active Guard and Reserve Duty	323
	Section 544--National Guard Officers Authority to Command	323
	Section 545--Expansion of Operations of Civil Support Teams	324
	Subtitle F--Decorations and Awards	324
	Section 551--Authority for Presentation of Medal of Honor Flag to Living Medal of Honor Recipients and to Living Primary Next-of-Kin of Deceased Medal of Honor Recipients	324
	Section 552--Cold War Victory Medal	324
	Section 553--Posthumous Award of Purple Heart for Prisoners of War Who Die in or Due to Captivity	324
	Section 554--Advancement on the Retired List of Certain Decorated Retired Navy and Marine Corps Officers	324
	Section 555--Report on Department of Defense Process for Awarding Decorations	325
	Subtitle G--Matters Relating to Casualties	325
	Section 561--Criteria for Removal of Member from Temporary Disability Retired List	325
	Section 562--Department of Defense Computer/Electronic Accommodations Program for Severely Wounded Members	325
	Section 563--Transportation of Remains of Casualties Dying in a Theater of Combat Operations	325
	Section 564--Annual Budget Display of Funds for POW/MIA Activities of Department of Defense	326
	Subtitle H--Assistance to Local Educational Agencies for Defense Dependents Education	327
	Section 571--Continuation of Authority to Assist Local Educational Agencies that Benefit Dependents of Members of the Armed Forces and Department of Defense Civilian Employees	327
	Section 572--Enrollment in Defense Dependents' Education System of Dependents of Foreign Military Members Assigned to Supreme Headquarters Allied Powers, Europe	327
	Subtitle I--Postal Benefits	327
	Section 575--Postal Benefits Program for Members of the Armed Forces	327
	Section 576--Funding	327
	Section 577--Duration	328
	Subtitle J--Other Matters	328
	Section 581--Reduction in Department of Defense Accrual Contributions to Department of Defense Military Retirement Fund	328
	Section 582--Dental Corps of the Bureau of Medicine and Surgery	328
	Section 583--Permanent Authority for Presentation of Recognition Items for Recruitment and Retention Purposes	328
	Section 584--Report on Feasibility of Establishment of Military Entrance Processing Command Station on Guam	328
	Section 585--Persons Authorized to Administer Enlistment and Appointment Oaths	328
	Section 586--Repeal of Requirement for Periodic Department of Defense Inspector General Assessments of Voting Assistance Compliance at Military Installations	329
	Section 587--Physical Evaluation Boards	329
	Section 588--Department of Labor Transitional Assistance Program	330
	Section 589--Revision in Government Contributions to Medicare-Eligible Retiree Health Care Fund	330
	Section 590--Military Chaplains	331
	Section 591--Report on Personnel Requirements for Airborne Assets Identified as Low-Density, High-Demand Airborne Assets	331
	Section 592--Entrepreneurial Service Members Empowerment Task Force	331
	Section 593--Comptroller General Report on Military Conscientious Objectors	331
	Section 594--Commission on the National Guard and Reserves	331
	TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS	332
	OVERVIEW	332
	ITEMS OF SPECIAL INTEREST	332
	Elimination of the Survivor Benefit Plan Two-Tier Annuity Computation System	332
	Military Decorations and Uniform Accounterments Sold in Military Exchange Stores	333
	Recoupment of Survivor Benefit Plan Overpayments	333
	Second Destination Transportation of Exchange Store Goods	334
	Treatment of Dual Military Couples	334
	United Service Organizations	334
	LEGISLATIVE PROVISIONS	335
	Subtitle A--Pay and Allowances	335
	Section 601--Increase in Basic Pay for Fiscal Year 2007	335
	Section 602--Targeted Increase in Basic Pay Rates	335
	Section 603--Conforming Change in General and Flag Officer Pay Cap to Reflect Increase in Pay Cap for Senior Executive Service Personnel	335
	Section 604--Availability of Second Basic Allowance for Housing for Certain Reserve Component or Retired Members Serving in Support of Contingency Operations	335
	Section 605--Extension of Temporary Continuation of Housing Allowance for Dependents of Members Dying on Active Duty to Spouses Who are Also Members	336
	Section 606--Clarification of Effective Date of Prohibition on Compensation for Correspondence Courses	336
	Section 607--Payment of Full Premium for Coverage Under Servicemembers' Group Life Insurance Program During Service in Operation Enduring Freedom or Operation Iraqi Freedom	336
	Subtitle B--Bonuses and Special and Incentive Pays	336
	Section 611--Extension of Certain Bonus and Special Pay Authorities for Reserve Forces	336
	Section 612--Extension of Bonus and Special Pay Authorities for Health Care Professionals	336
	Section 613--Extension of Special Pay and Bonus Authorities for Nuclear Officers	337
	Section 614--Extension of Other Bonus, Special Pay, and Separation Pay Authorities	337
	Section 615--Expansion of Eligibility of Dental Officers for Additional Special Pay	337
	Section 616--Increase in Maximum Annual Rate of Special Pay for Selected Reserve Health Care Professionals in Critically Short Wartime Specialties	337
	Section 617--Authority to Provide Lump Sum Payment of Nuclear Officer Incentive Pay	337
	Section 618--Increase in Maximum Amount of Nuclear Career Accession Bonus	337
	Section 619--Increase in Maximum Amount of Incentive Bonus for Transfer Between Armed Forces	337
	Section 620--Clarification Regarding Members of the Army Eligible for Bonus for Referring Other Persons for Enlistment in the Army	338
	Section 621--Pilot Program for Recruitment Bonus for Critical Health Care Specialties	338
	Section 622--Enhancement of Temporary Program of Voluntary Separation Pay and Benefits	338
	Section 623--Additional Authorities and Incentives to Encourage Retired Members and Reserve Component Members to Volunteer to Serve on Active Duty in High-Demand, Low-Density Assignments	338
	Subtitle C--Travel and Transportation Allowance	338
	Section 631--Authoriy to Pay Costs Associated with Delivery of Motor Vehicle to Storage Location Selected by Member and Subsequent Removal of Vehicle	338
	Section 632--Transportation of Additional Motor Vehicle of Members on Change of Permanent Station to or from Nonforeign Areas Outside the Continental United States	339
	Section 633--Travel and Transportation Allowances for Transportation of Family Members Incident to Illness or Injury of Members	339
	Subtitle D--Retired Pay and Survivors Benefits	339
	Section 641--Military Survivor Benefit Plan Beneficiaries Under Insurable Interest Coverage	339
	Section 642--Retroactive Payment of Additional Death Gratuity for Certain Members Not Previously Covered	339
	Section 643--Equity in Computation of Disability Retired Pay for Reserve Component Members Wounded in Action	339
	Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits	340
	Section 651--Treatment of Price Surcharges of Tobacco Products and Certain Other Merchandise Sold at Commissary Stores	340
	Section 652--Limitation on Use of Department of Defense Lease Authority to Undermine Commissaries and Exchange and Other Morale, Welfare, and Recreation Programs and Nonappropriated Fund Instrumentalities	340
	Section 653--Use of Nonappropriated Funds to Supplement or Replace Appropriated Funds for Construction of Facilities of Exchange Stores System and Other Nonappropriated Fund Instrumentalities, Military Lodging, Facilities, and Community Facilities	340
	Section 654--Report on Cost Effectiveness of Purchasing Commercial Insurance for Commissary and Exchange Facilities and Facilities of Other Morale, Welfare, and Recreation Programs and Nonappropriated Fund Instrumentalities	340
	Subtitle F--Other Matters	341
	Section 661--Repeal of Annual Reporting Requirement Regarding Effects of Recruitment and Retention Initiatives	341
	Section 662--Pilot Project Regarding Providing Golf Carts Accessible for Disabled Persons at Military Golf Courses	341
	Section 663--Enhanced Authority to Remit or Cancel Indebtedness of Members of the Armed Forces Incurred on Active Duty	341
	TITLE VII--HEALTH CARE PROVISIONS	342
	OVERVIEW	342
	ITEMS OF SPECIAL INTEREST	343
	Comprehensive Combat Casualty Care Center	343
	Comptroller General Report on a Unified Medical Command Plan	343
	Fort Drum Health Care Pilot Program	343
	Mental Health Programs for Combat Veterans and Their Families	344
	Screening for Traumatic Brain Injury	344
	TRICARE Mail Order Pharmacy Program	344
	LEGISLATIVE PROVISIONS	345
	Subtitle A--TRICARE Program Improvements	345
	Section 701--TRICARE Coverage for Forensic Examination Following Sexual Assault or Domestic Violence	345
	Section 702--Authorization of Anesthesia and Other Costs for Dental Care for Children and Certain Other Patients	345
	Section 703--Improvements to Descriptions of Cancer Screening	345
	Section 704--Prohibition on Increases in Certain Health Care Costs for Members of the Uniformed Services	345
	Section 705--Services of Mental Health Counselors	346
	Section 706--Demonstration Project on Coverage of Selected Over-the-Counter Medications Under the Pharmacy Benefit Program	346
	Section 707--Requirement to Reimburse Certain Travel Expenses of Certain Beneficiaries Covered by TRICARE for Life	346
	Section 708--Inflation Adjustment of Differential Payments to Children's Hospitals Participating in TRICARE Program	346
	Section 709--Expanded Eligibility of Selected Reserve Members Under TRICARE Program	347
	Section 710--Extension to TRICARE of Medicare Prohibition of Financial Incentives Not to Enroll in Group Health Plan	347
	Subtitle B--Studies and Reports	347
	Section 711--Department of Defense Task Force on the Future of Military Health Care	347
	Section 712--Study and Plan Relating to Chiropractic Health Care Services	347
	Section 713--Comptroller General Study and Report on Defense Health Program	348
	Section 714--Transfer of Custody of the Air Force Health Study Assets to Medical Follow-up Agency	348
	Section 715--Study on Allowing Dependents of Activated Members of the Reserve Components to Retain Civilian Health Care Coverage	348
	Subtitle C--Other Matters	349
	Section 721--Costs of Incentive Payments to Employees for TRICARE Enrollment Made Unallowable for Contractors	349
	Section 722--Requirement For Military Medical Personnel to be Trained in Preservation of Remains	349
	Subtitle D--Pharmacy Benefits Program Improvements	349
	Section 731--TRICARE Pharmacy Program Cost-Share Requirements	349
	TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS	350
	OVERVIEW	350
	ITEMS OF SPECIAL INTEREST	352
	Major Defense Acquisition Program Reform	352
	Prime Vendor Program	352
	Special Operations Command Requirements	353
	Undefinitized Contract Actions	353
	LEGISLATIVE PROVISIONS	353
	Subtitle A--Provisions Relating to Major Defense Acquisition Programs	353
	Section 801--Requirements Management Certification Training Program	353
	Section 802--Additional Requirements Relating to Technical Data Rights	354
	Section 803--Study and Report on Revisions to Selected Acquisition Report Requirements	354
	Section 804--Quarterly Updates on Implementation of Acquisition Reform in the Department of Defense	355
	Section 805--Establishment of Defense Challenge Process for Critical Cost Growth Threshold Breaches in Major Defense Acquisition Programs	356
	Section 806--Market Research Required for Major Defense Acquisition Programs Before Proceeding to Milestone B	357
	Subtitle B--Acquisition Policy and Management	358
	Section 811--Applicability of Statutory Executive Compensation Cap Made Prospective	358
	Section 812--Prohibition on Procurement from Beneficiaries of Foreign Subsidies	358
	Section 813--Time-Certain Development for Department of Defense Information Technology Business Systems	358
	Section 814--Establishment of Panel on Contracting Integrity	358
	Subtitle C--Amendments to General Contracting Authorities, Procedures, and Limitations	359
	Section 821--Extension of Special Temporary Contract Closeout Authority	359
	Section 822--Limitation on Contracts for the Acquisition of Certain Services	359
	Section 823--Use of Federal Supply Schedules by State and Local Governments for Goods and Services for Recovery from Natural Disasters, Terrorism, or Nuclear, Biological, Chemical, or Radiological Attack	359
	Section 824--Waivers to Extend Task Order Contracts for Advisory and Assistance Services	359
	Section 825--Enhanced Access for Small Business	360
	Section 826--Procurement Goal for Hispanic-Serving Institutions	360
	Section 827--Prohibition on Defense Contractors Requiring Licenses or Fees for Use of Military Likenesses and Designations	360
	Subtitle D--United States Defense Industrial Base Provisions	361
	Section 831--Protection of Strategic Materials Critical to National Security	361
	Section 832--Strategic Materials Protection Board	361
	TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT	362
	ITEMS OF SPECIAL INTEREST	362
	Importance of Placing Foreign Area Officers in Combat Units	362
	Increased Budgetary Confidence Level Implementation in Space Acquisition	362
	National Security Space Management	362
	Report on Developing Expertise in Emerging National Security Challenges	363
	Report on Coordination and Oversight of Military Cultural and Linguistic Policies and Training	363
	LEGISLATIVE PROVISIONS	364
	Subtitle A--Department of Defense Management	364
	Section 901--Standardization of Statutory References to `National Security System' within Laws Applicable to Department of Defense	364
	Section 902--Correction of Reference to Predecessor of Defense Information Systems Agency	364
	Section 903--Addition to Membership of Specified Council	364
	Section 904--Consolidation and Standardization of Authorities Relating to Department of Defense Regional Centers for Security Studies	364
	Section 905--Redesignation of the Department of the Navy as the Department of the Navy and Marine Corps	365
	Subtitle B--Space Activities	365
	Section 911--Designation of Successor Organizations for the Disestablished Interagency Global Positioning Executive Board	365
	Section 912--Extension of Authority for Pilot Program for Provision of Space Surveillance Network Services to Non-United States Government Entities	365
	Section 913--Operationally Responsive Space	365
	Subtitle C--Chemical Demilitarization Program	365
	Section 921--Transfer to Secretary of the Army of Responsibility for Assembled Chemical Weapons Alternatives Program	365
	Section 922--Comptroller General Review of Cost-Benefit Analysis of Off-Site Versus On-Site Treatment and Disposal of Hydrolysate Derived from Neutralization of VX Nerve Gas at Newport Chemical Depot, Indiana	366
	Section 923--Sense of Congress Regarding the Safe and Expeditious Disposal of Chemical Weapons	366
	Subtitle D--Intelligence-Related Matters	366
	Section 931--Repeal of Termination of Authority of Secretary of Defense to Engage in Commercial Activities as Security for Intelligence Collection Activities Abroad	366
	TITLE X--GENERAL PROVISIONS	366
	ITEMS OF SPECIAL INTEREST	366
	Counter-Drug Activities	366
	Overview	366
	Items of Special Interest	367
	Budget requests	367
	Counternarcotics Policy for Afghanistan	367
	Intelligence and technology	368
	Maritime Domain Awareness	368
	Southwest Border Fence	368
	U.S. Central Command operations support	369
	U.S. Northern Command operations support	369
	U.S. Pacific Command operations support	369
	U.S. Southern Command operations support	369
	Other Activities	369
	Aircraft Carrier Force Structure	369
	`Commercial First' Maritime Sealift Policy	370
	Department of Defense Civil Support	370
	Department of Defense Interagency Coordination in the Global War on Terrorism	371
	Department of Defense Participation in the Committee on Foreign Investment in the United States	372
	Homeland Security/Defense Management Programs	372
	Improving International Pandemic Preparedness through Theater Security Cooperation Programs	373
	Increasing the Availability of Intelligence, Surveillance, and Reconnaissance Assets in the Event of a Catastrophic Natural or Manmade Disaster	373
	Joint Training and Certification for Nuclear, Chemical, and Biological Defense	373
	National Counter Proliferation Center	374
	Overhaul, Repair, and Maintenance of Vessels Carrying Department of Defense Cargo	375
	Report on Strategic Language Skills	375
	Special Operations Command as the Supported Command in the Global War on Terrorism	376
	Status and Implementation of Military Support for Stability, Security, Transition, and Reconstruction Operations	376
	Terrorist Use of the Internet	377
	LEGISLATIVE PROVISIONS	377
	Subtitle A--Financial Matters	377
	Section 1001--General Transfer Authority	377
	Section 1002--Authorizations of Supplemental Appropriations for Fiscal Year 2006	377
	Section 1003--Increase in Fiscal Year 2006 General Transfer Authority	377
	Section 1004--United States Contribution to NATO Common-Funded Budgets in Fiscal Year 2007	378
	Section 1005--Report on Budgeting for Fluctuations in Fuel Cost Rates	378
	Section 1006--Reduction in Authorizations Due to Savings Resulting from Lower than Expected Inflation	378
	Subtitle B--Policy Relating to Naval Vessels and Shipyards	378
	Section 1011--Transfer of Naval Vessels to Foreign Nations Based upon Vessel Class	378
	Section 1012--Overhaul, Repair, and Maintenance of Vessels in Foreign Shipyards	379
	Section 1013--Report on Options for Future Lease Arrangements for Guam Shipyard	379
	Section 1014--Shipbuilding Industrial Base Improvement Program	380
	Section 1015--Transfer of Operational Control of Certain Patrol Coastal Ships to Coast Guard	380
	Section 1016--Limitation on Leasing of Foreign-Built Vessels	380
	Section 1017--Overhaul, Repair, and Maintenance of Vessels Carrying Department of Defense Cargo	381
	Section 1018--Riding Gang Member Documentation Requirement	381
	Subtitle C--Counter-Drug Activities	381
	Section 1021--Restatement in Title 10, United States Code, and Revision of Department of Defense Authority to Provide Support for Counter-Drug Activities of Federal, State, Local, and Foreign Law Enforcement Agencies	381
	Section 1022--Restatement in Title 10, United States Code, and Revision of Department of Defense Authority to Provide Support for Counter-Drug Activities of Certain Foreign Governments	382
	Section 1023--Extension of Authority to Support Unified Counter-Drug and Counterterrorism Campaign in Colombia	382
	Section 1024--Continuation of Reporting Requirement Regarding Department of Defense Expenditures to Support Foreign Counter-Drug Activities	383
	Section 1025--Report on Interagency Counternarcotics Plan for Afghanistan and South and Central Asian Regions	383
	Subtitle D--Other Matters	383
	Section 1031--Revision to Authorities Relating to Commission on the Implementation of the New Strategic Posture of the United States	383
	Section 1032--Enhancement to Authority to Pay Rewards for Assistance in Combating Terrorism	384
	Section 1033--Report on Assessment Process of Chairman of the Joint Chiefs of Staff Relating to Global War on Terrorism	384
	Section 1034--Presidential Report on Improving Interagency Support for United States 21st Century National Security Missions	384
	Section 1035--Quarterly Reports on 2006 Quadrennial Defense Review Report Implementation	385
	Section 1036--Increased Hunting and Fishing Opportunities for Members of the Armed Forces, Retired Members, and Disabled Veterans	386
	Section 1037--Technical and Clerical Amendments	386
	Section 1038--Database of Emergency Response Capabilities	386
	Section 1039--Information on Certain Criminal Investigations and Prosecutions	387
	Section 1040--Date for Final Report of EMP Commission	387
	TITLE XI--CIVILIAN PERSONNEL MATTERS	387
	ITEM OF SPECIAL INTEREST	387
	Performance Periods Established in Connection with Public-private Competitions	387
	LEGISLATIVE PROVISIONS	388
	Section 1101--Increase in Authorized Number of Defense Intelligence Senior Executive Service Employees	388
	Section 1102--Authority for Department of Defense to Pay Full Replacement Value for Personal Property Claims of Civilians	388
	Section 1103--Accrual of Annual Leave for Members of the Uniformed Services Performing Dual Employment	388
	Section 1104--Death Gratuity Authorized for Federal Employees	388
	TITLE XII--MATTERS RELATING TO FOREIGN NATIONS	389
	ITEMS OF SPECIAL INTEREST	389
	Addressing the Threat Posed by the Islamic Republic of Iran	389
	International Military Education and Training Programs	390
	Report on Certain Cooperative Activities Involving the United States and India	390
	Report on Department of Defense Activities in Support of Multinational Peacekeeping Operations in Sudan	391
	LEGISLATIVE PROVISIONS	391
	Subtitle A--Assistance and Training	391
	Section 1201--Logistic Support for Allied Forces Participating in Combined Operations	391
	Section 1202--Temporary Authority to Use Acquisition and Cross-Servicing Agreements to Lend Certain Military Equipment to Foreign Forces in Iraq and Afghanistan for Personnel Protection and Survivability	392
	Section 1203--Recodification and Revision to Law Relating to Department of Defense Humanitarian Demining Assistance	392
	Section 1204--Enhancements to Regional Defense Combating Terrorism Fellowship Program	392
	Section 1205--CAPSTONE Overseas Field Studies Trips to People's Republic of China and Republic of China on Taiwan	393
	Section 1206--Military Educational Exchanges Between Senior Officers and Officials of the United States and Taiwan	393
	Subtitle B--Nonproliferation Matters and Countries of Concern	393
	Section 1211--Procurement Restrictions Against Foreign Persons That Transfer Certain Defense Articles and Services to the People's Republic of China	393
	Subtitle C--Other Matters	394
	Section 1221--Execution of the President's Policy to Make Available to Taiwan Diesel Electric Submarines	394
	TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER SOVIET UNION	394
	OVERVIEW	394
	Section 1301--Specification of Cooperative Threat Reduction Programs and Funds	394
	Section 1302--Funding Allocations	394
	Section 1303--Temporary Authority to Waive Limitation on Funding for Chemical Weapons Destruction Facility in Russia	395
	Section 1304--National Academy of Sciences Study	395
	TITLE XIV--HOMELAND DEFENSE TECHNOLOGY TRANSFER	395
	LEGISLATIVE PROVISIONS	395
	Sections 1401-1403--Homeland Defense Technology Transfer	395
	TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM	396
	OVERVIEW	396
	SUMMARY TABLE OF AUTHORIZATIONS	396
	ITEMS OF SPECIAL INTEREST	404
	Budget Realignment	404
	Procurement	404
	Improvised electronic devices countermeasures	404
	Joint surveillance target attack radar system utilization	405
	Manned tactical persistent surveillance aircraft	406
	Operation and Maintenance	407
	Military Personnel	407
	Research, Development, Test, & Evaluation	407
	U-2 aircraft sensor development	407
	LEGISLATIVE PROVISIONS	407
	Section 1501--Purpose	407
	Subtitle A--Authorization of Appropriations	408
	Section 1502--Army Procurement	408
	Section 1503--Navy and Marine Corps Procurement	408
	Section 1504--Air Force Procurement	408
	Section 1505--Defense-Wide Activities Procurement	408
	Section 1506--Research, Development, Test, & Evaluation	408
	Section 1507--Operation and Maintenance	408
	Section 1508--Defense Health Program	408
	Section 1509--Classified Programs	408
	Section 1510--Military Personnel	408
	Section 1511--Treatment as Additional Authorizations	408
	Section 1512--Transfer Authority	408
	Section 1513--Availability of Funds	409
	DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS	409
	PURPOSE	409
	MILITARY CONSTRUCTION AND FAMILY HOUSING OVERVIEW	409
	Section 2001--Short Title	429
	TITLE XXI--ARMY	429
	SUMMARY	429
	ITEMS OF SPECIAL INTEREST	429
	Explanation of Funding Adjustments	429
	Future Year Programming	430
	Planning and Design	430
	Safety-Critical Projects	430
	Unspecified Minor Construction	430
	LEGISLATIVE PROVISIONS	430
	Section 2101--Authorized Army Construction and Land Acquisition Projects	430
	Section 2102--Family Housing	431
	Section 2103--Improvements to Military Family Housing Units	431
	Section 2104--Authorization of Appropriations, Army	431
	TITLE XXII--NAVY	431
	SUMMARY	431
	ITEMS OF SPECIAL INTEREST	431
	Explanation of Funding Adjustments	431
	Planning and Design	432
	LEGISLATIVE PROVISIONS	432
	Section 2201--Authorized Navy Construction and Land Acquisition Projects	432
	Section 2202--Family Housing	432
	Section 2203--Improvements to Military Family Housing Units	432
	Section 2204--Authorization of Appropriations, Navy	432
	Section 2205--Modification of Authority to Carry Out Certain Fiscal Year 2004 and 2005 Projects	432
	TITLE XXIII--AIR FORCE	432
	SUMMARY	432
	ITEM OF SPECIAL INTEREST	433
	Planning and Design	433
	LEGISLATIVE PROVISIONS	433
	Section 2301--Authorized Air Force Construction and Land Acquisition Projects	433
	Section 2302--Family Housing	433
	Section 2303--Improvements to Military Family Housing Units	433
	Section 2304--Authorization of Appropriations, Air Force	433
	TITLE XXIV--DEFENSE AGENCIES	433
	SUMMARY	433
	ITEMS OF SPECIAL INTEREST	434
	Explanation of Funding Adjustments	434
	Fuel Storage at Naval Base Point Loma, California	434
	Missile Defense Agency Construction Activities	434
	LEGISLATIVE PROVISIONS	435
	Section 2401--Authorized Defense Agencies Construction and Land Acquisition Projects	435
	Section 2402--Family Housing	435
	Section 2403--Energy Conservation Projects	435
	Section 2404--Authorized Base Closure and Realignment Activities Funded Through Department of Defense Base Closure Account 2005	435
	Section 2405--Authorization of Appropriations, Defense Agencies	435
	Section 2406--Modification of Authority to Carry Out Certain Fiscal Year 2006 Projects	435
	TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM	435
	SUMMARY	435
	LEGISLATIVE PROVISIONS	436
	Section 2501--Authorized NATO Construction and Land Acquisition Projects	436
	Section 2502--Authorization of Appropriations, NATO	436
	TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES	436
	SUMMARY	436
	ITEMS OF SPECIAL INTEREST	436
	Planning and Design, Air National Guard	436
	Planning and Design, Army National Guard	436
	Planning and Design, Air Reserve	437
	Planning and Design, Army Reserve	437
	LEGISLATIVE PROVISION	437
	Section 2601--Authorized Guard and Reserve Construction and Land Acquisition Projects	437
	TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS	437
	LEGISLATIVE PROVISIONS	437
	Section 2701--Expiration of Authorizations and Amounts Required to be Specified by Law	437
	Section 2702--Effective Date	437
	TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS	438
	ITEMS OF SPECIAL INTEREST	438
	Energy Savings and Renewable Energy Opportunities at Joint Bases	438
	Remediation of Property at the Former Fort Ord, California	438
	LEGISLATIVE PROVISIONS	438
	Subtitle A--Military Construction Program and Military Family Housing Changes	438
	Section 2801--Increase in Maximum Annual Amount Authorized to be Obligated for Emergency Military Construction	438
	Section 2802--Applicability of Local Comparability of Room Pattern and Floor Area Requirements to Construction, Acquisition, and Improvement to Military Unaccompanied Housing	438
	Section 2803--Authority to Use Proceeds from Sale of Military Family Housing to Support Military Housing Privatization Initiative	439
	Section 2804--Repeal of Special Requirement for Military Construction Contracts on Guam	439
	Section 2805--Congressional Notification of Cancellation Ceiling for Department of Defense Energy Savings Peformance Contracts	439
	Section 2806--Expansion of Authority to Convey Property at Military Installations to Support Military Construction	439
	Section 2807--Pilot Projects for Acquisition or Construction of Military Unaccompanied Housing	439
	Section 2808--Consideration of Alternative and More Efficient Uses for General Officer and Flag Officer Quarters in Excess of 6,000 Square Feet	439
	Section 2809--Repeal of Temporary Minor Military Construction Program	440
	Section 2810--One-Year Extension of Temporary, Limited Authority to Use Operation and Maintenance Funds for Construction Projects Outside the United States	440
	Subtitle B--Real Property and Facilities Administration	440
	Section 2821--Consolidation of Department of Defense Authorities Regarding Granting of Easements for Rights-of-Way	440
	Section 2822--Authority to Grant Restrictive Easements in Connection with Land Conveyances	440
	Section 2823--Maximum Term of Leases for Structures and Real Property Relating to Structures in Foreign Countries Needed for Purposes Other than Family Housing	440
	Section 2824--Consolidation of Laws Relating to Transfer of Department of Defense Real Property Within the Department and to Other Federal Agencies	440
	Section 2825--Congressional Notice Requirements in Advance of Acquisition of Land by Condemnation for Military Purposes	441
	Subtitle C--Base Closure and Realignment	441
	Section 2831--Treatment of Lease Proceeds from Military Installations Approved for Closure or Realignment After January 1, 2005	441
	Subtitle D--Land Conveyances	441
	Section 2841--Land Conveyance, Naval Air Station, Barbers Point, Hawaii	441
	Section 2842--Modification of Land Acquisition Authority, Perquimans County, North Carolina	441
	Section 2843--Land Conveyance, Radford Army Ammunition Plant, Pulaski County, Virginia	441
	Subtitle E--Other Matters	442
	Section 2851--Availability of Community Planning Assistance Relating to Encroachment of Civilian Communities on Military Facilities Used for Training by the Armed Forces	442
	Section 2852--Prohibitions Against Making Certain Military Airfields or Facilities Available for Use by Civil Aircraft	442
	Section 2853--Naming Housing Facility at Fort Carson, Colorado, in Honor of Joel Hefley, a Member of the House of Representatives	442
	Section 2854--Naming Navy and Marine Corps Reserve Center at Rock Island, Illinois, in Honor of Lane Evans, a Member of the House of Representatives	442
	Section 2855--Naming of Research Laboratory at Air Force Rome Research Site, Rome, New York, in Honor of Sherwood L. Boehlert, a Member of the House of Representatives	442
	DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS	442
	TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS	442
	OVERVIEW	442
	ITEM OF SPECIAL INTEREST	459
	National Nuclear Security Administration	459
	Overview	459
	Weapons Activities	459
	Directed Stockpile Work	459
	Reliable Replacement Warhead	459
	Responsive Infrastructure	459
	Study of Quantification of Margins and Uncertainty Methodology	460
	Transformation Plan for the Nuclear Weapons Complex	461
	Inertial Confinement Fusion Ignition and High Yield Campaign	462
	Readiness in Technical Base and Facilities	462
	Safeguards and Security	463
	Test Readiness	464
	Defense Nuclear Nonproliferation	464
	Global Threat Reduction Initiative	464
	International Materials Protection and Cooperation	464
	Megaports Program	465
	Radiation Detection Technology	465
	Mixed Oxide Fuel Facility	465
	Transfer Authority to Fund New or Emerging Activities Outside the United States Under the Global Threat Reduction Initiative	468
	Environmental and Other Defense Activities	468
	Overview	468
	Disposition of Plutonium Unsuitable for Conversion to Mixed Oxide Fuel	469
	Hanford Defense Site Waste Treatment and Immobilization Plant	469
	Savannah River Site Defense Environmental Cleanup	470
	Tank Waste Cleanup Research and Development Program	471
	Yucca Mountain	471
	LEGISLATIVE PROVISIONS	471
	Subtitle A--National Security Programs Authorizations	471
	Section 3101--National Nuclear Security Administration	471
	Section 3102--Defense Environmental Cleanup	471
	Section 3103--Other Defense Activities	472
	Section 3104--Defense Nuclear Waste Disposal	472
	Subtitle B--Program Authorizations, Restrictions, and Limitations	472
	Section 3111--Plan for Transformation of National Nuclear Security Administration Nuclear Weapons Complex	472
	Section 3112--Extension of Facilities and Infrastructure Recapitalization Program	472
	Section 3113--Utilization of Contributions to Global Threat Reduction Initiative	472
	Section 3114--Utilization of Contributions to Second Line of Defense Program	472
	Section 3115--Two-Year Extension of Authority for Appointment of Certain Scientific, Engineering, and Technical Personnel	472
	Section 3116--National Academy of Sciences Study of Quantification of Margins and Uncertainty Methodology for Assessing and Certifying the Safety and Reliability of the Nuclear Stockpile	472
	Section 3117--Consolidation of Counterintelligence Programs of Department of Energy and National Nuclear Security Administration	473
	TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD	473
	OVERVIEW	473
	ITEM OF SPECIAL INTEREST
	Role of the Defense Nuclear Facilities Safety Board	473
	LEGISLATIVE PROVISIONS	473
	Section 3201--Authorization	473
	TITLE XXXIII--NATIONAL DEFENSE STOCKPILE	474
	ITEM OF SPECIAL INTEREST	474
	Sale of Strategic and Critical Materials	474
	LEGISLATIVE PROVISIONS	474
	Section 3301--Authorized Uses of National Defense Stockpile Funds	474
	Section 3302--Revision of Limitations to Required Receipt Objectives for Previously Authorized Disposals from National Defense Stockpile	474
	TITLE XXXIV--NAVAL PETROLEUM RESERVES	475
	LEGISLATIVE PROVISIONS	475
	Section 3401--Authorization of Appropriations	475
	TITLE XXXV--MARITIME ADMINISTRATION	475
	ITEM OF SPECIAL INTEREST	485
	Fuel Assistance Payments to State and Regional Maritime Academies	475
	LEGISLATIVE PROVISIONS	475
	Section 3501--Authorization of Appropriations for Fiscal Year 2007	00
	Section 3502--Limitation on Transfer of Maritime Security Fleet Operating Agreements	476
	Section 3503--Applicability of Certain Maritime Administration Vessels of Limitations on Overhaul, Repair, and Maintenance of Vessels in Foreign Shipyards	476
	Section 3504--Vessel Transfer Authority	476
	Section 3505--United States Merchant Marine Academy Graduates: Alternate Service Requirements	477
	Section 3506--United States Merchant Marine Academy Graduates: Service Obligation Performance Reporting Requirement	477
	Section 3507--Temporary Authority to Transfer Obsolete Combatant Vessels to Navy for Disposal	477
	Section 3508--Temporary Requirement to Maintain Ready Reserve Force	477
	Departmental Data	477
	Department of Defense Authorization Request	477
	Committee Position	479
	Communications From Other Committees	479
	Fiscal Data	487
	Congressional Budget Office Estimate	487
	Committee Cost Estimate	490
	Oversight Findings	490
	General Performance Goals and Objectives	490
	Constitutional Authority Statement	491
	Statement of Federal Mandates	491
	Roll Call Votes	491
	Changes in Existing Law Made by the Bill, as Reported	498
	Additional and Dissenting Views	499
	Additional views of Ike Skelton, Steve Israel, Solomon P. Ortiz, Ellen O. Tauscher, Adam Smith, G.K. Butterfield, Loretta Sanchez, Silvestre Reyes, John Spratt, Madeleine Z. Bordallo, Robert E. Andrews, Mark Udall, Neil Abercrombie, Marty Meehan, Jim Langevin, Susan Davis, Vic Snyder, Tim Ryan, Rick Larsen, Jim Marshall	499
	Additional views of Jeff Miller	502
	Additional views of Jim Marshall	503
	Additional views of Cathy McMorris	508
	Dissenting views of Cynthia McKinney	510

27-368

109TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

2d Session

109-452

--NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007

May 5, 2006- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

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

R E P O R T

together with

ADDITIONAL AND DISSENTING VIEWS

[To accompany H.R. 5122]

[Including cost estimate of the Congressional Budget Office]

The Committee on Armed Services, to whom was referred the bill (H.R. 5122) to authorize appropriations for fiscal year 2007 for military activities of the Department of Defense, to prescribe military personnel strengths for fiscal year 2007, and for other purposes, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass.

The amendments are as follows:

The amendment strikes all after the enacting clause of the bill and inserts a new text which appears in italic type in the reported bill.

The title of the bill is amended to relfect the amendment to the text of the bill.

EXPLANATION OF THE COMMITTEE AMENDMENTS

The committee adopted an amendment in the nature of a substitute during the consideration of H.R. 5122. The title of the bill is amended to reflect the amendment to the text of the bill. The remainder of the report discusses the bill, as amended.

PURPOSE

The bill would--(1) Authorize appropriations for fiscal year 2007 for procurement and for research, development, test and evaluation (RDT&E); (2) Authorize appropriations for fiscal year 2007 for operation and maintenance (O&M) and for working capital funds; (3) Authorize for fiscal year 2007: (a) the personnel strength for each active duty component of the military departments; (b) the personnel strength for the Selected Reserve for each reserve component of the armed forces; (c) the military training student loads for each of the active and reserve components of the military departments; (4) Modify various elements of compensation for military personnel and impose certain requirements and limitations on personnel actions in the defense establishment; (5) Authorize appropriations for fiscal year 2007 for military construction and family housing; (6) Authorize emergency appropriations for increased costs due to Operation Iraqi Freedom and Operation Enduring Freedom; (7) Authorize appropriations for fiscal year 2007 for the Department of Energy national security programs; (8) Modify provisions related to the National Defense Stockpile; and (9) Authorize appropriations for fiscal year 2007 for the Maritime Administration.

RELATIONSHIP OF AUTHORIZATION TO APPROPRIATIONS

The bill does not generally provide budget authority. The bill authorizes appropriations. Subsequent appropriation acts provide budget authority. The bill addresses the following categories in the Department of Defense budget: procurement; research, development, test and evaluation; operation and maintenance; working capital funds, military personnel; and military construction and family housing. The bill also addresses Department of Energy National Security Programs and the Maritime Administration.

Active duty and reserve personnel strengths authorized in this bill and legislation affecting compensation for military personnel determine the remaining appropriation requirements of the Department of Defense. However, this bill does not provide authorization of specific dollar amounts for personnel.

SUMMARY OF AUTHORIZATION IN THE BILL

The President requested budget authority of $513.3 billion for the national defense budget function for fiscal year 2007. Of this amount, the President requested $491.5 billion for the Department of Defense, including $16.7 billion for military construction and family housing and $50 billion for estimated emergency costs for the Global War on Terror. The defense budget request for fiscal year 2007 also included $17.0 billion for Department of Energy national security programs and the Defense Nuclear Facilities Safety Board.

The committee recommends an overall level of $512.9 billion in budget authority. This amount represents an increase of approximately $21.4 billion from the amount authorized for appropriation by the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163).

SUMMARY TABLE OF AUTHORIZATIONS

The defense authorization act provides authorization for appropriations but does not generally provide budget authority. Budget authority is provided in appropriations acts. In order to relate the recommendations to the budget resolution, matters in addition to the dollar authorizations contained in this bill must be taken into account. A number of programs in the national defense function are authorized in other legislation. The following table summarizes authorizations included in the bill for fiscal year 2007 and, in addition, summarizes the implications of the committee action for the budget authority totals for national defense (budget function 050).

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RATIONALE FOR THE COMMITTEE BILL

H.R. 5122, the National Defense Authorization Act for Fiscal Year 2007, reflects the House Armed Services Committee's steadfast support of the courageous, professional and dedicated men and women of the United States armed forces and the committee's appreciation for the sacrifices they make to accomplish their required missions. Events of the last year--ranging from on-going operations in Iraq and Afghanistan to robust counter-terrorism efforts around the globe to time-sensitive disaster and humanitarian responses both at home and abroad--serve to highlight the United States military's flexibility and responsiveness in defending our nation's interests and addressing security challenges, wherever and whenever they may arise.

For example, with the support of our coalition partners and over 220,000 Iraqi Security Forces personnel, members of the United States military helped to establish secure, stable conditions under which more than 12 million Iraqis could cast their votes for new national assembly representatives last December. That month also figured prominently in Afghanistan, where United States, Afghan and allied forces maintained security and stability as 351 men and women from all provinces, tribes and ethnic groups were inaugurated into the National Assembly. At home, United States forces actively contributed to Hurricane Katrina relief efforts with approximately 20,000 Active Duty and 50,000 National Guard troops providing military support to civil authorities.

The committee considers it critical that the capabilities and capacity of the armed forces continue to improve so they can accomplish the full range of diverse 21st century missions, minimize risks associated with such challenges and effectively engage in hostilities, when necessary, as far from American shores as possible. Thus, the committee's top priority remains ensuring that our military personnel receive the best equipment, weapons systems and training possible. As such, H.R. 5122 would provide for both near- and longer-term military personnel and force structure requirements. It also highlights the need for improvements in acquisition processes and cooperation among key federal departments and agencies.

Taking Care of Our Military Personnel

Through H.R. 5122, the committee continues its support for the outstanding Soldiers, Sailors, Airmen and Marines, who selflessly make significant personal sacrifices to protect and defend our nation. To ensure that the United States armed forces remain robust enough to meet the full range of 21st Century security challenges, particularly those related to the Global War on Terrorism, the committee recommends for Fiscal Year 2007 additional active duty growth of 30,000, or 6 percent, for the Army and 5,000, or about 3 percent, for the Marine Corps above the budget request. These recommendations would bring the Army end strength to 512,400 and the Marine Corps to 180,000. In addition, the committee supports the Department of the Army's decision to request an Army National Guard (ARNG) end strength of 350,000 and recommends adding about 2,300 full-time ARNG support personnel. To support this additional manpower, H.R. 5122 would increase ARNG funding by $789 million for personnel and equipment costs.

