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Committee Reports

109th Congress (2005-2006)

House Report 109-119

House Report 109-119 1 of 1

This Report: To Accompany H.R.2863     Printer Friendly: HTML  |  PDF




{link: 'http://www.congress.gov:80/cgi-bin/cpquery?',title: 'THOMAS - Committee Report - House Report 109-119' }

DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2006

21-675

2005
109TH CONGRESS 1ST SESSION
HOUSE OF REPRESENTATIVES
Report

109-119

DEPARTMENT OF DEFENSE

APPROPRIATIONS BILL, 2006

R E P O R T

of the

COMMITTEE ON APPROPRIATIONS

together with

ADDITIONAL VIEWS

[to accompany h.r. 2863]

[Graphic image not available]

JUNE 10, 2005- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

C O N T E N T S

Page

Bill Totals

Committee Budget Review Process

Introduction

Committee Recommendations by Major Category

Active and Reserve Military Personnel

Operation and Maintenance

Procurement

Research, Development, Test and Evaluation

Forces to be Supported

Department of the Army

Department of the Navy

Department of the Air Force

TITLE I. MILITARY PERSONNEL

Programs and Activities Funded by Military Personnel Appropriations

Summary of Military Personnel Recommendations for Fiscal Year 2006

Adjustments to Military Personnel Account

End Strength Adjustments

Accuracy of Obligations

Guard and Reserve Cost Avoidance

Expedited Servicemember Naturalization

Full-Time Support Strengths

Military Personnel, Army

Military Personnel, Navy

Military Personnel, Marine Corps

Military Personnel, Air Force

Reserve Personnel, Army

Reserve Personnel, Navy

Reserve Personnel, Marine Corps

Reserve Personnel, Air Force

National Guard Personnel, Army

National Guard Personnel, Air Force

TITLE II. OPERATION AND MAINTENANCE

Operation and Maintenance Overview

Recommendations to Address Shortfalls

Operation and Maintenance Budget Execution Data

Operation and Maintenance Reprogrammings

Civilian Pay

Military Tents

Operation and Maintenance, Army

Second Destination Transportation (SDT) Support for Army and Air Force Exchange System (AAFES)

Controlled Humidity Program

Sense and Respond Logistics

Humanitarian Relief Transfer of DoD Aircraft

Tacom Life Cycle Management Command Integrated Digital Environment (IDE) Pilot Program

Autonomic Logistics Prototype

Multi-Jurisdictional Counter-Drug Task Force Training (MCTFT)

Fort Irwin Road

Operation and Maintenance, Navy

Diagnosis and Prognostication of Gas Turbine Problems

Naval Station Mayport Environmental Impact Study

Operation and Maintenance, Marine Corps

Operation and Maintenance, Air Force

Operation and Maintenance, Defense-Wide

Joint ROTC Military Leadership Project

National Guard Youth Challenge Program

Wind Demonstration Project

Advanced First Responder Network

Minority Contract Enhancement Program

Service-Wide Safety: Alcohol Breath Detectors

Public Interest Declassification Board

Special Operations Technology Transfer

Operation and Maintenance, Army Reserve

U.S. Army Reserve Command IT Consolidation

Operation and Maintenance, Navy Reserve

Operation and Maintenance, Marine Corps Reserve

Operation and Maintenance, Air Force Reserve

Operation and Maintenance, Army National Guard

Operation and Maintenance, Air National Guard

Training Capability Upgrade

Moffett Federal Airfield

Overseas Contingency Operations Transfer Account

United States Court of Appeals for the Armed Forces

Overseas Humanitarian, Disaster, and Civic Aid

Former Soviet Union Threat Reduction Account

TITLE III. PROCUREMENT

Estimates and Appropriations Summary

Special Interest Items

Reprogramming Guidance for Acquisition Accounts

Reporting Requirement for Below Threshold Reprogrammings

Equipment Reset and Reconstitution

Classified Annex

Aircraft Procurement, Army

Multiyear Procurement Programs

UH-1 Aircraft Replacement

Missile Procurement, Army

High Mobility Artillery Rocket System (HIMARS)

Advanced Precision Kill Weapon System (APKWS)

Procurement of Weapons and Tracked Combat Vehicles, Army

Objective Individual Combat Weapon (OICW)

Procurement of Ammunition, Army

Ammunition Production Facilities

Life Cycle Management Commands

Other Procurement, Army

Tactical Wheeled Vehicle Modernization Strategy

Aircraft Procurement, Navy

KC-130J Aircraft

C-130 Series

Common Avionics

Common Ground Equipment

EA-6B Series

Improved Capabilities (ICAP III) Program

Weapons Procurement, Navy

MK 48 ADCAP Torpedo Mods

Gun Mount Modifications

Tomahawk

Procurement of Ammunition, Navy and Marine Corps

Shipbuilding and Conversion, Navy

Stability of Navy Shipbuilding Plan

Affordability of Navy's Shipbuilding Plan

Cost Growth and Cost Control in Ongoing Programs

DDG-51 Modernization Program

Littoral Combat Ship

LHA(R)

DD(X) Destroyer

DDG-51 Guided Missile Destroyer

Other Procurement, Navy

LM-2500 Gas Turbine

Submarine Periscopes and Imaging Equipment

Virginia Class Support Equipment

Ship Communications Automation

Coast Guard Equipment

SSN Combat Control Systems

Physical Security Equipment

Procurement, Marine Corps

MAGTFTC Range Transformation Initiative

High Mobility Artillery Rocket System (HIMARS)

Aircraft Procurement, Air Force

Joint Strike Fighter Advance Procurement

Future Years Procurement Strategy for the F/A-22 Raptor

F-15 Active Electronically Scanned Array Procurement

C-130J Multiyear Procurement Program

C-17 Procurement

Global Hawk

A-10 Mids Joint Tactical Radio System

Airborne Fire-Fighting System

Euro-Afghan Air Safety

Missile Procurement, Air Force

Joint Air to Surface Standoff Missile

Evolved Expendable Launch Vehicle (EELV)

Procurement of Ammunition, Air Force

Laser Guided Bomb

Other Procurement, Air Force

Procurement, Defense-Wide

USSOCOM--Emergent Critical Combat Mission Needs

SOCOM--Modernization of the HC-130 Legacy Fleet

Buy America

National Guard and Reserve Equipment

Defense Production Act Purchases

TITLE IV. RESEARCH, DEVELOPMENT, TEST AND EVALUATION

Estimates and Appropriation Summary

Special Termination Cost Clause

Visual Information Display System

Problems in DoD Space Programs

Joint Tactical Radio System

Joint Common Missile

Special Interest Items

Reprogramming Guidance for Acquisition Accounts

Reporting Requirement for Below Threshold Reprogrammings

Research, Development, Test and Evaluation, Army

Future Combat System (FCS)

Non Line of Sight Cannon (NLOS-C)

Excalibur, XM982 155MM Extended Range Artillery Projectile

Research, Development, Test and Evaluation, Navy

DD(X)

CG(X)

Littoral Combat Ship

Mast-Mounted In-Port Video Force Protection Surveillance System

Maritime Battle Center

EA-18(G)

Bone Marrow Registry

Multinational Information Sharing

Target Systems Development

Mobile User Objective System

Research, Development, Test and Evaluation, Air Force

Optical Maximum Entropy Verification

Transformational Satellite Communications

Space Radar

Small Diameter Bomb

Personnel Recovery Vehicle

Next Generation Bomber Tier I Supplier Sustainment

Laser Spark Countermeasure Program

Advanced Satellite Thermal Control Program

National Aerospace Leadership Initiative

Research, Development, Test and Evaluation, Defense-Wide

Missile Defense Agency--Program Element Restructure

Missile Defense Agency--Termination Liability

Dual Booster Strategy

Space Surveillance and Tracking System (STSS)

Boost and Ascent Phase Engagement Study

Asymmetric Missile Threat

Venture and Initiative Funds

Chemical and Biological Defense Program

Anti-Terrorism Protection Standards

Roll-On Roll-Off Infection Control Facility

Demanufacturing of Electronic Equipment for Reuse and Recycling

Operationally Responsive Space

Operational Test and Evaluation, Defense

TITLE V. REVOLVING AND MANAGEMENT FUNDS

Defense Working Capital Funds

National Defense Sealift Fund

T-AKE Dry Cargo/Ammunition Ship

MPS Lease Buyout

Maritime Prepositioning Force (FUTURE)

TAOE(X)

TITLE VI. OTHER DEPARTMENT OF DEFENSE PROGRAMS

Chemical Agents and Munitions Destruction, Army

Drug Interdiction and Counter-Drug Activities, Defense

Office of the Inspector General

TITLE VII. RELATED AGENCIES

National Intelligence Program

Classified Annex

Central Intelligence Agency Retirement and Disability System Fund

Intelligence Community Management Account

National Security Education Trust Fund

TITLE VIII. GENERAL PROVISIONS

Definition of Program, Project and Activity

TITLE IX. ADDITIONAL APPROPRIATIONS

Introduction

Committee Recommendation

Classified Programs

Reporting Requirements

Military Personnel

Operation and Maintenance

Iraqi Freedom Fund

Procurement

Research, Development, Test and Evaluation

Defense Working Capital Funds

General Provisions--This Title

HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS

Changes in the Application of Existing Law

Appropriations Language

General Provisions

Appropriations Not Authorized by Law

Transfer of Funds

Rescissions

Statement of General Performance Goals and Objectives

Constitutional Authority

Comparison with the Budget Resolution

Five-Year Outlay Projections

Financial Assistance to State and Local Governments

Committee Votes

109TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

1st Session

109-119

--DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2006

June 10, 2005- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. YOUNG of Florida, from the Committee on Appropriations, submitted the following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.R. 2863]

The Committee on Appropriations submits the following report in explanation of the accompanying bill making appropriations for the Department of Defense, and for other purposes, for the fiscal year ending September 30, 2006.

BILL TOTALS

Appropriations for most military functions of the Department of Defense are provided for in the accompanying bill for the fiscal year 2006. This bill does not provide appropriations for military construction, military family housing, civil defense, military nuclear warheads, Basic Allowance for Housing, the Defense Health Program, Facilities Sustainment, Restoration, and Modernization (FSRM), or environmental restoration for which requirements are considered in connection with other appropriations acts.