H.R. 5122 also reflects the committee's on-going commitment to improving the efficiency and effectiveness of servicemembers' benefits. The committee recommends an across-the-board pay raise, which would decrease the 4.5 percent gap between military and private sector pay to about 4.0 percent. Moreover, this legislation completes the transition to full TRICARE health program coverage for selected reserve personnel and, in light of the Department of Defense's proposed TRICARE cost-sharing arrangement, requires further study to ensure that a comprehensive policy and fiscal basis for sustaining future military health care benefits are in place. H.R. 5122 also improves programs for our nation's wounded military personnel and the surviving family members of those who have died or have been seriously injured in service.

Balancing Near- and Longer-Term Military Capabilities

The committee believes strongly that the Department of Defense must not focus on long-term military capabilities at the expense of resetting and recapitalizing the warfighting force that is serving the United States so well in current operations. In particular, this legislation sends a clear signal that force protection remains this committee's top priority. Through oversight hearings, briefings and numerous trips to Iraq and Afghanistan, committee members continue to follow the significant threat to our soldiers and marines from improvised explosive devices (IEDs), or makeshift road-side bombs. H.R. 5122 reflects the committee's initiative to `take back the roads' and provide the best available IED jamming devices and persistent surveillance capability this includes $109.7 million for jamming devices that will prevent the radio-initiation of road-side bombs, which currently cause the majority of U.S. casualties in Iraq and Afghanistan, and $100 million for at least 10 manned persistent surveillance aircraft to patrol road segments and other areas where IED activity is greatest.

H.R. 5122 also provides insight into how the committee believes the Department of Defense should strike the right balance between accepting technical risk and providing increased capabilities to these warfighters. It reflects the committee's continuing concerns about the long lead times required for major systems and the possibility that programs do not focus adequately on the near-term requirements of the United States armed forces.

For example, the committee questions how the Department of the Army plans to fund the Future Combat System (FCS), the Modular Force Initiative and reset programs--three costly efforts that would require funding in excess of the funds programmed for the next five years. H.R. 5122 reflects the committee's decision to balance the health and capability of the current force with the future needs of the Army by reducing the FCS program by $326 million and requiring a Defense Acquisition Board review of the FCS program.

In addition to reflecting concerns about the growing cost of the FCS program, this legislation puts into place spending limits on programs for other major programs for which cost estimates are rapidly increasing. These legislative initiatives would contain shipbuilding costs by holding the Department of the Navy accountable to their cost estimates on the CVN-21 aircraft carrier, the Landing Helicopter Assault (LHA-R) amphibious assault ship, and the LPD-17 Landing Platform Dock amphibious ship and would increase competition for elements of the Joint Strike Fighter (F-35) and next generation destroyer (DD(X)) programs.

The committee notes that the Fiscal Year 2007 budget request included $2 billion for the Department of the Air Force's F-22 aircraft program. However, despite the Fiscal Year 2006 projection for procurement of 29 F-22's in Fiscal Year 2007, the funds requested for Fiscal Year 2007 were for subassemblies and not aircraft. Rather than authorize incremental funding for major aircraft programs, which Congress has not done in decades, the committee recommends an additional $1.4 billion for the full funding for procurement of 20 F-22 aircraft.

Over the last five years, the Global War on Terrorism has demonstrated time and again that U.S. intelligence, surveillance and reconnaissance (ISR) capabilities are critical to military effectiveness. The Department of Defense's most recent Quadrennial Defense Review, released in February 2006, highlighted gaps in ISR capabilities, and as a result of several hearings and briefings over the last year, the committee agrees that the United States currently has insufficient capacity and capability to meet all national and combatant commander requirements or provide tactical control over needed ISR assets at the small-unit level. One key area for improvement is persistent surveillance platforms, which the DOD could usefully deploy for operations ranging from combat and counterterrorism scenarios to stability and humanitarian operations and domestic crises. For example, unmanned aerial vehicles could provide a reliable battlefield picture on a 24-hours-a-day/7-days-a-week basis. However, the committee notes with concern that despite highlighting existing ISR gaps, DOD officials decided to retire U-2 aircraft to achieve savings without identifying a similar capability that will be available in the near-term. H.R. 5122 would prohibit this retirement until the Department certifies to Congress that the U-2 program is not required to mitigate gaps in ISR capabilities.

Finally, H.R. 5122 underscores the need for operationally responsive space capabilities. Adversaries recognize that the backbone of the United States military's command, control, communication, computers, intelligence, surveillance and reconnaissance (C4ISR) system is space-based, making it vulnerable to asymmetric attack and not easily reconstituted. The committee believes that the United States must develop a responsive space infrastructure, including flexible space launch and rapidly deployable C4ISR platforms, to address this vulnerability and reduce the temptation for adversaries to attack our space assets. This legislation would establish an Office of Operationally Responsive Space in the DOD to contribute to the development of low-cost rapid reaction payloads to fulfill joint military operational requirements.

Fielding the Right Equipment at the Right Time

The rising cost and lengthening production schedules of major defense acquisition programs has led to more expensive platforms fielded in fewer numbers. The committee believes that internal DOD pressure to develop follow-on weapons systems that include all necessary and anticipated military capabilities may create an over-reliance on individual `mega' systems that are potentially more expensive and time-consuming to develop than less sophisticated but capable systems. These increases in cost and development time generally result in smaller numbers of platforms purchased, creating a `high demand, low density' situation in which the needed platforms have higher operational tempos, wear out faster, increase stress on military personnel, undermine the ability to conduct traditional presence missions intended to shape the strategic choices of potential adversaries and limit the strategic depth of United States forces responding to multiple contingencies. Moreover, the shrinking pool of skills and experience maintained by the acquisition workforce and the inadequate prioritization of combatant commands' requirements in deference to the military services' priorities are strong concerns of the committee. At the end of the day, the Department needs to recognize that its acquisition process must result in cost-effectively `putting metal on targets'--which in some cases will not require costly, leading-edge technologies. H.R. 5122 would address these issues by requiring training programs, improving management oversight and internal controls and closely monitoring implementation of acquisition reform in the Department of Defense.

Developing Partnerships

The committee notes that international coalition partners have proven essential to military successes in Afghanistan, Iraq and elsewhere and appreciates the diplomatic, financial and military contributions made by foreign governments to the Global War on Terrorism. However, the committee believes that several key federal departments and agencies may lack the same operational commitment to success in the on-the-ground war effort.

Achieving United States security objectives requires the integration of all national power--political, military and economic. In many cases, non-military departments and agencies lack planning, surge and overseas deployment capabilities, and the interagency process--which coordinates national-level policy development--has not been effective in executing national security policy. As a result, our servicemembers routinely fill gaps in civil capabilities, such as reconstruction efforts, coordination of humanitarian relief and training and equipping police forces. These missions are in addition to the full range of military operational requirements and may, in some cases, place an unfair burden on our armed forces.

H.R. 5122 would require that the President assess the non-DOD elements required to achieve the full spectrum of U.S. national security interests, including organizational structures, planning and assessment capabilities, information-sharing policies, command and control systems, personnel policies and acquisition authorities. The President would also provide specific legislative proposals to improve interagency capacity and enhance civilian capabilities for national security purposes.

Supplemental Funding

The committee recommends authorization of $50 billion in funds to support the defense activities principally associated with Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF). These funds are designated for emergency contingency operations to support force protection equipment, operational needs and military personnel requirements of the units deployed and engaged in the Global War on Terrorism.

Included in the force protection recommendation is funding for up-armored Humvees, tactical wheeled vehicle recapitalization and modernization programs for the most heavily used vehicles in OIF and OEF, night vision devices and improvised explosive device jammers. In addition, the committee recognizes the need to replenish critical small-arms and ammunition procurement programs, including funding for the M16 rifle, M240 medium machine gun and M4 carbine modifications, and .50 caliber cartridges, 120mm tank ammunition canisters and 155mm high explosive projectiles. Incorporated in the day-to-day operation recommendation is funding to pay for food, fuel, spare parts, maintenance, transportation, base expenses, as well as costs incurred by stateside installations for increased mobilizations and demobilizations due to OIF and OEF.

Over the past four years, the committee has recommended increases in the active component manpower to sustain the full range of capabilities required of the mission assigned to the armed forces. The committee recommends funding a cumulative active component increase of 30,000 for the Army and 5,000 for the Marine Corps over the budget request.

HEARINGS

Committee consideration of the National Defense Authorization Act for Fiscal Year 2007 results from hearings that began on February 1, 2006, and that were completed on April 7, 2006. The full committee conducted fifteen sessions. In addition, a total of thirty-two sessions were conducted by 6 different subcommittees on various titles of the bill.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATION

TITLE I--PROCUREMENT

OVERVIEW

The budget request for fiscal year 2007 contained $84.2 billion for procurement. This represents a $6.2 billion increase from the amount authorized for fiscal year 2006.

The committee recommends authorization of $85.9 billion, an increase of $1.7 billion from the fiscal year 2007 request.

The committee recommendations for the fiscal year 2007 procurement program are identified in the table below. Major issues are discussed following the table.

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AIRCRAFT PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2007 contained $3.6 billion for Aircraft Procurement, Army. The committee recommends authorization of $3.7 billion, an increase of $148.3 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Aircraft Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

AH-64 modern signal processing unit

The budget request contained $775.6 million for AH-64 modifications, but no funds were requested for the modern signal processing unit (MSPU) initial integration and production for the AH-64.

The MSPU is an embedded digital vibration diagnostic technology already developed by the Army for the AH-64A Apache and the AH-64D Longbow to monitor the tail rotor gearbox, the intermediate gearbox, and the auxiliary power unit clutch for incipient failures. The MSPU is a direct replacement for the 30-year-old analog signal processing unit which is known to experience high failure rates and shown to be unreliable in detecting incipient gearbox failures. The improved diagnostics of the MSPU will improve flight safety and reduce maintenance test costs.

The committee recommends an increase of $6.0 million to integrate the modern signal processing unit into the AH-64A and AH-64D production line and to procure the MSPU for fielding as spares for both the active Army and Army National Guard Apache and Longbow aircraft.

Joint cargo aircraft

The committee supports the decision to establish a joint program office and to utilize a single capability development document as the basis for requirements for the Joint Cargo Aircraft (JCA). The committee believes that cost control is the most critical factor in determining the likelihood for success of the JCA program, and that the imperative for cost containment will necessitate a strict control of requirements and the use of maximum jointness and commonality in training, sustainment and maintenance. The committee recommends that the joint program office work to develop an acquisition and sustainment strategy for JCA that is joint in all phases of the program. The acquisition and sustainment strategy should address the purchase of sufficient rights in technical data required to provide competition in maintaining and sustaining the aircraft throughout its complete lifecycle. The committee notes that it has included a provision (section 802) that would require acquisition programs to acquire sufficient technical data required for lifecycle sustainment. The committee also notes that the core logistics capability for cargo aircraft currently in the Department of Defense (DOD) inventory resides largely in the Air Force Air Logistics Centers and the committee believes the JCA should be identified as a core logistics capability under subsection (a)(2) of section 2464 of title 10, United States Code, with no waiver under subsection (b), if the JCA is acquired in sufficient numbers to warrant such a designation. At a minimum, the Department should acquire the technical data necessary to enable the government to utilize its core logistics capability to maintain the JCA, if required.

The committee directs the Secretary of Defense to submit to the congressional defense committees a report on the plan to acquire and sustain the JCA. The committee directs that the report be delivered no later than 60 days after the acquisition and sustainment strategy is approved by the appropriate milestone decision authority. The committee further directs that the report shall include DOD's recommendations regarding whether or not the JCA will be identified as a core logistics capability under subsection (a)(2) of section 2464 of title 10, United States Code, and if so identified, whether the Department intends to waive the limitation on contracting under subsection (b) of such section for the JCA.

HH-60 aircraft wireless intercom system upgrade

The budget request contained $30.9 million for H-60 modifications, but included no funds for procurement of non-encrypted aircraft wireless intercom system (AWIS) upgrades for active and reserve HH-60 medical evacuation (MEDEVAC) helicopters.

The committee notes there is no integrated or qualified wireless communication system onboard HH-60 rotorcraft for use by crewmembers. Consequently, this does not allow onboard medical personnel, while in flight or during ground operations, freedom to use both hands to perform emergency medical procedures while communicating with the flight crew. Early fielding of non-encrypted AWIS would eliminate the operational hazards and restrictions inherent in the existing tethered system for MEDEVAC crews.

The committee recommends an increase of $4.0 million to modify HH-60 rotorcraft with wireless intercom systems.

UH-60A to UH-60L helicopter upgrade

The budget request included $554.6 million in aircraft procurement for 38 UH-60M aircraft, but included no funds for the non-recurring costs of replacement of UH-60A engine transmission and engine upgrades as part of the UH-60A upgrade program.

The committee notes the significant reduction in flying hour costs, of over $700 per hour, offered by replacement of the original UH-60A engines.

The committee recommends an additional $15.0 million for the non-recurring development and engineering costs of upgrading the UH-60A engine transmission and engine to the UH-60L configuration.

MISSILE PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2007 contained $1.4 billion for Missile Procurement, Army. The committee recommends authorization of $1.5 billion, an increase of $140.0 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Missile Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Patriot modifications

The budget request contained $69.9 million for the procurement of Patriot modifications.

The committee understands that the Army has an unfunded requirement to transition or pure fleet existing Patriot Advanced Capability-2 (PAC-2) missile battalions to an upgraded PAC-3 missile battalion configuration capable of deploying the PAC-3 missile by the end of fiscal year 2009.

The committee supports this initiative and recommends $209.9 million, an increase of $140.0 million for the purpose of restarting the PAC-3 production line, and for upgrading tactical Patriot fire units to the PAC-3 configuration capability.

TOW missile inventory

The budget request contained $31.6 million to procure 949 TOW missiles.

The committee recognizes the Army and Marine Corps face a significant challenge in maintaining an adequate inventory of TOW missiles. The TOW requirement is perceived to be at a minimum 20,000 missiles but the Army's current program of record supports an inventory of only 6,500 missiles. The committee is aware the Army and Marine Corps have fired more than 6,000 TOW missiles in Operation Iraqi Freedom (OIF), yet by 2009, based on missile shelf life, the Army will have fewer TOW missiles in its inventory than it had at the start of the OIF.

While the committee notes the Army's intent to increase TOW procurement and encourages the Army to proceed with this course of action, the committee also notes the Army staff has not defined a minimum warfighting inventory requirement for TOW missiles.

Therefore, the committee directs the Secretary of the Army to submit a report to the congressional defense committees by March 15, 2007, that details the acquisition strategy for TOW procurement across the Future Years Defense Program and specifies the current, minimum warfighting requirement for the TOW missile.

WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

OVERVIEW

The budget request for fiscal year 2007 contained $2.3 billion for Weapons and Tracked Combat Vehicles, Army. The committee recommends authorization of $2.3 billion, an increase of $33.1 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Weapons and Tracked Combat Vehicles, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Army current to future force modernization strategy

The Army is implementing its current to future force modernization strategy at a time when U.S. ground forces continue to operate at high operational tempos in Iraq and Afghanistan, as well as fill a critical role in the global war on terrorism. The committee notes that while the Future Combat Systems (FCS) is the Army's long-term transformation strategy, modularity and equipment reset constitutes the near-term strategy. Given fiscal realities, the Army's challenge of simultaneously funding reset and modularity, and the high technical risks associated with the development of FCS, the committee is concerned the Army may sacrifice the warfighting capability of the current force in order to resource FCS.

While conceptually supporting modularity, the committee continues to have concerns about the details, not the least of which is its escalating costs, uncertainty in adequate resources for active Army and Army National Guard equipping strategies, and whether the new modular designs for brigade combat teams (BCTs) will provide sufficient capability for sustained, high-intensity combat operations. Specifically, the committee is concerned about the Army's decision to field modular heavy BCTs with only two maneuver battalions, instead of three. The committee understands that Stryker BCTs have three maneuver battalions and FCS BCTs will also have three maneuver battalions. Accordingly, the committee is concerned that the Army's decision to field modular heavy BCTs with two instead of three maneuver battalions is resource vice strategy driven.

The committee notes that the Government Accountability Office (GAO), the Congressional Budget Office, and the Institute for Defense Analysis have also expressed similar concerns in reference to modularity. The committee further notes soldiers returning from Iraq have indicated that while technology can be a critical combat enabler, technology alone cannot serve as a replacement for force structure, `boots on the ground.' The committee commends the Army for adding a reconnaissance battalion to the modular brigade design. The committee believes that although the reconnaissance battalion is a critical force multiplier, it alone should not be required to perform missions that would normally be performed by a third maneuver battalion.

The Army has stated that the procurement funding for modularity is within the Future Years Defense Program (FYDP) and the procurement funding for FCS is beyond the FYDP. However, the committee notes this position is not supported by the information provided by the Army to the committee. The committee agrees with GAO's assessment that given the degree of uncertainty in modularity cost estimates and the likely cost growth from FCS; the Army's modularity and FCS programs are at risk of becoming unaffordable.

Army modularity

The committee continues to support the Army's restructuring from a division based force to a more readily deployable brigade centric force, a process known as modularity, and the committee understands that modularity remains a top priority of the Chief of Staff of the Army. However, the committee remains concerned that the Army has not provided sufficient information for Congress to assess the capabilities, costs, affordability, and risks of the Army's modularity implementation plans. The committee notes that the Army's cost estimate for completing modularity by 2011 has grown from an initial estimate of $28.0 billion in 2004 to a current estimate of $52.5 billion. Further, in the `2005 Modularity' report submitted to Congress, the Army states a requirement for 77 brigade combat teams (BCTs). Of the 77 BCTs, 35 were to be heavy BCTs consisting of Abrams tanks and Bradley fighting vehicles. In the `2006 Modularity' report and the 2007 budget request the requirement is for 70 BCTs, of which 33 would be heavy BCTs. The committee is concerned about the Army's rationale to reduce the total BCT requirement and furthermore, it remains unclear to the committee what impact the current modularity strategy will have on meeting the needs of the combatant commanders.

Accordingly, the committee directs the Secretary of Defense to obtain from each combatant commander, an assessment of the Army's modularity initiative to include issues or concerns regarding modularity designs, equipment, personnel and/or rotation strategy. Further, the committee directs the Secretary to submit a report, including the assessments from the combatant commanders, to the Senate Committee on Armed Services and the House Committee on Armed Services with the submission of the President's budget for fiscal year 2008.

Heavy brigade combat teams

The budget request included $171.1 million for the M1A2 Abrams System Enhancement Program (SEP) tank and $285.0 million for the Bradley base sustainment program.

The committee remains concerned about the Abrams tank and Bradley fighting vehicle modernization programs and the associated funding. Current operations continue to demonstrate that there are few conflicts where main battle tanks and Bradley fighting vehicles do not play a significant role in ensuring the survivability and offensive firepower of the armed forces. The committee remains resolute in its assessment that the Army should pure fleet, at a minimum, 18 of its active component heavy brigade combat teams (BCTs) with the M1A2 Abrams SEP tank and the Bradley A3 fighting vehicle.

The committee notes that in the Army's March 2006 report to Congress, `The Army Modular Initiative,' it clearly states that one of the key criteria for modularity funding was `modernization of older equipment.' The report further states that modularity equipment modernization includes major systems upgrades such as Apache and Chinook helicopters, but does not include the M1A2 Abrams SEP tank or the Bradley A3 as part of modernization. The committee believes that the M1A2 Abrams SEP tank and the Bradley A3 are critical components of modular heavy BCTs.

The committee is concerned that the Army's current procurement strategy will not adequately fund the M1A2 Abrams SEP tank program and the Bradley A3 program, to at least the minimum economic quantity of approximately 60 and 144 per year, respectively. The committee is also concerned that the Army's current plan results in paying more to get fewer M1A2 Abrams SEP tanks and Bradley A3s, which will result in a significant delay in meeting the total requirement of 18 M1A2 Abrams SEP tanks and Bradley A3 heavy BCTs. The committee notes that even if the Army develops a plan that funds the M1A2 SEP tank and the Bradley A3 production at the minimum economic quantity it will take the Army up to 10 years to meet the total requirement for 18 M1A2 Abrams SEP tank and Bradley A3 equipped heavy BCTs.

Accordingly, the committee directs the Secretary of the Army to submit a report by February 28, 2007, to the Senate Committee on Armed Services and the House Committee on Armed Services providing the feasibility and rationale for multiyear procurement authority for the M1A2 Abrams SEP tank and the Bradley A3. At a minimum, the report shall include the

impact that a multiyear procurement would have on the unit cost and the impact this authority would have on meeting the total M1A2 Abrams SEP tank and Bradley A3 requirement, consisting of 18 heavy BCTs.

Abrams tank modernization

The budget request included $171.1 million for 23 M1A2 Abrams System Enhancement Program (SEP) retrofit tanks.

The M1A2 Abrams SEP tank is an upgraded, fully digitized, first generation M1A2 Abrams tank which enhances lethality, survivability, and mobility, as well as providing improved situational awareness for its crew.

Accordingly, the committee recommends an increase of $128.9 million for the M1A2 Abrams SEP tank program.

Bradley base sustainment program

The budget request included $285.0 million for 16 Bradley A3 fighting vehicles and 90 Operation Desert Storm (ODS) vehicles.

The Bradley base sustainment program upgrades earlier variants of the Bradley A2 ODS and the Bradley A3 standard. The Bradley A3 is more lethal and survivable; provides enhanced command and control; and allows shared situational awareness. The Bradley A3 continues to maintain combat overmatch above current and future threat forces and remains compatible with the M1A2 Abrams System Enhancement Program tank.

Accordingly, the committee recommends an increase of $147.0 million for the Bradley A3 program.

Integrated air burst weapon system

The budget request contained $32.3 million for the integrated air burst weapon system family.

The committee understands this funding line would provide procurement dollars for the low rate initial production of the Objective Individual Combat Weapon, Increment One (OICW-1) program; a family of small arms that are projected to be replacements for existing carbines, rifles, and light machine guns. The committee is aware that the official request for proposals (RFP) for the OICW-1, originally announced in May 2005 was delayed and now has been terminated. The committee is also aware that the program was redirected to the Joint Requirements Oversight Council (JROC) for further review.

The committee notes the OICW-1 program has not yet been reviewed by the JROC nor has an estimated date for a review been established. The committee understands that pending the outcome of this future JROC review, the new RFP would incorporate additional joint requirements that would require further development and refinement. The committee also notes the Army is currently restructuring the procurement program for small arms in support of the recently approved small arms acquisition strategy, and recognizes these funds would be redistributed to other small arms acquisition programs in accordance with this new strategy.

Therefore, the committee believes the budget request for the integrated air burst weapon system family is not justified and recommends a decrease of $32.3 million. The committee also recommends the redistribution of these funds to other small arms acquisition programs as reflected in this report based on urgent need and in support of the Army's recently restructured small arms acquisition strategy.

AMMUNITION PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2007 contained $1.9 billion for Ammunition Procurement, Army. The committee recommends authorization of $1.7 billion, a decrease of $211.7 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Ammunition Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Desert optimized equipment

The budget request contained $10.3 million for ammunition peculiar equipment, but included no funds for desert optimized ammunition peculiar equipment.

The committee understands that the harsh desert conditions of Iraq and Afghanistan are causing ammunition peculiar equipment to degrade at a much greater rate than anticipated. The committee notes that there is great benefit to upgrading forward deployed ammunition peculiar equipment with desert optimized equipment.

The committee recommends an increase of $3.0 million to optimize ammunition peculiar equipment for desert environments.

Modernization of .50 caliber ammunition production line

The budget request included $116.2 million for modernization of ammunition production facilities, but included no funds to modernize the line for production of .50 caliber ammunition.

The committee notes that much of the existing facilities and equipment used in the production of .50 caliber ammunition date from the era of World War II. While this equipment has been able to support .50 caliber ammunition production in recent years, the production line is extremely difficult to maintain and the obsolete nature of this equipment limits the ability of the Army to increase production quantities on short notice.

The committee directs the Army to develop a plan to modernize the production line for .50 caliber ammunition, and submit the plan to the congressional defense committees no later than March 1, 2007. Furthermore, the plan should include a proposed schedule for modernization consistent with continued production of .50 caliber ammunition at levels similar to those occurring in 2006, and a recommended funding program associated with this schedule.

OTHER PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2007 contained $7.7 billion for Other Procurement, Army. The committee recommends authorization of $7.0 billion, a decrease of $211.7 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Other Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Bridge to future networks

The budget request contained $340.2 million for bridge to future networks.

The Bridge to Future Networks program is comprised of two elements: area common user system (ACUS) modernization and joint network node (JNN). The committee is concerned about the Army's plan to meet its battle command network requirement for both the current and future force. The Army began the acquisition of the JNN with funds appropriated in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief, 2005 (Public Law 109-13) that would provide an urgent warfighting demand for a networking capability in support of the global war on terrorism. The JNN is not a program of record and the committee believes that continued procurement of JNN through emergency supplemental appropriations is not appropriate.

The committee further understands that the Department of Defense's Director of Operational Test and Evaluation and the General Counsel have determined that JNN should not proceed beyond low rate initial production before completing operational testing.

The committee also understands that the Army is developing the Warfighter Information Network-Tactical (WIN-T) program at the same time that it is procuring the JNN. According to the Army, WIN-T is the foundation for network-centric brigade operations and is applicable to not just the Future Combat Systems (FCS) force, but also to today's current force of modular brigade combat teams.

The committee is aware the Army has not developed a plan that assesses how best to transition from JNN to WIN-T. It remains unclear to the committee whether the Army will attempt to accelerate development of WIN-T or pursue a parallel course that continues to procure JNN while realigning the WIN-T program with FCS. Therefore, the committee included a provision (section 114) in this Act that would require the Secretary of the Army to submit a report to the congressional defense committees on the analysis of how the JNN and the WIN-T will be integrated and whether or not there are opportunities to leverage JNN technologies and equipment as part of the WIN-T development effort.

Combat medical support

The budget request contained $20.5 million for combat medical support, but included no funding for Golden Hour--4 units of red blood cells (GH4) and Golden Hour--30 units of red blood cells or frozen plasma (GH30) blood bags. The committee recommends more fully equipping the U.S. military with Golden Hour technology blood bags to enable safe transport of blood to the battlefield, resulting in more saved lives during military conflicts and increasing the availability of useable blood.

The committee recommends an increase of $17.0 million for Golden Hour blood bags.

Immersive group simulation

The budget request included $16.9 million for the Army's networked system of manned simulators, but included no funds for its immersive group simulation project.

The committee supports simulation efforts by the Army to replicate elements on the combined arms battlefield. This reduces overall training costs and provides training that might otherwise be foregone because of limitations on live training ranges. Immersive group simulations complement and enhance training programs by allowing groups of trainers to place groups of soldiers into synthetic training environments that replicate real world conditions to stress reactive and decision making capabilities, train on appropriate tactics and techniques, and make mistakes where the consequences are non-lethal.

Therefore, the committee recommends an increase of $6.5 million for the immersive group simulation project.

M915A3 production

The budget request contained $31.2 million for truck, tractor, and line-haul equipment, including funds to procure 160 M915A3 line-haul tractor trucks.

The M915A3 is used by Army transportation companies to transport breakbulk, containers, water and petroleum over primary and secondary roads. The committee notes that previous models of the M915 are experiencing operational readiness rates below the Army goal and are difficult to support. The committee also notes that there are significant inventory shortages across the Army, but particularly in transportation companies of the national guard and reserve forces.

The committee recommends $40.5 million for truck, tractor, and line-haul equipment, an increase of $9.3 million to accelerate fielding of the M915A3 to the Army National Guard.

Simulated combat training capability for Army National Guard

The budget request contained $38.5 million for combat training centers support and other associated costs, but included no funds for simulated combat training capability systems for the Army National Guard.

The committee understands this system would provide effective pre-mobilization and post-mobilization home-station training for Army National Guard units engaged in the global war on terrorism. The committee recognizes that although there is no substitute for the robust live-fire and simulated training capabilities provided at Combat Training Centers (CTCs) and through the Joint National Training Capability (JNTC), this particular system would supplement CTC and JNTC activities, as well as provide additional training opportunities for Army National Guard units at their home stations. Furthermore, the committee believes that this additional training capability would potentially contribute to more effective CTC and JNTC training exercises for national guard units.

The committee recommends $47.8 million, an increase of $9.3 million to provide simulated, flexible and expandable combat training capability to Army National Guard units.

AIRCRAFT PROCUREMENT, NAVY

OVERVIEW

The budget request for fiscal year 2007 contained $10.9 billion for Aircraft Procurement, Navy. The committee recommends authorization of $10.8 billion, a decrease of $108.1 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Aircraft Procurement, Navy program are identified in the table below. Major changes to the Navy request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

EP-3E service life extension

The budget request contained $56.8 million for EP-3E aircraft modifications, but included no funds for service life extension modifications in lieu of the Aerial Common Sensor (ACS) program cancellation.

The committee is concerned about the impact the cancelled ACS program may have on the qualitative service life of the EP-3E. The committee understands that continued support of the legacy EP-3E airframes and mission systems will be tenuous until a viable joint or service-specific replacement is identified and fully operational. The EP-3E capability contributes significantly to the national collection posture of the defense intelligence community and combatant commanders.

The committee understands that the EP-3E program was not fully prepared for the cancellation of the ACS, and that significant deficiencies to aircraft mission systems are expected in fiscal year 2007.

Therefore, the committee recommends $66.8 million, an increase of $10.0 million for additional service life extension modifications needed to sustain the EP-3E.

H-53 series modifications

The budget request contained $28.3 million for H-53 series modifications, but included no funds for the advanced helicopter emergency egress lighting system (ADHEELS).

The ADHEELS provides crew escape lighting for helicopters in the event of water impact. The committee understands that the Department of the Navy has selected ADHEELS as its future helicopter escape lighting system due to its superior performance, significantly increased operational reliability, and lower life cycle costs, and has recently equipped all SH-60 helicopters with this system; and therefore, the committee recommends that the ADHEELS also be installed on the Navy's fleet of H-53 helicopters.

Consequently, the committee recommends $31.3 million for H-53 series modification, an increase of $3.0 million to begin the installation of ADHEELS in the Navy's H-53 helicopter fleet.

P-3C modernization

The budget request contained $204.6 million for P-3C aircraft modifications, but contained no funds for the P-3C high resolution digital recorder.

The committee understands the P-3C aircraft has been used extensively in the global war on terrorism as a surveillance and targeting platform to provide time-sensitive targeting information to ground forces and other airborne assets. As part of the P-3C anti-surface warfare improvement program (AIP) upgrade, a next generation high resolution combined video and radar recorder has been developed to replace the legacy recorder. The committee understands that without key technology upgrades and aircraft parts obsolescence management, the P-3C ability to meet the Navy's Fleet Response Plan will be degraded.

Therefore, the committee recommends $207.6 million, an increase of $3.0 million for procurement of ten high resolution digital recorders.

WEAPONS PROCUREMENT, NAVY

OVERVIEW

The budget request for fiscal year 2007 contained $2.6 billion for Weapons Procurement, Navy. The committee recommends authorization of $2.5 billion, a decrease of $38.0 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Weapons Procurement, Navy program are identified in the table below. Major changes to the Navy request are discussed following the table.

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ITEM OF SPECIAL INTEREST

Conventional Trident modification

The budget request contained $957.6 million for Trident II missile modifications, including $38.0 million for the conventional Trident modification (CTM) program. The budget request also contained $111.1 million for strategic missile systems equipment, including $12.0 million for CTM.

The committee understands that the Department of Defense is working to develop the prompt, precision, global conventional strike capability called for in the 2001 Nuclear Posture Review, and in the 2006 Quadrennial Defense Review. The committee also understands that the existing Trident II weapons system provides an opportunity to develop a long range conventional strike capability by leveraging existing technology at relatively low risk.

However, the committee is concerned that the development of this conventional ballistic missile capability for a submarine that has historically carried nuclear armed ballistic missiles could cause a missile launch misinterpretation regarding which type of a warhead a ballistic missile may be carrying. The committee is encouraged that the Department has begun to engage military and civilian leaders of the international community to discuss the United States' intent behind this conventional strike capability, and is also developing measures to preclude misinterpretation of a conventional launch.

However, until this vital policy matter can be resolved, the committee recommends $919.6 million for Trident II missile modifications, a decrease of $38.0 million, and $99.1 million for strategic missile systems equipment, a decrease of $12.0 million.

AMMUNITION PROCUREMENT, NAVY & MARINE CORPS

OVERVIEW

The budget request for fiscal year 2007 contained $789.9 million for Ammunition Procurement, Navy & Marine Corps. The committee recommends authorization of $758.8 million, a decrease of $31.2 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Ammunition Procurement, Navy & Marine Corps program are identified in the table below. Major changes to the Navy & Marine Corps request are discussed following the table.

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SHIPBUILDING AND CONVERSION, NAVY

OVERVIEW

The budget request for fiscal year 2007 contained $10.6 billion for Shipbuilding and Conversion, Navy. The committee recommends authorization of $11.2 billion, an increase of $604.6 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Shipbuilding and Conversion, Navy program are identified in the table below. Major changes to the Navy request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

313 ship navy force structure

The committee applauds the Chief of Naval Operations for developing the Navy's future force structure and the accompanying long-term shipbuilding plan to build it. This long-term plan provides the shipbuilding industry a view into the future that has been lacking. However, the committee is concerned that the plan was developed using unrealistic assumptions that will not make the plan executable. Of greatest concern to the committee is the affordability of the ship construction plan. According to the Navy's estimates, execution of this plan requires a significant increase in shipbuilding funds from $8.7 billion in fiscal year 2006 to $17.2 billion in fiscal year 2011. Obtaining these additional funds in a period of anticipated federal spending reductions will be difficult. The plan also assumes that individual ship acquisition programs can avoid the cost growth that has plagued most Navy ship acquisition programs.

The committee is concerned about the affordability of the Navy's long-term shipbuilding plan, recreating much of the uncertainty about the future of naval shipbuilding that the plan was designed to eliminate.

Aircraft carrier force structure requirements

The committee is concerned by the Chief of Naval Operation's plan to retire the USS John F. Kennedy. According to the Navy's long range shipbuilding plan, if the Navy retires the Kennedy, then the aircraft carrier force will drop to 11 between now and 2012, and then drop to 10 in 2013 and 2014. With the commissioning of CVN-78 in 2015, the aircraft carrier force increases to 11 and then back to 12 in 2019 and beyond.

The committee believes it is the objective of the Chief of Naval Operations to maintain a force of 12 aircraft carriers since the long range shipbuilding plan shows a total of 12 aircraft carriers between 2019 and the far range of the plan in 2036. It is apparent to the committee that the decision to allow the force structure to fall to 10 in the near future is fiscally rather than operationally driven.

The committee believes that the Navy should continue to maintain no less than 12 operational aircraft carriers in order to meet potential global commitments. The committee believes that a reduction below 12 aircraft carriers puts the nation in a position of unacceptable risk.

Arleigh Burke class destroyer modernization

The budget request contained $2.2 million for the Arleigh Burke class destroyer (DDG-51) modernization program.

The committee understands that the DDG-51 modernization program is a comprehensive mid-life modernization effort to ensure mission relevant service life of 35 years for the Arleigh Burke class destroyers. The modernization will include hull, mechanical and electrical technology upgrades to reduce manning and total ownership costs, combat system integrated warfighting improvements, and installation of an open architecture computing environment to allow future ballistic missile defense, air defense and other upgrades. The committee also understands that this modernization effort will focus on earlier Flight I ships (DDG-51 to DDG-71) to ensure they support the Chief of Naval Operations Sea Power 21 requirements of Sea Strike, Sea Shield and ForceNet. The committee believes that because the next generation destroyer, DD(X), will not be fielded until 2013, the DDG-51 fleet must be modernized at an accelerated rate to take earlier advantage of the operating cost reductions and the improved combat system capabilities.

Therefore, the committee recommends an increase of $200.0 million to accelerate the modernization program by two years.

Battleship transfer

In the conference report (H. Rept. 109-360) accompanying the National Defense Authorization Act for fiscal year 2006, the committee included instructions regarding the transfer of the battleships USS Wisconsin and USS Iowa to the Commonwealth of Virginia and State of California, respectively, and the President's reversion authority pursuant to a national emergency. The committee seeks to clarify that the battleships USS Wisconsin and USS Iowa must be regarded as potential mobilization assets and both the recipients and the U.S. Navy are instructed to treat them as such. The committee notes that the following measures should be taken: (1) the ships must not be altered in any way that would impair their military utility; (2) the ships must be preserved in their present condition through the continued use of cathodic protection and dehumidification systems and any other preservation methods as needed; (3) spare parts and unique equipment such as 16-inch gun barrels and projectiles, be preserved in adequate numbers to support the two ships, if reactivated; and (4) the Navy must prepare plans for the rapid reactivation of the two battleships should they be returned to the Navy in the event of a national emergency.

Incremental funding for shipbuilding

The budget request recommends incremental funding for 3 of the 7 ships in the request, including for the first time construction of a surface combatant, the next-generation destroyer DD(X). Furthermore, during the consideration of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163), the Navy sought and was granted the authority to use incremental funding for the next aircraft carrier, which will be recorded as procured in 2008.

The committee remains concerned that the use of incremental funding is not a solution to the Navy's problem in funding shipbuilding. While incremental funding can allow the Navy to smooth out the dramatic spikes in shipbuilding funding required as a result of aircraft carrier construction every four or five years, it does not fundamentally increase the number of ships that a given amount of money will purchase. During the committee's hearings on shipbuilding, all witnesses emphasized the importance of program and funding stability as the top priority for reducing the cost of shipbuilding and sustaining the shipbuilding industrial base. The committee notes that Congress adopted the full funding policy in the 1950s in part because of a concern that incremental funding was detrimental to funding stability. Future congresses may find themselves unwilling, or unable, to fund completion of ships begun in prior years and only partially funded. The committee remains convinced that the full funding policy is the correct policy for funding shipbuilding.

The committee understands that the Department of Defense this year considered submission of a legislative proposal that would permanently authorize the use of `split funding' for aircraft carriers and large deck amphibious ships, and the Navy's fiscal year 2007

shipbuilding plan already assumes such authority for the second LHA class amphibious assault ship. The committee has approved the use of split funding for certain ships in certain cases. However, the committee does not believe that a blanket policy supporting incremental funding for any class of ship is appropriate, and has not included such a provision in the bill.

Littoral combat ship program

The committee is concerned about the uncertainty in the Navy's acquisition strategy for the Littoral Combat Ship (LCS). The Navy recently announced its intention to continue with the Flight Zero design through fiscal year 2009. The Navy plans to procure 15 LCSs through this initial design phase. How long the Navy intends to continue with two separate designs for these vessels remains unclear. The committee believes that it is also unclear when the Navy will place this program into the discipline of the normal acquisition process with definitive and mature requirements and Director, Operational Test and Evaluation, review before continuing with procurement. The Navy's long-range shipbuilding plan calls for procuring 55 LCSs, and the committee encourages the Navy to develop an acquisition strategy for the long-term that clarifies any ambiguity in the current build profile. The committee further encourages the Navy to downselect to one of the two LCS variants currently in procurement in order to achieve economy of scale, or present a compelling case to the congressional defense committees on why both variants should be procured.

Next generation destroyer

The budget request contained $2.6 billion for split procurement of two next generation destroyers (DD(X)).

The committee does not believe the DD(X) is affordable. The committee supports recent efforts by the Navy to `design cost out' of the lead ship and to focus on threshold instead of objective requirements in an effort to reduce the risk of cost growth. However, due to the unusually large number of new technologies being integrated on the next generation destroyer, the committee understands there is no prospect of being able to design and build the two lead ships for the $6.6 billion budgeted.

The committee is concerned that the Navy is attempting to insert too much capability into a single platform. As a result, the DD(X) is now expected to displace over 14,000 tons and by the Navy's estimate, cost almost $3.3 billion each. Originally, the Navy proposed building 32 next generation destroyers, reduced that to 24, then finally to 7 in order to make the program affordable. In such small numbers, the committee struggles to see how the original requirements for the next generation destroyer, for example providing naval surface fire support, can be met. In this day of netted operations, the committee advocates reducing the capabilities resident on the next generation destroyer, to instead rely on the netted sensors and weapons systems of other ships in the strike group. By reducing the requirements for the DD(X), a smaller, less expensive destroyer could be procured in greater numbers.

Because of its expense, the committee does not believe that DD(X) will be procured in sufficient numbers to meet the operational need. However, the committee does believe that the DD(X) program's engineering development models show the potential for some impressive advances in warfighting capability. The committee supports the construction of up to two DD(X)s to demonstrate technologies that could be incorporated into future, more affordable, major surface combatants. The committee recommends that these ships demonstrate as wide a range of technologies as is reasonably feasible, including both the advanced induction and permanent magnet motor propulsion concepts that were originally investigated for DD(X).

Therefore, the committee recommends $2.6 billion to fund one next generation destroyer as a technology demonstrator.

Shipbuilding/ship repair industrial base capacity

The committee believes that the ability to build naval ships and submarines is a critical national asset. Therefore, it is imperative that the United States sustain a healthy ship design, engineering and construction capability.

The first tier shipbuilding/ship repair industrial base is made up of six private and four public shipyards. Since there is very little commercial large-ship shipbuilding currently being executed in these shipyards, all 10 shipyards are almost wholly dependent on Department of Defense (DOD) work for sustainment.

The committee is concerned that the U.S. shipbuilding/ship repair industrial base has significant capacity beyond what is necessary for all anticipated DOD new construction and maintenance work, and believes that Navy ship acquisition programs are paying the price.

The Navy recently published a long-term shipbuilding plan that supports the goal of building and maintaining a 313 ship Navy by 2020. Although this plan provides the needed `stability' that the U.S. shipbuilding industry has been looking for, it does not appear to generate enough work to keep the major U.S. shipbuilders operating at their current capacity. Evidence of this is most obvious at General Dynamics Electric Boat Division where the contractor is planning to lay off hundreds of designers and engineers and thousands of production workers in the next several years. The plan to increase the procurement of Virginia class submarines from 1 to 2 per year has been delayed for over 10 years and the latest plan has the increase happening in fiscal year 2012. Similar challenges will affect the shipyards now constructing the last of the DDG-51 destroyers. Those yards are starting to ramp up to build the next generation destroyer, however, the next generation destroyer is not expected to be built in a sufficient quantity to keep the current workforce fully employed.

The committee directs the Secretary of the Navy to report to the congressional defense committees on measures that can be taken to manage the capacity of the shipbuilding/ship repair industrial base in a manner that would make Navy shipbuilding more affordable. Such report shall be submitted by the submission of the President's request for fiscal year 2008, as required by section 1105 of title 31, United States Code.

Ship cost estimates

The committee is deeply concerned about the process used for establishing the Navy's ship cost estimates. The committee notes that the original cost estimates on numerous existing ship classes have regularly been described by the Navy as inaccurate and unrealistic when those ships near completion of construction. The committee notes that in several cases it has been informed that ship cost estimates delivered to the committee in prior years either intentionally or unintentionally excluded certain known shipbuilding costs such as escalation, and that these cost estimates were known to be inaccurate on the day they were first delivered to the committee. The committee recommends that the process for deriving ship cost estimates be revised to ensure that all major known elements of ship cost are routinely included in all ship cost estimates.

The committee notes that Sections 122, 123, and 124 of the bill would impose cost limitations on three current ship classes based on the Navy's latest costs estimates. The committee further notes that the imposition of these statutory cost limitations makes the need for a high level of confidence in the cost estimates for these ship classes unusually important. Accordingly, the committee directs that the Secretary of the Navy revalidate the cost estimates for CVN-21, for the ships currently programmed in the LHA Replacement program, and for the eight ships of the San Antonio class amphibious ship that follow the lead ship. The committee further directs that the revalidated costs estimates be submitted for review and approval by the Under Secretary of Defense for Acquisition, Technology, and Logistics. Finally, the committee directs that no later than July 1, 2006, the Secretary of the Navy submit a report in writing to the congressional defense committees containing the revalidated cost estimates for these ship classes including a certification by the Secretary that all known and anticipated major elements of cost have been included in the estimate.

Virginia class submarine

The budget request contained $676.6 million for advance procurement funding for Virginia class submarines.

The committee believes that the Navy's attack submarine force structure must be maintained at no less than 48 submarines in order to meet potential global commitments. The Navy's Annual Long-Range Plan for Construction of Naval Vessels for fiscal year 2007 shows that the force will decrease below 48 attack submarines between 2020 and 2033, reaching a low of 40 attack submarines in 2028 and 2029. The committee believes that a reduction below 48 attack submarines puts the country in a position of unacceptable risk.

Therefore, the committee recommends $1.1 billion for advance procurement of Virginia class submarines, an increase of $400.0 million for the procurement of a second Virginia class submarine in fiscal year 2009.

OTHER PROCUREMENT, NAVY

OVERVIEW

The budget request for fiscal year 2007 contained $5.0 billion for Other Procurement, Navy. The committee recommends authorization of $5.0 billion, an increase of $74.9 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Other Procurement, Navy program are identified in the table below. Major changes to the Navy request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

AEGIS land-based test site modernization

The budget request contained $75.3 million for AEGIS support equipment, but included no funds for modernizing AEGIS land-based test sites.

The committee understands that the AEGIS land-based test sites are essential to the operational effectiveness of the AEGIS weapons system, including the development of an integrated missile defense system capable of providing a layered defense against ballistic and cruise missiles. The committee is aware that in order to maintain the highest possible level of effectiveness, the land-based test sites require state-of-the-art upgrades to peripheral emulators and switching systems used to collect and analyze combat system performance data. Modernization of the emulators and switches will ensure timely testing, certification and delivery of updated AEGIS baselines to the fleet.

The committee recommends $80.3 million for AEGIS Support Equipment, an increase of $5.0 million to be used for modernizing AEGIS land-based test sites.

Amphibious ship integrated bridge system

The budget request contained $31.0 million for other navigation equipment, but included no funds for the amphibious ship integrated bridge system.

The committee is aware that the Navy has directed that all ships in the fleet will use electronic navigation/electronic charting by the end of fiscal year 2009. The committee believes that additional funding will allow for the conversion of amphibious ships to electronic navigation/electronic charting, allowing them to meet the Navy's goal. Conversion to electronic navigation/electronic charting will allow a reduction in bridge manning, saving an estimated $0.6 million per ship per year, more than paying for the conversion in less than three years.

The committee recommends $35.5 million for other navigation equipment, an increase of $4.5 million to be used for the amphibious ship integrated bridge system.

AN/SPQ-9B radar

The budget request contained $2.5 million for the AN/SPQ-9B radar, but included no funds for testing of the AN/SPQ-9B on the littoral combat ship (LCS).

The committee is aware that the two LCS variants now under construction are to be delivered with tactical/fire control radars chosen by the prime contractors. The committee believes that the AN/SPQ-9B tactical/fire control radar, already in the Navy inventory, may provide superior self-protection against anti-ship sea skimming missiles than the radars being provided. The AN/SPQ-9B radar has been thoroughly tested by the Navy and a successful radar operational assessment was completed in September 2002. The committee is aware that an identification friend or foe capability, an LCS requirement, was successfully added in 2005. The ability to provide volume surveillance, another LCS requirement, is presently under development and scheduled for completion in the spring or summer of 2006. The committee believes that additional funds will be used for the procurement of the AN/SPQ-9B radar for the LCS program.

The committee recommends $8.5 million for the AN/SPQ-9B radar, an increase of $6.0 million to be used for the testing of the AN/SPQ-9B on the LCS.

AN/SPS-48 radar obsolescence, availability and recovery

The budget request contained no funds for radar support and no funds for the AN/SPS-48 radar obsolescence, availability and recovery (ROAR) program.

The committee is aware that the AN/SPS-48 ROAR program's goal is to maintain and support the air defense capabilities on aircraft carriers, amphibious assault ships and the San Antonio class amphibious warfare ships.

The committee recommends $7.3 million for the AN/SPS-48 radar obsolescence, availability and recovery program to accelerate the ROAR program by two years.

Boat lifts for small boats

The budget request contained $41.1 million for standard boats, but included no funds for boat lifts for shore-based small boats.

The committee understands that the current inventory and generally poor material condition of boat lifts at shore activities has reduced the level of boat readiness and increased lifecycle costs. The committee is aware that modern, state-of-the-art boat lifts, due to their design and capabilities, will expand boat service life, reduce maintenance costs, and permit quick and safe docking and boarding. Therefore, the committee recommends that modern commercial-off-the-shelf boat lifts be purchased and installed at small boat shore facilities to reduce lifecycle costs and improve operational readiness of the shore-based small boat fleet.

The committee recommends $42.1 million for standard boats, an increase of $1.0 million to be used for the procurement of modern boat lifts for shore activities.

Canned lube pumps for amphibious ships

The budget request contained $172.8 million for items under $5.0 million, but included no funds for installing canned lube pumps on the Harpers Ferry and Whidbey Island class amphibious ships.

The committee believes that the currently installed lube oil pumps have a high failure rate, leak excessively, and are driving up maintenance costs. Installation of the canned lube oil pumps will provide operating efficiency and reduce maintenance costs.

The committee recommends an increase of $4.0 million for items under $5.0 million, to be used for installing canned lube pumps on the Harpers Ferry and Whidbey Island class amphibious ships.

CVN propeller replacement program

The budget request contained $172.8 million for items under $5.0 million, but included no funds for the CVN propeller replacement program.

The committee understands that the old-design propellers on the Nimitz class aircraft carriers suffer from blade erosion caused by cavitation and the high operating tempo of recent years. Propeller refurbishment on the outboard and inboard propellers is required every three and six years, respectively. The committee believes that the new-design propellers will require refurbishment every 12 years, more closely corresponding to the interval of aircraft carrier drydockings. The committee also believes that propeller replacement will lead to increased ship operational availability and reduced disruptions to planned maintenance schedules.

The committee recommends an increase of $3.5 million for items under $5.0 million, to be used for the CVN propeller replacement program.

Laser marksmanship training systems

The budget request contained $18.2 million for training support equipment, but included no funds to procure laser marksmanship training systems (LMTS) for the Navy Reserve.

The LMTS is a proven laser-based marksmanship training system that simulates live-fire training, can be used in various environmental conditions and locations, as well as allowing sailors to train with their own primary personal defense weapon to engage various types of targets.

The committee is aware this system contributes to individual sailor and unit readiness, improves skill retention, reduces unit training costs and achieves environmental cost avoidance associated with traditional live-fire training exercises. The committee understands the Navy Reserve has a program to field LMTS to all Navy Reserve Centers.

The committee recommends $26.2 million for training support equipment, an increase of $8.0 million to accelerate the fielding of LMTS to all Navy Reserve Centers.

Man overboard identification system

The budget request contained $58.6 million for command support equipment, but included no funds for the man overboard identification system.

The committee is aware that the man overboard identification system provides an active means by which a Navy ship can be immediately alerted to a man-overboard incident and further allows for precise location of the individual in the water, thus reducing the chance of serious injury or death. Each sailor or marine wears a small transmitter on his life jacket, that, when activated upon water entry, transmits a signal to the ship identifying the specific sailor, the ship from which he fell and the global positioning system coordinates of the incident. A direction finder then tracks the location of the man-overboard during the rescue effort. Under the current installation plan, the Navy would provide man-overboard transmitters only to those sailors and marines identified as at risk, approximately a third of all crew onboard. The committee believes that the Navy needs to consider providing a transmitter for every crewmember on the ship, not just those considered at risk.

The committee recommends $67.4 million for command support equipment, an increase of $8.8 million to be used for the man overboard identification system.

Materials handling equipment

The budget request contained $13.7 million for materials handling equipment (MHE), but contained no funding to procure an 11,000 pound rough terrain, self deployable, manually operated forklift system capable of operating efficiently in nuclear, biological, and chemical environments for the Navy Construction Force (NCF) Seabees.

The committee is aware the NCF Seabees are in the process of recapitalizing their fleet of construction equipment and MHE. The committee supports this initiative and notes that the high operational tempo coupled with the harsh environment of Iraq has consequently resulted in some equipment becoming uneconomical to either repair or to rebuild through service life extension programs or recapitalization programs.

The committee notes this system would address NCF Seabees lift requirements for fiscal year 2007. The committee recommends $23.7 million in materials handling equipment, an increase of $10.0 million to accelerate the procurement and delivery of 100 forklift material handling equipment systems for the NCF Seabees.

Medical support equipment

The budget request contained $5.6 million for medical support equipment, but included no funding for 3,600 lightweight and NATO-standard litters and litter load carriage tools; 2,500 lightweight, combat medics' bags; or 4,500 onboard kits for tactical vehicles, which include pelvic stabilization devices, ear nose and throat packs, airway tools, and tourniquets. The committee recommends more fully equipping naval expeditionary forces to enable field medical personnel in tactical units to stabilize and evacuate casualties more rapidly, efficiently, and safely.

The committee recommends $11.8 million for medical support equipment, an increase of $6.2 million for combat casualty care equipment upgrades.

Multi-climate protective system

The budget request contained $18.6 million for various aviation life support items, but included no funds for the multi-climate protective system (MCPS).

The MCPS is a modular protective aircrew clothing ensemble that provides flame protection, thermal protection, and sufficient insulation while reducing the heat stress and bulk commonly associated with cold weather clothing systems. Components of the system can be used in a wide range of temperatures and climate conditions. The committee understands that funding to procure 5,532 MCPSs has been obligated thus far, and that the Department of the Navy's MCPS requirement is for 25,000 systems. The committee believes that procurement of the MCPS should continue.

Accordingly, the committee recommends $22.6 million for aviation life support, an increase of $4.0 million for procurement of the MCPS. Additionally, the committee strongly encourages the Department of the Navy to include the necessary funds for the MCPS in its future budget requests to meet MCPS requirements.

Multi-spectral threat emitter system

The budget request contained $56.2 million for weapons range support equipment, but included no funds for the multi-spectral threat emitter system (MTES).

The MTES provides a mobile surface-to-air and air defense artillery electronic threat simulation for aircraft along the East Coast of the United States to provide for more realistic aircrew proficiency training. The committee notes that Congress appropriated $2.5 million for fiscal year 2005 and $2.1 million for fiscal year 2006 for the MTES, and recommends authorization of additional funds to complete the procurement of two MTES systems.

Accordingly, the committee recommends $64.2 million for weapons range support equipment, an increase of $8.0 million for procurement of two MTESs.

Serial number tracking system

The budget request contained $12.1 million for other supply support equipment, but included no funds for implementation of the serial number tracking system.

The serial number tracking system provides a web-based, cradle-to-grave total asset visibility of individual components through the supply, maintenance and transportation processes. The technology enables rapid and accurate data collection for information systems and permits logistics data to be used Navy-wide for increased readiness. The committee recommends the implementation of the serial number tracking system application in the areas of shipboard medical equipment, warehouse and ground support equipment management at Naval and Marine Corps Air Stations. The committee believes that the use of modern commercial-off-the-shelf automatic identification and data collection technologies like the serial number tracking system for critical asset management will yield significant improvements in productivity and effectiveness.

The committee recommends $15.1 million for command support equipment, an increase of $3.0 million to be used for implementation of the serial number tracking system.

Submarine communications upgrades

The budget request contained $12.3 million for satellite communications systems, but included no funds for the Miniaturized Demand Assigned Multiple Access (mini-DAMA) communications set upgrades.

The committee understands that the mini-DAMA communications set provides communications links necessary for command and control of battlegroups, as well as for control, targeting and battle damage assessment for deployed tomahawk weapons. The committee is aware that due to program delays in the Joint Tactical Radio System, it is necessary to perform mini-DAMA upgrades in the submarine fleet to avoid degradation of combat missions.

The committee recommends an increase of $2.1 million to be used for mini-DAMA communications set upgrades in the submarine fleet.

Submarine non-tactical application delivery interface system shore interface

The budget request contained $24.8 million for submarine training device mods, including $2.9 million for the submarine non-tactical application delivery interface system (SNADIS) shore interface.

The committee recommends authorizing additional funds to allow the Navy to accelerate the development and integration of the shore command system with the existing deployed ship based SNADIS. When these two systems are fully integrated and sharing information, both the ship's commanding officer and shore commander will have the information available to assess and evaluate the readiness of the submarine force.

The committee recommends $27.8 million for submarine training device mods, an increase of $3.0 million to be used for the SNADIS shore interface.

Ultrasonic maintenance tools

The budget request contained $172.8 million for items less than $5.0 million, but included no funds for ultrasonic maintenance tools.

The committee understands that ultrasonic maintenance tools have the potential to significantly reduce ship maintenance man-hours by eliminating several time consuming maintenance procedures currently used to locate and identify compartment integrity breeches, fluid system leaks, bearing and gear anomalies and clogged engine fuel injectors. The committee believes significant cost-savings may be attained with maintenance reducing technology.

The committee recommends an increase of $2.5 million for the procurement of ultrasonic maintenance tools.

PROCUREMENT, MARINE CORPS

OVERVIEW

The budget request for fiscal year 2007 contained $1.3 billion for Procurement, Marine Corps. The committee recommends authorization of $1.2 billion, a decrease of $49.7 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Procurement, Marine Corps program are identified in the table below. Major changes to the Marine Corps request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Envelope protective covers for marine expeditionary unit weapon systems and platforms

The budget request contained $31.8 million for fire support systems, but included no funds to procure envelope protective covers for Marine Corps Expeditionary Units' (MEUs) weapon systems and platforms.

The committee understands the Navy currently employs envelope protective covers for equipment platforms and weapon systems. The committee notes that widespread use of envelope protective covers by the Navy is generating higher equipment readiness ratings for protected naval weapon systems and platforms, as well as lower maintenance requirements, reduced manpower requirements, and higher return on equipment investments. The committee encourages the Marine Corps to field similar envelope protective covers to seven MEUs to cover such equipment platforms as the M777 lightweight 155mm howitzers and M198 155mm howitzers, as well as to capitalize on the economic and performance benefits provided by these protective covers.

The committee recommends $34.8 million in fire support systems, an increase of $3.0 million to procure envelope protective equipment covers for seven MEUs.

Intelligent surveillance systems

The budget request contained $13.8 million for training devices, but contained no funding for a modular intelligent surveillance training system.

The committee understands a modular intelligent surveillance system would provide Marine Corps trainers with improved situational awareness of military personnel conducting urban training exercises, and would provide immediate feedback to the training unit in after action review format. Further, the committee is aware this system would allow trainers to observe in real-time a training event either from a `blue' or `opposing' force perspective; a capability not currently employed by existing training systems.

The committee recommends $18.8 million for training devices, an increase of $5.0 million to procure modular intelligent surveillance training systems.

Laser perimeter awareness system

The budget request contained $5.2 million for physical security equipment, but included no funds to procure laser perimeter awareness systems (LPAS).

The LPAS is an all-weather surveillance sensor system that would detect the presence and track the motion of intruders, locating them in range, bearing, and elevation with respect to the position of the sensor.

The committee understands Marine Corps regulations governing the security of arms, ammunition, and explosives, as well as aviation assets, mandate constant surveillance and restricted access to these assets. The committee is aware that Marine Corps installations are currently equipped with base-wide electronic security systems that are outdated and require extensive modernization. The committee notes the LPAS would provide critical enhancements to existing security and force protection technology to meet current Marine Corps security requirements outlined in the Marine Corps's Flightline Security Enhancement Program (FSEP), as well as increase the effectiveness of available security manpower.

Therefore, the committee recommends $14.7 million for physical security equipment, an increase of $9.5 million to procure three LPAS and associated equipment, as well as to address a Commandant of the Marine Corps unfunded requirement.

AIRCRAFT PROCUREMENT, AIR FORCE

OVERVIEW

The budget request for fiscal year 2007 contained $11.5 billion for Aircraft Procurement, Air Force. The committee recommends authorization of $13.0 billion, an increase of $1.6 billion, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Aircraft Procurement, Air Force program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

B-1B molecular sieve oxygen generation system

The budget request contained $53.1 million for B-1B aircraft modifications, but included no funds for the molecular sieve oxygen generation system (MSOGS) reliability improvement program.

The committee understands the MSOGS is the B-1B oxygen generation system which consists of a concentrator, water separator, and a back-up oxygen system that provides the aircrew with an unlimited source of oxygen for breathing during flight. The committee notes that while operating in forward basing locations containing a high humidity level, the rate of repair for the MSOGS has doubled causing negative impacts to operationally available aircraft. The committee is aware that the original equipment manufacturer has identified an improved, high-efficiency water separator that would enhance the reliability of the MSOGS, increase operational availability of the aircraft, and eliminate the need for a depot level repair.

Therefore, the committee recommends $57.6 million, an increase of $4.5 million for the MSOGS reliability improvement program.

B-2 radar modification program

The budget request contained $191.3 million for B-2 modernization, including $160.7 million for the B-2 radar modification program (RMP).

The committee understands that in October 2000, the Department of Commerce notified the Department of Defense that the B-2 must vacate its current operating frequency before a classified near-term date (NTD) and relocate to a frequency band where the U.S. Government is the primary user. The committee understands that this raised a significant challenge for the Air Force due to budget cycle timing. The committee notes the Air Force started the program in fiscal year 2003 to replace the B-2 radar system by the NTD and modeled the program around a traditional acquisition structure.

The committee notes the B-2 RMP plans to make a low-rate production decision in February 2007, to procure four radar modification units in fiscal year 2007. However, the committee understands that radar flight testing will not have progressed to the point that the first of two planned radar software blocks is fully tested and certified until the beginning of fiscal year 2008. Although flight testing will be underway, only 23 percent of the flight testing is expected to be completed by the beginning of fiscal year 2007. The committee recognizes that producing RMP units before ensuring that the design is mature and functions in its intended environment can increase the likelihood of design changes that lead to cost growth, schedule delays, and performance problems.

Although the committee realizes the challenges presented to the Air Force to correct the radar frequency issue promptly, the committee strongly discourages future programs from this methodology of proceeding into low-rate production before program components have been fully tested and certified.

B-52 force structure

The budget request included a proposal to retire 18 B-52 aircraft in fiscal year 2007, and 20 B-52 aircraft in fiscal year 2008.

The committee understands that the 2006 Quadrennial Defense Review directed the Air Force to reduce the B-52 force to 56 aircraft and use the savings to fully modernize the remaining B-52s, B-1s, and B-2s to support global strike operations. However, the committee understands that the estimated $680.0 million savings garnered from the proposed B-52 retirement in the remaining Future Years Defense Program (FYDP) has not been reinvested into modernizing the current bomber force, but has instead been applied towards Air Force transformational activities. The committee also understands that the current B-52 combat coded force structure is insufficient to meet combatant commander requirements for conventional long-range strike, if the need should arise to conduct simultaneous operations in two major regional conflicts.

Additionally, the committee is concerned that the decision to retire 38 B-52 aircraft is primarily based on the nuclear warfighting requirements of the Strategic Integrated Operations Plan, and did not consider the role of the B-52 in meeting combatant commander's conventional long-range strike requirements. The committee disagrees with the decision to reduce the B-52 force structure given that the Air Force has not begun the planned analysis of alternatives to determine what conventional long-range strike capabilities and platforms will be needed to meet future requirements.

The committee is deeply concerned that retirement of any B-52 aircraft prior to a replacement long-range strike aircraft reaching initial operational capability status is premature. Further, the committee strongly opposes a strategy to reduce capability in present day conventional long-range strike capability in order to provide funding for a replacement capability that is not projected to achieve initial operational capability until well into the future.

Therefore, the committee included a provision (section 131) in this Act that would prohibit the Air Force from retiring any B-52 aircraft, except for the one B-52 aircraft no longer in use by the National Aeronautics and Space Administration for testing. Additionally, this section would require the Air Force to maintain a minimum B-52 force structure of 44 combat coded aircraft until the year 2018, or until a long-range strike replacement aircraft with equal or greater capability than the B-52H model has attained initial operational capability status.

C-130 modifications

The budget request contained $217.7 million for C-130 modifications, but included no funds for the C-130 scathe view communication systems improvement, or for procurement of the AN/APN-241 radar for the Air Force Reserve Command (AFRC).

The C-130 scathe view system provides a near-real-time imaging capability to support humanitarian relief and non-combatant evacuation operations. The committee understands that the C-130 scathe view system currently has a short-range, line-of-sight capability to transmit full motion video, but this capability could be extended to longer ranges with a tactical common data link (TCDL) upgrade. Therefore, the committee recommends an increase of $1.8 million for procurement of a TCDL upgrade to the C-130 scathe view system.

The AN/APN-241 is a weather and navigation radar that replaces the 1950's-era AN/APN-59 radar currently installed on the AFRC's C-130 aircraft fleet. The committee understands that the AN/APN-241 radar has significantly improved performance capabilities and a much lower mean-time-between-failure rate. The committee also understands that procurement and installation of the AN/APN-241 radar is the second highest C-130 unfunded priority for the AFRC. Therefore, the committee recommends an increase of $5.5 million to procure AN/APN-241 radars for the AFRC's C-130 fleet.

Therefore, the committee recommends an increase of $1.8 million for the C-130 scathe view communication systems improvement and an increase of $5.5 million for the AN/APN-241 radar for the AFRC.

C-5 modernization programs

The budget request contained $223.1 million for C-5 modernization programs, including $50.4 million for the C-5 avionics modernization program (AMP), $66.7 million for advanced procurement of three reliability and re-engining program (RERP) kits, and $28.9 million for aircraft defensive systems.

The committee understands that the average C-5 aircraft has approximately 70 percent of its forecasted structural life remaining and supports the initiatives to modernize the C-5 fleet. The committee notes that the AMP and the RERP are expected to increase the C-5 wartime operational availability from a current average of 60 percent, to at least 75 percent. Further, the committee understands that the AMP and the RERP have the potential to reduce the total ownership cost of the C-5 aircraft fleet by $24.0 billion (fiscal year 2005 dollars) over the remaining service life of the fleet, and that a return on investment of approximately $13.0 billion (fiscal year 2005 dollars) could be realized by the year 2028.

The committee understands that C-5A aircraft are prohibited from directly delivering cargo into airfields assessed as having a man-portable air defense system (MANPADS) threat. Further, the committee understands that the C-5A aircraft must land at a base outside of these MANPADS threat areas and transfer its cargo onto another aircraft installed with an operational missile warning and countermeasure system, causing an increased delay in getting supplies and equipment to the warfighter.

Therefore, the committee recommends $289.8 million, an increase of $32.0 million for procurement of 8 additional AMP kits; an increase of $12.5 million for procurement of 10, AN/AAR-47 and AN/ALE-47 missile warning and countermeasure dispensing systems; and an increase of $22.2 million for advanced procurement of 1 additional RERP kit.

C-9 hush kits

The committee understands that funds appropriated in fiscal year 2005 for Department of the Air Force C-9 hush kits remain unobligated due to the near-term retirement of these aircraft from the inventory. Hush kits are required to allow the ground maintenance of C-9 engines to meet various locality noise standards for engine ground-run maintenance. The committee also understands that the Department of the Navy plans to maintain its C-9 aircraft for at least the next 10 years, and therefore encourages the Department of Defense to transfer the funding provided for Department of the Air Force C-9 hush kits to the Department of the Navy, ensuring that these funds will be executed to best support the needs of the Department of Defense.

F-22

The budget request contained $1.5 billion for the F-22 aircraft procurement program, but included insufficient funds to procure 20 F-22 aircraft in fiscal year 2007. The F-22 is a multi-mission fighter aircraft that combines a low-observable radar signature with an ability to cruise at

supersonic speeds without the use of thrust augmentation, and performs air dominance, homeland and cruise missile defense, and air-to-ground attack missions. The F-22 achieved its initial operational capability in the first quarter of fiscal year 2006.

The budget request included an F-22 multiyear acquisition strategy to procure 3 lots, numbered as lots 7 through 9, each consisting of 20 aircraft, between fiscal years 2008 and 2010. As part of this strategy, the budget request included a plan to incrementally fund each of these three lots over a three year period through budgeting for advance procurement two years prior to full funding, subassembly activities to be budgeted one year prior to full funding, and final assembly to be budgeted in the third year. The committee understands that the Department of Defense's F-22 multiyear acquisition strategy is inconsistent with the full-funding policy which would allow for advance procurement of long-lead items to protect a delivery schedule, and require a budget for procurement of complete and useable end items in a fiscal year.

The committee considers the F-22 incremental funding acquisition strategy to be wholly unacceptable. The committee believes that the full-funding policy should apply to the F-22 aircraft procurement program, and any other Department of Defense aircraft procurement program contemplated in the foreseeable future. The committee further believes that incremental funding of aircraft procurement programs presents an unacceptable budgeting risk that, due to unforeseen circumstances, future funding increments may not be authorized and appropriated to provide the required funding increments which would result in partially completed end items that are of no military value to the Department of Defense or to warfighting commands.

Therefore, the committee recommends $2.9 billion to fully fund and procure 20 F-22 aircraft in fiscal year 2007, an increase of $1.4 billion. The committee very strongly urges the Department of Defense and the Department of the Air Force to restructure its future F-22 procurement budget plans to comply with the full-funding policy.

F-35

The budget request contained $245.0 million in Aircraft Procurement, Navy for F-35 advance procurement to procure the long-lead items necessary to build eight short take-off and vertical land (STOVL) Navy and Marine Corps variants, which would be fully funded in fiscal year 2008. The budget request also contained $118.3 million in Aircraft Procurement, Air Force for F-35 advance procurement to procure the long-lead items necessary to build eight conventional take-off and landing (CTOL) Air Force variants, which would also be fully funded in fiscal year 2008. Additionally, the budget request contained $869.7 million for the first five CTOL Air Force F-35 variants.

The F-35 program, also known as the joint strike fighter (JSF) program, is developing a family of three strike fighter aircraft for the Air Force, Navy and Marine Corps. About 70 percent of the parts for all three fighter variants will be common. The Air Force CTOL variant will replace the F-16 and A-10 fleets; the Navy variant, or aircraft carrier version (CV), will complement the F/A-18E/F; and the Marine Corps variant, or short take-off, vertical landing (STOVL) version, will replace the AV-8B and the F/A-18C/D fleets.

In the committee report (H. Rept. 109-89) accompanying the National Defense Authorization Act for Fiscal Year 2006, the committee recommended that the F-35 program not begin its low-rate initial procurement program in fiscal year 2007 because testing to determine whether or not the redesigned, lower-weight F-35 production configuration would meet mission requirements would not be known until after the first flights of the lower-weight STOVL and CTOL test aircraft. The committee notes that the first flight of the higher-weight CTOL aircraft has been delayed by three months, resulting in corresponding delays in the first flights of the lower-weight STOVL and CTOL test aircraft, now planned for the second and fourth quarters of fiscal year 2008, respectively.

The Subcommittee on Tactical Air and Land Forces held a hearing on March 16, 2006, at which the Government Accountability Office (GAO) witness testified, that, `the JSF program remains committed to a business case that invests heavily in production before testing has demonstrated an acceptable level of performance of the aircraft,' and that the `program expects to begin low-rate initial procurement in 2007 with less than one percent of the flight test program completed and no production representative prototypes built for the three JSF variants.' As a result, the committee remains very concerned that concurrent development and production of the F-35 is likely to result in further cost increases and schedule delays. The committee notes that the GAO reports that only three percent of the flight test program will be complete in fiscal year 2008, and believes that JSF procurement for fiscal year 2008 should also remain at the fiscal year 2007 procurement quantity of five aircraft.

Accordingly, the committee recommends $92.0 million in Aircraft Procurement, Navy for the advance procurement of long-lead components for three STOVL F-35 aircraft in fiscal year 2008, a decrease of $153.0 million. The committee also recommends $30.3 million in Aircraft Procurement, Air Force, for the advance procurement of long-lead components for two CTOL F-35 aircraft in fiscal year 2008, a decrease of $88.0 million.

KC-135 aerial refueling aircraft recapitalization program

The budget request contained $36.1 million for advanced procurement for the KC-135 aerial refueling aircraft recapitalization program (KC-X). The budget request included a proposal to retire 78 KC-135E aircraft.

The committee fully supports recapitalization of the KC-135 aerial refueling fleet. The committee notes that a system development and design contract would likely not be awarded until the end of fiscal year 2007, in accordance with the estimated acquisition schedule of the Air Force. The committee believes it is premature to authorize advanced procurement funding at such an early stage of the KC-X program.

The committee notes that the Air Force has been restricted since fiscal year 2004 from retiring KC-135E aircraft. However, the committee believes that it is premature to retire 78 KC-135E aircraft in fiscal year 2007 based on the tanker recapitalization program still being in its early stages of execution. The committee recognizes that 29 of the requested 78 KC-135E aircraft selected for retirement have been grounded from flight since fiscal year 2004.

Therefore, the committee included a provision (section 135) in this Act that would permit the Secretary of the Air Force to retire the 29 KC-135E grounded aircraft, and require the Secretary of the Air Force to maintain all retired KC-135Es, beginning in fiscal year 2007, in a condition that would allow recall to future service in the Air Force reserve, guard, or active forces aerial refueling force structure. The committee will consider additional KC-135E retirements based on the future progress of the KC-X program. Lastly, the committee recommends a decrease of $36.1 million for advanced procurement for the KC-X program.

P5 combat training systems

The budget request contained $474.9 million for other production charges, including $4.9 million for the P5 combat training system (P5CTS).

The P5CTS is an airborne instrumentation subsystem pod used by fighter and attack aircraft which provides the capability to conduct air-to-air, air-to-surface, and electronic warfare combat training while providing real-time aircraft monitoring and recording events for post- mission debrief and analysis. The committee notes that the P5CTS budget for fiscal year 2006 was $13.9 million and had been planned for $14.1 million in fiscal year 2007, but understands that this amount was decreased to $4.9 million because the Department of the Air Force reprogrammed $9.2 million for other purposes. As a result, the committee further understands that this decrease will delay P5CTS fielding at various Air Force Bases (AFB), including Shaw AFB where the current P5CTS fielding plan will meet only half of its requirement for 48 P5CTSs.

To address this shortfall, the committee recommends $478.1 million for other production charges, an increase of $3.2 million to procure 24 additional P5CTSs.

Strategic airlift force structure

The budget request contained $2.6 billion for procurement of 12 C-17s, including $389.6 million for shutdown costs of the production line.

The Commander, U.S. Transportation Command and the Commander, Air Mobility Command, both testified before the House Committee on Armed Services March 2, 2006, that no more than 20 C-17s, in addition to the 180 C-17s currently in the Department of Defense's program of record, are needed to meet both the inter-theater and intra-theater airlift requirements, and provide a recapitalization solution for older C-17s being used at a higher than planned utilization rate. Further, the Commanders testified that the range of 292 to 383 strategic airlift aircraft set forth in the Mobility Capability Study (MCS), should not be considered a strict composition of a specific type of aircraft, but should instead be considered a capacity requirement based on an acceptable level of risk. Lastly, the Chief of Staff of the Air Force identified seven additional C-17s as the number one request on the Air Force's unfunded priority list.

The committee is concerned that the decision by the Department to maintain a strategic airlift force structure of 292 aircraft is not based on meeting future airlift requirements, but based on fiscal constraints. Further, the committee is concerned about the acceptable level of risk provided with a strategic airlift force structure of 292 aircraft with critical uncertainties such as defining future Army modularity and intra-theater airlift requirements, the outcome of the C-5 modernization program, the C-130 wing-box repair strategy, and the viability of the Civil Reserve Airlift Fleet to augment future airlift requirements. The committee is concerned that the MCS scenarios used for the modeled year were not intended to fully stress the defense transportation system and is deeply concerned by the shortsightedness of the MCS to project capabilities required past the year 2012. The committee supports the initiative to modernize the C-5 fleet and supports the evaluation of a C-5A aircraft in the Reliability Enhancement and Re- enginging Program (RERP) configuration. Lastly, the committee urges the Secretary of the Air Force when determining the composition of the future strategic airlift fleet, to thoroughly examine the benefits of including both the C-5 and C-17 platforms.

Therefore, the committee included a provision (section 132) in this Act that would require the Secretary of the Air Force to maintain a minimum strategic airlift aircraft force structure of 299 aircraft beginning in fiscal year 2009. Additionally, the provision would repeal section 132 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136), to allow the Air Force flexibility in managing its strategic airlift fleet composition. Lastly, the committee recommends $2.9 billion, an increase of $299.8 million for procurement of 3 additional C-17s. The committee strongly encourages the Secretary of the Air Force to apply the $389.6 million of shutdown costs towards the procurement of these 3 additional C-17s.

T-38 ejection seat upgrade program

The T-38 ejection seat upgrade program (ESUP) upgrades the T-38 ejection seat system with an inter-seat sequencing system that would accommodate a larger population of pilot heights and weights.

The committee notes that the Air Force maintains an inventory of 509 T-38 aircraft, but only 243 aircraft are planned for the ESUP. The committee strongly encourages the Air Force to budget for the ESUP for the entire T-38 fleet.

AMMUNITION PROCUREMENT, AIR FORCE

OVERVIEW

The budget request for fiscal year 2007 contained $1.1 billion for Ammunition Procurement, Air Force. The committee recommends authorization of $1.1 billion, an increase of $4.0 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Ammunition Procurement, Air Force program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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ITEM OF SPECIAL INTEREST

Insensitive munitions upgrade

The budget request contained $235.5 million for general purpose bombs of various types and weights. The committee notes that the Department of the Air Force indicates that 40 percent of the MK-84 2,000-pound general purpose (GP) bombs requested for fiscal year 2007 would be loaded, assembled and packed with a new, more expensive explosive fill, known as MNX-795, instead of trinitroluene (TNT), which are classified as insensitive munitions (IMs).

IMs are those providing a higher degree of safety in the handling, manufacturing, storage, and use because they are more insensitive to unplanned stimuli. The committee understands that IMs will provide substantial improvements in decreasing unplanned high-order detonations due to heat induced by fire, bullet impact, fragment impact, and adjacent detonations; and the committee believes that the percentage of IMs procured for fiscal year 2007 should be expanded.

Accordingly, the committee recommends $239.5 million for general purpose bombs, an increase of $4.0 million to procure additional IMs.

MISSILE PROCUREMENT, AIR FORCE

OVERVIEW

The budget request for fiscal year 2007 contained $4.2 billion for Missile Procurement, Air Force. The committee recommends authorization of $4.2 billion, a decrease of $32.7 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Missile Procurement, Air Force program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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OTHER PROCUREMENT, AIR FORCE

OVERVIEW

The budget request for fiscal year 2007 contained $15.4 billion for Other Procurement, Air Force. The committee recommends authorization of $15.4 billion, an increase of $20.6 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Other Procurement, Air Force program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Cheyenne Mountain complex

The budget request contained $19.3 million for procurement of the Cheyenne Mountain Complex, including $14.9 million for tactical warning/attack assessment systems.

The committee believes that the modernization and integration of the command and control systems at Cheyenne Mountain, Colorado is critical to adequately support the North American Aerospace Defense Command, U.S. Northern Command and U.S. Strategic Command. However, the committee is aware of management deficiencies in the Commander's integrated command and control system (CCIC2S) program, which are resulting in a significant cost overrun and an undefined delivery schedule. Therefore, the committee directs the Secretary of Defense to maintain essential operation and maintenance activities, and limit future investment to only the developmental activities deemed essential to national security needs.

The committee recommends $4.4 million for procurement of the Cheyenne Mountain Complex, a decrease of $14.9 million.

Combat survivor radios

The budget request contained a total of $69.2 million for combat survivor evader locator (CSEL) radios for the Departments of the Army, Navy and Air Force.

The CSEL radio provides combat forces with secure, encrypted, low probability of exploitation, two-way, over the horizon, near real-time data-burst communications with precise location and non-secure, unencrypted line-of-site voice and beacon capability to support survival evasion, and personnel recovery operations. In the committee report (H. Rept. 109-89) accompanying the National Defense Authorization Act for Fiscal Year 2006, the committee expressed its belief that procurement funds should be made available for either the CSEL, or an alternate survival radio, to meet immediate user requirements since the CSEL radio program was late in delivering radios to meet warfighter needs. The committee understands that the Department of Defense requires over 40,000 survival radios, that the CSEL radio program has been able to meet less than a third of those requirements thus far, and that combatant commanders still have an urgent need for survival radios.

Therefore, the committee directs that procurement funds requested for CSEL radios be made available to procure either CSEL radios or alternate survival radio systems that can address the urgent survival radio need.

Combat training ranges

The budget request contained $35.4 million for combat training ranges, but included no funds for the unmanned threat emitter (UMTE) modernization program.

The UMTE modernization program provides updated electronic threat simulations for combat aircrew training. The committee understands that the UMTEs located at the Eielson Air Combat Training Range have been modernized to more accurately replicate current electronic threat systems and that this upgrade has also reduced manpower, operations and support costs. The committee further understands that five UMTEs located at the Nellis Test and Training Range require the UMTE modernization, and believes that these systems should be upgraded.

Consequently, the committee recommends $47.4 million for combat training ranges, an increase of $12.0 million for the UMTE modernization program.

Enterprise data collection solution

The budget request contained $14.6 million for mechanized material handing equipment, but included no funding for the Enterprise Data Collection Solution (EDCS). The committee understands that the EDCS assembles data from various Air Force logistics systems across the enterprise, thus eliminating the need to manually enter data for each transaction. This system will not only save time and money, but it will reduce errors and speed the flow of logistics.

The committee recommends $18.6 million for mechanized material handling equipment, an increase of $4.0 million for the procurement of common EDCS equipment for four key Air Force installations.

Force protection near real time surveillance

The budget request contained $41.4 million for various types of Air Force physical security systems, but included no funds for the force protection surveillance system (FPSS).

The FPSS consists of a tactical communications intercept system, a near real-time video surveillance system, and a tactical internet communications system for dissemination of surveillance information. The committee notes that Congress appropriated an increase of $1.0 million for fiscal year 2006, and believes that additional FPSSs should be acquired.

Accordingly, the committee recommends $44.4 million for Air Force physical security systems, an increase of $3.0 million for the acquisition, deployment and integration of the FPSS into mission planning systems and surveillance platforms.

High frequency ground control station antennas

The budget request contained $7.7 million for radio equipment, including $1.3 million for high frequency ground control station (HFGCS) antennas.