The President's fiscal year 2006 budget request for activities funded in the Department of Defense Appropriations Act totals $366,964,393,000 in new budget obligational authority. The amounts recommended by the Committee in the accompanying bill total $363,684,246,000 in new budget authority. This is $3,280,174,000 below the budget estimate, and $11,020,732,000 above the sums made available for the Department of Defense for fiscal year 2005, excluding $73,163,308,000 in emergency funds contained in Public Law 109-13.

The Committee recommendation also includes appropriations in title IX totaling $45,254,619,000 for contingency operations related to the global war on terrorism. These funds are made available consistent with authority contained in section 402 of the concurrent resolution on the budget for fiscal year 2006.

Insert graphic folio 13 21172A.001

COMMITTEE BUDGET REVIEW PROCESS

During its review of the fiscal year 2006 budget, the Subcommittee on Defense held a total of ten hearings during the period of February 2005 to April 2005. Testimony received by the Subcommittee totaled 724 pages of transcript. Approximately half of the hearings were held in open session. Executive (closed) sessions were held only when the security classification of the material to be discussed presented no alternative.

INTRODUCTION

The Committee recommendations represent a balanced approach to the needs of the Defense Department, while ensuring that our men and women in uniform in Iraq, Afghanistan, and around the world will not face a gap in funding as they wage the global war on terrorism.

The Committee recommendations for fiscal year 2006 were driven by a number of factors, including the following:

1. the need to ensure continuity of combat operations in Iraq, Afghanistan, and around the world as part of the global war on terrorism;

2. the need to ensure oversight over major procurement items, and to make adjustments as warranted by the status of such procurements;

3. the need to ensure that the technological advantage enjoyed by our Armed Forces is maintained by providing a robust investment in research and development; and

4. the need to restrain the President's budget request consistent with the budget allocation.

The Committee responded to these needs in a variety of ways. In title IX, the Committee has recommended $45,254,619,000 in additional appropriations as a `bridge fund' until full-year appropriations become available to support the operating costs associated with the global war on terrorism and Operations Iraqi Freedom, Enduring Freedom, and Noble Eagle. These funds are intended to cover the costs of combat operations for the first 6 months of fiscal year 2006, thereby avoiding a potential interruption in funding which would have an adverse impact on our troops in the field. The concurrent resolution on the budget for fiscal year 2006 designates $50,000,000,000 for such purposes. Also, the authorization of appropriations for similar activities is contained in H.R. 1815, the National Defense Authorization Act for Fiscal Year 2006, which passed the House of Representatives on April 26, 2005, by a vote of 390-39.

As part of its regular oversight responsibilities, the Committee also reviewed the status of major procurement items and made recommendations for adjustments in funding levels based on program slippage, contracting problems, and other changes to the status of such procurements. For instance, due to repeated test failures of the Joint Air to Surface Standoff Missile (JASSM), the Committee recommends termination of this program. However, in most cases the reductions in procurement funding are due to schedule slippages and development delays. In such cases, the Committee recommendation includes reductions to procurement funding associated with schedule slippage, but maintains research and development funding in order to correct the problems that led to these delays.

In addition, the Committee recommends funding of certain procurement programs at levels above those included in the President's budget. Examples include restoration of the multiyear procurement of the C-130J aircraft for the Air Force; funding of an additional DDG-51 destroyer, 2 additional Littoral Combat Ships (LCS), and an additional T-AKE ammunition ship for the Navy; and funding of 4 additional UH-60 Blackhawk helicopters for the Army.

Finally, to ensure that the United States military of tomorrow can continue to operate in an environment of technological superiority, the Committee recommendation includes funding for the Research, development, test and evaluation accounts of $71,656,892,000, an increase of $2,300,852,000 above the President's request.

COMMITTEE RECOMMENDATIONS BY MAJOR CATEGORY

ACTIVE AND RESERVE MILITARY PERSONNEL

In title I of the bill, the Committee recommends a total of $84,132,276,000 for active, Reserve and Guard military personnel, a decrease of $829,700,000 below the budget request. The Committee supports the budget proposal to provide an increase in basic pay for all personnel of 3.1 percent, effective January 1, 2006, and agrees with the authorized end strength levels as requested for active duty and Selected Reserve personnel. Funds in title IX provide sustainment for the increased end strength resulting from ongoing contingency operations.

In addition, a $20,000,000 increase is provided for the Family Advocacy Program. Funding of $30,000,000 is also provided for Impact Aid, which was proposed for termination in the budget.

OPERATION AND MAINTENANCE

In title II of the bill, the Committee recommends a total of $116,092,791,000 for operation and maintenance support to the military services and other Department of Defense entities, a reduction of $2,890,150,000 from the fiscal year 2006 budget request, and an increase of $3,250,359,000 above the amount appropriated for fiscal year 2005.

The Committee's recommendation fully funds the President's request for readiness training in flying hours, ship steaming and ground forces operational tempo training. Requests for unit and depot level maintenance program funding have been fully supported. Funds not needed for home station activities due to units being deployed for military operations in Afghanistan and Iraq have been realigned for support of continuing combat and peacekeeping operations in Afghanistan and Iraq.

In addition, the Committee has provided over $500,000,000 in additional operating account funding to assist in addressing many of the Department's shortfalls. Funds have been added for individual soldier and Marine field equipment, small all terrain vehicles, general purpose tents and mobility shelters, improvements in control of logistics systems, enhanced training capabilities, foreign language training, training on urbanized terrain, military and civilian safety, education programs, and distance learning.

PROCUREMENT

In title III of the bill, the Committee recommends a total of $76,806,886,000 for procurement, an increase of $171,476,000 over the fiscal year 2006 budget request and a decrease of $872,917,000 from the amount appropriated for fiscal year 2005. However, the latter figure does not include $17,378,594,000 provided in fiscal year 2005 for procurement in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief Act, 2005. In addition, title IX of this bill includes a total of $2,857,314,000 in various procurement accounts.

Major initiatives and modifications include:

$580,650,000, an increase of $75,000,000 above the budget request, to procure a total of 45 Blackhawk Helicopters, an increase of 4 above the fiscal year 2006 budget request;

$882,449,000, the President's request, for the procurement of 240 Stryker vehicles;

$590,392,000 to fully support the AH64 Apache program; including authority for multi-year procurement for Block II upgrades;

$489,700,000 for 108 Patriot surface-to-air missile systems;

$2,736,230,000 to fully support the request for 38 F/A-18 Hornet aircraft, as well as $86,105,000 in advance procurement;

$1,060,576,000 to fully support procurement of V-22 Osprey aircraft for the Marine Corps;

$9,613,358,000 in Navy shipbuilding and conversion, including $1,637,698,000 for an additional Virginia class submarine, $1,300,000,000 for nuclear refueling of an aircraft carrier, $1,400,000,000 for an additional DDG-51 destroyer, $1,334,741,000 for 1 LPD-17 amphibious assault ship, and $440,000,000 for 2 additional Littoral Combat Ships;

$384,000,000 for an additional T-AKE ship within the National Defense Sealift Fund;

$3,186,622,000 to fully fund procurement of 24 F/A-22 Raptors in fiscal year 2006, and $576,877,000 for advance procurement of 29 aircraft in fiscal year 2007;

$2,790,859,000 for procurement of 15 C-17 aircraft in fiscal year 2006, and $445,423,000 for advance procurement of 7 aircraft in fiscal year 2007;

$72,200,000 to begin procurement of Active Electronically Scanned Array v3 radars for Air National Guard F-15s;

$743,983,000 to restore the C-130J Air Force procurement program as well as $90,000,000 in advance procurement, and $321,089,000 for the Navy KC-130J program as well as $45,626,000 in advance procurement (in fiscal year 2006, the Air Force will procure 9 aircraft and the Navy will procure 4 tanker variants);

$528,978,000 to fully fund 1 advanced EHF communications satellite;

a reduction of $715,992,000 associated with advance procurement of the DD(X) destroyer; and

a reduction of $152,377,000 associated with advance procurement for the Joint Strike Fighter.~~~

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

In title IV of the bill, the Committee recommends a total of $71,656,892,000 for research, development, test and evaluation, an increase of $2,300,852,000 over the fiscal year 2006 budget request and an increase of $1,724,710,000 over the amount appropriated for fiscal year 2005.

Major initiatives and modifications include:

$3,054,280,000 for the Defense Advanced Research Projects Agency, $20,000,000 above the President's request;

$157,587,000 for the Army's non-line of sight cannon, $50,000,000 above the President's request;

$581,954,000 for the Littoral Combat Ship (LCS), which funds 1 ship in research, development, test and evaluation in addition to the 2 ships included in the regular procurement account;

$253,675,000 in full funding for the Expeditionary Fighting Vehicle (EFV) of the Marine Corps;

$935,932,000 to fully support the budget request for the VXX Presidential vertical lift helicopter;

$206,376,000 in further development of the V-22 Osprey program;

$629,682,000 in full funding for the advanced Hawkeye system of the Navy;

$2,396,513,000 in the Navy and $2,474,763,000 in the Air Force in full funding for the Joint Strike Fighter (JSF) development program;

$670,000,000 in development for the DD(X) destroyer;

$80,000,000 in development for the CG(X) next generation cruiser, an increase of $50,000,000;

$7,631,534,000 for missile defense programs, a decrease of $1,151,873,000 from fiscal year 2005 levels and a net decrease of $143,712,000 from the budget request; within this amount, an increase of $60,000,000 above the request is provided for sea-based mid-course defense;

a reduction of $399,000,000 for the Transformational Satellite Communications program due to excessive cost growth and development problems;

a reduction of $125,839,000 for the Space Radar program;

a reduction of $449,000,000 for the Future Combat System due to development and contract delays; and

a reduction of $340,100,000 for the Joint Tactical Radio System program due to development delays.

FORCES TO BE SUPPORTED

DEPARTMENT OF THE ARMY

The fiscal year 2006 budget request is designed to support the Army transformation to a Modular Force (10 Active Units of Employment, 36 Active Brigade Combat Teams, 21 Active Support Brigades by fiscal year 2006) and Active forces yet to be transformed, consisting of 3 divisions, and 1 separate brigade. The reserve Modular Force will transform by fiscal year 2006 with 3 Units of Employment, 10 Brigade Combat Teams, 26 (4 USAR) Support Brigades and forces yet to be transferred consisting of 5 divisions and 10 separate brigades. These forces provide the minimum force necessary to meet enduring defense needs and execute the National Military Strategy. At end state, the active Army force will contain 43 Brigade Combat Teams, the Army National Guard will contain 34 Brigade Combat Teams and the Army Reserve will contain 11 Support Brigades (8 Sustainment, 3 Maneuver Enhancement).

A summary of the major forces follows:


-------------------------------------------------------------
                                     Fiscal year--           
                                              2004 2005 2006 
-------------------------------------------------------------
Active Divisions:                                            
Airborne                                         1    1    0 
Air Assault                                      0    0    0 
Light                                            1    1    0 
Infantry                                         0    0    0 
Mechanized                                       3    2    2 
Armored                                          2    2    1 
Medium                                           0    0    0 
Divisions Total                                  7    6    3 
Non Division Combat Units:                                   
Armored Cavalry Regiments                        2    1    0 
Separate Brigades                                2    2    1 
Non Division Combat Units Total                  4    3    1 
Modular Forces:                                              
Unit of Employment Y (UEy)                       0    1    2 
Unit of Employment X (UEx)                       3    5    8 
Brigade Combat Team (BCT) (Heavy)                4    8   13 
Brigade Combat Team (BCT) (Infantry)             6    9   18 
STRYKER Brigade Combat Team (SBCT)               3    4    5 
Aviation Brigade                                 3    5    8 
Sustainment Brigade                              3    4    8 
Fires Brigade                                    0    1    3 
Maneuver Enhancement Brigade                     0    0    1 
Battle Field Surveillance Brigade                0    0    1 
Modular Forces Total                            22   37   67 
Guard Divisions:                                             
Airborne                                         0    0    0 
Air Assault                                      0    0    0 
Light                                            1    1    1 
Infantry                                         1    0    0 
Mechanized                                       4    4    3 
Armored                                          0    0    0 
Medium                                           2    2    1 
Divisions Total                                  8    7    5 
Non Division Combat Units:                                   
Armored Cavalry Regiments                        1    1    0 
Separate Brigades                               17   14   10 
Non Division Combat Units Total                 18   15   10 
Modular Forces:                                              
Unit of Employment Y (UEy)                       0    0    0 
Unit of Employment X (UEx)                       0    1    3 
Brigade Combat Team (BCT) (Heavy)                0    2    6 
Brigade Combat Team (BCT) (Infantry)             0    1    3 
STRYKER Brigade Combat Team (SBCT)               0    1    1 
Aviation Brigade                                 0    0   13 
Sustainment Brigade                              0    0    5 
Fires Brigade                                    0    0    1 
Maneuver Enhancement Brigade                     0    0    3 
Battle Field Surveillance Brigade                0    0    0 
Modular Forces Total                             0    5   35 
Reserve Divisions:                                           
Airborne                                         0    0    0 
Air Assault                                      0    0    0 
Light                                            0    0    0 
Infantry                                         0    0    0 
Mechanized                                       0    0    0 
Armored                                          0    0    0 
Medium                                           0    0    0 
Divisions Total                                  0    0    0 
Non Division Combat Units:                                   
Armored Cavalry Regiments                        0    0    0 
Separate Brigades                                0    0    0 
Non Division Combat Units Total                  0    0    0 
Modular Forces:                                              
Unit of Employment Y (UEy)                       0    0    0 
Unit of Employment X (UEx)                       0    0    0 
Brigade Combat Team (BCT) (Heavy)                0    0    0 
Brigade Combat Team (BCT) (Infantry)             0    0    0 
STRYKER Brigade Combat Team (SBCT)               0    0    0 
Aviation Brigade                                 0    0    0 
Sustainment Brigade                              0    0    3 
Fires Brigade                                    0    0    0 
Maneuver Enhancement Brigade                     0    0    1 
Battle Field Surveillance Brigade                0    0    0 
Modular Forces Total                             0    0    4 
-------------------------------------------------------------

DEPARTMENT OF THE NAVY

The fiscal year 2006 budget request supports battle forces totaling 289 ships at the end of fiscal year 2006, including 14 fleet ballistic missile submarines, 11 aircraft carriers, 231 other battle forces ships, 1,586 Navy/Marine Corps tactical/ASW aircraft, 720 Undergraduate Training aircraft, 457 Fleet Air Training aircraft, 274 Fleet Air Support aircraft, 364 Reserve aircraft and 188 in the pipeline.

A summary of the major forces follows:


-------------------------------------------------------------------
                                     Fiscal year--                 
                                              2004    2005    2006 
-------------------------------------------------------------------
Strategic Forces:                               14      14      14 
Fleet Ballistic Missile Submarines              14      14      14 
General Purpose:                               244     238     242 
Aircraft Carriers                               12      11      11 
Surface Combatants                              94      90      93 
Submarines (attack)                             54      55      54 
Guided Missile (SSGN) Submarines                 4       4       4 
Amphibious Warfare Ships                        35      35      35 
Combat Logistics Ships                          34      32      34 
Mine Warfare                                    11      11      11 
Support Forces:                                 19      18      18 
Mobile Logistics Ships                           2       2       2 
Support Ships                                   17      16      16 
Mobilization Cat. A (Reserve)                   15      15      15 
Surface Combatants                               9       9       9 
Amphibious Warfare Ships                         0       0       0 
Mine Warfare                                     6       6       6 
Total Ships, Battleforce:                      292     285     289 
Auxiliaries/Sea Lift Forces:                   151     147     146 
Coastal Defense                                 13       9       8 
Maritime Preposition                            16      16      16 
MSC Reduced Operating Status                    21      21      21 
Ready Reserve Force                             65      65      65 
MSC Naval Fleet Mobility Enhancement            35      35      35 
Active                                           1       1       1 
Naval Aircraft:                                                    
Primary Authorized (plus Pipe)               3,886   3,641   3,589 
Authorized Pipeline                            361     191     188 
Tactical/ASW Aircraft                        1,635   1,606   1,586 
Fleet Air Training                             460     452     457 
Fleet Air Support                              314     309     274 
Training (Undergraduate)                       722     711     720 
Reserve                                        394     372     364 
Naval Personnel:                                                   
Active:                                                            
Navy                                       373,197 365,900 352,700 
Marine Corps                               177,480 175,000 175,000 
Reserve:                                                           
14,152                                      13,392  59,708  14,118 
2,261                                        2,261  37,339   2,263 
-------------------------------------------------------------------

DEPARTMENT OF THE AIR FORCE

The fiscal year 2006 Air Force budget request is designed to support active, guard, and reserve forces, including 87 combat coded fighter and attack squadrons and 8 combat coded strategic bomber squadrons. The ICBM force maintains 550 launch facilities with 500 Minuteman missiles, with the Peacekeeper missile force completing deactivation in fiscal year 2005. The budget also supports our critical airlift mission, including 23 active duty airlift squadrons. To accomplish the Air Force mission, the 2006 budget supports a total force end strength of 538,200.

A summary of the major forces follows:


-------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       Fiscal year--                 
                                                                                                                2004    2005    2006 
-------------------------------------------------------------------------------------------------------------------------------------
Summary of Major Forces:                                                                                                             
USAF Fighter and Attack Squadrons (Active, ANG, AFRC)                                                             88      87      87 
Active                                                                                                            45      46      45 
ANG                                                                                                               37      36      37 
AFRC                                                                                                               6       5       5 
Strategic Bomber Squadrons (Active)                                                                                8       7       8 
Strategic Bomber Squadrons (AFRC)                                                                                  1       1       1 
Flight Test Units (DT and OT units with assigned aircraft)                                                        12      12      10 
Fighter                                                                                                            9       9       7 
Bomber                                                                                                             3       3       3 
ICBM Operational Launch Facilities/Control Centers                                                               605     605     550 
ICBM Missile Inventory                                                                                           516     500     500 
USAF Airlift Squadrons (Active):                                                                                                     
Strategic Airlift Squadrons                                                                                       14      13      14 
Tactical Airlift Squadrons                                                                                        10       9       9 
Total Active Airlift Squadrons                                                                                    24      22      23 
Total Air Force Aircraft Inventory                                                                             5,854   5,776   5,792 
    Note: Numbers of squadrons above reflect combat coded units only; i.e., no training or test units.                               
Endstrength:                                                                                                                         
Active Duty                                                                                                  359,300 359,700 357,400 
Reserve Component                                                                                            182,830 182,900 180,800 
Air National Guard                                                                                           107,030 106,800 106,800 
Air Force Reserve                                                                                             75,800  76,100  74,000 
-------------------------------------------------------------------------------------------------------------------------------------

TITLE I

MILITARY PERSONNEL

PROGRAMS AND ACTIVITIES FUNDED BY MILITARY PERSONNEL APPROPRIATIONS

The President's fiscal year 2006 budget request continues to increase funding for military pay and allowances, recruiting and retention programs, and overall quality of life programs for active duty and Guard and Reserve personnel. The budget request proposed an increase in basic pay for all personnel by 3.1 percent, effective January 1, 2006. The Committee supports the enhancements to recruiting, retention, military pay and increased benefits for Guard and Reserve personnel for fiscal year 2006.

SUMMARY OF MILITARY PERSONNEL RECOMMENDATIONS FOR FISCAL YEAR 2006


------------------------------------------------
------------------------------------------------
Fiscal year 2005                $91,614,333,000 
Fiscal year 2006 budget request  84,961,976,000 
Fiscal year 2006 recommendation  84,132,276,000 
Change from budget request         -829,700,000 
------------------------------------------------

The Committee recommends an appropriation of $84,132,276,000 for the Military Personnel accounts. The recommendation is a decrease of $7,482,057,000 below the $91,614,333,000 appropriated in fiscal year 2005 and $829,700,000 less than the request for fiscal year 2006. These military personnel budget total comparisons include appropriations for the active, reserve, and National Guard accounts. The following tables include a summary of the recommendations by appropriation account. Explanations of changes from the budget request appear later in this section.

Insert graphic folio 04 21172A.002

The fiscal year 2006 budget request includes a decrease of 15,500 end strength for the active forces and a decrease of approximately 12,400 end strength for the selected reserve over fiscal year 2005 authorized levels. The fiscal year 2006 budget request does not reflect, however, the minimum active duty end strength levels established by the authorization committees for fiscal year 2005 for the Army and Marine Corps.

The Committee recommends the following levels highlighted in the tables below.