The HFGCS is a strategic and tactical command and control network that provides beyond line-of-sight interoperable voice and data for aircrews. The HFGCS serves as the primary command and control resource for the Air Mobility Command's (AMC) cargo and tanker aircraft. The committee understands that most of AMC's HFGCS antenna inventory is nearing or past its design life and that numerous high frequency antenna are inoperative. The committee notes that the Air Force Chief of Staff included 20 additional HFGCS antennas among his unfunded priorities for fiscal year 2007.

Consequently, the committee recommends $12.7 million for radio equipment, an increase of $5.0 million for the procurement of 20 HFGCS antennas.

Mobile approach control system

The budget request contained $6.2 million for air traffic control and landing systems, but included no funds to procure a mobile approach control system (MACS).

The MACS provides military forces with next-generation mobile air traffic control services, day and night, in all weather conditions, to military and civilian aircraft, and will replace the aging TPN-19 and MPN-14K landing control centers employed by the Department of the Air Force combat communications squadrons and Air National Guard (ANG) air traffic

control squadrons. The committee understands that of 10 ANG air traffic control squadrons, only 4 have the MACS, and believes that its procurement for the ANG should continue.

Consequently, the committee recommends $23.5 million for air traffic control and landing systems, an increase of $17.3 million for one MACS for the ANG.

Self-deploying infra-red streamer

The budget request contained no funds for personal safety and rescue equipment items less than $2.0 million, or for the self-deploying infra-red streamer (SDIRS) system.

The SDIRS system is an 11-inch by 40 foot orange rescue streamer distress signal which includes a water-activated light system. The SDIRS is used in ejection seat-equipped aircraft and is automatically deployed in the event of a water landing. The committee believes that this system assists in more rapidly locating and rescuing downed crew members and that it should be installed on all Department of the Air Force ejection seat-equipped aircraft.

Consequently, the committee recommends $4.0 million for personal safety and rescue equipment items less than $2.0 million, an increase of $4.0 million for procurement and installation of 5500 SDIRS systems.

PROCUREMENT, DEFENSE-WIDE

OVERVIEW

The budget request for fiscal year 2007 contained $2.9 billion for Procurement, Defense-Wide. The committee recommends authorization of $2.9 billion, a decrease of $5.0 million, for fiscal year 2007.

The committee recommendations for the fiscal year 2007 Procurement, Defense-Wide program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Advanced SEAL Delivery System

The committee acknowledges the Department of Defense's recent decision to cancel the Advanced SEAL Delivery System (ASDS) program due to its performance and reliability to date. The committee has expressed its continued concern regarding technical issues, contractor performance, and cost growths throughout the life of the program and will continue to closely monitor the development and fielding of this capability. Additionally, due to the troubled history surrounding the development of ASDS, the committee wants to ensure that the ASDS improvement program (AIP) and accompanying ASDS concept study consider the most current technologies for incorporation into future ASDS capabilities and designs.

Therefore, the committee directs the Secretary of Defense to conduct an ASDS design competition during fiscal year 2007 and authorizes an additional $10.0 million in research and development funding specifically for this competition. Design competition in fiscal year 2007 will ensure that ASDS program decisions made upon completion of the critical systems review portion of the AIP and of phase three of the ASDS concept study take into account current technologies and designs available through related industry research and development as well as the lessons learned from the critical systems review and ASDS concept study. Finally, the committee directs the Secretary of Defense to report to the Senate Committee on Armed Services and the House Committee on Armed Services by June 1, 2007, on the results of the AIP's critical systems review and on the status of an overall ASDS program decision.

Chemical and biological defense procurement

Section 1703 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160) establishes the Chemical and Biological Defense Program. The Joint Program Executive Office for Chemical and Biological Defense (JPEO(CBD)) is now the joint services single focal point for advanced research and development, acquisition, fielding, and lifecycle support of chemical and biological defense equipment. Nevertheless, the military services possess legacy chemical and biological defense equipment, procured prior to the establishment of the JPEO(CBD). The committee directs the Assistant to the Secretary of Defense for Nuclear and Chemical and Biological Defense Programs, acting through the JPEO(CBD), in coordination with the military services, to develop a modernization plan for legacy nuclear, biological, and chemical contamination avoidance; biological defense; collective protection; individual protection; and decontamination systems and to also develop service sustainment plans for systems initially fielded by the JPEO(CBD).

Special operations forces operational enhancements

The budget request contained $434.5 million for special operations forces (SOF) operational enhancements, but included no funds for secure wireless local area network (LAN) cryptographic devices, and only $2.5 million for craft modifications.

The committee recognizes that U.S. Special Operations Command (USSOCOM) has the need to access and transmit classified data over a wireless LAN. Funding would allow USSOCOM to replace the legacy SECNET 11 wireless card with the SECNET 54 card. The committee notes that this item is on the unfunded priority list of the Commander, USSOCOM to provide required secure wireless capability.

The committee recognizes that naval special warfare relies on maritime combatant craft platforms to conduct target interdiction and insertion/extraction of combatant forces. Additional funds for craft modifications would fully equip the entire operational inventory with key technological upgrades. The committee notes that this item is on the unfunded priority list of the Commander, USSOCOM to accelerate technology insertion into this platform.

The committee recommends $444.5 million for SOF operational enhancements, an increase of $1.8 million for the procurement of secure wireless LAN cryptographic devices, and an increase of $8.2 million for craft modifications.

Unmanned aerial systems to counter improvised explosive devices

The committee is aware of numerous systems being offered by non-traditional defense companies seeking to support the global war on terrorism by providing already developed capabilities to counter the improvised explosive device threat.

The committee recommends that the Department of Defense fully review and consider all viable sensor technologies and currently available conventional and vertical take-off and landing unmanned aerial vehicles to address the improvised explosive device threat.

U.S. Special Operations Command aviation modernization

The committee recognizes that U.S. Special Operations Command (USSOCOM) relies primarily on the modification of C-130 aircraft to special operations-capable aircraft to provide its fixed wing special operations mission capability. USSOCOM has maintained its AC-130 and MC-130 fleet through several upgrade programs, to sustain USSOCOM's mission capability until a future fleet of special operations aircraft could be developed and fielded. Because of the increased operating hours placed on USSOCOM's fleet from on-going combat operations, USSOCOM will be unable to maintain its fixed wing capability until a future fleet can be fielded. The committee further understands that the C-130J model aircraft offers USSOCOM a platform that can be recapitalized and modified into tanker, infiltration/exfiltration, and gunship platforms.

Further, the committee recognizes that USSOCOM is expanding its fixed wing fleet with the CV-22 aircraft. The current CV-22 program projects an initial operating capability of 10 aircraft by fiscal year 2009 and a full operational capability of 50 aircraft by fiscal year 2017.

The committee believes that accelerated procurement both of the C-130J for conversion into special operations capable aircraft and of the CV-22 would allow USSOCOM to maintain its special operations mission capability that is currently stretched due to USSOCOM's high operational tempo. The committee directs the Secretary of Defense to submit a report by April 1, 2007, to the Senate Committee on Armed Services and the House Committee on Armed Services on the feasibility of accelerated procurement of the CV-22 and the C-130J aircraft.

LEGISLATIVE PROVISIONS

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SECTIONS 101-104--AUTHORIZATION OF APPROPRIATIONS

These sections would authorize the recommended fiscal year 2007 funding levels for all procurement accounts.

SUBTITLE B--ARMY PROGRAMS

SECTION 111--MULTIYEAR PROCUREMENT AUTHORITY FOR FAMILY OF MEDIUM TACTICAL VEHICLES

This section would grant authority to the Secretary of the Army in fiscal year 2008 to enter into a 3-year multiyear procurement (MYP) contract for the family of medium tactical vehicles (FMTV) for fiscal years 2008-2010. This section would require that should the Secretary of the Army exercise his MYP authority for FMTVs, the contract would follow all federal procurement regulations including full and open competition. Finally, this section would also require that FMTVs procured under this MYP contract to incorporate improvements from lessons learned from operations involving the global war on terrorism, as well as existing FMTV product improvement programs in the areas of force protection, survivability, reliability, network communications, situational awareness and safety.

The committee recognizes the current 5-year MYP contract for FMTV A1R vehicles ends with fiscal year 2007 funding and calendar year 2008 deliveries. The committee notes the Army's Tactical Wheeled Vehicle (TWV) Modernization Strategy Report to Congress stated, `As a risk mitigator, use of contract options will be sought to permit extension of current production models to avoid any breaks in vehicle supply.' The committee is concerned that single year contract awards would be extremely costly for the Army given the large quantity requirements that continue to exist for FMTVs within the modular force construct as well as the quantity requirements that should result from the Army `resetting the force' through repair, recapitalization and replacement of vehicles across the Future Years Defense Program. The committee expects the Army to modernize and recapitalize its TWV fleet with a more capable vehicle or platform that would at the minimum incorporate lessons learned from Operation Iraqi Freedom (OIF).

The committee is aware approximately 31,000 FMTVs have been produced under three successive multiyear contracts that have saved approximately 6-10 percent versus single year procurements. Furthermore, the committee notes that a MYP contract would potentially assure favorable, cost effective prices for a more advanced configuration FMTV that would incorporate lessons learned from OIF, as well as ensure stability in the industrial base.

The committee is aware the Army is conducting an advanced concept technology demonstration (ACTD) for a future tactical truck system as part of its TWV Modernization Strategy. The committee notes an essential component of this ACTD is the maneuver sustainment vehicle (MSV). The committee also notes this vehicle would potentially replace the FMTV and other heavy TWVs, as well as understands the MSV would help shape requirements for the next medium to heavy TWV. The committee notes no formal production schedule exists for the MSV other than the Army would conduct a system demonstration in late calendar year 2006. The committee recognizes that previous comparable TWV schedules would indicate a notional schedule for an MSV production beginning in the 2011 timeframe.

SECTION 112--MULTIYEAR PROCUREMENT AUTHORITY FOR MH-60R HELICOPTERS AND MISSION EQUIPMENT

This section would authorize the Secretary of the Army, acting as the executive agent for the Department of the Navy, to enter into a five-year, multiyear procurement contract for 144 MH-60R helicopters and associated mission equipment beginning with the fiscal year 2007 program year. Further, the multiyear procurement contract authority would be executed in accordance with section 2306b of title 10, United States Code.

SECTION 113--FUNDING PROFILE FOR MODULAR FORCE INITIATIVE OF THE ARMY

This section would require the Secretary of the Army to include the M1A2 Abrams SEP tank and Bradley A3 fighting vehicles within the Army's modularity funding profile beginning with the 2008 budget submission, in accordance with the March 2006 Army report to Congress, `The Army Modular Initiative.'

SECTION 114--BRIDGE TO FUTURE NETWORKS PROGRAM

This section would limit the amounts authorized to be appropriated or otherwise made available pursuant to the authorization of appropriations for the bridge to future networks program, to not more than 70 percent until the Secretary of the Army submits a report to the congressional defense committees. The report would include an analysis of how the Joint Network Node (JNN) and the Warfighter Information Network-Tactical (WIN-T) will be integrated and whether or not there are opportunities to leverage JNN technologies and equipment as part of the WIN-T development effort. The report would also describe the extent to which JNN and WIN-T components would be used together as elements of a single tactical network and the Army's strategy for completing the systems engineering necessary to ensure the end-to-end interoperability of this network.

SUBTITLE C--NAVY PROGRAMS

SECTION 121--ATTACK SUBMARINE FORCE STRUCTURE

This section would amend section 5062 of title 10, United States Code, mandating the Secretary of Defense maintain a minimum force structure of 48 operational attack submarines.

SECTION 122--ADHERENCE TO NAVY COST ESTIMATES FOR CVN-21 CLASS OF AIRCRAFT CARRIERS

This section would limit the total amount to be obligated or expended from funds appropriated or otherwise made available for Shipbuilding and Conversion, Navy, or for any other procurement account, for the detail design, non-recurring engineering and actual construction of the lead ship of the CVN-21 class aircraft carrier program to $10.5 billion. This section would further limit the total amount to be obligated or expended from funds appropriated or otherwise made available for Shipbuilding and Conversion, Navy, or for any other procurement account, for the actual construction of the follow-on ships of the CVN-21 class aircraft carrier program to $8.1 billion. This section would allow the Secretary of the Navy to adjust the limitation amount for economic inflation; changes in federal, State or local laws enacted after September 30, 2006; outfitting and post-delivery costs; and the amounts of increases or decreases in costs of the ship that are attributable to the insertion of new technology. The insertion of new technology would be limited to those technologies that could be used to either lower lifecycle costs or meet an emerging threat. This section would require the Secretary to report any adjustment to the cost limitation with the submission of the annual budget request.

SECTION 123--ADHERENCE TO NAVY COST ESTIMATES FOR LHA REPLACEMENT AMPHIBIOUS ASSAULT SHIP PROGRAM

This section would limit the total amount to be obligated or expended from funds appropriated or otherwise made available for Shipbuilding and Conversion, Navy, or for any other procurement account, for each ship of the LHA replacement amphibious assault ship program to $2.8 billion. This section would allow the Secretary of the Navy to adjust the limitation amount for economic inflation; changes in federal, State or local laws enacted after September 30, 2006; outfitting and post-delivery costs; and the amounts of increases or decreases in costs of the ship that are attributable to the insertion of new technology. The insertion of new technology would be limited to those technologies that could be used to either lower lifecycle costs or meet an emerging threat. This section would require the Secretary to report any adjustment to the cost limitation with the submission of the annual budget request.

SECTION 124--ADHERENCE TO NAVY COST ESTIMATES FOR SAN ANTONIO (LPD-17) CLASS AMPHIBIOUS SHIP PROGRAM

This section would limit the total amount to be obligated or expended from funds appropriated or otherwise made available for Shipbuilding and Conversion, Navy, or for any other procurement account, for eight San Antonio class amphibious ships (LPD-18, LPD-19, LPD-20, LPD-21, LPD-22, LPD-23, LPD-24 and LPD-25) to the cost estimates submitted for those ships with the fiscal year 2007 budget request. This section would allow the Secretary of the Navy to adjust the limitation amounts for economic inflation; changes in federal, State or local laws enacted after September 30, 2006; outfitting and post-delivery costs; and the amounts of increases or decreases in costs of the ship that are attributable to the insertion of new technology. The insertion of new technology would be limited to those technologies that could be used to either lower lifecycle costs or meet an emerging threat. This section would require the Secretary to report any adjustment to the cost limitation with the submission of the annual budget request.

SECTION 125--MULTIYEAR PROCUREMENT AUTHORITY FOR V-22 TILTROTOR AIRCRAFT PROGRAM

This section would authorize the Secretary of the Navy, acting as executive agent for the Secretary of the Air Force and the Commander, U.S. Special Operations Command, to enter into a multiyear contract, beginning with the fiscal year 2008 program year, for procurement of up to 211 V-22 tiltrotor aircraft, of which not more than 185 would be in the MV-22 configuration and not more than 26 would be in the CV-22 configuration.

SECTION 126--QUALITY CONTROL IN PROCUREMENT OF SHIP CRITICAL SAFETY ITEMS AND RELATED SERVICES

This section would amend chapter 633 of title 10, United States Code, by appending a new section 7317 that would require the Secretary of Defense to prescribe in regulations a quality control policy for the procurement of ship critical safety items and the procurement of modifications, repair, and overhaul of such items. This section would require the head of the design control activity for ship critical safety items establish processes to identify and manage

these activities, the head of the contracting activity for a ship critical safety item enter into a contract for these activities only with an approved source, and the ship critical safety items delivered and the services performed meet the technical and quality requirements specified by the design control activity. This section would define the term `ship critical safety item' as any part, assembly, or support equipment of a vessel, the failure, malfunction, or absence of which may cause a catastrophic or critical failure resulting in loss or serious damage to the vessel, or unacceptable risk of personal injury or loss of life. This section would also make conforming amendments to section 2319 of title 10, United States Code.

SECTION 127--DD(X) NEXT-GENERATION DESTROYER PROGRAM

This section would authorize $2.6 billion in Shipbuilding and Conversion, Navy for the next generation destroyer (DD(X)) program. This section would further authorize the Secretary of the Navy to enter into two contracts simultaneously for the DD(X) program during fiscal year 2007. One contract would provide for detail design and construction of a DD(X), while the other contract would provide only for detail design of a DD(X).

SECTION 128--SENSE OF CONGRESS THAT THE NAVY MAKE GREATER USE OF NUCLEAR-POWERED PROPULSION SYSTEMS IN ITS FUTURE FLEET OF SURFACE COMBATANTS

This section finds that securing and maintaining access to affordable sources of oil is a vital national security interest for the United States, and that the nation's dependence of foreign oil is a threat to that security. The section expresses the sense of Congress that the Navy should make greater use of alternative technologies, including nuclear power, as a means of vessel propulsion for its future fleet of surface combatants.

SUBTITLE D--AIR FORCE PROGRAMS

SECTION 131--REQUIREMENT FOR B-52 FORCE STRUCTURE

This section would prohibit the Air Force from retiring any B-52 aircraft, except for the one B-52 aircraft no longer in use by the National Aeronautics and Space Administration for testing. Additionally, this section would require the Air Force to maintain a minimum B-52 force structure of 44 combat coded aircraft until the year 2018, or until a long-range strike replacement aircraft with equal or greater capability than the B-52H model has attained initial operational capability status.

SECTION 132--STRATEGIC AIRLIFT FORCE STRUCTURE

This section would require the Air Force to maintain a minimum strategic airlift aircraft force structure of 299 aircraft beginning in fiscal year 2009, and would repeal section 132 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136).

SECTION 133--LIMITATION ON RETIREMENT OF U-2 AIRCRAFT

This section would preclude the Department of Defense from retiring the U-2 aircraft in fiscal year 2007, and would permit retirement after fiscal year 2007 only if the Secretary of Defense certifies to Congress that the U-2's intelligence, surveillance and reconnaissance capabilities are no longer required.

SECTION 134--MULTIYEAR PROCUREMENT AUTHORITY FOR F-22A RAPTOR FIGHTER AIRCRAFT

This section would authorize the Secretary of the Air Force to enter into a multiyear contract, in accordance with section 2306b of title 10, United States Code, beginning with the fiscal year 2007 program year, for procurement of up to 60 F-22A Raptor fighter aircraft, for three program years, subject to the Secretary of Defense's certification that the conditions specified in subsection (a) of section 2306b of title 10, United States Code, have been satisfied with respect to that contract, and 30 days have elapsed after the date on which the Secretary has submitted the certification to Congress.

SECTION 135--LIMITATION ON RETIREMENT OF KC-135E AIRCRAFT DURING FISCAL YEAR 2007

This section would prohibit the Air Force from retiring more than 29 KC-135E aircraft during fiscal year 2007, and require the Secretary of the Air Force to maintain all retired KC-135Es, beginning in fiscal year 2007, in a condition that would allow recall to future service in the Air Force reserve, guard, or active forces aerial refueling force structure.

SECTION 136--LIMITATION ON RETIREMENT OF F-117A AIRCRAFT DURING FISCAL YEAR 2007

This section would limit the number of F-117A aircraft to be retired by the Secretary of the Air Force in fiscal year 2007 to 10 aircraft, and would require that the Secretary of the Air Force maintain each F-117A aircraft, retired after September 30, 2006, in a condition that would allow recall of that aircraft to future service.

TITLE II--RESEARCH, DEVELOPMENT, TEST, & EVALUATION

OVERVIEW

The budget request contained $73.2 billion for research, development, test, and evaluation (RDT&E). The committee recommends $74.1 billion, an increase of $908.6 million to the budget request.

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ARMY RESEARCH, DEVELOPMENT, TEST, & EVALUATION

OVERVIEW

The budget request contained $10.9 billion for Army research, development, test, and evaluation (RDT&E).

The committee recommends $10.9 billion, an increase of $76.7 million to the budget request.

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ITEMS OF SPECIAL INTEREST

Advanced hypersonic weapon mission planning and control

The budget request contained $11.2 million in PE 63305A for Army missile defense systems integration, but no funds for development of mission planning and control for the advanced hypersonic weapon.

The committee understands that the 2006 Quadrennial Defense Review focuses on the need to provide a prompt global strike capability and the advanced hypersonic weapon (AHW) has the potential to meet this mission with a rapid strike response over long distances. The committee notes that the U.S. Strategic Command and the U.S. Army Space and Missile Defense Command are already exploring the AHW concept. The committee is aware of the need to conduct research into the mission planning and control battle management capability that would integrate the AHW system into future command and control systems.

The committee recommends an increase of $6.0 million in PE 63305A to design, prototype and demonstrate the mission planning and control battle management capability for integration of the AHW into joint warfighting command exercises and simulations.

Applied communications and information networking

The budget request contained $44.0 million in PE 63008A for electronic warfare advanced technology, but included no funds for applied communications and information networking (ACIN).

The committee notes the importance to the Department of Defense (DOD) to integrate state-of-the-art commercial technologies in DOD command, control, communications, computer and intelligences systems. ACIN has supported this objective to enhance high-value military systems with rapidly advancing commercial information technologies and innovative applications of those technologies.

The committee supports the application of state-of-the-art commercial technology to improve military systems and recommends an increase of $7.0 million in PE 63008A for ACIN.

Armored systems modernization

The budget request included $3.3 billion in PE 64645A for armored systems modernization, including $65.5 million for reconnaissance platforms and sensors; $107.7 million for unmanned ground vehicles; $17.7 million for unattended sensors; $146.1 million for sustainment; $570.2 million for manned ground vehicles; and $2.4 billion for system of systems engineering and program management, as part of approximately $3.7 billion requested for the Future Combat Systems (FCS) program.

The committee continues to support a FCS program strategy that is affordable and enables early spin out of FCS technologies into the current force, a top priority of the Chief of Staff of the Army.

The committee continues to have several concerns with the FCS program:

(1) In a prepared statement before the Subcommittee on Tactical Air and Land Forces on April 4, 2006, the Government Accountability Office indicated, `The program remains a long way from having the level of knowledge it should have had before it started product development . . . FCS has all the markers for risk that would be difficult to accept for any single system, much less a complex multi-system effort.'

(2) The FCS Acquisition Decision Memorandum (ADM), approving the programs entry into systems development and demonstration, was signed on May 17, 2003. The ADM directed that there be a milestone B update and independent cost estimate by November 2004. Almost three years later there has been no milestone B update nor an independent cost estimate.

(3) Although firm system-level requirements should have been established at the start of the program, the process of setting and refining FCS system-level requirements may not be complete until the preliminary design review in 2008.

(4) The projected dates for maturing critical technologies have slipped, and some technologies are not expected to mature until well into the design phase of the program and possibly into production.

(5) FCS design and production maturity would not be demonstrated under the current acquisition strategy until after the production decision is made.

(6) The low level of knowledge available today on requirements and technologies makes FCS cost projections very uncertain. FCS program costs are estimated at $160.7 billion, an increase of 76 percent since the program began.

The committee notes that funding for the FCS program represents a significant portion of the Army's modernization budget for the next 20 or more years. According to the Congressional Budget Office (CBO), the Army estimates that total procurement costs for the first 15 brigades' worth of systems is just over $100.0 billion, which translates into an average unit procurement cost of $6.7 billion per brigade at three FCS BCTs per year. In 2005, based on resource constraints, the Army reduced the yearly procurement goal of three FCS brigade combat teams (BCTs) per year to 1.5 per year. With the planned purchase of 1.5 brigades per year to begin in 2015, the FCS program requires $8.0 billion to $10.0 billion annually. CBO notes that based on historical trends, the FCS program costs could grow by 60 percent. CBO estimates that such high rates may push the average annual funding needed for the FCS program from $8.0 billion to 10.0 billion per year to between $14.0 billion to 16.0 billion per year.

The committee is concerned that the spiraling cost growth for Department of Defense (DOD) acquisition programs is at a point where it directly places at risk the ability of the United States to field weapons platforms in sufficient numbers to support U.S. military strategy and national security requirements. The committee notes that the Army's spiraling costs per FCS BCT are forcing the Army into a situation similar to that experienced by the Navy with its next generation destroyer (DD(X)) program. Similar to the DD(X) program, the costs for a FCS BCT is approaching a price where the Army will have to continue to slow down procurement to make the program more affordable, reduce the quantities of FCS BCTs, or attempt to reduce force structure.

The committee believes that as the Department proceeds with its decisions in reference to the FCS program, that it must preserve its ability to change course on acquiring FCS capabilities to guard against a situation in which FCS would have to be acquired at any cost. The Department must hold the Army accountable for delivering FCS within programmed resources.

Accordingly, the committee recommends a decrease of $325.8 million in PE 64645A for armored systems modernization.

AT4 confined space weapon system enhancements

The budget request contained $118.1 million in PE 64808A for system development and demonstration of landmine warfare and barrier technology, but included no funds for enhancements to the AT4 confined space (CS) weapon.

The AT4CS is a shoulder fired weapon system that employs a warhead that produces high lethality and incendiary effects against armored combat vehicles. The committee notes the AT4CS has been utilized in Operation Iraqi Freedom and Operation Enduring Freedom by dismounted infantrymen and special operation forces to great effect, and is currently the only shoulder-fired weapon in the Department of Defense inventory capable of being fired from inside a room; making this weapon a critical combat multiplier in military operations over urban terrain.

The committee understands an anti-structure tandem warhead is in development for the AT4CS. The committee is aware this warhead would provide military personnel operating within a confined space the capability to penetrate 8-inch reinforced concrete and 12-inch triple brick walls. The committee is supportive of rapidly developing technologies that would promote the survivability of military personnel conducting the global war on terrorism.

The committee recommends $121.1 million in PE 64808A, an increase of $3.0 million to continue the development of an anti-structure tandem warhead for use in the AT4CS.

Center for rotorcraft innovation

The budget request included $32.8 million in PE 62211A for aviation and applied research and technology, but included no funds for the Center for Rotorcraft Innovation (CRI).

The Center for Rotorcraft Innovation is a joint effort between the rotorcraft industry, academic research centers and government partners to increase rotorcraft research in the United States. CRI collaborates to expand rotorcraft research and development already underway between the rotorcraft industry and its government partners in the National Rotorcraft Technology Center. It will focus its new research efforts on dual-use technologies that have national security and homeland defense applications. The committee is aware that the CRI is the only initiative of its kind and seeks to further international competitiveness and long-term growth of the U.S. rotorcraft industry.

Accordingly, the committee recommends an increase of $10.0 million in PE 62211A for the CRI.

Digital array radar

The budget request included $64.6 million in PE 63772A for advanced tactical computer science and sensor technology, but included no funds for digital array radar development.

The committee notes the need for reliable counter-fire radars for protection against short-range mortar attack. Technology advances warrant research and development to demonstrate this technology.

Therefore, the committee recommends an increase of $5.0 million to complete development and test digital array radar prototype antenna technology.

Dominant military operations on urban terrain viewer

The budget request included $19.2 million in PE 62270A, but included no funds for the dominant military operations on urban terrain viewer (DMV).

The committee is aware of an applied research technology that has been successfully demonstrated that provides the capability to detect, locate, and track moving and stationary persons within structures from in excess of 100 meters. Employment of such a capability could provide field commanders with a tactical advantage, improved situational awareness, and save lives. A tactical prototype is necessary to complete field evaluation and testing of this capability.

Therefore, the committee recommends an additional $7.4 million in PE 62270A for the design, development, and testing of a DMV prototype.

Environmental quality technology

The budget request contained $5.2 million in PE 63779A for projects focused on validating the general military utility or cost reduction potential of environmental quality technologies, but included no funds for promising research ongoing at facilities around the United States and in other countries to develop lightweight vanadium micro-alloyed steels. The committee recommends that the Department of Defense proceed with full-scale demonstration projects and the transfer of this technology to the domestic steel industry to increase the potential benefits of vanadium micro-alloyed steels.

The committee recommends $9.6 million in PE 63779A, an increase of $4.4 million for the Vanadium Technology Partnership.

Excalibur precision guided artillery munition

The budget request contained $102.5 million in PE 64814A for the Excalibur XM982 precision guided extended range artillery projectile and lifecycle management cost reduction strategies.

The committee recognizes the potential benefits provided through studies of manufacturing technologies and methodologies to help lower production costs without sacrificing stated performance requirements of a weapon system. The committee notes in fiscal year 2005, Excalibur XM982 lifecycle improvement program efforts were able to reduce the production cost of each projectile by 14.1 percent. The committee also notes the fiscal year 2006 cost reduction efforts built upon previous work and expanded production cost reduction of the canard actuation system, as well as insensitive munitions design improvements for the base and warhead of the projectile identified in the lean design review.

The committee is aware the Excalibur XM982 projectile is proceeding into early production to support an urgent fielding requirement in Operation Iraqi Freedom. The committee understands the Excalibur XM982 would potentially reduce collateral damage in urban environments and serve as a significant combat multiplier to military personnel.

Therefore, the committee recommends $112.5 million in PE 64814A, an increase of $11.0 million for the rapid fielding of the Excalibur XM982 Block Ia-1 projectile and for the continuation of lifecycle improvement costs.

Flexible display initiative

The budget request contained $38.4 million in PE 62120A for electronics and electronic devices, but included no funds for the flexible display initiative.

The committee is aware that new flexible display technology has the potential to provide the military with technology to fabricate high definition displays on rugged conformable, flexible substrates. The committee notes that the United States Display Consortium coordinates these efforts with over 80 companies, using investments from both the public and private industry to accelerate the development of technologies and products needed by the Army, other military services, and various national security agencies.

Therefore, the committee recommends an increase of $5.0 million in PE 62120A for the flexible display initiative.

Gas-engine driven air conditioning system demonstrations

The budget request contained $7.8 million in PE 63734A for military engineering, but included no funds for unitary gas-engine driven air conditioning (GEDAC) system demonstrations.

The committee is aware that GEDAC use on bases in the southwest has the potential to save significant electric power and reduce water usage.

Therefore, the committee recommends an increase of $6.0 million in PE 63734A for GEDAC system demonstrations.

High assurance secure object proxy

The budget request contained $120.5 million in PE 35208A for distributed common ground/surface systems, but included no funds for high assurance secure object proxy technology development.

The committee notes that high assurance secure object proxy (HASOP) technology could significantly enhance the ability of the Army to synchronize and integrate organic, joint and multinational sensors and collection capabilities.

The committee recommends an increase of $6.0 million in PE 35208A, for HASOP development.

Human systems integration

The budget request contained $18.9 million in PE 62716A for human factors engineering applied research, including $3.1 million for efforts supporting manpower and personnel integration (MANPRINT).

The committee recognizes human systems integration (HSI) initiatives as a means for reducing total ownership costs of weapons programs, and continues to support efforts to more formally consider HSI issues earlier in the acquisition cycle. As previously noted in the committee report accompanying the National Defense Authorization Act for Fiscal Year 2006 (H. Rept. 109-89), the committee remains concerned about the overall level of coordination and support of HSI efforts throughout the Department of Defense (DOD).

The committee notes the reporting requirement included in H. Rept. 109-89 to assess HSI activity throughout DOD acquisition programs. The committee is in receipt of a preliminary assessment and understands that a more comprehensive review is forthcoming. Concurrent with the recommendations contained in the interim report, the committee urges the department to establish a joint HSI Steering Group, continue the collaborative development of HSI modeling within and across all services, and strive for greater procedural and regulatory HSI uniformity throughout the Department. Further, the committee expects the completion of the comprehensive HSI review in an expeditious manner.

Therefore, the committee recommends an increase of $4.0 million in PE 62716A for MANPRINT.

Integrated digital environment service model

The budget request contained $21.2 million in PE 62782A for command, control, and communications technology, but included no funding for the Integrated Digital Environment Service Model. The committee understands that this program will allow the Army to conduct much needed interoperability analysis of the various communications, command, and control technologies now under development. Most of today's systems were designed for specific needs; such systems must be integrated into the overall Global Information Grid for continued effectiveness.

The committee recommends $25.2 million in PE 62782A for command, control, and communications technology, an increase of $4.0 million for the Integrated Digital Environment Service Model.

Intelligent surveillance sensor suite

The budget request included $44.3 million in PE 63710A for night vision advanced technology, but included no funds for the intelligent surveillance sensor suite.

The intelligence surveillance sensor suite is intended to be used for perimeter security and intrusion detection at high value sites, including chemical storage facilities, securing ammunition caches, and forward operating bases. It employs multiple detection and assessment technologies for a variety of terrain applications.

The committee recommends an additional $6.0 million in PE 63710A for the fabrication and testing of multiple versions of the intelligent surveillance and sensor suite to validate technical data prior to competitive procurement.

Joint land attack cruise missile defense and micro electro mechanical system

The budget request contained $264.5 million in PE 12419A for the Joint Land Attack Cruise Missiles Defense (JLENS) project.

The committee understands the critical role that the JLENS Elevated Netted Sensor program plays in cruise missile defense. The committee further understands that the Micro Electro Mechanical (MEMS) demonstration radar system is an important risk reduction effort in the JLENS acquisition strategy.

The committee recommends an increase of $2.0 million in PE 12419A to complete Phase II development of the Lightweight X-Band Radar MEMS Electronically Steerable Antenna technology demonstration.

Light utility vehicle

The budget request contained $59.3 million in PE 62601A for combat vehicle and automotive technology, but included no funds for the continued development of a light utility vehicle (LUV) demonstrator.

The committee is aware the development of a LUV demonstrator could be accelerated due to previous research in LUV technology by the National Automotive Center. The committee understands the base LUV platform would be improved based on lessons learned through previous development testing. The committee notes improvements to the base platform would include prognostics and diagnostics for systems such as the drive-train, suspension, and steering.

Accordingly, the committee recommends an increase of $6.0 million in PE 62601A to continue the design, development, and delivery of an improved LUV demonstrator.

Lightweight small arms technologies

The budget request contained $7.2 million in PE 63607A for the joint service small arms program, including $6.2 million for lightweight small arms technologies (LSAT). The LSAT program is attempting to reduce the weight of current soldier small arms and small caliber ammunition by 30 to 40 percent.

The committee understands small arms and small caliber ammunition account for two of the four heaviest items an infantryman wears or carries into combat. The committee notes that the basic infantryman entering combat can be required to carry combat configured loads of equipment, that combined, can exceed 90 pounds. The committee is supportive of efforts that would accelerate advanced technologies to reduce the combat carrying equipment load for dismounted infantrymen, as well as notes the benefits lighter combat configured equipment loads would have on soldier performance and mobility.

Therefore, the committee recommends $14.7 million in PE 63607A, an increase of $7.5 million to accelerate the development of caseless small caliber ammunition and to accelerate the early `spin out' of lightweight technology enhancements to existing small arms weapon programs.

Long-term armoring strategy

The committee understands the Army's long-term armoring strategy (LTAS) is a long-term capabilities-based armoring strategy for tactical wheeled vehicles (TWVs) that would provide greater protection to TWVs than the currently fielded add-on-armor kits, as well as provide battlefield commanders with the capability to change protection levels based on the mission, threat, or technology changes by using an A-Kit/B-Kit concept.

The committee understands LTAS is not a program in itself, but rather an armor initiative that would address commonality and standardization of armor-related components across the TWV fleet. The committee notes the LTAS supports the development of an integral A-Kit composed of hard-to-install components and armor panels with structural attachment points for B-Kit armor panels and components. The committee further notes the B-Kit concept would provide units with the flexibility to remove armor during peacetime operations, as well as improve reliability, maintainability, and fuel economy for TWVs. Finally, the committee notes the LTAS would allow for the upgrade of armor protection as the threat increases or as new armoring technologies are developed.

The committee supports this initiative and commends the Army for pursuing this capabilities based strategy. The committee has concerns over the implementation strategy and whether adequate resources are programmed for the LTAS for all families of TWVs across the Future Years Defense Program (FYDP). The committee strongly encourages the Army to adequately fund LTAS within the FYDP and to continue to pursue light weight vehicle armor technology solutions to maximize ballistic protection and vehicle payload capacity.

Medical advanced technology

The budget request contained $50.8 million in PE 63002A for advanced technology research for healthy, medically protected soldiers, but included no funds for the advancement of smart sensing technologies for remote notification of catastrophic physiological events, for evaluating the effectiveness of oxygen diffusion dressings to accelerate wound healing and reduce infection for soft tissue trauma care, or for advancements of the Propaq monitor.

The committee recommends $58.3 million in PE 63002A medical advanced technology, an increase of $3.0 million for Nightengale, remote on-body sensing technologies; an increase of $1.0 million for evaluation and development of oxygen diffusion dressings for accelerated healing of battlefield and other wounds; and an increase of $3.5 million for Thunderbolt, the advanced Propaq monitor.

Medical materiel/medical biological defense equipment--SDD

The budget request contained $14.5 million in PE 64807A for advanced development of medical materiel within the system demonstration and low rate initial production portions of the acquisition lifecycle, but included no funds for a Leishmania diagnostic skin test phase III clinical trial. The development of a diagnostic skin test for Leishmaniasis shows promise, having successfully been tested in phase I safety trials and with a phase II trial scheduled for 2006. Leishmaniasis is not easily diagnosed, yet U.S. military hospitals have treated over 700 clinical cases of Leishmaniasis in military personnel serving in Iraq and Afghanistan.

The committee recommends an increase of $1.7 million in PE 64807A for development of a Leishmania Diagnostic Skin Test.

Miniaturized sensors for small and tactical unmanned aerial vehicles

The budget request included $23.9 million in PE 62709A for night vision technology, but included no funds for miniaturized sensors for small and tactical unmanned aerial systems (UAVs).

The committee notes that among the major requirements for UAVs are miniaturized and wide bandwidth visible, infrared, and radar imaging sensors. Emphasis has been on the larger UAVs and sensor development has continued to lag behind vehicle development, which presents significant power, weight, and cooling challenges in adapting sensors for use in small and tactical UAVs.

Therefore, the committee recommends an additional $6.0 million for miniaturized sensor development for small and tactical UAVs.

Missile recycling capability technology

The budget request contained $10.3 million in PE 63103A for explosives demilitarization technology, but contained no funds for missile recycling capability technology.

The committee is aware missile recycling capability technology provides the Army with an environmentally friendly and cost effective means of disposal for tactical missiles. The committee is also aware this capability is transitioning to prototype production capability. The committee notes this capability reduces the usage of open burn/open detonation for disposing of tactical missiles, as well as complies with current environment regulations.

The committee recommends an increase of $6.0 million in PE 63103A to accelerate the transition of missile recycling capability technology.

Mobile assessment detection and response system

The budget request included $74.7 million in PE 63004A for weapons and munitions advanced technology, but included no funds for the mobile assessment detection and rapid response system (MDARS).

The MDARS unmanned ground vehicle currently provides the capability to patrol, detect intruders, and remotely determine inventory status. The committee is aware of requirements to increase vehicle speed, incorporate operator-controlled non-lethal weapons, and incorporate on-the-move intruder detection.

The committee recommends an additional $6.5 million in PE 63004A to integrate additional capabilities into MDARS.

Next-generation advanced materials research

The budget request contained $11.2 million in PE 63305A for Army missile defense systems integration.

The committee understands that the development of advanced composite materials can enhance the performance of both current and next generation weapons systems. The committee notes that lighter composite materials can significantly improve the design, manufacturing, and performance of future Army conventional missile launchers.

The committee recommends an increase of $6.0 million in PE 63305A to fabricate an integrated missile canister/multi-round pack using state-of-the-art lightweight high strength carbon composites.

Polymer matrix composites for rotorcraft drive systems

The budget request included $64.7 million in PE 63003A for aviation advanced technology, but included no funds for the demonstration of polymer matrix composite drive trains.

The committee notes the low level of funding for technology development for rotorcraft. Improving the capability of rotorcraft drive systems and reducing the operational cost of rotorcraft operation is fundamental to programs like the Joint Heavy Lift Program. These improvements may be achieved through the introduction of non-metallic structures as critical drive system components. Advancements in composite materials and process technologies offer significant improvements over their metallic counterparts and provide for the elimination of corrosion, less fatigue, significant reductions in weight, and lower acquisition and ownership costs.

The committee recommends an increase of $6.0 million in PE 63003A to demonstrate full scale polymer matrix composite drive train test articles under the rotorcraft drive system-21 program.

Portable and mobile emergency broadband system

The budget request contained $44.0 million in PE 63008A for electronic warfare advanced technology, but included no funds for the portable and mobile emergency broadband system.

The committee is aware the portable and mobile emergency broadband system, based on emerging commercial technology, would allow for the rapid establishment of emergency communications networks.

The committee recommends an increase of $4.0 million in PE 63008A to complete the critical development of the portable and mobile emergency broadband system.

Product lifecycle management plus

The budget request contained $55.3 million in PE 33141A for the global combat support system, but contained no funding to accelerate the Product Lifecycle Management Plus system.

The committee believes that the Army's legacy logistics business systems are outmoded and supports the creation of an integrated Army logistics environment. The committee believes the Product Lifecycle Management Plus system is an essential part of future Army logistics systems and supports its rapid deployment.

The committee recommends $61.3 million in PE 33141A for the global combat support system, an increase of $6.0 million to accelerated deployment of the Product Lifecycle Management Plus system.

Radiation hardening initiative

The budget request contained $11.2 million in PE 63305A for Army missile defense systems integration.

The committee is aware of the military requirement to protect our space assets from the effects of high-altitude nuclear weapons and the resulting electro-magnetic pulse. The committee supports efforts to enhance the ability of the developers of space technology to leverage the use of existing radiation hardened (RadHard) technology initiatives resident in the Missile Defense Agency's Space-based Infrared Phase II Radiation-Hardening Catalog effort and other space programs.

The committee recommends an increase of $4.0 million in PE 63305A for the radiation hardening initiative to collect RadHard technology and component information into one central database.

Smart energetics architecture

The budget request included $42.1 million in PE 63313A for missile and rocket advanced technology, but included no funds for the smart energetics architecture project.

The committee is aware that the smart energetics architecture project offers the potential to reduce traditional tactical missile launch system weight by 60 percent, significantly lower system power requirements, and provide savings in lifecycle costs by simplifying assembly, installation and use.

Therefore, the committee recommends an additional $6.0 million in PE 63313A for the smart energetics architecture project.

Stryker vehicle open architecture electronic enhancements

The budget request contained $5.4 million in PE 63653A for the advanced tank armament system, but included no funds for Stryker vehicle open architecture electronic enhancements.

The committee understands the Army's modernization strategy has identified capability gaps in current forces that require the integration of network-centric capabilities into the current Stryker brigade combat teams. The committee notes that the incorporation of open systems electronics architecture into the Stryker vehicles would support block upgrades and the early adoption of emerging network-centric warfare capabilities into the Stryker brigade combat teams.

The committee recommends an increase of $10.0 million in PE 63653A for Stryker vehicle open architecture electronic enhancements in support of the Army's modernization strategy.

Tactical wheeled vehicle product improvement program

The budget request contained no funds for the tactical wheeled vehicle (TWV) product improvement program (PIP).

The committee understands the Army is faced with the difficult challenge of implementing its TWV modernization strategy and must leverage three competing factors in support of current operations and fleets, transforming TWVs to attain future fleet capabilities and achieving modularity requirements. The committee notes the Army requires the flexibility to rapidly evaluate and integrate readily available technology into TWV platforms as part of this TWV modernization strategy.

The committee has concerns over the lack of funding programmed for the TWV PIP initiative in the President's request. The committee believes TWV PIP technologies would have a real-time impact and effect on existing TWVs and would provide increased capability in the areas of performance and survivability. Consistent with committee views as expressed in the committee report (H. Rept. 109-89) accompanying the National Defense Authorization Act for Fiscal Year 2006, the committee continues to support a TWV PIP initiative, as well as strongly encourages the Secretary of the Army to adequately fund this initiative in the Future Years Defense Program.

The committee recommends an additional $10.0 million to continue the TWV PIP initiative.

Training-based collaborative research in military consequence management

The budget request contained $18.9 million in PE 62716A for human factors engineering applied research, but contained no funding for training-based collaborative research in military consequence management efforts.

The committee recognizes the need for innovative approaches to improve military consequence management initiatives, especially in complex and dynamic threat environments. The committee understands advanced capabilities are necessary in the fields of military law enforcement, engineering, chemical-biological management and training, mines and unexploded ordnance, and non-lethal weapons. The committee believes a commitment to technology transfer initiatives, coupled with efforts to establish well-defined training performance measurements, offers the greatest potential for advances in training effectiveness.

Therefore, the committee recommends an increase of $20.0 million in PE 62716A for training-based collaborative research.

Transparent armor

The budget request contained $64.7 million in PE 63003A for aviation advanced technology, but contained no funding for advanced lightweight armored window technology.

The committee recognizes the unique threat confronting air crews operating rotary aircraft in forward deployed areas. The committee is supportive of efforts to rapidly field advanced technologies to enhance the protection of military personnel. The committee understands that significant opportunities exist to facilitate the transition of technologies from research and development to testing and fielding, particularly in the area of self-protection. The effort to develop transparent, lightweight armor is one such opportunity, as it offers the promise of improving rotary aircraft survivability.

The committee, therefore, recommends an increase of $2.5 million in PE 63003A for lightweight armored window technology.

Warfighter sustainment

The budget request included $25.4 million for warfighter technology in PE 62786A, but included no funds for improved packaging and content of combat rations.

The committee is aware of technology that offers to improve nutrition of combat rations, as well as reduce the cost and bulk of associated packaging. The committee is also aware that while combat rations meet the military recommended daily allowances for nutrients, but improved nutraceutical content could improve battlefield acuity and readiness.

Therefore, the committee recommends an increase of $5.3 million in PE 62786A for warfighter sustainment.

NAVY RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

OVERVIEW

The budget request contained $16.9 billion for Navy research, development, test, and evaluation (RDT&E).

The committee recommends $17.4 billion, an increase of $465.5 million to the budget request.

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ITEMS OF SPECIAL INTEREST

Advanced composite riverine craft

The budget request contained $16.3 million in PE 63713N for ocean engineering technology development, but included no funds for advanced composite riverine craft.

The committee remains concerned with the maturity of the operational concept for the Navy Expeditionary Combat Command (NECC) and has reservations about the rapid pace with which the Navy is moving ahead with its development. The committee encourages the Navy to fully develop its operational requirements for the NECC mission. However, the committee does believe that the Navy should investigate options for advanced composite hulls for the specialized missions the NECC might be required to perform. Advanced composite hulls are expected to provide the Navy with the technology for critical capabilities in speed, weight, draft, stability, wake and g-force reduction.

Accordingly, the committee recommends an increase of $10.0 million in PE 63713N for development and construction of advanced composite riverine craft.

Advanced materials for acoustic window applications

The budget request contained $9.4 million in PE 25620N for surface anti-submarine warfare combat system integration, but included no funds for advanced materials for acoustic window applications.

The committee is aware that advanced materials for acoustic window applications have the potential to reduce signature and improve survivability of naval sonar dome windows at a reduced cost. Current materials used to minimize turbulence and hydrodynamic drag, and protect the sonar system from impacts with debris use a non-corroding sandwich dome concept constructed using fiber reinforced polymer composite skins with a layered elastomeric core. Although this technology meets current mission requirements, the committee understands there is a need for lower-cost, structurally robust materials for acoustic window applications.

Therefore, the committee recommends an increase of $4.0 million in PE 25620N for a development program on lower cost advanced materials for warship design concepts.

Affordable towed array construction/fiber optic towed array construction

The budget request contained $94.8 million in PE 64503N for submarine systems equipment development, including $5.7 million to continue the development of affordable towed array technology.

The affordable towed array construction program utilizes fiber optic thin line arrays to provide increased operational capabilities and reliability improvements over existing submarine thin line towed systems. The committee believes that the development and fielding of fiber optic towed array technology is important to maintain clear acoustical, tactical and operational undersea dominance in the littorals.

Consequently, the committee recommends an increase of $4.5 million in PE 64503N to accelerate reliability testing and introduction into the fleet of fiber optic towed arrays.

Affordable weapon system

The budget request contained $18.6 million in PE 63795N for land attack technology, but included no funding for affordable weapon system (AWS).

AWS is a low cost surface launched cruise missile based on commercial-off-the-shelf technology that is designed to carry a 200 pound payload to a range of over 600 miles. AWS is a global positioning system/inertial navigation system guided weapon with both line-of-sight and satellite data links to allow reprogramming in flight. Designed with the capability to loiter, the weapon can be commanded by a forward observer to attack precise targets on the ground in support of expeditionary operations.

The committee continues to support the concept of a loitering missile and is encouraged that the Navy is reviewing a capabilities development document for a multipurpose loitering missile. The committee supports the restructuring of this program to implement a more disciplined approach to system engineering and quality assurance, which the committee believes is achievable without substantially altering the cost objectives of the program.

The committee recommends an increase of $27.0 million for PE 63795N to complete system design and demonstration, to support live-fire testing aboard an amphibious warfare vessel subsequent to successful testing from the Self Defense Test Ship, and for limited rate initial production (LRIP) of an additional 40 missiles. However, the committee expects that no funds shall be available for LRIP prior to successful completion of an operational evaluation with production representative missiles.

Airborne reconnaissance systems

The budget request contained $35.0 million in PE 35206N for airborne reconnaissance systems, but included no funding for passive collision avoidance and reconnaissance (PCAR).

The committee is aware that unmanned aerial vehicles (UAV) must fly in regions that make them a potential hazard to commercial and other manned aircraft. The committee notes that PCAR will sense an impending collision and allow the UAV to safely avoid approaching aircraft.

Therefore, the committee recommends $40.0 million, an increase of $5.0 million in PE 35206N for PCAR to improve the safety of UAV operations.

Aircraft carrier launch and recovery and support equipment modernization

The budget request contained $33.4 million in PE 64512N for shipboard aviation systems development, but included no funds to continue development of the aircraft carrier launch and recovery (ALRE) and support equipment (SE) modernization program.

The committee understands that the ALRE/SE modernization program would develop modernization strategies for existing ALRE/SE systems to reduce human error and operating costs while improving safety and reliability. The committee also understands that ALRE/SE technologies and design tools are being developed for the CVN-21 future carrier, and believes that application of these technologies to the Navy's existing aircraft carrier fleet could substantially reduce operating costs for the remainder of their useful life.

Accordingly, the committee recommends an increase of $1.0 million in PE 64512N to continue the ALRE/SE modernization program.

Ballistic trajectory extended range munition

The budget request contained $18.6 million in PE 63795N for land attack technology, but included no funds to continue the ballistic trajectory extended range munition (BTERM) demonstration program.

The committee notes that the Navy's current effort to field the extended range guided munition (ERGM) faces significant technological, cost and schedule performance challenges to meet the Navy's requirement for precision targeting. The committee understands that the BTERM program provides the Navy with an alternative to the ERGM global positioning system/inertial navigational system long-range, precise fire capability. The committee further notes that until recently, the Navy intended to re-compete the system design and development contract, but later decided to reverse course and continue with ERGM development. The committee remains greatly concerned with the Navy's ability to provide naval surface fire support for expeditionary forces ashore and strongly recommends that the Navy re-compete this requirement.

Accordingly, the committee recommends an increase of $10.0 million in PE 63795N, to continue the development of the BTERM demonstration program.

Bio-film packaging applied research

The budget request contained $90.0 million for PE 62236N for warfighter sustainment applied research, but included no funds for bio-film packaging applied research.

The committee notes that environmental quality technologies enable sustained world-wide Navy operations in compliance with all local, State, regional, national and international laws, regulations and agreements. The committee understands that bio-film packaging offers an environmentally friendly alternative to solve the plastic waste disposal issue aboard Navy ships. Unlike plastic packaging that cannot be thrown overboard and disposed of because it is derived from hydrocarbons, bio-film packaging waste can be disposed of at sea because it will break down into bio-compatible components in ocean water.

The committee recommends an increase of $2.0 million in PE 62236N for development of durable bio-pallet wrap and packaging.

Cobra Judy ship replacement

The budget request contained $135.4 million in PE 35149N for the Cobra Judy ship replacement program.

The Cobra Judy program is a single ship-based radar suite for world-wide technical data collection against ballistic missiles in flight. The current Cobra Judy ship, the USNS Observation Island, is unsustainable and is scheduled to go out of service in 2012. The radar data and imaging from the Cobra Judy platform supports a range of activities including Department of State treaty monitoring and verification, and ballistic missile defense development and testing. Failure to replace the Cobra Judy ship by 2011 will result in a potential gap in coverage.

The committee fully supports the Cobra Judy ship replacement program and recommends $135.4 million in PE 35149N, the amount of the budget request.

Common submarine radio room

The budget request contained $94.8 million in PE 64503N for SSN-688 and Trident modernization, but included no funds for the common submarine radio room.

The committee is aware that the common submarine radio room provides a modern, automated, high capacity, interoperable communications system across submarine classes. It employs an open system architecture that maximizes the use of commercial-off-the-shelf hardware and software. The committee recommends funds to accelerate the development and deployment of the common submarine radio room.

The committee recommends an increase of $4.5 million in PE 64503N to be used for the common submarine radio room.

Conventional Trident modification

The budget request contained $77.0 million in PE 64327N for development of an advanced strike capability which will demonstrate the feasibility of modifying the Trident II (D5) strategic weapon system to carry conventional payloads.

The Navy is undertaking this effort to develop the conventional precision global strike capability called for in the 2001 Nuclear Posture Review. The committee understands that the existing Trident weapons system provides an opportunity to develop this long-range conventional strike capability by leveraging existing technology at relatively low cost.

The committee, however, is concerned that the development of this conventional capability on a submarine platform that has historically carried nuclear armed ballistic missiles may present concerns relating to the misinterpretation of the launch of a missile carrying a conventional warhead for one carrying a nuclear warhead. The committee is aware that the Department of Defense is beginning to engage members of the international community to discuss the U.S. intent behind the conventional strike capability, as well as measures to preclude misinterpretation of a conventional launch. The committee directs the Secretary of Defense to continue this important policy dialog with others in the international community.

The committee is also concerned with the costs associated with the expenditure of a conventional warhead carried on a Trident missile. While there may be high-value targets worth the price of a conventionally equipped Trident missile, it is not clear what scenarios would call for employment of the conventional Trident missile.

The committee directs the Secretary to submit to the congressional defense committees by February 1, 2007, a report on the following:

(1) The status of discussions with other countries on the concern of misinterpretation of a conventional Trident missile strike for a nuclear attack;

(2) The proposed concept of operations detailing the sequence of events for employing this weapon; and

(3) An assessment of the cost-effectiveness of using this weapon against selected targets.

The committee recommends $30.0 million in PE 64327N to explore the feasibility of modifying the Trident II strategic weapon system to carry conventional payloads, a decrease of $47.0 million.

Defense research sciences

The budget request contained $366.6 million in PE 61153N for defense research sciences, but included no funds for investigations of carbon nanotube-based radiation hard non-volatile random access memory (RAM) or for expanding the naval science and educational pipeline pilot program.

The committee recognizes the need to protect essential electronic systems and applications during critical operations from the harsh effects of natural and man-made radiation. Therefore, the committee believes there is a need to ensure the continual improvement of radiation-hardened memory, with particular emphasis on a new generation of radiation hardened devices constructed with single-walled carbon nanotube materials.

The committee also recognizes the need to reverse the trend of fewer U.S. students entering college programs to pursue science, technology, engineering, and math degrees. The naval science and educational pipeline (N-STEP) pilot program in Virginia has provided science-related curriculum enhancements at the K-12 level, in partnership with the Naval Surface Warfare Center--Dahlgren Division.

The committee recommends $383.1 million in PE 61153N, an increase of $9.0 million for development of carbon nanotube-based radiation hard non-volatile RAM and an increase of $7.5 million to expand the N-STEP pilot program to other states with naval warfare center laboratories, such as California, Maryland, and Rhode Island.

Detection and recovery of unexploded ordnance

The budget request contained $25.3 million in PE 65873M for Marine Corps program wide support, but included no funds to provide technology that would advance the detection and recovery of unexploded ordnance (UXO).

The committee is aware that many former and current military training sites pose a high safety risk because of the presence of UXO that could sometimes include 1,000 pound bombs. The committee understands that no single sensor is capable of providing the complete solution for detection, recovery, and removal of UXO. The committee encourages the continued development of a system of systems approach that would utilize existing and near-term technology to identify, recover, and remove UXO at military training sites.

The committee recommends $29.3 million in PE 65873M, an increase of $4.0 million to advance the development of a sensor suite and platform that would rapidly detect, recover, and remove UXO at military training sites.

Dismounted soldier training test instrumentation

The budget request contained $218.5 million in PE 26313M for Marine Corps communications systems development, but included no funds for dismounted soldier or marine training test instrumentation.

The committee understands this system provides advanced training capabilities for marines conducting individual and small unit operations through the use of commercially available communication system and movement tracking technology. The committee recognizes this project develops an instrumentation capability that allows real-time tracking of individual dismounted infantrymen or marines conducting training on military training ranges as well as allows for rapid post-operation reconstruction and feedback to soldiers and marines. The committee notes this particular capability augments the training readiness of soldiers and marines preparing for combat deployment in the global war on terrorism.

The committee recommends an increase of $1.0 million in PE 26313M for dismounted soldier or marine training test instrumentation.

Distributed common ground system

The budget request included $16.6 million in PE 35208N for the Distributed Common Ground System-Navy (DCGS-N), as well as $78.3 million in Common Imagery Ground Surface Systems for the DCGS-N.

The committee recognizes the potential benefits of a fully capable, completely interoperable DCGS-N system for service, joint, and interagency connectivity in support of combatant command priorities. The committee understands that the acquisition plan includes funding for the procurement and fielding of 34 DCGS-N 1.1 systems, with an eventual transition to a more advanced 1.2 configuration. The committee understands the DCGS-N 1.2 version represents a greater level of capability in terms of enterprise interoperability with other service, joint, and interagency connections.

The committee is concerned about the DCGS-N program delay since submission of the fiscal year 2006 budget request. The committee understands that the fiscal year 2007 budget request included funding for the procurement of as many as six 1.1 DCGS-N systems prior to completion of the program's operational evaluation (OPEVAL) milestone, and notes that OPEVAL is not expected to occur until the latter part of the fiscal year. The committee notes that a typical low to moderate risk acquisition schedule completes OPEVAL prior to low-rate initial production (LRIP) activities.

The committee strongly recommends that the Department of the Navy further accelerate technology development for a more robust and interoperable DCGS-N system. The committee further urges the Department to reduce programmatic risk resulting from a lack of concurrency between research and development and LRIP activities.

DockShock ship shock test system

The budget request contained $61.5 million for PE 63123N for force protection advanced technology, but included no funds for DockShock ship shock test system.

The committee is aware that DockShock is a proposed replacement system for the current practice of conducting ship shock testing using large explosives in the open ocean. The DockShock concept employs non-explosive, electro-chemical or electro-mechanical pressure source arrays that can be used at shore side or near shore locations. The committee understands that the DockShock system would provide the Navy with a more accurate, environmentally friendly, less costly process for testing the survivability of Navy ships.

The committee recommends an increase of $8.0 million in PE 63123N to continue development and testing of the DockShock ship shock test system.

DP-2 vectored thrust aircraft

The budget request contained $76.8 million in PE 63114N for power projection advanced technology, but included no funding for the DP-2 vectored thrust aircraft program.

The committee understands that the DP-2 is a twin engine, thrust vectored, high-speed combat transport aircraft capable of hover, as well as vertical take-off and landing. DP-2 has the potential to provide leap-ahead capabilities to special operations forces and other forces. The Office of Naval Research set a series of milestones for unmanned tethered and untethered hover testing, leading to manned, untethered testing in ground effect at Yuma Proving Ground.

The committee recommends an increase of $8.0 million for PE 63114N to continue execution of the current DP-2 program test plan.

E-2 advanced hawkeye identification friend or foe technology development

The budget request contained $497.8 million in PE 64234N for the development, demonstration and testing of the E-2 advanced hawkeye (AHE) aircraft, but included no funds to accelerate the development of identification friend or foe (IFF) systems.

The E-2 AHE program is developing a replacement for the existing radar and other system components to modernize the E-2C weapon system to maintain open ocean mission capability while providing an effective littoral surveillance, battle management and theater air and missile defense capability. The committee understands that one of the key technologies in the E-2 AHE program is the development of Mode 5 and Mode S IFF systems which will provide improved identification of friendly or civilian aircraft. The committee is aware that accelerating the development of this technology in fiscal year 2007 would reduce program risk and ensure that Mode 5 and Mode S IFF capabilities are integrated into the first E-2 AHE prior to delivery.

Therefore, the committee recommends $505.0 million in PE 64234N for the E-2 AHE development program, an increase of $7.2 million for acceleration of Mode 5 and Mode S development.

Electro-optic passive antisubmarine warfare system

The budget request contained $16.8 million in PE 63254N for antisubmarine warfare (ASW) systems development, including $9.9 million for the electro-optic passive ASW system (EPAS).

The committee is concerned by the proliferation and expansion of submarine forces worldwide, and views as a high priority the development of ASW capabilities for acoustically challenging littoral environments. The committee understands that EPAS will incorporate a variety of optical and infrared sensors into fieldable prototype systems to improve airborne ASW capability.

The committee recommends an increase of $4.0 million in PE 63254N for EPAS to accelerate development, fielding, and testing of prototype systems.

F/A-18 squadrons

The budget request contained $31.1 million in PE 24136N for F/A-18 squadron development, but included no funds for an aircraft composite missile launcher improvement program, for accelerated development of a digital electronic warfare (EW) system for F/A-18C/D and AV-8B aircraft, or for an F/A-18 digital heads-up display (HUD) upgrade.

The committee understands that existing aluminum aircraft missile launch suspension equipment may have limited life and may not support the next generation of guided missiles. The committee further understands that new technologies have emerged that may have the potential to increase missile launch suspension equipment service life and reduce lifecycle costs. Consequently, the committee recommends an increase of $2.0 million to develop, design, and demonstrate technologies that would improve missile launcher suspension equipment. The demonstration should include a side-by-side test of the improved missile launcher with an existing system to evaluate the advantages of new technologies.

The committee understands that EW technologies developed for the future F-35 and F-22 aircraft can be applied to address deficiencies in the Navy and Marine Corps' existing ALQ-126B defensive countermeasures system, the ALQ-164 jamming pod, and the ALR-67(V)2 radar warning receiver. The committee also understands that development of a digital EW system for the Navy's F/A-18C/D and the Marine Corps' AV-8B aircraft would provide improved capabilities against future electronic threats and improve commonality across the F/A-18C/D and AV-8B aircraft fleets, thereby reducing future operations and support costs. Accordingly, the committee recommends an increase of $10.0 to accelerate the development of a digital EW system for F/A-18C/D and AV-8B aircraft.

The F/A-18 HUD, which serves as the pilot's primary targeting system, currently uses a cathode ray tube (CRT) and is characterized as an analog solution to display targeting information to the pilot. The committee understands that the F/A-18's CRTs are becoming unreliable and that procurement sources for CRTs are diminishing. To address this supportability problem, the committee believes that migration to a digital HUD solution will lower lifecycle costs, improve reliability and performance, and provide higher accuracy with a capability to process and display more information to the pilot. Therefore, the committee recommends an increase of $5.1 million to begin the development of an F/A-18 digital HUD upgrade.

In total, the committee recommends $48.2 million in PE 24136N for F/A-18 squadron development, an increase of $17.1 million.

Flexible payload module and payload interface module development

The budget request contained $169.6 million in PE 64558N for the new design SSN, but included no funds for flexible payload module and payload interface module development.

The committee understands the flexible payload module will allow payloads, such as Tomahawk missiles, to be located outside of the submarine's pressure hull, resulting in significant cost savings. The flexible payload module will house the new or existing payloads in a pressure proof or free-flooded environment. The payload interface module is the shipboard structure and standardized interface linking the submarine's combat system with the payload.

The committee recommends an increase of $25.0 million in PE 64558N to be used for the flexible payload module and payload interface module development.

High performance FM fiber-optic link

The budget request contained $84.9 million in PE 62114N for power projection applied research, but included no funding for high performance FM fiber-optic links.

The committee understands that FM fiber optic links could be used for high bandwidth transmission of microwave and millimeter wave signals, and have potential military applications for remoting of communication and radar antennae.

The committee recommends an increase of $2.0 million for PE 62114N for applied research leading to development of high performance FM fiber-optic links.

Human systems integration

The budget request included $82.0 million in PE 63236N for warfighter sustainment advanced technology and $8.8 million in PE 64703N for personnel, training, simulation, and human factors, but contained no funding for Navy manpower and personnel integration (SEAPRINT).

The committee supports further development of SEAPRINT in conjunction with other Department of Defense human systems integration efforts, and urges additional resources in this area.

Therefore, the committee recommends an increase of $3.0 million in PE 63236N and $1.0 million in PE 64703N for SEAPRINT, in an effort to further develop human systems integration modeling throughout the Department.

Integrated shipboard intelligent surveillance

The budget request contained $817.5 million for total ship system engineering, but included no funding for integrated shipboard intelligent surveillance (ISIS).

The committee places a particularly high priority on force protection. The committee believes that commercial-off-the-shelf surveillance and monitoring technologies offer opportunities to improve shipboard security, with respect to both the exterior environment and critical interior engineering and control spaces. From an engineering and cost perspective, the best point to integrate those technologies is early in the design process.

The committee recommends an increase of $5.0 million for PE 64300N for integration of ISIS on future Navy combatants.

Joint integrated systems for advanced digital networking

The budget request contained $748.7 million in PE 33109N for satellite communications, but included no funding for joint integrated systems for advanced digital networking (JIST-NET).

JIST-NET has shown great promise in providing integrated communications systems situational awareness to combatant commanders by identifying satellite communications systems gaps and performance issues. The committee is encouraged by JIST-NET progress to date and believes further funding to complete integration of the network will provide important communications capability for the warfighting commander.

The committee recommends $754.7 million in PE 33109N, an increase of $6.0 million for JIST-NET.

Large aperture bow array

The budget request contained $169.6 million in PE 64558N for the new design SSN, but included no funds for the development of the large aperture bow (LAB) array sonar for the Virginia class attack submarine.

The committee is aware that the LAB array is a water-backed replacement for the air-backed spherical array in the bow of Virginia class submarines. The LAB uses longer-lived, lower cost sensors and commercial-off-the-shelf electronics, yielding a cost savings of about $15.0 million per ship and additional lifecycle cost savings. The committee is also aware that with a larger aperture and expanded frequency coverage, there will be a significant improvement to the anti-submarine warfare capabilities of the Virginia class submarine. Importantly, the LAB

also allows additional payload by providing bow dome arrangement flexibility and allows for rapid insertion of future sensor technologies, and is a transformational approach to outboard sonar array design. The committee understands the preliminary design will be completed in 2006 and if inserted in the 2009 Virginia class hull, would provide $300.0 million in savings for the remainder of the Virginia class submarine construction program.

The committee recommends an increase of $20.0 million in PE 64558N to be used for the development of the LAB array sonar for the Virginia class attack submarine.

Large displacement unmanned undersea vehicle at-sea launch and recovery system

The budget request contained $140.4 million in PE 63561N for advanced submarine system development, but included no funds to develop an at-sea launch and recovery system for the large displacement unmanned undersea vehicle (LD-UUV).

The committee understands that the LD-UUV provides the Navy with next-generation capability to detect, track, mitigate and defeat enemy threats. The committee notes that the LD-UUV is to be compatible with the SSGN platform, serving as a force multiplier with its improved payload capabilities and enhanced long-range endurance for intelligence, surveillance and reconnaissance missions. The committee strongly encourages the Navy to devote adequate resources within the Future Years Defense Program to continue concept design, development and integration of the LD-UUV into the SSGN platform, including its requisite stowage, launch and recovery systems.

The committee recommends an increase of $6.0 million in PE 63561N to develop and demonstrate the LD-UUV at-sea launch and recovery hardware for the SSGN.

Lightweight multi-threat encapsulated ceramic body armor

The budget request contained $47.6 million in PE 26623M for Marine Corps ground combat and supporting arms systems, but included no funds to advance the development of encapsulated ceramic body armor.

The committee recognizes encapsulating ceramic tiles through enhanced bonding and residual compression could potentially improve the ballistic performance and durability of enhanced small arms protective inserts used in outer tactical vests that constitute the Interceptor Body Armor (IBA) system. The committee understands the Army and the Marine Corps are continuously upgrading and modifying existing IBA components.

The committee recommends an increase of $2.0 million in PE 26623M to refine and test encapsulated ceramic protective inserts. Further, should these tests prove to generate a more effective solution than existing IBA ceramic inserts, the committee encourages the Secretary of the Navy to use portions of funds provided in title XV of this report to begin initial procurement of these inserts.

Lithium battery technology

The budget request contained $124.5 million in PE 11221N for strategic submarine and weapons system support, but included no funds for superior lithium polymer battery development.

The committee understands that the Navy and the Naval Surface Warfare Center, Crane, Indiana are moving away from traditional lead acid, nickel cadmium and silver zinc batteries and toward newer lithium secondary batteries.

The committee also understands that a new technology known as the superior lithium polymer battery offers improved power densities, higher continuous discharge and recharge capabilities and wider operating temperatures, with potential military application to submersibles and other vehicles.

The committee recommends an increase of $2.5 million in PE 11221N for superior lithium polymer battery development.

Marine expeditionary rifle squad

The budget request contained $0.5 million in PE 63635M for Marine Corps ground combat support systems, but included no funds for the development of the Marine Expeditionary Rifle Squad (MERS) program.

The MERS program focuses on the holistic, system level integration of all items worn, consumed or carried by the marine infantry rifle squad and is integral to the Marine Corps concept of distributed operations (DO). The committee understands MERS, in the near-term would address integration issues resulting from the rapid fielding of urgently needed weapons and equipment to infantry squads currently operating in Operation Iraqi Freedom. The committee understands MERS's long-term objective strategy would provide marine infantry rifle squads with fully integrated future equipment systems that would be integral to the effectiveness of conducting DO.

The committee recommends $3.5 million in PE 63635A, an increase of $3.0 million to continue the phase development strategy of the MERS program.

Maritime identification surveillance technology phased array radar

The budget request contained $61.7 million in PE 63235N for common picture advanced technology, but included no funds for the maritime identification surveillance technology (MIST) phased array radar system.

The development of the MIST phased array radar system is expected to provide continuous surveillance, identification and tracking of all surface ships around naval platforms at sea, or in coastal waters and harbors. In addition, the committee is aware that this radar system will provide the Navy with an advanced phased array radar technology test bed to support future radar system technology development and validation.

The committee recommends an increase of $4.8 million in PE 63235N for the development and demonstration of a prototype phased array radar system for integration into a MIST sensor and networking technology test bed.

Maritime technology

The budget request contained no funds in PE 78730N for the maritime technology program.

The committee understands that the purpose of the maritime technology (MARITECH) program is to reduce the cost of naval ship construction, modification, and repair by enhancing the efficiency and competitiveness of the U.S. shipbuilding and ship repair industries. The committee understands that since the late 1970s the Navy has considered capital for facility investments to be an allowable cost on contracts that are not firm fixed price. The committee is also aware that in the past three years, the Navy and industry have agreed to specific recapitalization contract incentives in the Virginia class submarine and the CVN-21 programs. These incentive clauses have allowed the Navy and the contractors to identify improvements in sequencing and build processes to lower construction costs. The committee encourages the expansion of these efforts to all ship procurements, including the Lewis and Clark (T-AKE) class program.

The committee includes a provision (section 1014) that creates a shipbuilding industrial base improvement program through which the Secretary of the Navy shall award grants and loan guarantees to qualified shipyards to improve their productivity and cost effectiveness. These authorities will allow the Navy to work to an even greater extent with shipbuilders to identify and finance process changes, equipment investments, and facilities improvements to lower the cost of Navy ship procurement. The committee expects that these authorities will allow the Navy to achieve savings in the construction of the T-AKE class ships, in addition to other ship classes, and improve the competitiveness of U.S. shipyards. Consequently, the committee recommends providing funds for the shipbuilding industrial base improvement program and for the enhancement of the U.S. shipbuilding and ship repair industrial base.

The committee recommends $120.0 million in PE 78730N for the maritime technology program.

National shipbuilding research program

The budget request contained no funds in PE 78730N for the national shipbuilding research program.

The committee understands that the national shipbuilding research program (NSRP) provides a unique collaborative environment where shipbuilders and government agencies examine processes, tooling and management techniques to improve the efficiency of the United States shipbuilding industry. The committee understands that NSRP operates on a 50-50 cost share between government and industry, all results are shared with all members, and a conservative estimate for NSRP's return on investment is five to one.

The committee recommends $20.0 million in PE 78730N for the national shipbuilding research program.

Shipbuilding industrial base improvement grants

The budget request contained no funds in PE 78730N for shipbuilding industrial base improvement grants.

The committee understands the national security importance of sustaining viable and efficient shipbuilding and ship repair industries in the United States. Accordingly, the committee recommends providing grants to U.S. shipyards to facilitate the development of innovative design and production technologies and processes for naval vessel construction, and the development of modernized shipbuilding infrastructure.

The committee recommends $50.0 million in PE 78730N for shipbuilding industrial base improvement grants.

Shipbuilding industrial base improvement loan guarantees

The budget request contained no funds in PE 78730N for shipbuilding industrial base improvement loan guarantees.

The committee understands the national security importance of sustaining viable and efficient shipbuilding and ship repair industries in the United States. Accordingly, the committee recommends providing loan guarantees to U.S. shipyards to facilitate the acquisition of technologies, processes and infrastructure to enhance the efficiency and competitiveness of the U.S. shipbuilding and ship repair industries.

The committee recommends $50.0 million in PE 78730N for shipbuilding industrial base improvement loan guarantees.

Naval surface fire support

The committee remains deeply concerned by Navy shortfalls in providing naval surface fire in support of expeditionary warfare.

At the Navy's request, in the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) Congress authorized the Secretary of the Navy to strike from the Naval Vessel Register the battleships USS Wisconsin and USS Iowa. With these retirements, the Navy loses the longest range guns in its fleet, 16-inch 50-caliber guns capable of ranging 24 nautical miles. In the meantime, Navy efforts to improve upon, much less replace, this capability have been highly problematic.

The near-term effort involves extending the range of 5-inch 62-caliber guns on existing Arleigh Burke class destroyers from 13 nautical miles to more than 40 nautical miles with a rocket assisted projectile. The 5-inch extended range guided munition (ERGM) contains only 7.2 pounds of high explosive, but incorporates global positioning system/inertial navigation system guidance to provide precision targeting.

The ERGM program was initiated in 1996 with a planned research and development cost of $78.6 million, which has now grown more than 400 percent. Schedule performance has been similarly disappointing, with initial operational capability slipping a decade from fiscal year 2001 to fiscal year 2011. As late as the submission of the President's budget request for fiscal year 2007, the Navy planned to recompete the system demonstration and development (SDD) contract in the third quarter of fiscal year 2006, but recently reversed course and elected to continue the current contract. The committee questions the advisability of this decision. Notwithstanding the not insignificant technical challenges, the committee believes that program performance has been wanting. The committee further notes the existence of other responsible sources for the capabilities provided by ERGM, specifically the ballistic trajectory extended range munition (BTERM) program and a five-inch variant of the long-range land attack projectile (LRLAP). The committee strongly believes that fair and open competition would best serve the near-term naval surface fire support objectives of the Navy.

The Navy plans to meet its mid-term precision strike requirement of greater than 63 nautical miles with the 6-inch LRLAP projectile in combination with the advanced gun system (AGS), both of which are under development as part of the Navy's next generation destroyer (DD(X)) program. The committee is encouraged by the progress demonstrated in both the LRLAP and AGS engineering development models. The committee notes, however, that the first DD(X) will not become operational until 2012, assuming current timelines hold. Further, the committee does not expect that DD(X) will be procured in the quantity determined by the Marine Corps as necessary to support major combat operations within desired timeframes. In fact, the Navy's current long-range shipbuilding plan calls for procurement of only seven DD(X)s. Accordingly, the committee has strong reservations regarding the Navy's ability to meet mid-term fire support requirements.

In summary, the committee is concerned that the Navy has foregone the long-range fire support capability of the battleship, has given little cause for optimism with respect to meeting near-term developmental objectives, and appears unrealistic in planning to support expeditionary warfare in the mid-term. The committee views the Navy's strategy for providing naval surface fire support as `high risk,' and will continue to monitor progress accordingly.

Network communication system technology for extreme environments

The budget request contained $218.5 million in PE 26313M for Marine Corps communication systems, but included no funds to demonstrate network communication system technology for extreme environments.

The committee understands this technology would use digital signal processing software that would enable military personnel to rapidly transmit and receive networked services such as voice, video, and data, while operating in dense urban or heavily forested areas. The committee notes this technology would provide capability to transmit services with greater bandwidth and more flexibility than provided by current systems. The committee also notes this technology could improve command decision times and enhance situational awareness at the tactical level in both non-line-of-sight and beyond-line-of-sight conditions.

The committee recommends an increase of $4.3 million in PE 26313M for Marine Corps communication systems to allow for further research and engineering support for network communication system technology for extreme environments.

Next-generation electronic warfare simulator

The budget request contained $372.4 million in PE 64269N for the development, demonstration and testing of the EA-18G electronic attack aircraft, but included no funds to develop, configure and install next-generation electronic warfare simulators in the Advanced Weapons Laboratory (AWL) at Naval Air Station (NAS) China Lake, California.

The EA-18G electronic attack aircraft program is developing a replacement for the currently used and aging EA-6B aircraft to provide a capability to detect, identify, locate, and suppress hostile emitters. The committee understands that the Department of the Navy has used the F-18 AWL for integration and development testing of previous F-18 variants, and believes that EA-18G development, test, and evaluation will require next-generation electronic warfare simulators to maximize laboratory testing, avoid additional flight testing, and reduce cost and schedule risk.

Accordingly, the committee recommends $380.4 million in PE 64269N for the EA-18G development program, an increase of $8.0 million to develop, configure and install next-generation electronic warfare simulators in the AWL at NAS China Lake.

Next-generation Phalanx

The budget request contained $46.4 million in PE 64756N for ship self defense (hard kill), but included no funding for next-generation Phalanx.

Phalanx has been a mainstay of close-in ship self defense against anti-ship cruise missiles. The committee believes that the Phalanx weapon system has evolutionary potential for improved performance, broader capability, and lower lifecycle cost. This capability could be applied to the detection, tracking, and engagement of small water craft in swarm attacks. The committee particularly notes the rapid fielding and recent operational success of a land-based Phalanx system for defeating indirect fire in Operation Iraqi Freedom, a mission for which the system was not originally intended.

The committee recommends an increase of $9.0 million for PE 64756N for development of a next-generation Phalanx weapon system.

Permanent magnet motor

The budget request contained $817.5 million in PE 64300N for next generation destroyer (DD(X)) total ship systems engineering, but included no funds to continue development and testing of the permanent magnet motor (PMM).

The committee is aware that the Navy originally intended to integrate the PMM propulsion and power support technology into the DD(X) due to its enhanced power density, acoustic performance and weight reduction advantages over competing motors. The committee understands that the PMM technology experienced a stator insulator failure during the factory testing phase; consequently, the Navy decided to forgo this technology in favor of the backup advanced induction motor (AIM) technology. Since then, the committee understands that the stator insulator failure problem encountered with the PMM technology has been rectified by substituting a conventional insulation material and that the motor has repeatedly passed successful tests at full power. The committee recognizes that the PMM technology offers significant power efficiency and weight reduction advantages over the AIM technology and encourages the Navy to consider incorporating this technology into future Navy ships.

Accordingly, the committee recommends an increase of $15.0 million in PE 64300N to continue land-based testing of the PMM.

Retroreflecting optical communications for special operations

The budget request contained $84.9 million in PE 62114N for power projection applied research, but included no funding for retroreflecting optical communications for special operations.

The committee understands that free space optical communications provide advantages over longer wavelength techniques in terms of bandwidth, spectrum congestion, resistance to jamming, and probability of detection and interception. A compact modulating retroreflector with a special operations team on the ground would secure a tactical data link to an airborne platform without requirement for precise pointing.

The committee recommends an increase of $4.0 million for PE 62114N to continue development of retroreflecting optical communications and to fabricate prototype hardware for a tactical data link.

Sea Fighter (X-Craft)

The budget request contained $61.5 million in PE 63123N for force protection advanced technology, but included no funding for Sea Fighter.

Sea Fighter, formerly known as X-Craft, is a high speed, shallow draft demonstration vessel for littoral warfare. The vessel as currently configured has limitations with respect to its

deployability. The committee believes that deployment of Sea Fighter can demonstrate and validate many of the Navy's operational concepts for littoral warfare, and more specifically reduce risk in the Littoral Combat Ship program.

The committee recommends an increase of $25.7 million for PE 63123N for modifications to survivability, command and control, armament, and other ship systems to make Sea Fighter an operationally deployable asset.

Secure infrastructure technology laboratory

The budget request contained $61.5 million in PE 63123N for force protection advanced technology, but included no funding for Secure Infrastructure Technology Laboratory (SINTEL). SINTEL has developed a suite of sensing technologies and complementary computer analysis that shows great potential to reliably detect hostile, underwater threats in both domestic and foreign ports, a critical force protection requirement for the Navy.

The committee recommends an increase of $8.0 million in PE 63729N for the Secure Infrastructure Technology Laboratory.

Shipboard wireless maintenance assistant

The budget request contained $14.1 million in PE 63513N for shipboard system component development, but included no funding for the shipboard wireless maintenance assistant (SWMA).

The committee believes that advances in information technology can help to dramatically improve productivity and reduce manning for shipboard maintenance. The committee understands that SWMA allows maintenance data, text, and associated drawings and imagery to be shared wirelessly in the shipboard environment, and provides real-time `reach back' to remote experts.

The committee recommends an increase of $3.0 million for PE 63513N for SWMA prototype shipboard testing and development of pre-production models.

Small arms and crew served weapons shot counter

The budget request contained $47.6 million in PE 26623M for Marine Corps ground combat and supporting arms systems, but included no funds for the test and evaluation of weapon shot counters for Marine Corps small arms and crew-served weapons.