OVERALL ACTIVE END STRENGTH


----------------------------------------------------------
----------------------------------------------------------
Fiscal year 2005 estimate                       1,406,000 
Fiscal year 2006 budget request                 1,367,500 
Fiscal year 2006 recommendation                 1,367,500 
  Compared with Fiscal year 2005                  -38,500 
  Compared with Fiscal year 2006 budget request           
----------------------------------------------------------

OVERALL SELECTED RESERVE END STRENGTH


--------------------------------------------------------
--------------------------------------------------------
Fiscal year 2005 estimate                       860,900 
Fiscal year 2006 budget request                 848,500 
Fiscal year 2006 recommendation                 848,500 
  Compared with Fiscal year 2005                -12,400 
  Compared with Fiscal year 2006 budget request         
--------------------------------------------------------


-----------------------------------------------------------------------------------------------------
                                  Fiscal year 2006                                                   
                                  FY 2005 estimate Budget request Recommendation Change from request 
-----------------------------------------------------------------------------------------------------
Active Forces (end strength):                                                                        
Army                                       502,400        482,400        482,400                     
Navy                                       365,900        352,700        352,700                     
Marine Corps                               178,000        175,000        175,000                     
Air Force                                  359,700        357,400        357,400                     
Total, Active Force                      1,406,000      1,367,500      1,367,500                     
Guard and Reserve (end strength):                                                                    
Army Reserve                               205,000        205,000        205,000                     
Navy Reserve                                83,400         73,100         73,100                     
Marine Corps Reserve                        39,600         39,600         39,600                     
Air Force Reserve                           76,100         74,000         74,000                     
Army National Guard                        350,000        350,000        350,000                     
Air National Guard                         106,800        106,800        106,800                     
Total, Guard and Reserve                   860,900        848,500        848,500                     
-----------------------------------------------------------------------------------------------------

ADJUSTMENTS TO MILITARY PERSONNEL ACCOUNT

OVERVIEW

END STRENGTH ADJUSTMENTS

The Committee recommends the requested end strength levels as proposed in the budget request. The Committee is aware that the budget funds the baseline military end strength and plans to seek additional funds for increases in end strength above the levels provided for in the budget request in a supplemental request. The Committee addresses these additional manpower expenses in title IX of this Act. In addition, the Services are experiencing challenges in their recruiting and retention programs due to a difficult recruiting environment. Therefore, the Committee has provided additional funds for the active duty and Guard and Reserve personnel and operation and maintenance accounts in title IX of this Act.

ACCURACY OF OBLIGATIONS

The Committee recommends a reduction of $403,800,000 to the budget request, based on the Government Accountability Office (GAO) analysis of prior year unexpended military personnel account balances. The Services' accounting data continue to show a pattern of under executing their appropriated funds, and therefore, the Committee believes the military personnel budget requests for fiscal year 2006 are overstated and can be reduced.

GUARD AND RESERVE COST AVOIDANCE

The Committee recommends a reduction of $430,600,000 to the budget request for the Guard and Reserve fiscal year 2006 military personnel accounts. The Government Accountability Office (GAO) found that updated monthly strength data, when compared to the monthly strength data in the fiscal year 2006 budget, had strength levels lower than budgeted, resulting in the above funds not being needed for the Guard and Reserve components.

EXPEDITED SERVICEMEMBER NATURALIZATION

The Committee notes with interest past efforts of the Department of Defense and the Department of Homeland Security to expedite the citizenship naturalization process for servicemembers in accordance with Presidential direction (Executive Order 3 July, 2002) and Congressional guidance and intent (P.L. 108-136, title XVII). The Committee, however, remains concerned that efforts have proceeded slowly and servicemembers still routinely deploy operationally with naturalization requests still pending. Accordingly, the Committee directs the Department of Defense to submit a report, not later than 120 days after the date of enactment of this Act, detailing efforts to notify all non-citizens in the active duty and Reserve components of the expedited citizenship process, and to shepherd these servicemembers through the process to ensure that all cases are resolved prior to a servicemember's deployment.

FULL-TIME SUPPORT STRENGTHS

There are four categories of full-time support in the Guard and Reserve components: civilian technicians, active Guard and Reserve (AGR), non-technician civilians, and active component personnel.

Full-time support personnel organize, recruit, train, maintain and administer the Reserve components. Civilian (Military) technicians directly support units, and are very important to help units maintain readiness and meet the wartime mission of the Army and Air Force.

Full-time support end strength in all categories totaled 156,739 in fiscal year 2005. The fiscal year 2006 budget request is 159,031 end strength. The following table summarizes Guard and Reserve full-time support end strengths:

GUARD AND RESERVE FULL-TIME END STRENGTHS
-----------------------------------------------------------------------------------------
                      FY 2005 estimate Budget request Recommendation Change from request 
-----------------------------------------------------------------------------------------
Army Reserve:                                                                            
AGR                             14,970         15,270         15,270                     
Technicians                      8,094          8,344          8,344                     
Navy Reserve:                                                                            
AR                              14,152         13,392         13,392                     
Marine Corps Reserve:                                                                    
AR                               2,261          2,261          2,261                     
Air Force Reserve:                                                                       
AGR                              1,900          2,290          2,290                     
Technicians                     10,044          9,943          9,943                     
Army National Guard:                                                                     
AGR                             26,602         27,345         27,345                     
Technicians                     26,676         27,163         27,163                     
Air National Guard:                                                                      
AGR                             12,253         13,089         13,089                     
Technicians                     23,306         23,321         23,321                     
Total:                                                                                   
AGR/AR                          72,138         73,647         73,647                     
Technicians                     68,120         68,771         68,771                     
-----------------------------------------------------------------------------------------

MILITARY PERSONNEL, ARMY


------------------------------------------------
------------------------------------------------
Fiscal year 2005 appropriation  $26,039,540,000 
Fiscal year 2006 budget request  24,455,295,000 
Committee recommendation         24,357,895,000 
Change from budget request          -97,400,000 
------------------------------------------------

The Committee recommends an appropriation of $24,357,895,000 for Military Personnel, Army. The recommendation is a decrease of $1,681,645,000 below the $26,039,540,000 appropriated for fiscal year 2005 and $97,400,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 05 21172A.003

Insert graphic folio 06 21172A.004

The adjustment to the budget activities for Military Personnel, Army is shown below:


[In thousands of dollars]
------------------------------------
------------------------------------
Undistributed:                      
  3200 Unobligated Balances -97,400 
------------------------------------

MILITARY PERSONNEL, NAVY


------------------------------------------------
------------------------------------------------
Fiscal year 2005 appropriation  $20,876,556,000 
Fiscal year 2006 budget request  19,439,196,000 
Committee recommendation         19,417,696,000 
Change from budget request          -21,500,000 
------------------------------------------------

The Committee recommends an appropriation of $19,417,696,000 for Military Personnel, Navy. The recommendation is a decrease of $1,458,860,000 below the $20,876,556,000 appropriated for fiscal year 2005 and $21,500,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 07 21172A.005

Insert graphic folio 08 21172A.006

The adjustment to the budget activities for Military Personnel, Navy is shown below:


[In thousands of dollars]
------------------------------------
------------------------------------
Undistributed:                      
  9550 Unobligated Balances -21,500 
------------------------------------

MILITARY PERSONNEL, MARINE CORPS


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $8,527,529,000 
Fiscal year 2006 budget request  7,845,913,000 
Committee recommendation         7,839,813,000 
Change from budget request          -6,100,000 
-----------------------------------------------

The Committee recommends an appropriation of $7,839,813,000 for Military Personnel, Marine Corps. The recommendation is a decrease of $687,716,000 below the $8,527,529,000 appropriated for fiscal year 2005 and $6,100,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 09 21172A.007

Insert graphic folio 010 21172A.008

The adjustment to the budget activities for Military Personnel, Marine Corps is shown below:

[In thousands of dollars]

MILITARY PERSONNEL, AIR FORCE


------------------------------------------------
------------------------------------------------
Fiscal year 2005 appropriation  $21,145,141,000 
Fiscal year 2006 budget request  20,254,837,000 
Committee recommendation         20,083,037,000 
Change from budget request         -171,800,000 
------------------------------------------------

The Committee recommends an appropriation of $20,083,037,000 for Military Personnel, Air Force. The recommendation is a decrease of $1,062,104,000 below the $21,145,141,000 appropriated for fiscal year 2005 and $171,800,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 011 21172A.009

Insert graphic folio 012 21172A.010

The adjustment to the budget activities for Military Personnel, Air Force is shown below:

[In thousands of dollars]

RESERVE PERSONNEL, ARMY


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $3,373,773,000 
Fiscal year 2006 budget request  2,938,703,000 
Committee recommendation         2,862,103,000 
Change from budget request         -76,600,000 
-----------------------------------------------

The Committee recommends an appropriation of $2,862,103,000 for Reserve Personnel, Army. The recommendation is a decrease of $511,670,000 below the $3,373,773,000 appropriated for fiscal year 2005 and $76,600,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 013 21172A.011

The adjustments to the budget activities for Reserve Personnel, Army are shown below:

[In thousands of dollars]

RESERVE PERSONNEL, NAVY


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $1,881,750,000 
Fiscal year 2006 budget request  1,583,061,000 
Committee recommendation         1,486,061,000 
Change from budget request         -97,000,000 
-----------------------------------------------

The Committee recommends an appropriation of $1,486,061,000 for Reserve Personnel, Navy. The recommendation is a decrease of $395,689,000 below the $1,881,750,000 appropriated for fiscal year 2005 and $97,000,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 014 21172A.012

The adjustments to the budget activities for Reserve Personnel, Navy are shown below:


[In thousands of dollars]
----------------------------------------
----------------------------------------
Undistributed:                          
  25300 Unobligated Balances    -52,300 
  25370 Reserves Cost Avoidance -44,700 
----------------------------------------

RESERVE PERSONNEL, MARINE CORPS


---------------------------------------------
---------------------------------------------
Fiscal year 2005 appropriation  $584,128,000 
Fiscal year 2006 budget request  480,592,000 
Committee recommendation         472,392,000 
Change from budget request        -8,200,000 
---------------------------------------------

The Committee recommends an appropriation of $472,392,000 for Reserve Personnel, Marine Corps. The recommendation is a decrease of $111,736,000 below the $584,128,000 appropriated for fiscal year 2005 and $8,200,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 015 21172A.013

The adjustments to the budget activities for Reserve Personnel, Marine Corps are shown below:


[In thousands of dollars]
---------------------------------------
---------------------------------------
Undistributed:                         
  26600 Unobligated Balances    -1,600 
  26650 Reserves Cost Avoidance -6,600 
---------------------------------------