The committee understands the Marine Corps has a requirement to track service life and wear rates of small arms and crew-served weapon systems. The committee notes a lightweight, easily manageable weapons shot counter that could readily fit into the stock or grip of existing small arms and crew-served weapon systems would potentially address this requirement. The committee recognizes the additional funds would be used to initiate a lightweight weapons shot counter program.

The committee recommends an increase of $3.3 million in PE 26623M for the initiation, demonstration and evaluation of weapon shot counters for Marine Corps small arms and crew-served weapon systems.

Smart valve

The budget request contained $14.1 million in PE 63513N for shipboard system component development, but included no funding for smart valve.

The committee understands that in a shipboard environment with plentiful power and robust networking, linear electromechanical actuator technology presents some interesting opportunities to eliminate high pressure hydraulic and pneumatic systems. The committee believes that technologies like smart valve can offer reduced size and weight, lower maintenance, and a self diagnostic capability that would warn of impending malfunction.

The committee recommends an increase of $2.0 million for PE 63513N for development of smart valve technology.

Tactical electric field buoy development program

The budget request contained $16.8 million in PE 63254N for anti-submarine warfare systems development, but included no funding for the tactical electric (E) field buoy development program.

The committee supports the Navy's efforts to develop enhanced anti-submarine warfare capabilities using networked sensor systems. Countering emerging threats in the acoustically problematic littorals may require the exploitation of phenomenology that has previously received little attention. The tactical E-field buoy development program designs and tests air deployable sensors capable of detecting the electric field signature of a threat submarine.

The committee recommends an increase of $6.0 million for PE 63254N to design, build and test 10 engineering development model E-field buoys for evaluation at sea.

Validation of prognostic and health management systems

The budget request contained $82.0 million in PE 63236N for warfighter sustainment advanced technology, but included no funds for a program to validate prognostic and health management systems.

The committee understands that advanced modeling and simulation software has been developed for determining the remaining life of critical joint strike fighter engine components. However, the committee further understands that a program to certify the key models used in the software are required to validate prognostic and health management systems, and that such a program would enable engine life assessment modeling tools to be verified for fleet management purposes.

Consequently, the committee recommends an increase of $2.5 million in PE 63236N for a program to validate prognostic and health management systems.

VH-71

The budget request included $682.6 million in PE 64273N for the VH-71 helicopter program.

The committee understands that the VH-71 will replace the current fleet of VH-3 and VH-60 helicopters which provide transportation to the President. Section 220 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) limited the expenditure of funds on VH-71 until the Secretary of the Navy delivered to Congress an event driven acquisition strategy that incorporates no more than moderate risk for increment two of the program. Section 220 also required an operational evaluation using production representative test vehicles. Further, section 220 directed that the Director, Operational Test and Evaluation (DOT&E) provide an evaluation of the acquisition strategy.

The committee received the Navy's report on the new acquisition strategy for the VH-71 program along with comments from the Director, Operational Test and Evaluation on March 14, 2006. Although some beneficial changes have been made to the program including the creation of a Senior Leadership Council (SLC), the schedule for the program remains high risk and the test and evaluation planned to occur prior to production of increment two aircraft will not include production representative test vehicles. Further, the DOT&E recommends the addition of readiness reviews prior to award of contracts for production of low rate initial production (LRIP) lots two and three. The current program plan would approve all three lots of LRIP at the same time. The committee directs that the Secretary of the Navy include the readiness reviews recommended by the DOT&E in the VH-71 program schedule. The committee further directs that these additional reviews should occur with the participation of the SLC, and that approval be given for LRIP contract award only with the consensus of all members of the SLC.

The committee notes that the budget request included $39.0 million to procure long lead materials for three LRIP aircraft in the increment two configuration, known as the VH-71B. The committee understands that the first contractor-provided test article for the VH-71B will not be delivered to the Navy until 2008, and that the modification of VH-71A test articles into the VH-71B configuration will not start until the later half of fiscal year 2008 and will not be completed until the later half of fiscal year 2009. The committee believes that the obligation of funds to begin long lead procurement of materials for VH-71B aircraft in fiscal year 2007 is premature.

The committee recommends $643.6 million, a decrease of $39.0 million in PE 64273N for the VH-71 helicopter program.

Virtual-at-sea training technologies

The budget request contained $82.0 million in PE 63236N for warfighter sustainment advanced technology, but included no funding for leveraging virtual-at-sea training (VAST) technologies in support of qualification and readiness training for the Littoral Combat Ship (LCS).

The committee understands that training in a simulated environment can provide valuable crew experience in a cost effective manner, and provides in some cases the only means to train for certain contingencies. The committee notes that the Navy's `Report to Congress on Annual Long-Range Plan for Construction of Naval Vessels for FY 2007' describes a future force structure that includes 55 LCSs, although none have been commissioned to date. Given the large number of ships in this class planned for procurement, the committee believes investment in training technologies is particularly prudent.

The committee recommends an increase of $5.0 million for PE 63236N for extension of VAST technologies to support crew training for LCS.

Warfare protection advanced technology

The budget request contained $18.0 million in PE 63729N for warfare protection advanced technology, but included no funds for the Naval Special Warfare Performance and Injury Prevention Program. The committee is aware that the Performance and Injury Prevention Program would implement intervention models that will permit Navy special operations forces to mitigate the risk of musculoskeletal injury and optimize physical performance.

The committee recommends $20.5 million in PE 63729N, an increase of $2.5 million for the Naval Special Warfare Performance and Injury Prevention Program.

Wet end installation system element

The budget request contained $58.3 million in PE 64784N for distributed surveillance system, but included no funding for the wet end installation system element (WISE).

The committee supports the Navy's efforts to enhance anti-submarine warfare (ASW) capability by shifting the focus from expensive platforms to relatively inexpensive networked sensors. The Navy's current program, the advanced deployable system, is a passive acoustic surveillance system that will be deployed from a littoral combat ship equipped with the ASW mission package. The committee believes the value of such systems is further enhanced by covert deployment. WISE will employ submarine based expendable unmanned underwater vehicles to install fixed sensor fields, with a goal of reducing system cost by 50 percent.

The committee recommends an increase of $3.4 million for PE 64784N for continued development of WISE and the expendable array installation vehicle.

Wireless maritime inspection system

The budget request contained $817.5 million in PE 64300N for SC-21 total ship engineering, but included no funds for the wireless maritime inspection system.

The wireless maritime inspection system will establish an operational capability that reduces the risk associated with military interception operations. The committee recognizes that this system will allow Navy personnel to board ships, as needed, to effectively inspect personnel, cargo and other items on the suspect ship while being connected in near real-time to critical Navy organizations. Specifically, it will enable boarding teams to transmit intelligence such as photos of crew, passports and evidence to the operational commander and national agencies in near-real time. The committee notes this will allow senior personnel to remotely make decisions without having to recall a portion of the interdiction team. This capability will provide improved force protection, as well as enable real-time correlation with other interdiction operations to ensure broader effectiveness.

The committee recommends an increase of $5.0 million in PE 64300N to be used for the wireless maritime inspection system.

AIR FORCE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

OVERVIEW

The budget request contained $24.4 billion for Air Force research, development, test, and evaluation (RDT&E).

The committee recommends $24.8 billion, an increase of $413.3 million to the budget request.

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ITEMS OF SPECIAL INTEREST

Active feedback flow control technology

The budget request contained $112.8 million in PE 62201F for aerospace vehicle technologies, including $2.0 million for advancement of intelligent aerospace systems (AIAS).

The committee understands that AIAS focuses on the concept and development of valuable simulation tools for Air Force engineers and scientists for assessment of proposed future Air Force weapons systems. AIAS incorporates active feedback flow control (AFFC) technology for simulation and modeling tools in the evaluations of unsteady aerodynamic, turbulence, thermal and noise studies. Currently, there are no universal, validated tools available for the new weapon systems development program designer interested in using AFFC concepts at the beginning stages of design. The committee also understands AFFC tools are highly relevant for a broad spectrum of designs and development such as onboard intelligence for maneuvering missiles and projectiles, and onboard intelligence for unmanned air vehicles, and micro-unmanned air vehicles utilizing neurobiological inspired computational processes.

Therefore, the committee recommends an increase of $3.0 million in PE 62201F for AIAS in the development of AFFC.

Advanced engine starter/generator system prototype

The budget request contained $170.9 million in PE 62203F for aerospace propulsion, but included no funds for the development of an advanced engine starter/generator (AESG) system for future aircraft.

The committee notes that existing engine starter/generator systems on current and future designed aircraft are physically heavy and expensive to procure and sustain. The AESG contains design and technology advancements in power-electronics and high-speed-machinery. Subsequently, the AESG has the potential to provide future aircraft with a high-powered, engine starter/generator system that is 30 percent less in weight and 28 percent lower in lifecycle cost.

Therefore, the committee recommends an increase of $3.5 million for development of an advanced engine starter/generator system.

Advanced optics and laser space technology

The budget request contained $51.3 million in PE 63605F for advanced weapons technology, including $21.4 million for advanced optics and laser space technology.

The committee believes that characterization of laser propagation through atmospheric turbulence and demonstration of advanced adaptive optical and tracking technologies are critical enabling technologies for applications such as high-resolution satellite imaging, space object illumination and tracking, and satellite diagnostics testing. However, the committee is concerned by the potential applicability of this technology development for anti-satellite and advanced space weapons capabilities. Therefore, the committee directs that none of the funds authorized for this program element shall be used for development or demonstration of laser space technologies with anti-satellite weapons purposes.

The committee recommends $44.8 million in PE 63605F, a decrease of $6.5 million for advanced optics and laser space technology.

Advanced spacecraft technology

The budget request contained $68.0 million in PE 63401F for advanced spacecraft technology, but included no funds for precision integrated navigation and position-intelligent networking technology (PINPOINT), small, low-cost reconnaissance spacecraft, or intelligent free space optical satellite communications nodes.

The committee is aware that PINPOINT operates through cooperative navigation, which enables an array of satellites to form a more accurate, integrated navigation solution through the fusion of all global positioning satellite system information available within the array. With this approach, a satellite that cannot form a complete navigation solution on its own, due to poor geometry plasma effects, jamming or interference, can now accurately determine its position through interaction with other array members. The committee believes that this technology directly improves warfighter capabilities by enabling improved situational awareness and relative position accuracies.

The committee recognizes that small reconnaissance spacecraft that cost less than $4.0 million each could fulfill a variety of military and intelligence applications. The committee believes that a program focused on integrating low-mass, low-cost components into a single purpose imaging satellite, while maintaining 80 percent of the performance specifications of other larger imaging spacecraft currently in development could be of great value to the Department of Defense and the Intelligence Community.

Further, the committee is aware that on-going military operations require dramatic increases in space communications bandwidth through secure communications networks. The committee feels that lightweight, low-cost spacecraft laser communications hardware technology can reduce the development risk of the transformation communication architecture program by providing the capability for low-cost, adaptive, multi-access laser and radio frequency communications.

The committee recommends $84.0 million in PE 63401F, an increase of $16.0 million, including $5.0 million for PINPOINT, $4.0 million for small, low-cost reconnaissance spacecraft, and $7.0 million for intelligent free space optical satellite communications nodes.

Affordable lightweight power supply development

The budget request contained $170.9 million in PE 62203F for applied research in aerospace propulsion, but included no funds for lightweight proton exchange membrane fuel cells.

The committee notes the need of U.S. armed forces for efficient and robust power sources. Fuel cells, which are lighter than conventional batteries or generator power supplies, offer a high potential for reducing vehicle fuel consumption, the weight of the subsistence and combat load carried by individual soldiers, marines, sailors, and airmen in the field, environmental pollution, and an enemy's ability to detect combat vehicles. The committee further notes advances in technology and the potential for development of durable and cost-effective high temperature proton exchange membrane fuel cells that would address these operational requirements.

The committee recommends an increase of $3.2 million in PE 62203F for applied research in lightweight proton exchange membrane fuel cells.

B-52 internal weapons bay upgrade

The budget request contained $71.4 million in PE 11113F for B-52 squadrons, but contained no funds for the military-standard-1760 (MIL-STD-1760) integration for the B-52 internal weapons bay upgrade.

The committee understands modernization and upgrade efforts are underway for the B-52 aircraft to enable employment of precision guided weapons from both the internal weapons bay and the external wing pylons. These upgrades will allow the aircraft to employ advanced precision guided weapons such as the joint direct attack munition, the joint air-to-surface stand- off missile, and the joint stand-off weapon. The committee understands that the MIL-STD-1760 provides a common interface between the weapons and the aircraft, and is used to transfer guidance information to the weapons located in the internal bay racks and on the external wing pylons.

Therefore, the committee recommends $77.4 million in PE 11113F, an increase of $6.0 million for accelerated integration of the MIL-STD-1760 into the internal weapons bay of the B-52.

B-52 stand-off jammer program

The budget request contained no funds in PE 64429F for the B-52 stand-off jammer (SOJ) program. The budget request also terminated the B-52 SOJ program in order to fund Air Force transformational activities in the remaining Future Years Defense Program (FYDP).

The committee notes that in PE 64429F, Congress appropriated $107.1 million in fiscal year 2006 for the B-52 SOJ program. The committee notes that current Air Force electronic attack requirements are being fulfilled by Marine Corps EA-6B platforms scheduled to be completely retired in 2012. Further, the committee understands the B-52 SOJ program was originally developed to fulfill future Air Force electronic attack requirements beginning in 2012 to mitigate the capability gap created by the retirement of the EA-6B.

Consequently, the committee is deeply concerned that the Air Force will not have a replacement electronic attack capability once the Marine Corps EA-6B platform is retired, and strongly encourages the Secretary of the Air Force to reexamine the decision to cancel the B-52 SOJ program in light of this capability gap.

Biostatic protective clothing

The budget request contained $1.0 million in PE 48011F for agile combat support, but included no funds for development of biostatic protective clothing.

The committee understands that the capabilities of biostatic protective clothing include a thermally efficient wicking concept made with an extruded continuous filament yarn which has the potential for superior moisture management. The committee is aware that early biostatic protective clothing prototypes have been tested and found to resolve some shortcomings associated with clothing used by those military personnel currently deployed to combat theaters of operation.

Consequently, the committee recommends $3.9 million in PE 48011F, an increase of $2.9 million for biostatic protective clothing.

C-130 airlift squadrons

The budget request contained $248.3 million in PE 41115F for C-130 development programs, but included no funds for development of the automated inspection, repair, corrosion and aircraft tracking (AIRCAT) system.

The AIRCAT system develops tools for collection and analysis of data for the purpose of instituting a condition-based maintenance (CBM) program on the C-130 aircraft. The committee understands CBM techniques are used in many aviation activities because they improve fleet maintenance planning and management, improve safety through a better awareness of flight worthiness, and reduce total ownership costs. The committee notes that Congress appropriated $2.5 million for the AIRCAT system for fiscal year 2006, and believes that this program should be continued.

Accordingly, the committee recommends $255.4 million in PE 41115F for C-130 development programs, an increase of $7.1 million for the AIRCAT system.

Combatant commanders' integrated command and control system

The budget request contained $50.9 million in PE 35906F for the combatant commanders' integrated command and control system (CCIC2S).

The committee believes that the modernization and integration of the command and control systems at Cheyenne Mountain, Colorado is critical to adequately support the North American Aerospace Defense Command, U.S. Northern Command, and U.S. Strategic Command. However, the committee is aware of management deficiencies in the program that are resulting in a significant cost overrun and an undefined delivery schedule.

Therefore, the committee directs the Secretary of Defense to maintain essential operation and maintenance activities, and limit future investment to only the developmental activities deemed essential to national security needs. Prior to proceeding with further development, the committee directs the Secretary of Defense to ensure that the Department of Defense (DOD) approves an acquisition approach that designates the program as a major automated information system. In addition, the committee directs the Secretary of Defense to submit a report by March 1, 2007, to the congressional defense committees that includes an affordability assessment to demonstrate that the program's resource estimates will be available and realistic in terms of DOD's overall long-range modernization priorities and investment plans, an economic analysis that assesses the lifecycle costs and benefits of the program, and an independent estimate of program lifecycle cost.

The committee recommends no funding in PE 35906F for CCIC2S, a decrease of $50.9 million.

Distributed mission interoperability toolkit program

The budget request contained $0.2 million in PE 64740F for development of integrated command and control applications, but included no funds for the distributed mission interoperability toolkit (DMIT) program.

The DMIT is a suite of software tools that enables on-demand, trusted, interoperability among and between air mission command, control, communication, computer and intelligence (C4I) systems and mission simulator models. The committee understands that the DMIT program leverages best practices from the commercial sector including the use of open architectures, existing and emerging web standards, and state-of-the-art technologies to provide a more efficient translation of air mission tasks from C4I systems into a format compatible with mission simulator formats. The committee notes that Congress appropriated an increase of $5.0 million in fiscal year 2006 for this purpose, and believes that the DMIT program should be continued in fiscal year 2007.

Accordingly, the committee recommends $5.2 million in PE 64740F, an increase of $5.0 million for continuation of the DMIT program.

Engineering tool improvement program

The budget request contained $106.1 million in PE 62500F for multi-disciplinary space technology, but included no funding for the engineering tool improvement program (ETIP).

The committee notes Congress has appropriated funding for the ETIP since fiscal year 2003. The ETIP effort provides the Air Force Research Laboratory with the ability to rapidly assess system viability and mission suitability by performing design and analysis of aerospace vehicles and propulsion technologies during the design phase.

The committee recommends an increase of $3.0 million in PE 62500F for ETIP.

High accuracy network determination system

The budget request contained $6.0 million in PE 63444F Maui space surveillance system, but included no funds for the high accuracy network determination system (HANDS).

The committee believes that low cost, innovative technologies are needed to address critical space situational awareness needs and notes that HANDS research is leading to a networked, operationally secure, multi-sensor system, which could obtain highly accurate observations of space objects and reduce the potential for collisions of space objects by reducing errors in the current space-object maintenance catalog.

The committee recommends $11.0 million for PE 63444F, an increase of $5.0 million for HANDS.

High modulus polyacrylonitrile carbon fiber

The budget request contained $111.1 million in PE 62102F for materials, but included no funds for high modulus polyacrylonitrile (PAN) carbon fiber.

The committee notes that high modulus PAN carbon fiber research and development is in line with and supportive of the Air Force's initiatives for advanced composite parts development and carbon fiber sourcing. High modulus PAN carbon fiber is in demand by composite manufacturers for the production of military aircraft, as well as components of missiles and satellites where there is a need for material stiffness at a relatively low weight. Currently only one manufacturer of high modulus PAN carbon fiber exists and is located overseas. The committee urges the Department of Defense to secure a domestic-based manufacturer of high modulus PAN carbon fiber.

Therefore, the committee recommends an increase of $3.0 million in PE 62102F for the development and certification of a domestic-based manufacturer of high modulus PAN carbon fiber.

Human systems integration

The budget request included $92.9 million in PE 62202F for human effectiveness applied research, but contained no funding for improved performance research integration (IMPRINT).

The committee supports further development of IMPRINT in support of the airman performance integration (AIRPRINT) program and in conjunction with other Department of Defense human systems integration efforts.

Therefore, the committee recommends an increase of $3.0 million in PE 62202F for IMPRINT to further develop human systems integration modeling throughout the Department.

Interactive avionics roadmap

The budget request contained no funds in PE 72239F for avionics component improvement programs, and other program elements included no funds for development of the interactive avionics roadmap.

The interactive avionics roadmap is a tool that provides program managers with real-time, internet web-based data that is used to continually monitor and forecast program requirements. The interactive avionics roadmap would enable program managers to monitor changes as they occur and implement mitigation alternatives as required on a real-time basis. The committee understands that existing roadmap documents are heavily manpower dependent, and are subject to degradation as changes in program requirements are encountered; and the committee believes that the use of interactive avionics roadmaps would automate data feeds, reduce costs for avionics systems, and enhance the ability of program managers to more proactively manage and prioritize budgets based on more up-to-date system requirements.

Therefore, the committee recommends $2.0 million in PE 72239F, an increase of $2.0 million for development of the interactive avionics roadmap.

Joint advanced global strike demonstration

The budget request contained $14.7 million in PE 65860F for the Rocket Systems Launch program, but included no funds for prompt global strike development.

The committee notes that the 2006 Quadrennial Defense Review called for improved capability for prompt, conventional global strike. The committee is aware that U.S. Strategic Command has approved the concept of a joint advanced global strike (JAGS) demonstration that would use ballistic missile boosters currently in the inventory, as vehicles for a new land-based prompt global strike capability. The committee notes that the Rocket Systems Launch program can use its excess ballistic missile assets to develop a land-based prompt conventional global strike capability.

The committee recommends $26.7 million in PE 65860F, an increase of $12.0 million for the JAGS demonstration program.

Joint strike fighter development

The budget request contained $2.0 billion in PE 64800F for the Department of the Air Force's development of the joint strike fighter (JSF), also known as the F-35, but included no funds for research and development of a second aircraft tire source for the JSF and other existing combat aircraft, or for development of an alternate JSF engine. The committee notes that the budget request also includes $2.0 billion in PE 64800N for the Department of the Navy's development of JSF.

The committee understands that aircraft tires are a high-demand, critical component needed to sustain high military operational tempos, and believes that a second JSF tire source

should be established in the United States to ensure that a reliable and sustainable source of aircraft tires are available to meet requirements for the JSF and other aircraft. Consequently, the committee recommends an increase of $1.5 million for research and development of a second tire source for the JSF and other existing combat aircraft. The committee expects that these funds will be used for the development of advanced reinforced materials and new materials for combat aircraft tires.

The JSF alternate engine program is developing the F136 engine which would provide an alternative to the currently-planned F135 engine. In the committee report (H. Rept. 109-89) accompanying the National Defense Authorization Report for Fiscal Year 2006, the committee expressed its belief that a two-engine source for the single-engine JSF would be the most cost effective and operationally effective engine solution during the JSF's service life, and is disappointed that the budget request did not include funds for development of an alternate JSF engine beyond fiscal year 2006. During a hearing held by the Subcommittee on Tactical Air and Land Forces on March 16, 2006, the Under Secretary of Defense for Acquisition, Technology, and Logistics testified, `While the benefits of a second supplier are undeniable, our judgment is that those benefits are not worth the substantial financial cost of a second supplier.' To confirm those judgments, the committee requested that the Government Accountability Office (GAO) witness at the hearing review and report on the Department of Defense's analysis that resulted in the judgment to terminate the JSF alternate engine program. On April 12, 2006, the GAO witness reported to the committee that the `Department of Defense's quantitative analysis focuses only on potential savings for engine acquisition and does not appear to fully examine potential savings that may be possible when competition exists for providing support for maintenance and operations over the lifecycle of the engine.' The committee concurs with GAO's observation, and believes that the JSF alternate engine program should continue until the Department of Defense fully analyzes potential costs and savings resulting from competition over the JSF engine's lifecycle.

Accordingly, the committee recommends an increase of $408.0 million to continue the JSF alternate engine program for fiscal year 2007. Additionally, the committee recommends a provision (section 211) that would require that the Department of the Navy and the Department of the Air Force obligate not less than $408.0 million, of the funds authorized to be appropriated for the system development and demonstration program for the Joint Strike Fighter, for continued development of an alternate engine for the Joint Strike Fighter. The committee also recommends a provision (section 215) that would require both the Secretary of Defense, acting through the Department of Defense Cost Analysis Improvement Group, and the Comptroller General to conduct independent analyses of the JSF alternate engine program and provide a report to the congressional defense committees by March 15, 2007.

In total, the committee recommends $2.4 billion in PE 64800F for the Department of the Air Force's portion of JSF development, an increase of $409.5 million.

KC-135 aerial refueling aircraft recapitalization program

The budget request contained $203.9 million in PE 41221F for the KC-135 aerial refueling aircraft recapitalization program (KC-X).

The committee fully supports recapitalization of the KC-135 aerial refueling fleet. The committee notes that a system development and design (SDD) contract would not likely be awarded until the end of fiscal year 2007, in accordance with the estimated acquisition schedule of the Air Force. Further, Congress appropriated $100.0 million in fiscal year 2005 for the Tanker Replacement Transfer Fund, and $97.8 million in fiscal year 2006 for the KC-X program, of which only $10.2 million has been obligated thus far. The committee understands that approximately $70.0 million is required to execute an SDD contract in fiscal year 2007. The committee believes the unobligated balance of $187.6 million should be sufficient to support funding requirements for the KC-X program in fiscal year 2007.

Therefore, the committee recommends $152.4 million in PE 41221F, a decrease of $51.5 million for the KC-X program.

Large aircraft countermeasures system for AC-130U aircraft

The budget request contained $34.9 million in PE 41134F for development and integration of the large aircraft countermeasures (LAIRCM) system on various airlift and tanker aircraft, but included no funds to integrate the LAIRCM system on the AC-130U aircraft.

The AC-130U is a heavily-armed aircraft which uses side-firing weapons integrated with sensor, navigation, and fire control systems to provide precise firepower for close air support, air interdiction and force protection missions. The LAIRCM system, which is planned for integration on various airlift and tanker aircraft, provides a capability to detect, track, jam and counter incoming surface-to-air, infra-red guided missiles. The committee notes that the Air Force Chief of Staff has included the integration of the LAIRCM system on the Air Force Special Operations Command's (AFSOC) HC-130 and MC-130 aircraft among his top unfunded priorities for fiscal year 2007, and believes that the LAIRCM system should be integrated into AFSOC's AC-130U fleet.

Accordingly, the committee recommends $49.9 million in PE 41134F, an increase of $15.0 million to integrate the LAIRCM system on the AC-130U aircraft.

Laser peening fatigue life extension

The budget request contained $36.7 million in PE 78011F for various manufacturing technology programs, but included no funds for testing, demonstration, and evaluation of laser peening technology for military aircraft landing gear.

The committee understands that the laser peening process has the potential to strengthen metals thereby extending the life and improving the fatigue strength, while also providing increased resistance to corrosion and cracking. The committee further understands that the laser peening process is used in the commercial aviation industry and has shown promise in improving the fatigue strength of commercial aircraft landing gear. Based on commercial experience, the committee believes that the laser peening process also has the potential to improve fatigue strength for military landing gear systems.

Consequently, the committee recommends an increase of $3.0 million in PE 78011F for the testing, demonstration and evaluation of laser peening technology as a metal fatigue prevention tool to extend the life of military aircraft landing gear.

Low emission hybrid electric engine propulsion

The budget request contained $10.6 million in PE 78611F for support systems development, but included no funds for the testing of low emission and fuel efficient hybrid electric engine propulsion systems for Air Force heavy tactical wheeled vehicles such as aviation refueling trucks.

The committee is aware that existing Air Force aviation refueling trucks operate over short distances in a manner that causes high fuel use, high emissions and decreased engine life. The committee notes that a first generation hybrid electric vehicle has been delivered to the Air Force for testing and understands this technology would potentially deliver a better than 40 percent improvement in fuel efficiency.

The committee recommends $13.6 million in PE 78611F, an increase of $3.0 million for the continued refinement in system development and demonstration of low emission and fuel efficient hybrid electric engine propulsion for use by aviation refueling trucks.

Major test and evaluation investment

The budget request contained $58.5 million in PE 64759F for major test and evaluation investment, but included limited funds for acquisition of hardware and software for data management and archiving systems for the effective collection, management, distribution, and long-term availability of flight test data.

The committee recommends an increase of $5.8 million in PE 64759F for an enterprise test data management system at the Air Force Flight Test Center, Edwards Air Force Base, California, and an additional increase of $3.0 million in PE 64759F for hardware and software to improve the flight test ground infrastructure and tools at the Air Armament Center, Eglin Air Force Base, Florida.

Materials

The budget request contained $111.1 million in PE 62102F for materials applied research, but included no funds for research for electronic type-specific buckytubes.

The committee recognizes the national need for electronic type-specific buckytubes for military, intelligence, and homeland security applications. Therefore, the committee believes there is a need to ensure the continual improvements of capabilities in these areas.

The committee recommends an increase of $9.4 million in PE 62102F for development of electronic type-specific buckytubes.

Measurement and signature intelligence (MASINT) visualization tools program

The budget request contained $119.2 million in PE 62702F for command, control and communications, but included no funds for the measurement and signature intelligence (MASINT) visualization tools program.

The committee notes that the (MASINT) visualization tools program would integrate measurement and signature intelligence into existing and future information processing architectures so that information could be managed and displayed in real-time without processing delays.

The committee recommends $125.2 million in PE 62702F, an increase of $6.0 million for the accelerated development of the MASINT visualization tools program.

Metals affordability initiative

The budget request included $48.9 million in PE 63112F for advanced materials for weapon systems.

The committee supports the continued government-industry collaboration provided through the Metals Affordability Initiative, providing significant improvements in the manufacturing of specialty metals for aerospace applications for the private and government sectors of the aerospace industry.

The committee recommends an additional $11.3 million in PE 63112F for the Metals Affordability Initiative.

Nanocrystalline diamond coatings

The budget request included $111.1 million in PE 62102F for materials applied research and $64.7 million in PE 63003A for aviation advanced technology, but included no funds for nanocrystalline diamond coatings.

The committee understands that a nanocrystalline diamond coating has been developed with characteristics that offer increased durability, transparency, and protective characteristics to include anti-icing and abrasion protection for aircraft surfaces.

The committee recommends an additional $2.9 million in PE 62102F and $2.9 million in PE 63003A for development and application of nanocrystalline coatings on radome and high wear aircraft components for testing.

Operationally responsive space

The budget request contained $35.6 million in PE 64857F for operationally responsive space.

The committee recognizes that the Department of Defense recently began developing an affordable, rapid reaction combination of spacelift, launch control, and satellites in an effort to provide responsive tactical satellite capabilities to the warfighter. The committee commends this effort and believes that continued pursuit of low-cost, responsive tactical capabilities can fill a niche capability requested by the warfighter and lead to long-term benefits by advancing technology, enhancing the skills of the space cadre, and broadening the space industrial base.

The committee recommends $55.6 million in PE 64857F, an increase of $20.0 million for operationally responsive space.

Radio frequency identification tag rapid adoption initiative, phase 2

The budget request contained $36.7 million in PE 78011F for industrial preparedness, but contained no funding for the Frequency Identification Tag Rapid Adoption Initiative, Phase 2.

The committee believes that great efficiencies can be gained, and more importantly, capability delivered rapidly to the front line troops, through a systemic adoption of radio frequency identification tagging within the Department of Defense's logistics enterprise. Given the disparate logistics systems throughout the Department, no single entity is focused on the system wide adoption of this promising technology.

The committee recommends an increase of $3.0 million in PE 78011F for the Radio Frequency Identification Tag Rapid Adoption Initiative, Phase 2.

Small diameter bomb

The budget request included $224.2 million in PE 64240F for the B-2 advanced technology bomber, but contained no funds for the integration of the small diameter bomb.

The committee recognizes the unique attributes of the B-2 bomber as a stealthy, long-range delivery platform and supports further development of the fleet as a means to address the evolving nature of potential threats.

The committee recognizes the potential benefit of maintaining a long-range delivery system with the capacity to carry heavy and medium, as well as relatively lightweight munitions. The committee is encouraged with the potential capabilities of the 250-pound small diameter bomb and intrigued with the possibility of coupling this technology with the B-2 program.

Therefore, the committee recommends an increase of $16.0 million in PE 64240F to integrate the small diameter bombs aboard the B-2 bomber.

Space-based radar

The budget request contained $266.4 million in PE 63858F for space-based radar.

The committee is aware that the Executive Agent for Space of the Department of Defense is taking steps to restructure the space-based radar program in order to address concerns about the affordability of space-based radar, and is evaluating the potential to develop on-orbit demonstration satellites to validate technology maturity and costs. The committee commends the Department for this effort and encourages continued progress towards an effective and affordable space radar capability. However, the committee believes that a 171 percent increase over fiscal year 2006 funded level is unwarranted as the space radar program does not have a finalized development approach or a concept of operations.

The committee recommends $236.4 million in PE 63858F, a decrease of $30.0 million for space-based radar.

Space control test capabilities

The budget request contained $47.3 million in PE 64421F for counterspace systems, but contained no funds for space control test capabilities (SCTC).

The committee is aware that the integration of new space control systems and requirements into the existing command and control architecture requires significant objective analysis in order to optimize systems effectiveness and prevent degradation or failure of the command and control infrastructure. The committee believes that SCTC provides a method of assessing the effects of loading data from newly developed systems into the existing command and control infrastructure, thereby providing a test capability prior to development of system requirements.

The committee recommends $52.3 million in PE 64421F, an increase of $5.0 million for space control test capabilities.

Space technology

The budget request contained $85.6 million in PE 62601F for space technology, but contained no funds for elastic memory composites or for deployable structures for space.

The committee notes space-qualified elastic memory composite materials can significantly improve the reliability of on-orbit spacecraft deployment mechanisms and may enable composite tank structures for spacecraft applications.

The committee believes that continued improvement in spacecraft deployment systems is necessary to achieve the large apertures needed to support enhanced imaging and improved space situational awareness requirements.

The committee recommends $91.6 million for PE 62601F, an increase of $6.0 million, to include $3.0 million for elastic memory composites and $3.0 million for deployable space structures.

Tactical automated security system advanced communications module

The budget request contained $0.2 million in PE 63287F for physical security equipment, but included no funds for the tactical automated security system (TASS) advanced communications module.

TASS systems are widely deployed by the U.S. Air Force and other services supporting current operations and provide both physical security and force protection. The committee is aware the current communications element of TASS has limited bandwidth capability and is subject to obsolescence due to age.

The committee recommends $3.2 million in PE 63287F, an increase of $3.0 million to complete the development of the TASS advanced communications module.

Transformational satellite communications system

The budget request contained $867.1 million in PE 63845F for the transformational satellite communications systems (TSAT).

The committee is aware that the TSAT program has been restructured into a block-build approach that will reduce the complexity and capacity of the first block of satellites in an effort to reduce development and integration risk and increase schedule confidence. While the committee believes this restructuring, along with budgeting TSAT to 80/20 cost confidence, is appropriate based on historical performance of the TSAT program, the committee is concerned that the two-fold increase in the TSAT budget can not be prudently executed.

The committee recommends $787.1 million in PE 63845F, a decrease of $80.0 million for TSAT.

Winglets for in-service aircraft

The committee commends the Air Force in its efforts to increase aircraft fuel efficiency and decrease fuel consumption. The committee notes that initiatives such as re-engining aircraft, modifying in-flight profiles, and revising aircraft ground operations contribute to decreased fuel consumption and increased life-cycle savings.

The committee is aware that winglet technology exists for aircraft to increase fuel efficiency, improve take-off performance, increase cruise altitudes, and increase payload and range capability. The committee notes that winglets are currently used on commercial aircraft and result in a five to seven percent increase in fuel efficiency. On September 16, 1981, the National Aeronautics and Space Administration released the KC-135 Winglet Program Review on the incorporation of winglets for KC-135 aerial refueling aircraft. However, the Air Force concluded that the cost of adding winglets to the KC-135 did not provide sufficient payback in fuel savings or increased range to justify modification. Although the Air Force did conclude that modifying aircraft with winglets could increase fuel efficiency, the Air Force determined that

re-engining the KC-135 aircraft produced a greater return on investment. The committee believes that incorporating winglets on military aircraft could increase fuel efficiency on certain platforms and that the Air Force should reexamine incorporating this technology onto its platforms.

Therefore, the committee directs the Secretary of the Air Force to provide a report to the congressional defense committees by March 1, 2007, examining the feasibility of modifying Air Force aircraft with winglets. The report shall include a cost comparison analysis of the cost of winglet modification compared to the return on investment realized over time for each airlift, aerial refueling, and intelligence, surveillance, and reconnaissance aircraft in the Air Force inventory; the market price of aviation fuel at which incorporating winglets would be beneficial for each Air Force platform; all positive and negative impacts to aircraft maintenance and flight operations; and investment strategies the Air Force could implement with commercial partners to minimize Air Force capital investment and maximize investment return.

DEFENSE-WIDE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

OVERVIEW

The budget request contained $20.8 billion for Defense-wide research, development, test, and evaluation (RDT&E).

The committee recommends $20.8 billion, a decrease of $46.9 million to the budget request.

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ITEMS OF SPECIAL INTEREST

Accelerated intelligence analyst education and training

The budget request contained no funds in PE 33140G within the information systems security program for intelligence analyst education and training.

The committee is aware that the defense intelligence community needs a new generation of intelligence analysts due to the emergence of new missions and the retirement of older analysts. The committee further understands that there are very few colleges and universities that provide organized degree programs that can lead to intelligence analyst certification in preparation for subsequent entry into the defense intelligence analyst career field. The lack of such programs is compounded by the lengthy security clearance process, making it more challenging to develop a qualified analyst pool.

The committee recommends an increase of $3.0 million in PE 33140G for the National Security Agency to establish a process to identify those college and university curriculums that may lead to intelligence analyst certification. The committee also recommends this funding be used to identify those security clearance eligible students enrolled in such programs who may also be interested in pursuing a career as an intelligence analyst.

Advanced data encryption technology

The budget request contained $404.3 million in PE 33140G for the information systems security program, but included no funding for advanced data encryption technology.

The committee supports the Department of Defense's (DOD) increased emphasis on information assurance programs in the budget request, but believes that more should be done to address future cyber security threats. The committee is concerned that the proliferation of super computers around the globe renders DOD systems vulnerable to cyber attack, and believes that the Department should pursue the development and deployment of polymorphic encryption and decryption technology to provide for more secure computer and data systems.

The committee recommends an increase of $4.0 million in PE 33140G for the development of the polymorphic encryption and detection protocol.

Advanced SEAL Delivery System

The budget request contained $32.5 million in PE 1160426BB for advanced SEAL delivery systems development, but included no funds for a new design competition.

The committee understands that the Department of Defense recently cancelled the advanced SEAL delivery system (ASDS) due to its performance and reliability to date. The committee believes a new design competition will ensure that the most current technologies are incorporated into future ASDS designs and will provide valuable information for future decisions regarding the ASDS program.

The committee recommends $42.5 million in PE 1160426BB for advanced SEAL delivery systems development, an increase of $10.0 million for a new design competition.

Advanced surface radar technologies

The budget request contained no funds in PE 63720S for advanced surface radar technologies (ASuRT).

The ASuRT program will focus on the development and adaptation of electronic components for application in the Navy's next-generation surface ship radar systems. The committee notes that future theater air and missile defense (TAMD) radar systems for next- generation surface ships must be modular and scalable, have a designed-in growth path for technology insertion upgrades, and must include major improvements over current radar systems in power, sensitivity and cost.

To support these requirements, the committee recommends an increase of $8.0 million in PE 63720S and encourages the Defense Microelectronics Activity organization to focus on the development of lower cost, modular and open architecture radar components for use in future TAMD radar systems.

Advanced tactical laser program

The budget request contained $80.4 million in PE 1160402BB for special operations advanced technology development, including $45.0 million for the advanced tactical laser advanced concept technology demonstration (ATL ACTD).

The committee has previously expressed concern with the ATL ACTD program but recognizes that funding in the fiscal year 2007 budget allows a full test of the integrated system and completion of the ACTD.

Therefore, the committee recommends that no change be made to the budget request of $45.0 million for the completion of the ATL ACTD. The committee makes it clear that this funding completes the ATL ACTD and that no further funding will be provided past fiscal year 2007.

Ballistic missile defense

The budget request contained $9.3 billion for the ballistic missile defense programs of the Missile Defense Agency (MDA).

The committee supports the more cautious, measured approach to missile defense testing arising out of the Independent Review Team recommendations and standup of the Mission Readiness Task Force in 2005. While the committee understands that the spiral development strategy employed by the Department of Defense (DOD) for ballistic missile defense (BMD) is appropriate to the research and development nature of the BMD program elements, the committee also notes that rigorous testing that leads to fielding of operational systems should take priority over future block research and development efforts.

A March 2006 Government Accountability Office (GAO) report titled, `Missile Defense Agency Fields Initial Capability but Falls Short of Original Goals,' is critical of several fundamental management processes within the MDA, and cites costs overruns at $458.0 million in fiscal year 2005, with Ground-based Midcourse Defense (GMD) accounting for $365.0 million of this overrun, as well as a failure to meet program goals for many program elements. The report states that while both the Airborne Laser (ABL) and the Kinetic Energy Interceptor (KEI) programs follow a knowledge-based strategy, the GMD program has not. The GMD program is permitted by the Department to concurrently mature technology, complete design activities, and produce and field assets before end-to-end testing of the GMD system. The GAO

report finds that the failure to require this knowledge-based strategy of the GMD program has resulted in poor quality control, cost overruns, and inability to achieve performance goals.

The committee strongly encourages the Secretary of Defense to implement a knowledge-based acquisition strategy for all Ballistic Missile Defense System (BMDS) program elements, which the committee understands is consistent with the DOD's acquisition regulations. The committee agrees with GAO's findings that BMDS program elements would benefit from the more detailed knowledge-based review conducted by other DOD acquisition programs.