RESERVE PERSONNEL, AIR FORCE


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $1,392,169,000 
Fiscal year 2006 budget request  1,243,560,000 
Committee recommendation         1,225,360,000 
Change from budget request         -18,200,000 
-----------------------------------------------

The Committee recommends an appropriation of $1,225,360,000 for Reserve Personnel, Air Force. The recommendation is a decrease of $166,809,000 below the $1,392,169,000 appropriated for fiscal year 2005 and $18,200,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 016 21172A.014

The adjustments to the budget activities for Reserve Personnel, Air Force are shown below:


[In thousands of dollars]
---------------------------------------------
---------------------------------------------
Undistributed:                               
  27900 Unobligated Balances         -18,200 
  27910 Reserves Cost Avoidance       -4,700 
  27930 932nd Airlift Wing Personnel   4,700 
---------------------------------------------

NATIONAL GUARD PERSONNEL, ARMY


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $5,467,656,000 
Fiscal year 2006 budget request  4,669,104,000 
Committee recommendation         4,359,704,000 
Change from budget request        -309,400,000 
-----------------------------------------------

The Committee recommends an appropriation of $4,359,704,000 for National Guard Personnel, Army. The recommendation is a decrease of $1,107,952,000 below the $5,467,656,000 appropriated for fiscal year 2005 and $309,400,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 017 21172A.015

The adjustments to the budget activities for National Guard Personnel, Army are shown below:


[In thousands of dollars]
-----------------------------------------
-----------------------------------------
Undistributed:                           
  29350 Unobligated Balances     -11,600 
  29410 Reserves Cost Avoidance -297,800 
-----------------------------------------

NATIONAL GUARD PERSONNEL, AIR FORCE


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $2,326,091,000 
Fiscal year 2006 budget request  2,051,715,000 
Committee recommendation         2,028,215,000 
Change from budget request         -23,500,000 
-----------------------------------------------

The Committee recommends an appropriation of $2,028,215,000 for National Guard Personnel, Air Force. The recommendation is a decrease of $297,876,000 below the $2,326,091,000 appropriated for fiscal year 2005 and $23,500,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 018 21172A.016

The adjustments to the budget activities for National Guard Personnel, Air Force are shown below:


[In thousands of dollars]
----------------------------------------
----------------------------------------
Undistributed:                          
  30550 Unobligated Balances     -3,500 
  30600 Reserves Cost Avoidance -20,000 
----------------------------------------

TITLE II

OPERATION AND MAINTENANCE

The fiscal year 2006 budget request for programs funded in title II of this Act, Operation and Maintenance, is $118,982,941,000 in new budget authority, which is an increase of $6,140,509,000 above the amount appropriated for fiscal year 2005.

The accompanying bill recommends $116,092,791,000 for fiscal year 2006, which is an increase of $3,250,359,000 above the amount appropriated for fiscal year 2005 and $2,890,150,000 less than the request for fiscal year 2006. These appropriations finance the costs of operating and maintaining the Armed Forces, including the reserve components and related support activities of the Department of Defense (DoD), except military personnel and facilities sustainment, restoration and modernization costs. Included are pay for civilians, services for maintenance of equipment, fuel, supplies, and spare parts for weapons and equipment. Financial requirements are influenced by many factors, including force levels such as the number of aircraft squadrons, Army and Marine Corps divisions, installations, military personnel strength and deployments, rates of operational activity, and the quantity and complexity of equipment such as aircraft, ships, missiles and tanks in operation.

The table below summarizes the Committee's recommendations.

Insert graphic folio 019 21172A.017

OPERATION AND MAINTENANCE OVERVIEW

The President's fiscal year 2006 budget request represents a $6,140,509,000 increase above fiscal year 2005 in title II, Operation and Maintenance, exclusive of supplemental funding provided for continuation of military operations in Afghanistan and Iraq. The Administration's request did not include funding for the continuation of the war on terrorism in Afghanistan, Iraq, and elsewhere. However, the Committee has included the funding necessary to ensure continued full support for our forces operating in the combat zones. Funding for these purposes is addressed in title IX of the Act. The Committee has provided $45,254,619,000 to ensure that funds are available to fully support the operating, personnel support, maintenance, transportation, and other wartime costs of the services, including purchase of all necessary force protection equipment. The funds provided in title IX will support continuation of operations well into fiscal year 2006, and will ensure that critical base operating and maintenance accounts need not be diverted to support the war effort. In recognition of the fact that a significant number of units will be deployed throughout the fiscal year, the Committee has offset funding in title II that is not required in home station budgets.

The budget request for normal peacetime funding in title II, Operation and Maintenance would sustain flying hours, ship steaming and ground operating tempo at approximately fiscal year 2005 levels. The funding requested in Operation and Maintenance, Army supports the continuing transformation of Army units to modular forces. Operation and Maintenance, Navy supports 10 active carrier air wings and 1,598 primary authorized aircraft, 289 ships, including 54 nuclear attack submarines and 18 missile submarines. Consistent with section 1025 of Public Law 109-13, The Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief Act, 2005, the Navy will continue to support and operate 12 aricraft carriers until after the date of the submittal to Congress of the quadrennial defense review. The Navy's Fleet Response Plan, begun in fiscal year 2004, continues in 2006, with the goal of increasing availability of naval assets for duty worldwide. Increased funding for flying hours and ship operations primarily reflects increased cost of fuel. The Air Force flying hour program provides the funding necessary to maintain basic flying skill and pilot development and production, and to provide trained aircrews to joint forces combatant commanders through ten aerospace expeditionary forces.

The budget request fully supports the Army's ground and aviation training programs including a gradual increase in the number of battalion rotations at ground combat training centers. The budget request includes increasing Army base operations funding from 68 percent in fiscal year 2005 to 72 percent. The Army request includes a reduction of $1,428,100,000 for Business Process Reengineering Initiatives, and an increase of $59,110,000 for expanded foreign language training at the Defense Language Institute. A small increase in funds requested for Navy base operations support is attributable to implementation costs for utilities privatization. Increased funding for Air Force base operations support provides for improvements in Child Development and Family Centers, base communications and transportation.

Funding is included to support a pay increase of 2.3 percent for civilian employees. The budget request provides for the continued conversion of selected billets from military to civilian workers in all the services, in order to return military personnel from administrative duties to combat and combat support units.

In title II of the Act, the Committee has fully supported the peacetime requirements of the military services for readiness training in flying hours, ship steaming and ground forces OPTEMPO training. Equipment maintenance and base support programs have been robustly resourced, including support for anti-terrorism and force protection efforts. In title IX of the Act, the Committee has provided funding to support continuing combat and peace keeping operations in Afghanistan and Iraq through approximately the first six months of fiscal year 2006.

RECOMMENDATIONS TO ADDRESS SHORTFALLS

Despite the continuation of robust funding in operation and maintenance accounts requested for fiscal year 2006, testimony by the services' leadership and briefings by key staff members indicate that a certain degree of risk has been taken in some areas. For example, the Army flying hour program is based on historical execution levels of 13.1 hours, per crew, per month; however the Army goal remains to achieve 14.5 hours, per crew, per month.

The Committee has provided over $500,000,000 in additional operating account funding to assist in addressing many of the Department's shortfalls. Funds have been added for individual soldier and Marine field equipment, small all terrain vehicles, general purpose tents and mobility shelters, improvements in control of logistics systems, enhanced training capabilities, foreign language training, training on urbanized terrain, military and civilian safety, education programs, and distance learning.

The Committee has identified spending that does not directly support readiness and has moved those funds to programs that more directly support readiness goals.

Much of the Army and Marine Corps equipment that was drawn from pre-positioned sets for military operations in Iraq and Afghanistan will not be returned to pre-positioned status until after fiscal year 2006. The Army and Marine Corps have identified significant unfunded requirements in funding for repair and restocking of the equipment that has been retained in Afghanistan and Iraq for use by rotational units. Title IX of the accompanying Act includes funding for depot level and unit level maintenance that has been identified as executable by the Army and Marine Corps for pre-positioned equipment items and for repair of equipment in units that have rotated from duty in Iraq and Afghanistan back to home stations. The Committee strongly encourages the military services to execute aggressively their repair and reset programs and to avoid creation of a maintenance back log which could threaten readiness for future contingencies.

OPERATION AND MAINTENANCE BUDGET EXECUTION DATA

The Committee directs the Department of Defense to continue to provide the congressional defense committees with quarterly budget execution data. Such data should be provided not later than forty-five days past the close of each quarter for the fiscal year, and should be provided for each O-1 budget activity, activity group, and subactivity group for each of the active, defense-wide, reserve and National Guard components. For each O-1 budget activity, activity group, and subactivity group, these reports should include the budget request and actual obligations; the DoD distribution of unallocated congressional adjustments to the budget request; all adjustments made by DoD during the process of rebaselining the operation and maintenance accounts; all adjustments resulting from below threshold reprogrammings; and all adjustments resulting from prior approval reprogramming requests.

In addition, the Committee requires that the Department of Defense provide semiannual written notifications to the congressional defense committees, which summarize Operation and Maintenance budget execution, to include the effect of rebaselining procedures, other below threshold reprogrammings, and prior approval reprogrammings. The Committee further directs that the Department of Defense provide the House of Representatives and Senate Committees on Appropriations written notification 30 days prior to executing procedures to rebaseline Operation and Maintenance accounts.

OPERATION AND MAINTENANCE REPROGRAMMINGS

The Committee directs that proposed transfers of funds between O-1 budget activities in excess of $15,000,000 be subject to normal prior approval reprogramming procedures. In the Operation and Maintenance, Defense-wide account, the Committee directs that proposed transfers of funds between agencies in excess of $15,000,000 be subject to prior approval reprogramming procedures. Items for which funds have been specifically provided in any appropriation in the report using phrases `only for' and `only to' are Congressional interest items for the purpose of the Base for Reprogramming (DD form 1414). Each of these items must be carried on the DD1414 at the stated amount, or revised amount if changed during conference or if otherwise specifically addressed in the conference report. In addition, due to continuing concerns about force readiness and the diversion of Operation and Maintenance funds, the Committee directs the Department of Defense to provide written notification to the congressional defense committees for the cumulative value of any and all transfers in excess of $15,000,000 from the following budget activities and subactivity group categories:

Operation and maintenance, Army

Operating Forces: Divisions, Corps combat forces, Corps support forces, Echelon above Corps support forces, Land forces operations support, Land forces systems readiness, and Land forces depot maintenance.

Operation and maintenance, Navy

Operating Forces: Mission and other flight operations, Fleet air training, Aircraft depot maintenance, Mission and other ship operations, Ship operational support and training, Ship maintenance.

Operation and maintenance, Marine Corps

Operating Forces: Operational forces, Depot maintenance.

Operation and maintenance, Air Force

Operating Forces: Primary combat forces, Primary combat weapons, Air operations training, Depot maintenance;

Mobilization: Airlift operations, Depot maintenance;

Basic Skills and Advance Training: Depot maintenance;

Logistics Operations: Depot maintenance.

Further, the Department should follow prior approval reprogramming procedures for transfers in excess of $15,000,000 out of the following budget subactivities:

Operation and maintenance, Army

Depot maintenance.

Operation and maintenance, Navy

Aircraft depot maintenance,

Ship maintenance.

Operation and maintenance, Marine Corps

Depot maintenance.

Operation and maintenance, Air Force

Air Operations, Depot maintenance;

Mobility Operations, Depot maintenance;

Basic Skills and Advanced Training, Depot maintenance; and

Logistics Operations, Depot maintenance.

CIVILIAN PAY

The Committee has fully funded the budget request for a 2.3 percent pay increase for civilian employees of the Department of Defense. The Committee understands that the Department of Defense may implement an increase in pay that is greater than 2.3 percent, and directs that any increase above 2.3 percent will be paid from within funds available to the DoD.

MILITARY TENTS

The Committee recognizes that military tents, from individual soldier tents to large maintenance and multi-purpose tents, are critical to military training and contingency operations. Tents provide fast and flexible shelter for military personnel, logistical operations, command centers, medical services and numerous other purposes, when fixed facilities are not available. The combat and peace keeping activities in Afghanistan and Iraq continue to rely upon tents of many varieties, especially as operations expand and contract to counter the insurgents. Peace time contingency stocks have been depleted and the process of restocking has been offset by the continuing operational demand. The Committee strongly urges the military services to apply operation and maintenance funds made available in title II and title IX of this Act to ensure the availability of necessary stocks of military tents for Operations Iraqi Freedom and Enduring Freedom, and for contingency reserve purposes.

OPERATION AND MAINTENANCE, ARMY


------------------------------------------------
------------------------------------------------
Fiscal year 2005 appropriation  $23,797,606,000 
Fiscal year 2006 budget request  23,491,077,000 
Committee recommendation         22,432,727,000 
Change from budget request       -1,058,350,000 
------------------------------------------------

The Committee recommends an appropriation of $22,432,727,000 for Operation and Maintenance, Army. The recommendation is a decrease of $1,364,879,000 below the amount appropriated for fiscal year 2005 and $1,058,350,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 020 21172A.018

Insert graphic folio 021 21172A.019

Insert graphic folio 020 21172A.020

The adjustments to the budget activities for Operation and Maintenance, Army are shown below:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
250 Chem/Bio Resistant Hydration on the Move 1,000
250 Modular General Purpose Tent System (MGPTS) 2,700
250 Leakproof Transmission Drip Pans 2,700
250 Lightweight Maintenance Enclosure 500
250 MSR MIOX On-the-Move Individual Water Purification System 1,000
250 Small All-Terrain military utility vehicles 2,000
250 Tactical Operations Centers (ELAMS/MECCS) for USASOC 4,000
400 RFI Sustainment Peace Time Offset -103,000
450 Efficiencies in Administrative and Support Activities -6,500
550 Unjustified Growth in Operations Support Costs -23,000
600 Peace Time Systems Readiness Support Offset -83,000
650 Depot Maintenance Peace Time Work Load Adjustment -213,000
750 Unsupported Growth in Utilities Privatization -15,000
750 High Performance Conflict Resolution, Skill Development, and Team Building 2,000
750 Service-Wide Safety: Breathscan Alcohol Detectors 4,000
850 Unjustified Growth in Management Headquarters -10,000
Budget Activity 2: Mobilization:
1300 Rock Island Arsenal Industrial Mobilization Capacity 4,950
Budget Activity 3: Training and Recruiting:
1650 Early Commissioning Program at Military Junior Colleges 2,000
1850 Global Language Online Support System (GLOSS) 2,800
1850 On-Line Automated Diagnostic Assessment of Language Proficiency 1,000
1850 DLI--Language Laboratory Acquisition 2,500
1850 Military Police training at the Multi-Jurisdictional Counter-Drug Task Force Training (MCTFT) Program 1,000
1850 Virtual Interactive Training and Assessment System (VITAS) 2,000
1900 Air Battle Captain 2,000
2000 Training Doctrine Development Unsupported Growth -11,300
2000 Automated Delivery of the DLAB and Research on the Next Generation Aptitude Test 1,000
2000 Live Training Instrumentation for Air & Missile Defense Units 3,000
2300 Mobilizing Educational Technology to Support Combat Deployment 1,000
2350 Intern Program Unsupported Growth -32,000
2400 Philadelphia Military Academies 100
Budget Activity 4: Administration and Service-Wide Activities:
2650 Adjustment to Classified Program 21,000
2750 Peace time offset for Depot Maintenance transportation, port operations, and traffic management support -68,000
2800 Sustainment System Technical Support Peace Time Offset -116,000
2800 Pulse Technology--Army Battery Management Program 3,600
2800 Advanced Technology Batteries 2,500
2850 Army Legacy Logistics Systems Modernization (SAMS-E) 1,000
2850 Common Logistics Operating Environment 3,000
2850 Sense and Respond Logistics 2,000
2850 TACOM Life Cycle Management Command Integrated Digital Environment Pilot Program 1,000
2850 Joint US Army and USMC Autonomic Logistics Prototype 2,000
2850 Controlled Humidity Preservation Program, Soft Portable Tunnels 2,000
3050 Communications Unsupported Growth -11,000
3200 Memorial Day 900
3650 Western Hemisphere Information Exchange Program 2,500
Undistributed:
3730 Repairs at Fort Baker 2,500
3790 Unobligated Balances -100,000
4100 Administration and Service-Wide Activities -8,400
4110 Civilian Pay Overstatement -17,000
4130 Military to Civilian Conversions -78,400
4140 Peace Time Training Offset -250,000

SECOND DESTINATION TRANSPORTATION (SDT) SUPPORT FOR ARMY AND AIR FORCE EXCHANGE SYSTEM (AAFES)

The Committee notes with great concern that the Army has chosen to budget for approximately one half the estimated fiscal year 2006 requirement for the Army and Air Force Exchange System (AAFES) Second Destination Transportation (SDT). This support is vital to AAFES in order to provide American products for sale at AAFES locations world wide, without forcing American service members and their families to pay higher prices in exchange stores in order to cover the cost of transportation to overseas locations. The Army, as executive agent for the AAFES transportation program, has been assigned the responsibility to budget for AAFES SDT. The Army has failed to do so in the fiscal year 2006 budget request, apparently anticipating that decreased overseas troop stationing will substantially reduce the need for AAFES SDT. The Committee strongly supports continuing full funding of AAFES SDT as needed to make American products available to United States personnel assigned overseas. The Committee directs the Army to fully fund the AAFES SDT requirement from within funds available in Operation and Maintenance, Army.

CONTROLLED HUMIDITY PROGRAM

The Committee recommends an additional $2,000,000 in Operation and Maintenance, Army only to augment the use of Controlled Humidity Program Soft Portable Tunnels as currently used in Italy to include low water vapor transmission rate (WVTR) material as described in MIL-P-58102, Type II, and MIL-C-58104 by the Department of the Army, to enhance cost avoidance, and support rapid storage space requirements and relocation capabilities for fielded equipment.

SENSE AND RESPOND LOGISTICS

The Committee recommends an additional $2,000,000 in Operation and Maintenance, Army only to support the United States Army's Logistics Transformation Agency to design and prototype a sense and respond logistics capability to predict and optimize sustainment in real time, and to field a Common Logistics Operating Environment enabled brigade-sized unit.

HUMANITARIAN RELIEF TRANSFER OF DOD AIRCRAFT

The Committee understands that the Department of the Army is in possession of two (2) C-12 Aircraft which may be deemed surplus. The Committee directs the Secretary of the Army to convey these planes, without consideration, to a non-governmental organization (NGO), which provides humanitarian airlift primarily to Afghanistan and Indonesia. Further, the Committee directs that from funds available in Operation and Maintenance, Army, $100,000 be used solely for the purpose of repairing the aircraft prior to transfer.

TACOM LIFE CYCLE MANAGEMENT COMMAND INTEGRATED DIGITAL ENVIRONMENT (IDE) PILOT PROGRAM

The Committee recommends an additional $1,000,000 in Operation and Maintenance, Army, only for a pilot program to evaluate the expansion of the Program Executive Officer Soldier and Ground Combat e-business portal to the program executive officers and commodity command organizations within the new TACOM Life Cycle Management Command (LCMC).

AUTONOMIC LOGISTICS PROTOTYPE

The Committee recommends an additional $2,000,000 in Operation and Maintenance, Army, only to support the U.S. Army Logistics Transformation Agency project to develop the representative embedded systems architecture, integrate the systems architecture with the emerging Common Logistics Operating Environment (CLOE) Operational Architecture for Joint Ground Warfare, and follow guidelines established by CLOE Technical Standards in collaboration with the USMC.

MULTI-JURISDICTIONAL COUNTER-DRUG TASK FORCE TRAINING (MCTFT)

The Committee recommends an additional $1,000,000 above the budget request to provide military police training by the Multi-Jurisdictional Counter-Drug Task Force Training program of St. Petersburg College for federal, state, local and military law enforcement training and awareness training for public officials in support of counter-drug efforts. MCTFT shall provide conventional classroom/scenario driven and distance learning WMD training and education using blended technologies such as satellite, CD-ROM, web-based, and video training support packages.

FORT IRWIN ROAD

The Congress appropriated funds over five years ago for improvements to a key access road for the Army's National Training Center and other key facilities at Fort Irwin, California. Since that time, there have been 27 fatalities on this road, many of which might have been avoided had the Army acted promptly to repair it and make safety improvements once Congress provided the funds. The Committee is very concerned that the Army continues to lack focus on the management of this project and the need to act promptly to ensure the safety of military personnel, their dependents and civilians at this very busy and important Army facility. The Committee bill accompanying this report includes a general provision which makes available additional funding toward the completion of this most worthwhile project. The Committee strongly urges the Army to proceed swiftly in the execution of this effort.