The committee also agrees with certain aspects of GAO's report, which questions whether MDA's current two-year block strategy is compatible with the knowledge-based development strategy. While stopping short of directing the Department to restructure the two-year block organization of BMDS elements, the committee directs the Secretary of Defense to conduct a detailed review of the knowledge-based strategy in the context of the existing two-year block organization of BMDS elements, and report to the congressional defense committees by March 1, 2007, the findings and recommendations of this review. This report shall specifically assess whether there are changes that need to be made to the two-year block organization to more appropriately reflect wider application of knowledge-based strategies as has been utilized in the restructuring of the ABL and KEI programs.

The committee recommends a reallocation of the request to focus on testing and fielding of near-term capability ballistic missile defense elements while deferring more long-term efforts.

The committee recommends $9.1 billion, a decrease of $183.5 million for BMD programs of the Missile Defense Agency.

Aegis ballistic missile defense

The budget request contained $1.0 billion in PE 63892C for Aegis ballistic missile defense (BMD).

The committee is encouraged by the Aegis BMD program performance and overall cost/schedule performance. The committee understands that budget constraints have reduced planned SM-3 interceptor procurement, thereby delaying SM-3 interceptor deployment to Aegis BMD platforms.

The committee recommends $1.1 billion in PE 63892C for Aegis BMD, an increase of $40.0 million, to include: $10.0 million for continued S-band advanced radar algorithm work for missile defense applications, $10.0 million for Aegis open architecture program acceleration, and $20.0 million to increase the SM-3 production rate from two per month to four per month.

Boost defense segment

The budget request contained $631.6 million in PE 63883C for boost phase defense.

The committee notes that the Airborne Laser (ABL) program achieved several significant milestones in 2005, including the successful System Integration Laboratory laser long run performance test and is scheduled to conduct a lethal demonstration in calendar year 2008. While the ABL program still faces risks associated with cutting-edge technology, the committee believes that the potential benefits to national security of a successful lethal demonstration warrant continued program support. The committee notes with approval the knowledge point-based foundation for the ABL program.

The committee recommends $631.6 million for PE 63883C, the amount of the budget request.

Core

The budget request contained $473.1 million in PE 63890C for ballistic missile defense systems (BMDS) core.

The committee is concerned with the results of a March 2006 Department of Defense Inspector General report finding weaknesses in the Missile Defense Agency's systems engineering plans and processes. The committee is particularly concerned with the report's finding that the Aegis missile defense system, an element of the BMDS that has achieved success in actual intercept tests and that is being fielded and deployed now, lacks an approved systems engineering plan. The committee directs the Secretary of Defense to submit a report to the congressional defense committees by February 1, 2007, stating the specific deficiencies in the Aegis systems engineering plan and the required corrective action.

The committee recommends $483.1 million in PE 63890C, an increase of $10.0 million for additional support for the Aegis missile defense system information assurance and systems engineering integration efforts.

Midcourse defense segment

The budget request contained $2.9 billion in PE 63882C for ballistic missile defense (BMD) midcourse defense segment.

The committee supports the restructured Ground-Based Midcourse Defense (GMD) testing program following the recommendations of the Independent Review Team and the new charter from the Mission Readiness Task Force. As in previous years, the committee continues to urge the Director of the Missile Defense Agency to focus on robust testing of near-term block capabilities even where that means deferring work on future blocks. As noted above, the committee shares the concerns of the Government Accountability Office (GAO) in their March 2006 report, `Missile Defense Agency Fields Initial Capability but Falls Short of Original Goals,' that the rush to deploy GMD capabilities while concurrently developing future blocks has negatively impacted the program. In order to sustain the current fielded system, the committee recommends an increase of $20.0 million to support concurrent test and operations of the existing block 2004/2006 capability.

The committee notes that the budget request contained $354.9 million for block 2008 development, including the development and testing of new and evolving BMD systems technologies. The budget request specifically referenced Block 2008 efforts that will include enhanced exo-atmospheric kill vehicle (EKV) and sea-based X-band radar capabilities, and additional GMD fire control capabilities and countermeasures mitigation. While the committee understands that investing in future capabilities is integral to a spiral development program, the committee also believes it is premature to spend funds on future technology development when the initial block 2004/2006 capability is yet to be tested in a successful end-to-end flight intercept test. While the committee recommends authorization of the requested $354.9 million for GMD Block 2008 development, the committee also withholds $200.0 million of the request until 30 days after receiving certification from the Secretary of Defense that the planned FTG-04 and FTG-05 intercept tests referenced in the March 17, 2006, GMD corrected testing schedule forwarded to the committee have met their test objectives. In the event that these tests objectives are not met, the committee directs the Secretary to report to the congressional defense committees within 30 days of the completion of these intercept tests as to whether the remaining block 2008 funds should be reallocated for additional testing of the block 2004/2006 configuration.

The committee notes that the budget request contained $118.9 million for block 2010, including $55.8 million for the third site in Europe, and $63.1 million for long-lead items for European site interceptors. The committee believes it is premature to invest in the third site until the existing block 2004/2006 GMD configuration successfully completes integrated end-to-end testing. Accordingly, the committee authorizes no funds for the third site. With respect to long-lead procurement of third site interceptors, the committee authorizes $63.1 million, the amount of the request, to initiate long-lead procurement for interceptors 41-50 understanding that these interceptors could be available for use as assets at either the Fort Greeley, Alaska, or Vandenberg, California GMD sites.

The committee is concerned with reports of GMD costs overruns, $365.0 million was reported by the GAO in the March 2006 report, as well as with problems GAO noted with the EKV. The committee urges the Department of Defense to swiftly address these issues with contractor performance.

The committee recommends $2.8 billion in PE 63882C, a decrease of $35.8 million for the midcourse defense segment.

Multiple kill vehicle

The budget request contained $165.0 million in PE 63894C for the Multiple Kill Vehicle program.

The committee notes that the request is triple the amount of funding in fiscal year 2006 and is for a program that would support the ballistic missile defense system program no earlier than 2010. The committee believes the amount of the request to be excessive for a program that is oriented for block 2010 prior to successful demonstration of the Exo-atmospheric Kill Vehicle technology resident in the block 2004/2006 Ground-based Midcourse Defense configurations.

The committee recommends $100.0 million, a decrease of $65.0 million in PE 63894C for the Multiple Kill Vehicle program, and encourages the Department of Defense to focus on risk reduction for critical technologies.

System interceptor

The budget request contained $405.5 million in PE 63886C for system interceptor.

The committee notes that in the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163), the conferees stated that the Department of Defense had designated the Airborne Laser (ABL) program as the primary boost phase defense and that the system interceptor, or Kinetic Energy Interceptor (KEI) program, represented a risk-mitigation strategy should ABL fail to perform as expected. The conferees directed that fiscal year 2006 funding for the program be focused on reducing high-technology challenges. The committee understands that future funding profiles have resulted in shifting the system interceptor from a 2012 to 2014 capability and that the Department is also exploring use of the interceptor in midcourse defense scenarios.

The committee is concerned with the affordability of pursuing both the ABL and KEI programs in parallel through the projected 2008 knowledge point demonstrations. Given that ABL is the primary boost phase defense program and that the KEI capability is not scheduled to be fielded until the 2014 time-frame, the committee believes that the KEI program should focus

on only those critical technology efforts that support the 2008 booster demonstration. Any long-term efforts not directly associated with the 2008 booster tests should be deferred until a decision is made on the future of both the ABL and KEI programs.

The committee recommends $305.5 million in PE 63886C, a decrease of $100.0 million for the system interceptor program, and directs that the KEI program focus its priority on the 2008 booster demonstration.

Technology

The budget request contained $206.7 million in PE 63175C for ballistic missile defense (BMD) technology.

The committee notes that the BMD technology request includes $40.7 million for the High Altitude Airship (HAA); however, the HAA program did not meet its weight or advanced concept technology demonstration criteria last year. The committee also notes that the request states that the benefit to the ballistic missile defense system (BMDS) is for potential use as a sensor and communications and/or weapons platform without any greater connection to a specific BMDS element. The committee does not view the HAA program as an essential element of the BMDS system.

The committee recommends no funding for the HAA program.

The committee provides an additional $8.0 million in PE 63175C for the Net-Centric Airborne Defense Element (NCADE) to continue the NCADE risk-mitigation program that commenced in fiscal year 2006.

The committee recommends $173.9 million in PE 63175C for BMD technology, a decrease of $32.7 million.

Biological warfare defense

The budget request contained $112.2 million in PE 62383E for biological warfare defense applied research, but included no funds for the development of asymmetrical protocols to enhance biological defense capabilities.

The committee notes that there are a number of biological agents that could, with the appropriate development and weaponization, be used in biological warfare and terrorist attack. Yet, developing specific protections against all possible biological agents is not feasible. The cost of developing one new medicine is currently estimated at $800.0 million and the average development time is 10 to 15 years. As a result, the committee believes there is a need for therapeutics that would provide broad spectrum protection against a range of possible biological agents, necessitating research in approaches for enhancing individual non-specific immunities and blocking pathogens to a degree commensurate with the biological warfare threat.

The committee recommends $124.2 million in PE 62383E for biological warfare defense, an increase of $12.0 million for asymmetrical protocols for biological defense enhancement.

Business transformation agency

The budget request contained $140.2 million in PE 65020BTA for the research and development activities of the Business Transformation Agency (BTA).

The committee supports the mission of the agency, but believes that a new agency such as BTA will not be able to effectively execute this funding.

The committee recommends $190.2 million in PE 65020BTA, a decrease of $50.0 million for the Business Transformation Agency.

Chemical-biological collective protective shelters

The budget request included $280.4 million in PE 62384BP for chemical and biological defense applied research, but contained no funds for low-cost collective protection shelters.

The committee continues to support efforts to improve collective protection against chemical and biological agents.

Therefore, the committee recommends an increase of $5.0 million in PE 62384BP for low-cost collective protection shelters.

Chemical and biological defense program

The committee recommends continuation of the chemical and biological basic research, applied research, and advanced technology development initiatives established in the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375). These initiatives would provide opportunities for emerging technologies and concepts to compete for funding on the basis of technical merit and on the contribution that such technologies could make to the chemical and biological defense capabilities of the armed forces and to homeland defense.

The committee also notes that the 2006 Quadrennial Defense Review recommended an investment of more than $1.5 billion over the next five years to develop broad-spectrum medical countermeasures against advanced bio-terror threats, referred to as the Transformational Medical Technology Initiative (TMTI). This is an ambitious program, for which initial efforts began in late fiscal year 2006. While the committee supports both TMTI and the concept of broad-spectrum medical countermeasures, the committee is concerned that the supporting technologies identified in fiscal year 2006 will not be sufficiently mature in fiscal year 2007 to execute the funding proposed in the President's request for related applied research and advanced technology development.

Advanced technology development

The budget request contained $207.1 million in PE 63384BP for chemical and biological warfare defense advanced technology development.

The committee recommends that the technologies to be considered for funding under the chemical and biological advanced technology development initiative, would include, but would not be limited to the following:

(1) Antioxidant micronutrient therapeutic countermeasures for chemical agents; and

(2) Advanced technologies for biological and chemical agent detection sensor systems.

The committee recommends $197.1 million in PE 63384BP for chemical and biological defense, an increase of $10.0 million for the chemical and biological advanced technology development initiative and a decrease of $20.0 million for the Transformational Medical Technology Initiative.

Applied research

The budget request contained $280.4 million in PE 62384BP for chemical and biological warfare defense applied research.

The committee recommends that the technologies to be considered for funding under the chemical and biological applied research initiative, would include, but would not be limited to the following:

(1) Novel vaccine/therapeutic delivery means, particularly for recombinant protein vaccines;

(2) Multipurpose biodefense immunoarrays and diagnostic tools;

(3) Self-decontaminating polymer-based coatings for fabrics and other substrates; and

(4) Novel prophylaxis/therapeutics effective against biological warfare agents.

The committee recommends an increase in PE 62384BP of $20.0 million for the chemical and biological applied research initiative and a decrease of $30.0 million in PE 62384BP for the Transformational Medical Technology Initiative.

Basic research

The budget request contained $99.2 million in PE 61384BP for chemical and biological warfare defense basic research.

The committee recommends that the technologies to be considered for funding under the chemical and biological basic research initiative, would include, but would not be limited to the following:

(1) Mismatch repair technology for the development of human antibodies for prophylactic and therapeutic treatments; and

(2) Superstructural particle evaluation and characterization with targeted reaction analysis of emerging prophylactics for chemical and biological agent protection.

The committee recommends $109.2 million in PE 61384BP for chemical and biological defense, an increase of $10.0 million for the chemical and biological basic research initiative.

Combating terrorism technology support

The budget request contained $65.8 million in PE 63122D8Z for combating terrorism technology support, but included no funds for additional prototypes of technologies for which the Technical Support Working Group (TSWG) and its international partners have previously invested.

The committee recommends TSWG support the development of a limited number of additional prototypes of the following systems for more rapid military utility evaluation: (1) SHIELD, (2) COLD FIRE, (3) Wall Street, and (4) Muzzle Flash Detection System.

The committee recommends an increase of $18.0 million in PE 63122D8Z for cooperative research, development, and prototyping.

Generic logistics research and development technology demonstrations

The budget request contained $23.4 million in PE 63712S for generic logistics research and development technology demonstrations, but included no funds for the expansion of the Connectory program for rapid identification of technology sources for the Department of Defense (DOD), for the emerging critical interconnection technology program, or for vacuum-aided mobility packing technology.

The committee notes that the Department needs access to the best available technologies from all sources, especially small and medium size companies not normally accessed by the defense acquisition process. The committee encourages the Defense Logistics Agency to:

(1) Expand Connectory profiles to include detailed sources for high-priority DOD required products and services;

(2) Collaborate with DOD agencies and other government organizations having databases of technology products in order to test the feasibility of linking the Connectory to these other data sources; and

(3) Explore ways to allow small companies to obtain first-time business with the Department using the Connectory program.

The committee also notes that printed circuit boards are fundamental components of military navigation, guidance and control, electronic warfare, missile, and surveillance and communications equipment. Printed circuit boards for military systems have unique design requirements for high performance, high reliability, and the ability to operate under extreme environmental conditions that require the use of high density, highly rugged, and highly reliable interconnection technology. Moreover, the commercial printed circuit board industry focuses on the design and high-volume production of low-cost boards and the United States has lost much of its printed circuit board manufacturing capability to overseas sources. The committee recognizes the need to enhance the United States' capability for development and production of high density, highly reliable printed circuit boards for use in U.S. military systems.

Finally, the committee understands vacuum-aided mobility packing technology may provide considerable benefits for transporting troop supplies. The committee is aware that such technology may provide significant improvements in weight, space, and handling requirements and may facilitate more efficient utilization of military lift assets.

The committee recommends $34.4 million in PE 63712S for generic logistics research and development technology demonstrations, an increase of $1.0 million for the Connectory program for rapid identification of technology sources for the Department and an increase of $10.0 million for the emerging critical interconnection technology program. The committee also urges the Secretary of Defense to explore vacuum-aided mobility packing technology as a potential cost saving measure.

Improved suborbital operations

The budget request contained $254.9 million in PE 63287E for space programs and technology, but contained no funds for improved suborbital space operations.

The committee believes that the design and development of an unmanned, reusable suborbital launch vehicle to provide a platform for tactical battlefield surveillance, can provide quick reaction, fast turnaround, and frequent regional reconnaissance capabilities.

The committee recommends $259.9 million in PE 63287E, an increase of $5.0 million for improved suborbital space operations.

Joint training transformation

The budget request contained $72.9 million in PE 63757D8Z for joint training transformation, but included no funds for the development of a joint simulation capability for linking campaign analysis to warfighter mission rehearsal. The committee recommends the Department of Defense capitalize on the joint infrastructure and connectivity built into the Joint Warfare System (JWARS) simulation program to expand into complementary mission space areas, by linking in-theater tools to campaign analysis capabilities and database providers in the continental United States.

The committee recommends $76.9 million in PE 63757D8Z for joint training transformation, an increase of $4.0 million for joint simulation for linking campaign analysis to warfighter mission rehearsal.

Office of force transformation

The budget request contained $20.4 million in PE 66799D8Z for the Office of Force Transformation, including unspecified funding for the Project Sheriff initiative, but included no funds for the tactical re-directed energy technology initiative.

The committee notes that the Project Sheriff initiative meets a validated and approved urgent operational need to provide combat commanders with more options for dealing with the chaos of urban operations. Project Sheriff is a combat system that incorporates a unique blend of lethal and non-lethal capabilities that have never before been integrated together into a single vehicle.

The tactical re-directed energy technology initiative intends to quickly develop an experimental prototype that can be rapidly fielded to gain new insights into the use of directed energy at the tactical level. The committee notes that this initiative focuses on targeting those who lay improvised explosive devises (IEDs) rather than the IEDs themselves.

The committee recommends $30.4 million in PE 66799D8Z, an increase of $10.0 million, $5.0 million for the Project Sheriff initiative and $5.0 million for the tactical re-directed energy initiative program.

Special operations advanced technology development

The budget request contained $80.4 million in PE 1160402BB for special operations advanced technology development, but included no funds for special operations modular computing technology, for the surveillance augmentation vehicle-insertable on request (SAVIOR) system, or for Foxhound Arabic software.

The committee understands that U.S. Special Operations Command (USSOCOM) is currently procuring non-ruggedized modular personal computers and that the Naval Postgraduate School's Coalition and Operating Area Surveillance and Targeting System (COASTS) plans to further develop the modular personal computer application to broader configurations. Additional funds would allow the development of a ruggedized version of the modular PC.

The committee understands that the SAVIOR system is a mobile, intelligent sensor suite that can alert ground forces to the presence of a threat with its intensive surveillance network. SAVIOR meets USSOCOM's need for a rapidly configurable, highly mobile sensor and command and control platform.

The committee understands that Foxhound Arabic transliteration and genealogical search software provides USSOCOM with enhanced capability to conduct automated transliteration and link-analysis key to counter-terrorism operations. The software is currently being used at headquarters level and further funding would provide the capability to operator levels.

The committee recommends $92.9 million in PE 1160402BB for special operations advanced technology development, an increase of $5.0 million for special operations modular computing technology, an increase of $3.5 million for development of the SAVIOR system and an increase of $4.0 million for Foxhound Arabic software.

Special operations forces operational enhancements

The budget request contained $99.0 million in PE 1160408BB for special operations forces (SOF) operational enhancements, but included no funds for miniaturized tracking devices. The committee understands that these devices provide SOF the ability to successfully track and monitor high value targets.

The committee recommends $106.0 million in PE 1160408BB for SOF operational enhancements, an increase of $7.0 million for miniaturized tracking devices.

Special operations intelligence systems development

The budget request contained $29.0 million in PE 1160405BB for special operations (SO) intelligence systems development, but included no funds for the U.S. Special Operations Command (USSOCOM) joint meteorological and oceanographic (METOC) program. The joint METOC program provides USSOCOM with deployable sensors to measure weather conditions and other environmental and situational parameters. The joint METOC program would further develop an air-droppable version and would meet requirements for additional measurement capabilities.

The committee recommends $34.0 million in PE 1160405BB for SO intelligence systems development, an increase of $5.0 million for the joint METOC program.

Special operations tactical systems development

The budget request contained $45.3 million in PE 1160404BB for special operations tactical systems development, but contained no funds for the special operations forces (SOF) combat assault rifle (SCAR) or for Dominant Vision, and only $1.4 million for covert wave packet modulation (WPM).

The committee understands that SCAR will replace five different weapons systems currently used by SOF and that low rate initial production will support milestone C final validation for inclusion of SCAR in U.S. Special Operations Command's (USSOCOM) 2008 program objective memorandum.

The committee understands that Dominant Vision enhances USSOCOM's capability to conduct special operations by enhancing aircrew's situational awareness and ability to locate, identify and engage targets. Additional funding would continue development of spectral targeting, integrated defense capability, and ground station capability, and would integrate and test the digital sensor recorder.

The committee understands that covert WPM waveform modules will be embedded into USSOCOM communication, networked threat warning and networked sensor systems that are critical to the safety and covertness of special operations missions. The effort will develop a new joint tactical radio system-compliant covert communication capability with embedded positive threat identification.

The committee recommends $58.3 million in PE 1160404BB for special operations tactical systems development, an increase of $4.1 million for the SOF combat assault rifle, an

increase of $4.5 million for Dominant Vision, and an increase of $4.4 million for covert WPM waveform modules.

Special operations technology development

The budget request contained $12.7 million in PE 1160401BB for special operations technology development, but included no funds for AngelFire and no funds for Global Observer.

The AngelFire program is derived from the full-spectrum active protection close-in layered shield (FCLAS) to protect special operations forces' assets from rocket propelled grenades by using counter munitions. The committee understands that AngelFire will provide increased protection to lightly protected aircraft and vehicles operating in hostile environments.

Global Observer promises to fulfill U.S. Special Operations Command's (USSOCOM) requirements for persistent intelligence, surveillance and reconnaissance. Global Observer will develop a seven day endurance, hydrogen-fueled unmanned aircraft system that will significantly expand USSOCOM's ability to identify, track, and interdict targets, as well as enhance force protection of U.S. forces.

The committee recommends $32.7 million in PE 1160401BB for special operations technology development, an increase of $10.0 million for the AngelFire for FCLAS program, and an increase of $10.0 million for the Global Observer program.

OPERATIONAL TEST AND EVALUATION, DEFENSE

OVERVIEW

The budget request contained $181.5 million for Operational Test and Evaluation, Defense.

The committee recommends $181.5 million, no change to the budget request.

LEGISLATIVE PROVISIONS

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SECTION 201--AUTHORIZATION OF APPROPRIATIONS

This section would establish the amounts authorized to be appropriated for research, development, test, and evaluation for the Department of Defense for fiscal year 2007.

SECTION 202--AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY

This section would establish basic, research, applied research, and advanced technology development funding levels for the Department of Defense for fiscal year 2007.

SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS

SECTION 211--ALTERNATE ENGINE FOR JOINT STRIKE FIGHTER

This section would require that the Departments of the Navy and the Air Force obligate not less than $408.0 million of the funds authorized to be appropriated for the system development and demonstration program for the Joint Strike Fighter, for continued development of an alternate engine for the Joint Strike Fighter.

SECTION 212--EXTENSION OF AUTHORITY TO AWARD PRIZES FOR ADVANCED TECHNOLOGY ACHIEVEMENTS

This section would amend section 2374a of title 10, United States Code, to extend the authority of the Director, Defense Advanced Research Projects Agency (DARPA), to award prizes for advanced technology achievements through September 30, 2010. The Director's current prize authority would expire on September 30, 2007.

SECTION 213--EXTENSION OF DEFENSE ACQUISITION CHALLENGE PROGRAM

This section would amend section 2359b of title 10, United States Code, to remove the September 30, 2007, termination clause for the Defense Acquisition Challenge Program. This program, established as a pilot program, has shown its value to provide opportunities for the increased introduction of innovative and cost-saving technology in acquisition programs of the Department of Defense.

This section would also direct the Under Secretary of Defense for Acquisition Technology and Logistics to ensure that the identity of each proposed challenger is not disclosed outside the federal government, without the consent of the challenger.

SECTION 214--FUTURE COMBAT SYSTEMS MILESTONE REVIEW

This section would require the Secretary of Defense to conduct a Future Combat Systems (FCS) milestone review, following the preliminary design review, by September 30, 2008. This section would also require the Secretary to submit a report on the results of the FCS milestone review which will be a go/no-go review of the FCS program that is based on its demonstration of a sound business case to the congressional defense committees not later than February 13, 2009.

SECTION 215--INDEPENDENT COST ANALYSES FOR JOINT STRIKE FIGHTER ENGINE PROGRAM

This section would require the Comptroller General and the Secretary of Defense through the Cost Analysis Improvement Group to conduct independent cost analyses and provide independent reports on alternate engine acquisition strategies for the Joint Strike Fighter (JSF). The reports would include an analysis of an acquisition strategy resulting in the JSF powered with the F135 engine, an acquisition strategy resulting in the JSF powered by either the F135 or the F136 engine through a competitive program, or any other alternative, whether competitive or sole source, that would reduce the total program lifecycle cost, improve program schedule, or both.

SECTION 216--DEDICATED AMOUNTS FOR IMPLEMENTING OR EVALUATING DD(X) AND CVN-21 PROPOSALS UNDER DEFENSE ACQUISITION CHALLENGE PROGRAM

This section would require the Secretary of Defense to provide the Defense Acquisition Challenge Program with an additional $4.0 million to evaluate or implement challenge proposals specifically for the DD(X) next-generation destroyer and the CVN-21 next-generation aircraft carrier programs.

SUBTITLE C--BALLISTIC MISSILE DEFENSE

SECTION 221--FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES

This section would allow funds to be authorized to the Secretary of Defense for research, development, test, and evaluation for the Missile Defense Agency to be used for the development and fielding of ballistic missile defense capabilities.

SECTION 222--LIMITATION ON USE OF FUNDS FOR SPACE BASED INTERCEPTOR

This section would prevent the Department of Defense from obligating funds for the testing or deployment of a space-based interceptor program until 90 days after submitting a report to Congress describing the program and its national security implications.

SUBTITLE D--OTHER MATTERS

SECTION 231--REVIEW OF TEST AND EVALUATION POLICIES AND PRACTICES TO ADDRESS EMERGING ACQUISITION APPROACHES

This section would amend section 239(b)(2) of title 10, United States Code, to require the Director, Operational Test and Evaluation (DOT&E) to state whether the results of operational test and evaluation of major defense acquisition programs confirm that the items tested are operationally acceptable under limited conditions. Under current law, DOT&E prepares a report at the conclusion of operational test and evaluation, stating: (1) whether the test and evaluation performed were adequate, and (2) whether the results of such test and evaluation confirm that the items tested are effective and suitable for combat.

The committee is aware that in the Director's report, DOT&E evaluates a system as not operationally effective or suitable for combat if the system does not fully meet the Capabilities Development Document (CDD), or similar description of the user's standards for effectiveness and suitability as reflected in the requirements process. DOT&E has also informally included assessments of military utility for mission environments which are less than those set forth in the system's requirements. This section would formalize this valuable analysis by DOT&E to enable reasoned decision making by the combatant commanders and acquisition program managers regarding the fielding of systems which meet some, but not all, of the systems' requirements.

This section would also require the Under Secretary of Defense for Acquisition, Technology, and Logistics (USD(AT&L)), in coordination with DOT&E and the Director of the Defense Test Resource Management Center (DTRMC) to review Department of Defense test and evaluation (T&E) policies and practices and issue new or revised guidance, as necessary, to ensure test and evaluation practices keep pace with emerging acquisition approaches.

The committee is aware that T&E policies and practices have been impacted by both the spiral development authorities and the rapid acquisition authorities of sections 803 and 806, respectively, of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314). T&E policies and practices could potentially be further impacted by other emerging acquisition approaches. For example, should USD(AT&L) accept the

recommendations of the `Defense Acquisition Performance Assessment' (DAPA) report issued in January 2006, T&E policies and practices could be affected by the implementation of time-certain development programs. The DAPA report defines time-certain development programs as development programs which are assigned, `. . . a specific length of time in which milestone events will be accomplished by contract.' The committee wishes to ensure that T&E policies and practices neither impede the intended flexibilities of these authorities nor fail to provide an independent assessment of system capabilities. Lastly, the committee believes T&E policies and practices should be reviewed to ensure the Department is properly testing and evaluating materiel, such as outer tactical vests, that do not fall within the purview of DOT&E, because they do not meet the acquisition thresholds set forth in sections 2366 and 2399 of title 10, United States Code, but which do require limited operational test and evaluation to ensure the safety and survivability of the materiel and the personnel using the materiel.

This section would also require the Director of DTRMC to ensure that any revisions to T&E policies and practices are reflected in a description of and in the budgeting for the testing needs of the Department. Finally, this section would require USD (AT&L) to report to the congressional defense committees within nine months after the enactment of the this Act on the review conducted and on any new or revised guidance issued.

TITLE III--OPERATION AND MAINTENANCE

OVERVIEW

The budget request contained approximately $154.8 billion in operation and maintenance funds to ensure the U.S. military can meet the demands identified by each combatant commander. These funds will be used to train U.S. forces, purchase equipment and spare parts, repair older equipment, and transport equipment and personnel around the world. The budget request represents an increase of $7.4 billion over spending levels authorized and appropriated for fiscal year 2006. The challenge for the Department of Defense is that most of the $7.4 billion covers civilian pay raises and general inflation ($4.0 billion) and price growth due to rising fuel costs ($3.0 billion). The committee is concerned that the total budget increase does not accurately reflect the impact of inflation and increased fuel prices.

The committee is concerned about the state of military readiness, as the global war on terrorism (GWOT) enters its fifth year. The committee notes that the increased budget request actually funds fewer operation and maintenance related activities critical to ensuring the armed forces' ability to fight and win our nation's wars. As the Department faces rising health care costs, fuel costs and inflation, budget challenges are found in the operation and maintenance accounts. Currently, all the services are funded below the levels required to conduct the minimal training necessary to maintain military readiness. For example, the shortfalls in fiscal year 2007 budget are as follows:

(1) Navy funds only 36 steaming days a quarter versus the required 51 steaming days per quarter;

(2) Navy increases deferred maintenance from $54.0 million in fiscal year 2005 to $240.0 million in fiscal year 2007;

(3) Army funds 615 tank miles a year versus the combined arms training strategy requirement of 899 miles;

(4) Army funds 11.6 helicopter flying hours per month versus 14.5 helicopter flying hours per month;

(5) Marine Corps funds 88 percent of the combat ready days--equipment and training requirement; and

(6) Air Force funds 98 percent of the flying hour training requirement while mission capable rates are scheduled to fall to 75 percent for the first time since 1998.

In the fiscal year 2006 Future Years Defense Program (FYDP), the services anticipated receiving $154.7 billion for operation and maintenance programs in fiscal year 2007. Instead, this year's budget request is $154.8 billion, a decrease of $0.1 billion. Combined with the $4.0 billion in price growth due to inflation and the $3.0 billion in price growth due to rising fuel costs, the budget request reduces critical training and maintenance programs by close to $7.0 billion. The committee is concerned by this overall decrease in the dollars available to conduct training and maintenance activities and its long-term impact on military readiness.

In addition, the committee notes an increasing propensity by the Department to fund activities, or portions of activities, formerly found in the procurement and military construction accounts with operation and maintenance dollars. In particular, the military services are increasing their use of service contracts for military flight simulator training and initial flight screening and classifying this training as a `commercial' service. These contracts include facility site surveys, construction of training facilities and leasing of training equipment. The committee is concerned about the consequences of poor performance on any of these service contracts and the potential gap in vital military training if these contracts are terminated, leaving the department with no organic capacity to conduct the training.

For the last three years, the committee has closely examined the ability of the secretaries of the military departments to reset and reconstitute military equipment that has returned from deployment. The committee is concerned that the high rate of equipment damage and battle loss, coupled with continuing equipment requirements in theater and at home station, present the services with a growing problem. To address this critical challenge, the service secretaries must develop sound strategies to fulfill their reset requirements. The committee believes that, despite other service initiatives such as transformation and modernization, equipment reset must be among the services' highest priorities. This requires not only a commitment to adequately fund, but also carefully considered policies in areas that support equipment reset, such as industrial facility utilization and the procurement of next generation weapons systems. The service secretaries must also base these well reasoned strategies on full and accurate information. The committee is concerned that, in some cases, a lack of information prevents the services from accurately programming for equipment reset. For example, the Department has not yet made a decision on what will be done with the equipment currently in Iraq. The committee urges the service secretaries to adequately provide for the equipment needs of the reserve component, and in the case of the Army, to identify and segregate the requirements and funding associated with equipment reset and the service's transformation to modularity.

Finally, the committee recognizes the contribution and performance of the public depots and arsenals. The GWOT requirement on these industrial facilities continues and the committee commends them for their ongoing role in ensuring our national security.

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ITEMS OF SPECIAL INTEREST

BUDGET REQUEST ADJUSTMENTS--READINESS

The committee recommends the following adjustments to the fiscal year 2007 amended budget request:

[in millions of dollars]
Department of the Army Adjustments:
BA 1 Army Management Headquarters Activities	(19.1)
BA 1 Combat Development Core	(47.7)
BA 1 M-Gator	+1.0
BA 1 Restoration of Training Requirement	+82.1
BA 1 Standing Joint Forces Headquarters	(5.0)
BA 1 Unfunded Requirements in Depot Maintenance	+101.0
BA 2 Logistics Modernization Program	(2.3)
BA 2 Restoration of Prepositioned Stocks	+105.8
BA 3 Live Training Instrumentation for Air and Missile Defense Units	+4.0
BA 3 Leadership for Leaders Command and General Staff College	+1.0
BA 3 Spirit of America JROTC Youth Conference	+0.4
BA 4 Army Operations Center Headquarters	(50.0)
BA 4 Army Knowledge Online Disaster Recovery	+3.5
BA 4 Combat Readiness Center	(16.2)
BA 4 Continue Holocaust Education Exhibits	+0.5
BA 4 Future Business Systems	(4.9)
BA 4 Logistics Modernization Program	(4.6)
BA 4 Other Contracts--Excessive Growth	(31.1)
Undistributed Operational Unobligated Balances Estimate	(100.0)
BA 1 National Guard Advanced Solar Covers	+1.0
BA 1 National Guard Army National Guard Battery Modernization Program	+6.0
BA 1 National Guard Extended Cold Weather Clothing System	+1.0
BA 1 National Guard Homeland Defense Operational Planning System	+10.0
BA 1 National Guard Nationwide Dedicated Fiber Optic Network	+2.5
BA 1 Weapons of Mass Destruction Civil Support Teams	+9.5
BA 4 National Guard Citizen Soldier Support Program	+0.9
Undistributed National Guard restore Funding to Support 350K End Strength	+220.0
BA 4 Reserve Citizen Soldier Program	+0.9
Department of the Navy Adjustments:
BA 1 Damage Control Inventory Management and Stowage System	+3.0
BA 1 Man Overboard Safety System Installation	+3.0
BA 1 METBENCH Automated Calibration System	+3.7
BA 1 Navy Enterprise Resource Planning	(10.0)
BA 1 Restore Ship Deferred Maintenance	+145.0
BA 1 Restore Steaming Day Reduction	+121.0
BA 1 Shipyard Rate Savings--Mission Funding Conversion	(262.0)
BA 1 Unfunded Aviation Requirements	+75.0
BA 2 U.S. Navy Ship Disposal Program	+8.0
BA 3 Continued Education for Childcare Providers	+1.0
BA 3 Naval Sea Cadet Corps	+0.3
BA 3 Navy National Guard RINGGOLD Linguists	+0.4
BA 4 Flash Detection System	+4.0
BA 4 FYDP Improvement Project	(9.6)
BA 4 Navy/Marine Corps Intranet	(70.0)
BA 4 NAV 2030 Vision Principals	(2.0)
BA 4 Other Contracts--Excessive Growth	(15.0)
BA 4 PR-07/POM-08 Planning and Analysis	(3.0)
BA 4 Special Project Aircraft	+3.0
BA 4 Trident	+3.0
BA 4 Unjustified Growth for HQ Staff	(8.9)
Undistributed Navy Civilian Personnel Overstatement	(96.8)
Undistributed Operational Unobligated Balances Estimate	(135.0)
United States Marine Corps Adjustments:
BA 1 Cold Weather High Performance Layering System	+2.0
BA 1 EMI Hardened Fluorescent Stringable Tent Lighting System	+7.0
BA 1 Marine Air Traffic Control and Landing System	+9.0
BA 1 Maritime Prepositioning Reconstitution	+9.9
BA 1 Redesignation / Establishment of Unnecessary Command Structures	(5.9)
BA 1 Unfunded Requirements in Depot Maintenance	+40.1
BA 3 Formal School Support	+8.6
BA 3 Recruit Training Support	+2.4
BA 3 Training Support Requirements	+25.0
Undistributed Operational Unobligated Balances	(3.0)
Department of the Air Force Adjustments:
BA 1 B-52 Attrition Reserve	+49.8
BA 1 Counter Space Operations	(10.0)
BA 1 MBU-20/P Oxygen Mask with Lights	+2.0
BA 1 Nevada Test and Training Range / Utah Test and Training Range	+8.0
BA 1 Unjustified Transformational Efficiencies	+70.0
BA 3 Euro NATO Jet Pilot Training	(10.0)
BA 3 Initial Flight Screening	(5.0)
BA 3 National Space Center Study	+2.0
BA 4 Administration--General Reduction	(10.0)
BA 4 Air Force Manufacturing Technical Assistance Production	+4.0
BA 4 Unjustified Growth	(115.0)
Undistributed Executive General Schedule	(180.0)
Undistributed Other Contracts--Excessive Growth	(50.0)
Undistributed Ranch Hand Data	+0.9
Defense-Wide Activities Adjustments:
BA 1 JCS--Excessive Growth	(10.0)
BA 4 Capital Security Cost Share	(33.0)
BA 4 Commercial Technologies for Maintenance Activities (CMTA)	+15.0
BA 4 Kids Voting Pilot Program	+0.2
BA 4 Meals Ready to Eat Reserve	+5.0
BA 4 Port of Corpus Christi Seaport Infrastructure	+5.0
BA 4 Procurement Technical Assistance Program	+6.8
BA 4 Readiness and Environmental Protection Initiative (REPI)	+30.0
BA 4 Starbase	+1.0
BA 4 WHS Excessive Growth	(14.0)
Undistributed Cold War Medal	+2.0
Undistributed DOD Supplementary Impact Aid	+50.0
Undistributed DOD Supplementary Impact Aid--Force Structure/Relocation	+15.0
Undistributed Operational Unobligated Balances Estimate	(272.1)
Undistributed Ranch Hand Data	+0.2

ARMY KNOWLEDGE ONLINE DISASTER RECOVERY

The budget request contained $70.8 million for the Army Knowledge Management program.

The Knowledge Management program is an enterprise wide program that will transform the Army into a network-centric, knowledge-based force. An essential part of this effort is the Army Knowledge Online (AKO) Disaster Recovery initiative, which serves as the communications center for AKO Disaster Recovery operations throughout the Army.

Accordingly, the committee recommends $74.3 million for the Knowledge Management program, an increase of $3.5 million in operation and maintenance for the Army to upgrade the AKO Disaster Recovery operation.

CAPITAL SECURITY COST SHARE

The budget request contained $126.7 million for capital security cost share.

The committee notes that a November 2004 Government Accountability Office report estimated the cost share for the Department of Defense (DOD) for fiscal year 2007 to be $93.1 million. Furthermore, the committee is concerned that the Secretary of Defense has no accounting of defense personnel stationed in overseas diplomatic facilities and therefore can not reconcile the cost share levied by the Secretary of State. Accordingly, this Act contains a provision (Section 344) that would require the Secretary of Defense to perform an annual accounting of DOD overseas staffing requirements.

Therefore, the committee recommends $93.7 million for the Capital Security Cost Share program, a decrease of $33.0 million.

COMBAT ENHANCEMENT FORCES AND COMBAT COMMUNICATIONS

The budget request contained $603.7 million for Air Force combat enhancement forces and $1.6 billion for combat communications.

The committee notes that most of these critical forces have been operating above maximum surge levels since the beginning of the global war on terrorism and reports continue to reflect a declining trend in the readiness of these forces. The committee strongly believes that special operations forces and weather teams, combat rescue forces, combat control teams, manned reconnaissance platforms, and electronic warfare capabilities are critical defense assets and this decline in readiness must be addressed.

The committee recommends an increase of $40.0 million for combat enhancement forces and an increase of $30.0 million for combat communications.

HOMELAND DEFENSE OPERATIONAL PLANNING SYSTEM

The budget request contained no funds for operation and maintenance of the California Army National Guard's homeland defense operational planning system (HOPS).

The committee understands HOPS received initial funding in fiscal year 2004 and continued collaboration with Lawrence Livermore National Laboratory will further develop the operational capability of HOPS, which provides highly detailed situational awareness that

enhances the California Army National Guard's ability to prepare for, and respond to, weapons of mass destruction attacks and to defend facilities critical to the U.S. infrastructure.

The committee recommends an increase of $10.0 million for HOPS.

MARITIME PREPOSITIONING SHIP LEASE BUYOUT

The budget request contained $35.1 million in the National Defense Sealift Fund to exercise the purchase options on 1 of the 10 remaining maritime prepositioning ships on long- term lease.

The committee is aware of the continuing need for these ships beyond the original 25-year-term and the lifecycle cost savings garnered by exercising the purchase options. The committee recommends exercising the purchase option on all of the 10 remaining maritime prepositioning ships, as soon as possible.

The committee recommends $101.9 million in the National Defense Sealift Fund to exercise the purchase option on 2 of the 10 remaining maritime prepositioning ships on long-term lease, an increase of $66.8 million.

NATIONWIDE DEDICATED FIBER OPTIC NETWORK

The budget request contained no funding for the Nationwide Dedicated Fiber Optic Network (NDFON).