OPERATION AND MAINTENANCE, NAVY


------------------------------------------------
------------------------------------------------
Fiscal year 2005 appropriation  $28,353,957,000 
Fiscal year 2006 budget request  29,414,918,000 
Committee recommendation         28,719,818,000 
Change from budget request         -695,100,000 
------------------------------------------------

The Committee recommends an appropriation of $28,719,818,000 for Operation and Maintenance, Navy. The recommendation is an increase of $365,861,000 above the amount appropriated for fiscal year 2005 and $695,100,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 24 21172A.021

Insert graphic folio 25 21172A.022

Insert graphic folio 26 21172A.023

The adjustments to the budget activities for Operation and Maintenance, Navy are shown below:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
4560 Knowledge Management and Decision Support System 5,000
4560 Automated Explosive Safety Assessment Tools 2,000
4650 Unjustified Growth in Converged ERP -20,000
4650 Low Observability Coatings and Materials Maintenance Program (LOCMM) 2,000
4650 Naval Aviation Depot (NADEP) Support of the FRP 2,000
4650 Composite Repair Training Program 250
4650 CAT & RADCOM Test Program Sets 3,500
4850 Man Overboard Safety System Installation 1,000
4850 NULKA (MK 234 Electronic Decoy Cartridge) 1,800
5050 Improved Engineering Design Process 1,500
5400 Efficiencies in Training Support -14,000
5500 Training Support Unjustified Growth -13,000
5550 Manual Reverse Osmosis Desalinator (MROD) Testing Repair and Replacement 1,000
5900 Peace Time System Support Offset -17,800
6220 Base Operating Support Unjustified Growth -57,000
6220 Environmental Clean Up for Ford Island Buildings 37, 54, 79, S84, and 97 2,700
6220 Navy Region Northwest--Navy Shore Infrastructure Transformation (NSIT) 5,000
6220 Application of Technology and Simulation to Reduce Vulnerability of Military Bases 2,000
6220 Waterfree Urinal Conservation Initiative 2,000
6220 Toledo Shipyard Improvement Plan 5,000
6220 Service-Wide Safety: Breathscan Alcohol Detectors 2,250
Budget Activity 3: Training and Recruiting:
7200 Virtual Interactive Training and Assessment System (VITAS) 1,000
7300 Navy Advanced Education Demonstration Project 1,000
7300 Center for Defense Technology and Education for the Military Services (CDTEMS) 5,000
7700 Naval Sea Cadet Corps 300
7700 Naval Junior ROTC Marine Science Research Program 2,000
Budget Activity 4: Administration and Service-Wide Activities:
8550 Stainless Steel Sanitary Spaces 1,500
8600 Critical Infrastructure Protection Program 1,000
8700 Diagnosis and Prognostication of Gas Turbine Problems 2,000
8750 Total Ship Test Production (TSTP) Program 1,000
9000 Local Situational Assessment Segment, NAS Lemoore 2,000
9220 Adjustment to Classified Program 17,100
Undistributed:
9440 Unobligated Balances -75,000
9550 Administration and Service-Wide Activities -48,900
9570 Civilian Pay Overstatement -172,000
9580 Military to Civilian Conversion -76,300
9600 Peace Time Training Offset -274,000

DIAGNOSIS AND PROGNOSTICATION OF GAS TURBINE PROBLEMS

The Committee recognizes the need for a Laser Motion Sensing and Measurement System for the diagnosis and prognostication of gas turbine problems in order to ensure their reliability. In an effort to maximize the goal of ship readiness, the Committee recommends an additional $2,000,000 in Operation and Maintenance, Navy, only for Program Element 070801N for the development of a gas turbine diagnostic/prognostic system able to measure displacement, velocity and/or acceleration over a bandwidth from 0 hertz through over 500,000 hertz, with demonstrated dynamic range of over 180 dB (acceleration), and with a system measurement bandwidth including low frequency vibration information through `normal' and `otherwise not observed' high frequency information, including Acoustic Emissions (AE).

NAVAL STATION MAYPORT ENVIRONMENTAL IMPACT STUDY

As the Navy's fleet of aircraft carriers evolves, it becomes apparent that in the not too distant future, an all-nuclear fleet of aircraft carriers may become reality. The Committee strongly encourages the Navy to ensure the capability to base and support large-deck, deep-draft, nuclear powered ships, including aircraft carriers, at multiple locations on each coast. The Navy has such a capability on the west coast, but not on the east coast. Multiple nuclear-capable bases, on the east and west coasts, provide for continuity of operations for the carrier fleet notwithstanding a variety of adverse situations including natural disasters and acts of terrorism or conventional war.

The Committee believes that the Navy should proceed expeditiously to accomplish all necessary actions toward transition of Naval Station Mayport to a nuclear capable aircraft carrier base. The Committee understands that key to this transition is completion of an environmental impact study and the Committee urges the Navy to take all necessary actions to complete an environmental impact study on the transition of Naval Station Mayport to be a nuclear capable facility as soon as practicable.

OPERATION AND MAINTENANCE, MARINE CORPS


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $3,106,145,000 
Fiscal year 2006 budget request  3,250,966,000 
Committee recommendation         3,123,766,000 
Change from budget request        -127,200,000 
-----------------------------------------------

The Committee recommends an appropriation of $3,123,766,000 for Operation and Maintenance, Marine Corps. The recommendation is an increase of $17,621,000 above the amount appropriated for fiscal year 2005 and $127,200,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 028 21172A.024

Insert graphic folio 029 21172A.025

The adjustments to the budget activities for Operation and Maintenance, Marine Corps are shown below:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
10050 High Performance Undergarments 2,000
10050 Extended Cold Weather Clothing System 3,000
10050 Modular General Purpose Tent System (MGPTS) 3,600
10050 Outdoor Research Marine Corps Contact Glove for MCWCEP 1,000
10050 Marine Corps Base Layer Garments with Innovative Technologies 2,000
10050 Chem/Bio Resistant Hydration on the Move 1,000
10100 Unjustified Growth in Administrative Support -5,000
10100 Lightweight Maintenance Enclosure 2,500
10100 Ultra Lightweight Camouflage Net System (ULCANS) 4,000
10100 Advanced Technology Batteries 2,500
10200 Defense Motor Vehicle Safety Demonstration Program 1,000
10200 MAGTFTC Range Transformation Initiative 19,000
10350 Advanced Vapor Corrosion Inhibitor Delivery System 1,500
Undistributed:
12010 Unobligated Balances -10,000
12055 Military to Civilian Conversions -59,400
12060 Peace Time Training Offset -95,900

OPERATION AND MAINTENANCE, AIR FORCE


------------------------------------------------
------------------------------------------------
Fiscal year 2005 appropriation  $26,121,823,000 
Fiscal year 2006 budget request  29,705,435,000 
Committee recommendation         28,659,373,000 
Change from budget request       -1,046,062,000 
------------------------------------------------

The Committee recommends an appropriation of $28,659,373,000 for Operation and Maintenance, Air Force. The recommendation is an increase of $2,537,550,000 above the amount appropriated for fiscal year 2005 and $1,046,062,000 less than the request for 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 030 21172A.026

Insert graphic folio 031 21172A.027

Insert graphic folio 032 21172A.028

The adjustments to the budget activities for Operation and Maintenance, Air Force are shown below:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
12600 Maintain 52 F-117 Aircraft 11,100
12600 MBU-20/P Oxygen Mask and Visor 2,500
12700 Peace Time Training Support Offset -85,100
12750 Efficiencies in Air Operations Training Support -41,000
12800 Distributed Common Ground System (DCGS) Transfer From RDT&E 5,000
12850 Unjustified Base Support Cost Growth -86,000
12850 Air Field Lighting System 1,600
12850 Expert Organizational Development System (Exodus) 4,000
13000 Global C3I and Early Warning Unsupported Growth in Support Costs -13,500
13050 Notice to Airman (NOTAMS) Program Upgrade 2,000
13100 Enhanced Situational Awareness and Analyses for Geospatial Enterprise Infrastructure 2,000
13400 Maintenance and Upkeep of Rocket Engine Test Stands at Edwards AFB 3,500
Budget Activity 2: Mobilization:
13850 Emergency Vision Assurance System (EVAS) for the Total Force 1,000
Budget Activity 3: Training:
14600 Efficiencies in Specialized Skill Training Support Costs -10,500
14700 Unsupported Growth in Professional Development Education -7,000
14750 Engineering Training and Knowledge Preservation System 2,700
14750 Management Support for Air Force Battle Labs 6,000
14750 AFIT Geospatial Distance Learning 500
14800 Efficiencies in Base Support Contractor Operations -7,000
15050 Unexecutable Growth in Off Duty, Voluntary Ed -7,000
15100 Online Technology Training Program McChord AFB 2,000
15100 Online Technology Training Program Nellis AFB 2,000
15100 Online Technology Training Program Mac Dill AFB 2,000
Budget Activity 4: Administration and Service-Wide Activities:
15350 Center for Parts Configuration Management (CPCM) 2,000
15350 Air Operations Combat Support (AOCS) 3,600
15400 Expand Rapid Retargeting Training and Services at WRALC 2,000
15400 Engine Health Management Data Repository Center 3,000
15950 Air Force Manufacturing and Technical Assistance Production Program 2,000
15950 Air Force Data Conversion 4,000
16000 Demonstration Project for Contractors Employing Persons with Disabilities 1,500
16050 Civil Air Patrol Operations and Support 88
16100 Air Force CIO Enterprise 1,000
16100 Service-Wide Safety: Breathscan Alcohol Detectors 2,000
16100 Wright Patterson AFB Critical Infrastructure Data Set Development 500
16250 Security Programs Adjustment -9,250
Undistributed:
16630 Unobligated Balances -70,000
16710 Administration and Service-Wide Activities -130,600
16780 Military to Civilian Conversions -172,700
16800 Peace Time Training Offset -476,000

OPERATION AND MAINTENANCE, DEFENSE-WIDE


------------------------------------------------
------------------------------------------------
Fiscal year 2005 appropriation  $17,354,619,000 
Fiscal year 2006 budget request  18,338,069,000 
Committee recommendation         18,323,516,000 
Change from budget request          -14,553,000 
------------------------------------------------

The Committee recommends an appropriation of $18,323,516,000 for Operation and Maintenance, Defense-Wide. The recommendation is an increase of $968,897,000 above the amount appropriated in fiscal year 2005 and $14,553,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 033 21172A.029