NDFON will provide a dedicated, high speed, high bandwidth fiber optic network backbone to support national guard operations. The committee continues to urge the Department of Defense to complete this network, which showed its value in the national guard's response to Hurricane Katrina. When no cell phones were working on the storm ravaged Gulf Coast, the NDFON backbone provided critical, reliable communications capability.

Accordingly, the committee recommends an increase of $2.5 million in operation and maintenance for the Army National Guard to complete the NDFON nationwide engineering design package.

NAVY MARINE CORPS INTRANET

The committee supports the Navy Marine Corps Intranet (NMCI) and commends the Secretary of the Navy for resolving the long standing contract dispute on the NMCI contract. The committee remains concerned, however, about the cost of the contract and the enduring nature of legacy programs that a now mature NMCI was designed to replace. For that reason, the committee cannot support the increased funding contained in the budget request.

Accordingly, the committee recommends $240.5 million in servicewide communications for NMCI, a decrease of $70.0 million.

PORT OF CORPUS CHRISTI

The committee directs the Director of the Department of Defense Office of Economic Adjustment to provide $5.0 million to the Port of Corpus Christi for military seaport infrastructure upgrades.

READINESS AND ENVIRONMENTAL PROTECTION INITIATIVE

The budget request contained $20.0 million for the Readiness and Environmental Protection Initiative (REPI).

The committee expects the secretaries of the military departments to use the authority and funding available through the REPI program to enter into agreements with willing entities to prevent or limit the use of property in the vicinity of a military installation that would impede the mission of that military installation. The committee is pleased by the recent successes of the REPI program at installations such as Fort Carson, and expects the Secretary of the Army to continue to adequately fund the REPI efforts at Fort Carson, which the Army identifies as its highest priority site. The committee also encourages the other services to explore the utilization of this authority at installations such as Whiteman Air Force Base, McChord Air Force Base, Fairchild Air Force Base, and Naval Air Station Whidby.

The committee recommends $50.0 million for the Readiness and Environmental Protection Initiative, an increase of $30.0 million.

WEAPONS OF MASS DESTRUCTION CIVIL SUPPORT TEAMS

The budget request contained no funding for additional Weapons of Mass Destruction Civil Support Teams (WMD-CST).

The committee recognizes the value of the Army National Guard's WMD-CST in rapid support of civilian first responders in the event of a chemical, biological, or radiological incident. Now that each state's national guard has a WMD-CST, the committee believes that states possessing obvious targets should be identified for a second team. In that regard, the committee is pleased to note that California has a second team, and believes that New York should have a second team as well.

Accordingly, the committee recommends an additional $9.5 million for the Army National Guard to establish a second WMD-CST in New York.

ENVIRONMENTAL ISSUES

FUEL TANK REPLACEMENT AT POINT LOMA, CALIFORNIA

The committee is concerned about the fuel tank leakage at the Defense Energy Support Center (DESC) Fuel Storage Point (DFSP) at Naval Base Point Loma, California. Data from recent monitoring of the ground soil indicate that the leakage is more extensive than originally estimated. In addition to ongoing mitigation efforts, the committee is aware that the DESC has a military construction project in the fiscal year 2008 Future Years Defense Program that would replace all existing bulk storage infrastructure with modern, Department of Defense-standard storage tanks and support equipment. The committee notes that the DFSP is part of the strategic reserve, and its capabilities and readiness are matters of national security. The committee expects the Navy and the DESC to expedite to the furthest extent practicable their clean up actions, and to continue an ongoing dialogue about data, findings, and status with the congressional defense committees and the local community.

NON-THERMAL TREATMENT OF ASBESTOS AND ASBESTOS CONTAINING MATERIAL

The committee is concerned about the long-term effects of the disposal of asbestos and asbestos containing material (ACM). The committee recognizes the benefits of transforming asbestos and ACM into a non-hazardous material and notes the problems associated with thermal treatment of hazardous waste. The committee is aware that the Department of Defense (DOD) is currently testing the application of non-thermal treatment processes. The committee encourages the Department to continue its exploration of non-thermal asbestos technology and to consider its use when treating asbestos or ACM at DOD installations.

REPORT ON URANIUM LOCATED IN GORE, OKLAHOMA

The committee acknowledges that since completion of work in 1993, 1.5 million pounds (approximately 1,200 barrels) of U.S. Government-provided uranium is being stored at the former Sequoyah Fuels Corporation site located in Gore, Oklahoma. This site was used to convert DU6 to DU4 for use by the Army in anti-tank ammunition. The storage of this uranium at the Gore, Oklahoma, site may impede the efforts to decontaminate and decommission the facility.

Therefore, the committee directs the Secretary of Defense to work in conjunction with the Secretary of Energy to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services no later than six months after the enactment of this Act that would identify whether a remediation plan is necessary regarding the uranium located in Gore, Oklahoma, and, if so, the plans for remediation.

SITE ASSESSMENT OF FORMER WORLD WAR II ORDNANCE MANUFACTURING FACILITY, ROSEMOUNT, MINNESOTA

The committee is aware that the United States Army Corps of Engineers recently completed a preliminary assessment of property in Rosemount, Minnesota. The property, once the site of an ordnance manufacturing facility (Gopher Ordnance Works), is now owned by the University of Minnesota. The committee notes that one potential next action in this environmental cleanup process is for the U.S. Army Corps of Engineers to conduct a site inspection of the property. The committee is interested in the expeditious resolution of this matter, and therefore requests the Secretary of the Army to initiate the next action in the process. Furthermore, the committee expects the Secretary to continue an ongoing dialogue about data, findings, and status with the congressional defense committees and the local community.

INFORMATION TECHNOLOGY ISSUES

INFORMATION TECHNOLOGY OVERVIEW

The committee remains deeply concerned with information technology (IT) development, procurement, and management across the Department of Defense (DOD). The committee recognizes the challenges of building a fully integrated, secure, reliable system for a world-wide deployable military force. The committee also recognizes that the challenge is complicated by conflicting user requirements and a decentralized procurement system. In many ways, the Department's IT difficulties are a subset of DOD's larger acquisition challenges. Notwithstanding the difficulties, the committee believes that too many of the Department's IT programs are poorly managed and would benefit from increased scrutiny and a new way of doing business.

The committee supports the Department's broad goal of net centric operations, but is troubled by the procurement history of the Global Information Grid, the backbone of net centric operations. The committee notes the findings of the Government Accountability Office report `DOD Management Approach and Processes Not Well-Suited to Support Development of Global Information Grid,' dated January 30, 2006. This report clearly describes the great risk of attempting to build an enterprise-wide system for which no one entity is in charge and for which no one can enforce operational or investment decisions.

For these reasons, the committee believes a prudent pause in selected IT programs is in order to allow the broader development of the Global Information Grid to progress. In that way, spending on these systems of the future can be more precisely directed to the reality of a more mature GIG backbone, resulting in greater efficiency and more rapid deployment of new systems. To that end, the committee has recommended funding reductions elsewhere in this report in several programs.

Similarly, the committee has recommended legislation that would require new business systems to come swiftly to fruition or lose funding. The committee believes that this change, along with other, broader acquisition initiatives recommended by the committee, will begin to realize greater efficiencies in DOD information technology programs. The committee believes that information technology is one of the critical elements that make our military forces as lethal as they are--but for almost $31 billion, we must do better.

BUSINESS TRANSFORMATION AGENCY AND ENTERPRISE RISK ASSESSMENT MODEL

The committee is heartened by the Deputy Secretary of Defense's decision to create the Business Transformation Agency (BTA), and will monitor its activities closely to ensure it adds value to the management of enterprise-wide business programs. Far too often, information technology (IT) programs are created with great promise, only to fall victim to the impossible goal of perfection. The result: expensive new programs drag on for years, not realizing their potential, while the legacy systems they were designed to replace continue to consume operation and maintenance dollars.

To that end, the committee also supports the recently announced Enterprise Risk Assessment Model (ERAM), which promises to speed the delivery of DOD wide business systems and provide streamlined execution of programs. The committee applauds these initiatives and urges the Secretary of Defense to support these new enterprises.

READINESS ISSUES

AIR FORCE TRANSFORMATION

The committee is aware that the Air Force has initiated a transformation plan in an effort to modernize and recapitalize the force structure by focusing on three major areas: streamlining the organizational structure, incorporating process efficiencies, and continuing force structure reductions to become a more lethal, agile, and balanced total force. Although not clearly justified, the fiscal year 2007 operation and maintenance budget request reflects a $945.0 million reduction due to efficiencies that the Air Force anticipates reaping through transformation. The committee is aware of declining trends in readiness, and is concerned that these trends will continue to decline as a result of this swift move to organizational change.

Therefore, the committee directs the Secretary of the Air Force to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services by April 1, 2007, describing transformational initiatives, evaluating the impact of these changes on unit-level readiness, detailing force structure realignments and reductions, and accounting actual cost savings accrued through the transformational initiatives.

ARMY LOGISTICS MODERNIZATION

The committee is encouraged by the Army's efforts to transform its logistics processes and is interested in the potential of the Logistics Modernization Program (LMP) to streamline logistics and improve financial management. However, a June 2005 report by the Government Accountability Office (GAO), Army Depot Maintenance: Ineffective Oversight of Depot Maintenance Operations and Systems Implementation Efforts, describes the problems associated with the implementation of LMP at Tobyhanna Army Depot. The committee is concerned with these findings and directs the Secretary of the Army to submit a report to the House Committee on Armed Services and the Senate Committee on Armed Services by December 31, 2006, on the status of the LMP deficiencies outlined in GAO's report.

BASE OPERATING SUPPORT AND FACILITIES RECAPITALIZATION BUDGET SHORTFALLS

In the committee report (H. Rept. 109-89) accompanying the National Defense Authorization Act for Fiscal Year 2006, the committee expressed concern that shortfalls in base operating support (BOS) budgets at U.S. military installations were causing the services to consider a decrease in basic services such as child care, dining hall operations, and facilities management activities. As such, the committee urged the Department of Defense (DOD) to fully fund and execute BOS sustainment, and facilities recapitalization accounts.

Despite this level of congressional interest in and commitment to BOS and facilities recapitalization accounts, the fiscal year 2007 budget request once again contains severe shortfalls in these areas. For instance, Army BOS budgets are underfunded by at least $1.9 billion, Army National Guard and Reserve BOS budgets are underfunded by more than $360.0 million, and Air Force BOS budgets are underfunded by more than $250.0 million.

In general, BOS requirements are `must pay' bills, failure to fully fund these accounts will result in a decrease in base services, such as shortened hours at dining facilities, elimination of recreational activities, or increased fees for morale, welfare, and recreation activities. While DOD leaders have expressed their intent to transfer funds into these accounts during the fiscal year, this approach is a haphazard manner of managing budget accounts that are significant both in size and impact on personnel.

In addition to the Department's general failure to support BOS requirements, analysis of facilities restoration, and modernization budgets indicates that the services have essentially ceased to fund these accounts.

The services have justified their actions, in part, by citing DOD models for facilities sustainment and recapitalization which show facilities `recap rates' that are below DOD targets. Unfortunately, these indicators were skewed by the impact of base closure activities and funding to rebuild after natural disasters. Nevertheless, these results, which effectively overstate the level of funding provided to the general inventory of facilities, have been used to justify severe decreases in restoration and modernization accounts. The committee is greatly concerned with this misapplication of facilities management model results.

After decades of failing to fund facilities construction, sustainment, restoration, and modernization budgets, the Department's recent efforts to ensure that its facilities are properly maintained over their lifecycles is `one step forward'. Unfortunately, budget requests that virtually eliminate facilities restoration and modernization funding, such as the fiscal year 2007 request, represent `two steps backward'.

This `pause' in restoration and modernization budgets will be difficult to reverse in the current budget environment, likely resulting in an entire generation of facilities passing through mid-lifecycle periods without renovations required to maintain the ability to support military requirements.

The committee urges the service secretaries to increase funding for facilities restoration and modernization in future budget requests. Supporting such requirements is critical to extending the useful lifecycle of DOD facilities while maintaining quality work and living environments.

In general, the committee is greatly concerned by the direction of the Department's requests for installation operation and management budgets. If the Department continues to fail to fund these accounts, there will be substantial negative impacts on both military readiness and quality of life. As such, the committee urges DOD leadership to renew its commitment to installations management budgets by fully funding BOS sustainment, restoration, and modernization accounts in current and future fiscal years.

BERYLLIUM SUPPLY INDUSTRIAL BASE

The Department of Defense (DOD) issued a report in May 2004, at the direction of Congress, concluding that the strategic and critical metal, beryllium, plays a key role in systems that support the transformational armed services. This report also noted that the domestic supply of beryllium is in danger of being depleted because the only domestic supplier has closed its primary metal production facility.

A total of $10.8 million was appropriated by congress during the past two years, through the Defense Production Act purchases for the design and construction of a new beryllium production plant. In order to complete the timely construction of the plant, the committee supports the $7.5 million in the President's request for the Beryllium Supply Industrial Base Project.

DEPOT MAINTENANCE STRATEGY AND IMPLEMENTATION PLANS

The committee notes that in fiscal year 2005 the Air Force's three air logistics centers exceeded scheduled aircraft production, reduced costs, achieved the highest ever on-time delivery record, and improved overall quality of work. The committee believes that the implementation of the 2002 Air Force Depot Maintenance Master Strategy was a driving factor in this transformational success and commends the Air Force for these achievements.

Furthermore, the committee notes that despite the direction in the committee report (H. Rept. 108-106) accompanying the National Defense Authorization Act for Fiscal Year 2004, the Secretary of Defense has not developed a comprehensive, results-oriented management plan to guide future service depot maintenance and has not provided a framework that assures the long-term viability of the depot system. The committee believes that it is essential that the Secretary build upon past strategic planning efforts, including the recent successes generated by implementation of the Air Force's Depot Maintenance Master Strategy, to help guide future

service depot maintenance. Therefore, the committee directs the Secretary to develop an overarching depot maintenance strategy for the department and to submit a report on this strategy, by March 1, 2007, to the congressional defense committees. This report, at a minimum, shall include:

(1) An assessment of the extent to which current facilities will continue to be used;

(2) An assessment of the extent to which the appropriate work is being performed in the depots to maintain core capability;

(3) Future planning for core capability and the identification of workloads by depot and commodity group that are currently being performed in the depots;

(4) Current workforce breakdown and a personnel requirements strategy for maintaining the required workforce;

(5) Planned equipment and facility improvements and the associated funding stream, by depot with distinction made for that which is planned as a replacement and that which will provide capability for a new system;

(6) A specification of statutory, regulatory or operational impediments, if any, to achieving a strategy that enables a capital investment in facilities, equipment, processes and personnel of an amount not less than six percent of the actual total revenue; and

(7) A description of the benchmarks established by each depot for capital investment and the relations of the benchmarks to applicable performance methods used in the private sector.

The committee directs the Comptroller General to evaluate this report and provide comment and analysis to the congressional defense committees no later than 90 days after the Secretary of Defense submits the report.

HIGH ALTITUDE AVIATION TRAINING

The committee is aware that a portion of non-hostile losses of Army rotary winged aircraft in Operation Enduring Freedom and Operation Iraqi freedom are related to operations in high elevations and mountainous terrain. The committee believes that high altitude aviation training can reduce the number of the accidents by ensuring that crews are properly trained and current in the procedures for operating in such a challenging environment. Therefore, the committee requests the Secretary of the Army provide a report on high altitude aviation training to the congressional defense committees by December 15, 2006. The report should include:

(1) The current location and type of high altitude training, to include the percentage of pilots who receive such training on an annual basis at each location and the types of aircraft used in such training;

(2) The number and type of helicopters required to provide the high altitude aviation training needed to sustain the war strategies contained in the 2006 Quadrennial Defense Review, assuming that priority for such training is given to commanders, instructor pilots, aviation safety officers, and deploying units; and

(3) A thorough evaluation of the accident rates for deployed Army helicopter pilots who received high altitude training and deployed helicopter pilots who did not receive such training, including the number of accidents related to power management, using high and low estimates and the number of accidents involving combat and non-combat environments.

NATIONAL SPACE STUDIES CENTER STUDY

The committee is well aware of the increasing reliance on space to support both our warfighters and our global economy and believes that it is imperative to have a comprehensive understanding of how dependence on space assets, both military and commercial, can impact U.S. national security and economic security. Therefore, the committee directs the Secretary of Defense, through the National Space Studies Center, to expand ongoing efforts to assess the value of space contributions with emphasis on the United States dependence on space, innovative ideas contributing to ensuring freedom of action in space, and integration of all space forces.

LEGISLATIVE PROVISIONS

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SECTION 301--OPERATION AND MAINTENANCE FUNDING

This section would authorize $129.8 billion in operation and maintenance funding for the military departments and defense-wide activities.

SECTION 302--WORKING CAPITAL FUNDS

This section would authorize $2.6 billion for working capital funds of the Department of Defense and the National Defense Sealift Fund.

SECTION 303--OTHER DEPARTMENT OF DEFENSE PROGRAMS

This section would authorize $22.4 billion for other Department of Defense Programs for (1) the Defense Health Program; (2) Chemical Agents and Munitions Destruction; (3) Drug Interdiction and Counter-Drug Activities, Defense-Wide; and (4) the Defense Inspector General.

SUBTITLE B--ENVIRONMENTAL PROVISIONS

SECTION 311--REVISION OF REQUIREMENT FOR UNEXPLODED ORDNANCE PROGRAM MANAGER

This section would rescind the authority extended to the Secretary of Defense to delegate the unexploded ordnance program manager position to one of the military departments. This section would also add research to the list of duties for this position.

SECTION 312--IDENTIFICATION AND MONITORING OF MILITARY MUNITIONS DISPOSAL SITES IN OCEAN WATERS EXTENDING FROM UNITED STATES COAST TO OUTER BOUNDARY OF OUTER CONTINENTAL SHELF

This section would require the Secretary of Defense to identify, research, monitor, and provide navigational and safety information on conventional and chemical military munitions disposal sites in the ocean waters that extend from the United States coast to the outer boundary of the outer continental shelf. Specifically, it would require the Secretary to review historical records to determine the number and probable locations of disposal sites, the size of these sites, and the types and quantities of military munitions disposed of at these sites. The Secretary shall release periodically to the public and submit annually to Congress the information obtained in this review. This section would also require the Secretary to cooperate with the National Oceanic and Atmospheric Administration to inform those who use the ocean environment of known or potential hazards. Finally, this section would require the Secretary to conduct research on the effects of military munitions, and to monitor certain disposal sites to recognize and track potential contamination.

SECTION 313--REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD SUPERFUND SITE, MOSES LAKE, WASHINGTON

This section would authorize the Secretary of Defense to transfer not more than $111,114.03 to the Moses Lake Wellfield Superfund Site, 10-6J Special Account, to reimburse the Environmental Protection Agency for costs incurred in overseeing a remedial investigation and feasibility study performed by the Department of the Army.

SECTION 314--FUNDING OF COOPERATIVE AGREEMENTS UNDER ENVIRONMENTAL RESTORATION PROGRAM

This section would amend section 2701(d)(2) of title 10, United States Code, to allow cooperative agreements entered into for environmental restoration at defense facilities to extend beyond the present two-year limitation when the agreements are funded out of either the Department of Defense Base Closure Account 1990 or the Department of Defense Base Closure Account 2005.

SECTION 315--ANALYSIS AND REPORT REGARDING CONTAMINATION AND REMEDIATION RESPONSIBILITY FOR NORWALK DEFENSE FUEL SUPPLY POINT, NORWALK, CALIFORNIA

This section would require the Secretary of the Air Force to report to Congress not later than January 30, 2007, on matters relating to contamination and remediation of property at the Norwalk Defense Fuel Supply Point in Norwalk, California. This section would also prohibit the Secretary from conveying the property by public auction before pursuing a fair market value transfer of the property to the city of Norwalk, submitting the report required, and providing an explanation of why efforts to transfer the property to the city have not been successful.

SUBTITLE C--WORKPLACE AND DEPOT ISSUES

SECTION 321--EXTENSION OF EXCLUSION OF CERTAIN EXPENDITURES FROM PERCENTAGE LIMITATION ON CONTRACTING FOR DEPOT-LEVEL MAINTENANCE

This section would extend for five years the authority to exclude amounts expended for the performance of depot-level maintenance and repair workload by non-federal government personnel at a Center of Industrial and Technical Excellence from the percentage limitation in section 2466(a) of title 10, United States Code, if the personnel performing the work are provided pursuant to a public-private partnership.

SECTION 322--MINIMUM CAPITAL INVESTMENT FOR AIR FORCE DEPOTS

This section would require the Secretary of the Air Force to invest a minimum of six percent of the total revenue of the Air Force depots in the capital investment budget to improve or sustain depot maintenance facilities, equipment, or processes.

SECTION 323--EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE OF SECURITY GUARD FUNCTIONS

This section would amend subsection 332(c) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314) to extend the temporary authority to contract for increased performance of security guard functions. The authority would expire at the end of fiscal year 2008. This section would require the Secretary of Defense to submit a report by February 1, 2007, to the Senate Committee on Armed Services and House Committee on Armed Services detailing progress towards implementing the recommendations of the Government Accountability Office report entitled, `Army's Guard Program Requires Greater Oversight and Reassessment of Acquisition Approach.' The extension of authority granted in this section would not be effective until the report is submitted to the Senate Committee on Armed Services and the House Committee on Armed Services.

SUBTITLE D--REPORTS

SECTION 331--REPORT ON NUCLEAR ATTACK SUBMARINE DEPOT MAINTENANCE

This section would require the Secretary of the Navy to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services by February 1, 2007, on criteria used when a nuclear attack submarine is sent for maintenance to a facility other than a facility located at the homeport of the submarine.

SECTION 332--REPORT ON NAVY FLEET RESPONSE PLAN

This section would require the Secretary of the Navy to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services by December 1, 2006, on the Navy Fleet Response Plan. The committee expects the report would include assessments from senior enlisted officers, for example chief engineers and command master chiefs, who served on aircraft carriers, destroyers and cruisers that participated in the Fleet Response Plan regarding the following:

(1) material condition of the ship;

(2) maintenance of the ship;

(3) en-route training;

(4) professional development training available on the ship;

(5) combat skill training;

(6) personnel assignments and manning;

(7) retention of personnel; and

(8) suggestions for improvement.

This section would also require the Comptroller General to submit a review of the Secretary of the Navy report to the Senate Committee on Armed Services and the House Committee on Armed Services that includes a recommendation on the extension of the Fleet Response Plan to expeditionary strike groups by March 15, 2007. Finally, this section would postpone the expansion of the Fleet Response Plan beyond the carrier strike groups until October 1, 2007.

The committee has concerns regarding expansion of the Fleet Response Plan to other ships beyond those in a carrier strike group. The committee notes the Navy has neither fully tested and evaluated the Fleet Response Plan nor formally implemented the required operational, training and personnel directives to manage this program.

SECTION 333--REPORT ON NAVY SURFACE SHIP ROTATIONAL CREW PROGRAMS

This section would require the Secretary of the Navy to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services by April 1, 2007, on ship rotational crew experiments. This section would also require the Comptroller General to submit an assessment of the Secretary of Navy's report to the Senate Committee on Armed Services and the House Committee on Armed Services by July 15, 2007.

This section would further require the Director of the Congressional Budget Office to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services that examines long-term benefits and costs of surface ship crew rotational programs by July 15, 2007. Finally, this section would postpone the implementation of any new surface ship rotational crew experiment or program until October 1, 2009.

The committee is concerned about the expansion of the surface ship rotation crew program formally known as Sea Swap to other surface ships. Potential disadvantages of Sea Swap include extensive wear and tear on the deployed ship due to a lengthy period of time at sea, reduced sense of crew ownership of a given ship, reduced opportunities for transit port calls and a negative impact on crew morale and retention.

SECTION 334--REPORT ON ARMY LIVE-FIRE RANGES IN HAWAII

This section would require the Secretary of the Army to submit a report to Congress by March 1, 2007, on the adequacy of live-fire training facilities in the state of Hawaii in relation to current and future training requirements, and plans for modifications or additions to the live-fire training infrastructure in Hawaii.

SECTION 335--COMPTROLLER GENERAL REPORT ON JOINT STANDARDS AND PROTOCOLS FOR ACCESS CONTROL SYSTEMS AT DEPARTMENT OF DEFENSE INSTALLATIONS

This section would require the Comptroller General to submit a report to the Senate Committee Armed Services and the House Committee on Armed Services within one year of enactment of this Act, on joint standards and protocols for access control systems at Department of Defense (DOD) installations. The report would contain an assessment of whether the establishment of joint standards and protocols for access control at DOD installations would improve access control across all installations by providing greater consistency and improved force protection.

SECTION 336--REPORT ON PERSONNEL SECURITY INVESTIGATIONS FOR INDUSTRY AND NATIONAL INDUSTRIAL SECURITY PROGRAM

This section would require the Secretary of Defense to submit, within 90 days of enactment, a report on the future requirements of the Department of Defense with respect to the Personnel Security Investigations for Industry and the National Security Investigations for Industry Security Program of the Defense Security Service. The report would be delivered to the congressional defense committees, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Committee on Government Reform of the House of Representatives.

This report would include an accounting of clearance investigations completed, the number of each type of clearance granted, the unit cost of each clearance granted, the unit cost to the Department of Defense of each security clearance granted, the amount of any fee or surcharge paid by the Office of Personnel Management as a result of conducting a personnel security clearance investigation, a description of the procedures used to estimate future investigations to be performed, and a plan for meeting increased demand of clearances. It would also require subsequent semi-annual reports on future funding requirements, backlog size, and progress toward meeting implemented changes in the investigation process. Lastly, it would require the Government Accountability Office to examine the Department's plan and to conduct an independent assessment after the initial report is submitted by the Department of Defense.

The Committee recommends that the Office of Management and Budget further open and extend its review and reform efforts for the security clearance process to include the appropriate external expert sources such as defense contractors, academic institutions, workforce providers, and research and development organizations to provide intelligence and resources to assist in the development of a new clear human capital management system, as current process does not fully address the needs and impacts of the institutions and organizations outside of the federal government and related agencies.

The committee is disappointed by an announcement that the Defense Security Service has suspended the processing of new clearances and is concerned about the potential impact on national security and the defense industrial base. The committee is concerned by the Defense Security Service's failure to warn Congress of this failure in advance so that the problem might have been averted. The committee remains committed to finding a solution to the problem of clearance investigations as soon as possible.

SUBTITLE E--OTHER MATTERS

SECTION 341--DEPARTMENT OF DEFENSE STRATEGIC POLICY ON PREPOSITIONING OF MATERIEL AND EQUIPMENT

This section would amend chapter 131 of title 10, United States Code, to require the Secretary of Defense to establish a comprehensive approach to Department of Defense (DOD) prepositioning programs. This section would also limit the diversion of materiel and equipment from prepositioned stocks except for the purpose of supporting a contingency operation, or in accordance with a change to the prepositioning policy required under this section. This section would require the Secretary to notify the congressional defense committees before implementing or changing the prepositioning policy. Finally, this section would require the Secretary to establish the prepositioning policy within six months after the enactment of this Act.

The committee recognizes that prepositioned materiel offers significant strategic flexibility, as demonstrated in Operation Iraqi Freedom. The committee is concerned, however, that there is a lack of clear DOD policy to guide the prepositioning programs of the services. Furthermore, the committee notes that the Secretary of Defense has failed to report on DOD prepositioned equipment and materiel as required in section 1046 of the Ronald W. Reagan National Defense Authorization Act of Fiscal Year 2005 (Public Law 108-375).

Additionally, the committee is discouraged by recent decisions regarding Army prepositioned stocks. For example, the Army recently programmed the download of an entire

brigade set from its afloat prepositioned combat capability. Furthermore, the Government Accountability Office (GAO) testified before the Subcommittees on Readiness and Tactical Air and Land Forces on March 30, 2006, that the Army is making plans to reduce its contractor workforce in Charleston, South Carolina, where it performs the maintenance on its afloat stocks. GAO also noted that the Army has a large military construction project well underway at a site in Italy, but the Army's draft prepositioning strategy identifies no significant prepositioning mission in Europe. The committee believes these recent changes to the Army prepositioning program, together with the continued challenge of maintaining the combat capability of the Army prepositioned stocks in Korea and Southwest Asia, contribute to a severe underinvestment in these assets.

SECTION 342--AUTHORITY TO MAKE DEPARTMENT OF DEFENSE HORSES AVAILABLE FOR ADOPTION AT END OF USEFUL WORKING LIFE

This section would amend section 2583 of title 10, United States Code to include horses owned by the Department of Defense. The committee notes that currently private adoption of caisson horses from the 1st Battalion, 3rd United States Infantry Regiment is prohibited. The committee notes the contributions of these animals and their service to the public good.

SECTION 343--SALE AND USE OF PROCEEDS OF RECYCLABLE MUNITIONS MATERIALS

This section would authorize the Secretary of the Army to establish a separate program to sell recyclable munitions materials resulting from the demilitarization of conventional military munitions such as brass, scrap metal, propellants, and explosives. Furthermore, this section would credit the proceeds from the sales to the funds available to the Army for reclamation, recycling, and reuse of conventional military munitions. This process would be consistent with the Solid Waste Disposal Act, commonly referred to as the Resource Conservation and Recovery Act (42 U.S.C. 6901 et seq.) and its implementing regulations.

SECTION 344--CAPITAL SECURITY COST SHARING

This section would require the Secretary of Defense to perform an annual accounting of Department of Defense (DOD) overseas staffing requirements in order to reconcile cost-sharing fees levied by the Secretary of State, in accordance with section 629(e)(1) of the Consolidated Appropriations Act, 2005 (Public Law 108-447).

SECTION 345--PRIORITIZATION OF FUNDS WITHIN NAVY MISSION OPERATIONS, SHIP MAINTENANCE, COMBAT SUPPORT FORCES, AND WEAPONS SYSTEM SUPPORT

This section would require the Secretary of Navy to ensure that 100 percent of the requirements for steaming days per quarter for deployed and non-deployed ship operations and 100 percent of the projected ship and air depot maintenance workload are funded before funds appropriated to the Department of Navy for operation and maintenance may be expended for the Navy Expeditionary Combat Command. This section would also require the Secretary of Navy to submit a report with the annual budget request that certifies these requirements are fully funded.

The committee is aware that the Department of Navy has funded ship and air operations and depot maintenance below the operational requirements. For example, ship operation funding for deployed ships was funded at 71 percent of the requirement. Accordingly, carrier strike groups and expeditionary strike groups will be unable to fully execute missions in their assigned area of responsibility.

Against this backdrop, the committee has learned that the Department of Navy has expanded its role and function to ground and river combat missions. The Navy Expeditionary Combat Command was established on January 13, 2006, in order to expand the Navy's capabilities for participating in the global war on terrorism. The Navy will deploy Riverine Group 1 to patrol the waterways of Baghdad, Iraq in 2007. At the moment, these sailors have no boats, no manuals, and no past mission to draw experience from before they engage in combat operations.

While the committee understands the Department of Navy's desire to expand its role from the sea to the river and land, we have concerns that the traditional role and mission of the Navy is not being adequately funded.

SECTION 346--PRIORITIZATION OF FUNDS WITHIN ARMY RECONSTITUTION AND TRANSFORMATION

This section would require the Secretary of the Army to fully fund in each fiscal year after fiscal year 2007 the reset of equipment used in the global war on terrorism, the fulfillment of equipment requirements for units transforming to modularity, and the reconstitution of prepositioned stocks. This section would require the Secretary to submit a report to the congressional defense committees at the time the budget request is transmitted to Congress. This report would provide information on the funding priorities described in this section and would be required annually until the requirements of these priorities are met. This section would also limit to $2.85 billion the funds to be appropriated in any fiscal year after fiscal year 2007 for the Future Combat Systems (FCS) until the funding priorities described in this section are met in that fiscal year. If the Army does not meet this requirement, this section would require funds that were not expended for FCS to be used for the identified funding priorities.

For the purposes of this section, the requirements of the identified funding priorities shall be based on the following guidelines. The Army has testified, based on equipment combat losses and battle damage, that the amount needed in fiscal year 2006 to repair, recapitalize, and replace equipment used in the global war on terrorism is $13.5 billion. The committee is also aware that a recent cost estimate to payback equipment to the reserve component in accordance with Department of Defense Directive 1225.6 is $4.8 billion. The committee assumes that the current use of equipment in Operation Iraqi Freedom and Operation Enduring Freedom will continue at the same level as experienced in fiscal year 2006. Therefore, the committee calculates that at least $72.3 billion over the fiscal year 2008 Future Years Defense Program would be required to adequately fund equipment reset in both the active and reserve components.

The committee considers the equipment requirements for units transforming to modularity to be those that were described in the Modular Force Initiative report submitted to Congress in March 2006. Additionally, the committee expects the Army to include the procurement of M1A2 Abrams SEP tanks and Bradley Fighting Vehicle A3s in the funding requirements for modularity. The cost estimate for equipment requirements for modularity stated in this section includes this additional requirement.

The committee also considers the requirement for the reconstitution of Army Prepositioned Stocks (APS) to be consistent with the materiel configuration outlined in APS Strategy 2012 or a subsequent strategy created in accordance with section 2229 of title 10, United States Code, a section added to title 10 in another section of this Act.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

OVERVIEW

The committee continues to believe that the manpower levels in the budget request for the active components of the Army and the Marine Corps are too low for the requirements placed on those services by the national security strategy. Beginning with the National Defense Authorization Act for Fiscal Year 2003, as passed by the House of Representatives, the committee has recommended active end strength levels, especially for the Army, greater than those requested. Similarly, the committee's recommendations for fiscal year 2007 increase the active Army end strength by six percent, and the Marine Corps end strength by nearly three percent above the budget request. In recognition of the integral roles and missions performed by the reserve components, the committee commends and supports the decision by the Secretary of the Army and the chief of staff of the Army to request an Army National Guard end strength of 350,000, and recommends an increase of $789.0 million in Army National Guard personnel, operations and maintenance, defense health and procurement accounts to support the Army leadership's request.

LEGISLATIVE PROVISIONS

SUBTITLE A--ACTIVE FORCES

SECTION 401--END STRENGTHS FOR ACTIVE FORCES

This section would authorize the following end strengths for active duty personnel of the armed forces as of September 30, 2007:

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Service   FY 2006 authorized   FY 2007                              Change from                    

                               Request Committee recommendation FY 2007 request FY 2006 authorized 

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

Army                 512,400   482,400                  512,400          30,000                  0 

Navy                 352,700   340,700                  340,700               0            -12,000 

USMC                 179,000   175,000                  180,000           5,000              1,000 

Air Force            357,400   334,200                  334,200               0            -23,200 

DOD                1,401,500 1,332,300                1,367,300          35,000            -34,200 

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The authorizations contained in this section for the Army and Marine Corps exceed by 30,000 and 5,000 respectively the end strengths for those services requested in the budget because the committee does not believe that the budget request provided adequate manning levels for the Army and Marine Corps. Additional funding for these increases is provided in title XV of the bill.

SECTION 402--REVISION IN PERMANENT ACTIVE DUTY END STRENGTH MINIMUM LEVELS

This section would establish new minimum active duty end strengths for the Army, Navy, Marine Corps and Air Force as of September 30, 2007. The committee recommends 504,400 as the minimum active duty end strength for the Army. The minimum strengths of the Navy, Marine Corps and Air Force are identical to the committee recommendations for those services shown in section 401.

SECTION 403--ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND MARINE CORPS ACTIVE DUTY END STRENGTHS FOR FISCAL YEARS 2008 AND 2009

This section would authorize additional increases of active duty end strength for the Army and for the Marine Corps in fiscal years 2008 and 2009 above the strengths authorized for those services in fiscal year 2007. Over the two-year period, the Army would be authorized to increase active duty end strength up to a total of 532,400, and the Marine Corps would be authorized to increase active duty end strength to 184,000.

SUBTITLE B--RESERVE FORCES

SECTION 411--END STRENGTHS FOR SELECTED RESERVE

This section would authorize the following end strengths for selected reserve personnel, including the end strength for reserves on active duty in support of the reserves, as of September 30, 2007:

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Service              FY 2006 authorized FY 2007                              Change from                    

                                        Request Committee recommendation FY 2007 request FY 2006 authorized 

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

Army National Guard             350,000 350,000                  350,000               0                  0 

Army Reserve                    205,000 200,000                  200,000               0             -5,000 

Navy Reserve                     73,100  71,300                   71,300               0             -1,800 

Marine Corps Reserve             39,600  39,600                   39,600               0                  0 

Air National Guard              106,800 107,000                  107,000               0                200 

Air Force Reserve                74,000  74,900                   74,900               0                900 

DOD Total                       848,500 842,800                  842,800               0             -5,700 

Coast Guard Reserve              10,000  10,000                   10,000               0                  0 

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The committee notes that subsequent to the receipt of the budget request, which proposed a fiscal year 2007 end strength for the Army National Guard of 332,900, the Secretary of Defense submitted a revised Army National Guard end strength authorization of 350,000 for fiscal year 2007. The committee recommendation supports that higher authorization and provides the required additional funding of $471.0 million in the authorizations of appropriations for military personnel, operations and maintenance and defense health. Title I of this Act also recommends an additional $318.0 million for Army National Guard procurement to support the recommended end strength.

SECTION 412--END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE RESERVE COMPONENTS

This section would authorize the following end strengths for reserves on active duty in support of the reserves as of September 30, 2007:

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Service              FY 2006authorized FY 2007                              Change from                   

                                       Request Committee recommendation FY 2007 request FY 2006authorized 

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

Army National Guard             27,396  27,441                   28,165             724               769 

Army Reserve                    15,270  15,416                   15,416               0               146 

Naval Reserve                   13,392  12,564                   12,564               0              -828 

Marine Corps Reserve             2,261   2,261                    2,261               0                 0 

Air National Guard              13,123  13,206                   13,291              85               168 

Air Force Reserve                2,290   2,707                    2,707               0               417 

DOD Total                       73,732  73,595                   74,404             809               672 

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The committee's recommendation in section 411 would support the Secretary of Defense's revised request for an end strength higher than what was initially requested for fiscal year 2007 for the Army National Guard. Consistent with that recommendation, the committee also recommends an increase in the end strength of Army National Guard personnel on active duty in support of that component. Furthermore, the committee recommends an increase of 85 Air National Guard personnel to improve the capability of the E-8C Joint Surveillance Target Attack Radar System (Joint STARS) to support the combatant commanders. In title XV of this Act, the committee recommends the funding for this Air National Guard increase.

SECTION 413--END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS)

This section would authorize the following end strengths for military technicians (dual status) as of September 30, 2007:

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Service             FY 2006 authorized (floor) FY 2007                                     Change from                   

                                               Request Committee recommendation (floor) FY 2007request FY 2006authorized 

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

Army National Guard                     25,563  26,050                           27,615          1,565             2,052 

Army Reserve                             7,649   7,912                            7,912              0               263 

Air National Guard                      22,971  23,255                           23,255              0               284 

Air Force Reserve                        9,852  10,124                           10,124              0               272 

DOD Total                               66,035  67,341                           68,906          1,565             2,871 

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The committee's recommendation in section 411 would support the Secretary of Defense's revised request for an end strength higher than what was initially requested for fiscal year 2007 for the Army National Guard. Consistent with that recommendation, the committee also recommends an increase in the end strength of Army National Guard military technicians (dual status). The committee's recommendation would provide for a 4.3 percent growth in the strength of military technicians above the levels authorized in fiscal year 2006.

SECTION 414--FISCAL YEAR 2007 LIMITATION ON NUMBER OF NON-DUAL STATUS TECHNICIANS

This section would establish the maximum end strengths for the reserve components of the Army and Air Force for non-dual status technicians as of September 30, 2007:

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Service             FY 2005 authorized FY 2006                             Change from                   

                                       Request Committee recommendation FY 2006request FY 2005authorized 

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

Army National Guard              1,600   1,600                    1,600              0                 0 

Army Reserve695                    595     595                      595              0              -100 

Air National Guard                 350     350                      350              0                 0 

Air Force Reserve                   90      90                       90              0                 0 

DOD Total                        2,735   2,635                    2,635              0              -100 

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SECTION 415--MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON ACTIVE DUTY FOR OPERATIONAL SUPPORT

This section would authorize, as required by section 115(b) of title 10, United States Code, the maximum number of reserve component personnel who may be on active duty or full-time national guard duty during fiscal year 2007 to provide operational support. The personnel authorized here do not count against the end strengths authorized by sections 401 or 412.

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

Service              FY 2006authorized FY 2007                             Change from                   

                                       Request Committee recommendation FY 2007request FY 2006authorized 

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

Army National Guard             17,000  17,000                   17,000              0                 0 

Army Reserve                    13,000  13,000                   13,000              0                 0 

Naval Reserve                    6,200   6,200                    6,200              0                 0 

Marine Corps Reserve             3,000   3,000                    3,000              0                 0 

Air National Guard              16,000  16,000                   16,000              0                 0 

Air Force Reserve               14,000  14,000                   14,000              0                 0 

DOD Total                       69,200  69,200                   69,200              0                 0 

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