Insert graphic folio 034 21172A.030

The adjustments to Operation and Maintenance, Defense-Wide agencies are shown below:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
17050 TJS--CoCom Initiative Fund -5,000
17050 TJS--Program Growth -7,500
17050 TJS--BA Realignment -303,164
17100 SOCOM--Lightweight ATV Program 2,000
17100 SOCOM--Combat Medic Training 1,500
17100 SOCOM--Technology Transfer 1,350
17100 SOCOM--Depot Maintenance -12,000
17100 SOCOM--C4IAS CERP -6,400
17100 SOCOM--BA Realignment -188,296
Budget Activity 2: Mobilization:
17250 DLA--BA Realignment 39,693
Budget Activity 3: Training and Recruiting:
17375 AFIS--BA Realignment 14,679
17465 DCAA--BA Realignment 5,605
17480 DHRA--DLAMP Program Growth -7,000
17480 DHRA--BA Realignment 39,726
17490 DSS--BA Realignment 7,543
17510 DTRA--BA Realignment 5,728
17600 SOCOM--BA Realignment 124,181
17610 NDU--Agent-based Predictive Analysis Using Subject Matter Expert Generated Data Sets 2,000
17610 NDU--Critical Language Training; San Diego State University 2,000
Budget Activity 4: Administration and Servicewide Activities:
17725 AFIS--BA Realignment -14,679
17750 CMP--CA National Guard Youth Challenge Program 2,000
17750 CMP--Outdoor Odyssey 500
17800 DCAA--BA Realignment -5,605
17830 DLA--Procurement Technical Assistance Program 7,000
17830 DLA--Commercial Technologies for Maintenance Activities 12,000
17830 DLA--BA Realignment -39,693
17870 DTRA--BA Realignment -5,728
17880 DODEA--Family Advocacy Program 20,000
17880 DODEA--Lewis Center for Education Research 3,000
17880 DODEA--Jason Foundation 1,000
17880 DODEA--Tennessee Center for the Study and Treatment of Dyslexia Professional Development Program 2,000
17880 DODEA--Mesorah Heritage Foundation Curriculum Development 500
17900 DHRA--Defense Business Fellows Program -4,800
17900 DHRA--BA Realignment -39,726
18050 DSS--PSI for Industry Unjustified Growth -20,000
18050 DSS--BA Realignment -7,543
18100 OEA--Norton AFB 5,000
18100 OEA--George AFB 3,000
18100 OEA--Rialto-Colton Basin Bio-Remediation Demonstration Project 2,500
18100 OEA--Port of Philadelphia 3,000
18100 OEA--Philadelphia Navy Yard 2,000
18100 OEA--Davids Island--Fort Slocum Remediation 5,000
18100 OEA--McClellan AFB Sewer Remediation 2,600
18100 OEA--Citizen Soldier Support Program 5,000
18100 OEA--Bayonne Military Ocean Terminal 6,000
18100 OEA--Port of Port Arthur Drydock Transfer 1,800
18100 OEA--Watervliet Innovation Center 750
18100 OEA--Hunters Point Naval Shipyard 4,000
18100 OEA--JSFC Infrastructure 2,400
18100 OEA--Toledo Naval Weapons Reserve Plant Environmental Restoration 3,500
18100 OEA--Homestead Air Reserve Base Perimeter Improvement 600
18125 OSD--Joint ROTC Military Leadership Project at the University of South Florida 4,500
18125 OSD--Wind Demonstration Project 5,000
18125 OSD--Chemical/Biological Resistant Hydration on the Move 1,000
18125 OSD--Foreign Disclosure On-Line Training, Education, and Certification 1,000
18125 OSD--Middle East Regional Security Issues Program 3,000
18125 OSD--National Dedicated Fiber Optic Network Program 1,000
18125 OSD--Minority Contract Enhancement Program 3,000
18125 OSD--Clinic for Legal Assistance to Servicemembers 500
18125 OSD--Service-Wide Safety: Alcohol Breath Detectors 250
18125 OSD--Virtual Reality Spray Paint Simulator System and Training Program 1,500
18125 OSD--Focus on Family at Neumann College 500
18150 SOCOM--BA Realignment 64,115
18200 TJS--Program Growth -7,500
18200 TJS--BA Realignment 303,164
18225 WHS--eGov Program Growth -10,000
18225 WHS--Child Care Center Planning: Budget Justification Error -4,400
Undistributed:
19010 Impact Aid 30,000
19020 Other Programs -42,203
19045 Unobligated Balances -43,000

JOINT ROTC MILITARY LEADERSHIP PROJECT

The Committee provides $4,500,000 to continue the model Joint ROTC Military Leadership Project at the University of South Florida.

NATIONAL GUARD YOUTH CHALLENGE PROGRAM

The Committee recommends an increase of $2,000,000 above the budget request only to prepare facilities at Joint Forces Training Base Los Alamitos to expand the California National Guard Grizzly Program.

WIND DEMONSTRATION PROJECT

The Committee provides $5,000,000 to coordinate a wind demonstration project on a U.S. Air Force installation using domestically manufactured turbines that are new to the U.S. market to test the security and reliability of wind generation on base. New U.S. turbine manufacturers provide multiple blade designs that offer higher performance at a wider variety of wind speeds. From within the amount provided for this project, the Committee directs that $500,000 be used to fund a report to Congress on the related technical findings no later than February 2008. The Committee further directs that $500,000 of the amount provided be used for dedicated renewable energy expertise at AFCESA and DESC.

ADVANCED FIRST RESPONDER ~NETWORK

The Committee is aware of efforts to deploy the Advanced First Responder Network (AFRN) throughout Iraq, which will begin to address the current lack of mission-critical public-safety communications capabilities and will allow for focused coordination of security planning and execution, rapid data collection and analysis of changing security threats, rapid coordination and deployment of security assets to address threats, effective planning to prevent and reduce future security threats, and a more secure environment that will foster democracy and economic development. The AFRN infrastructure in Iraq has been designed to accommodate the entire country, including border regions and critical infrastructure such as pipelines. The Committee supports this important first step and, with funds available in this legislation and prior appropriations acts, encourages the reconstruction effort to continue to place a high value on completion of the nationwide deployment of a state of the art AFRN and related advanced networks.

MINORITY CONTRACT ENHANCEMENT PROGRAM

The Committee recognizes the critical importance of providing continued development of new products and technological innovations from a diversified public. The Committee therefore provides $3,000,000 for the Minority Contract Enhancement Program to increase minority contributions service-wide through the development of a supplier diversity initiative.

SERVICE-WIDE SAFETY: ALCOHOL BREATH DETECTORS

The impact of excessive alcohol use and driving under the influence continues as a leading cause of ground accidents, injury, death, and physical damage across the Services. The Committee is encouraged by the potential of the Services' access to patented, breath alcohol indicators/detectors. The Committee has therefore provided a total of $8,500,000 to support the procurement of waterproof, temperature-proof, disposable, portable breath alcohol indicators (gaseous fluid indicator) with a minimum 3-year shelf life and directs the Secretary to report to the Appropriations Committees by September 30, 2006, on the impact of the use of these indicators across the services.

PUBLIC INTEREST DECLASSIFICATION BOARD

The Committee directs that from amounts available in Operation and Maintenance, Defense-Wide, $1,000,000 shall be available for the Public Interest Declassification Board.

SPECIAL OPERATIONS TECHNOLOGY TRANSFER

The Committee recommends $1,350,000 for Special Operations Technology Transfer. The Committee directs that these funds shall be used only for an initiative to accurately track portable, sensitive items exported beyond the borders of the United States.

OPERATION AND MAINTENANCE, ARMY RESERVE


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $1,789,987,000 
Fiscal year 2006 budget request  1,783,012,000 
Committee recommendation         1,791,212,000 
Change from budget request          +8,200,000 
-----------------------------------------------

The Committee recommends an appropriation of $1,791,212,000 for Operation and maintenance, Army Reserve. The recommendation is an increase of $1,225,000 above the $1,789,987,000 appropriated for fiscal year 2005 and $8,200,000 above the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 037 21172A.031

The adjustments to the budget activities for Operation and maintenance, Army Reserve are shown below:


[In thousands of dollars]
----------------------------------------------------------
----------------------------------------------------------
Budget Activity 1: Operating Forces                       
  19680 Base Support                               20,000 
Undistributed:                                            
  20220 Unobligated Balances                      -17,800 
  20230 Army Reserve IT Consolidation               2,000 
  20231 Tactical Operations Centers (ELAMS/MECCS)   4,000 
----------------------------------------------------------

U.S. ARMY RESERVE COMMAND IT CONSOLIDATION

The Committee recommends an increase of $2,000,000 above the budget request only for the Army Reserve to achieve a continuity of operations capability for its mission critical information technology systems by replicating mission critical data between Peachtree City, Georgia and San Antonio, Texas.

OPERATION AND MAINTENANCE, NAVY RESERVE


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $1,164,228,000 
Fiscal year 2006 budget request  1,182,907,000 
Committee recommendation         1,178,607,000 
Change from budget request          -4,300,000 
-----------------------------------------------

The Committee recommends an appropriation of $1,178,607,000 for Operation and maintenance, Navy Reserve. The recommendation is an increase of $14,379,000 above the $1,164,228,000 appropriated for fiscal year 2005 and $4,300,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 38 21172A.032

Insert graphic folio 39 21172A.033

The adjustments to the budget activities for Operation and maintenance, Navy Reserve are shown below:


[In thousands of dollars]
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Budget Activity 1: Operating Forces                                              
  21200 Aircraft Depot Maintenance                                         5,000 
  21800 Combat Support Forces/Gulf Joint Harbor Operations Center (JHOC)   3,000 
Undistributed:                                                                   
  22680 Unobligated Balances                                             -12,300 
---------------------------------------------------------------------------------

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE


---------------------------------------------
---------------------------------------------
Fiscal year 2005 appropriation  $175,070,000 
Fiscal year 2006 budget request  189,829,000 
Committee recommendation         199,929,000 
Change from budget request       +10,100,000 
---------------------------------------------

The Committee recommends an appropriation of $199,929,000 for Operation and maintenance, Marine Corps Reserve. The recommendation is an increase of $24,859,000 above the $175,070,000 appropriated for fiscal year 2005 and $10,100,000 above the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 40 21172A.034

The adjustments to the budget activities for Operation and maintenance, Marine Corps Reserve are shown below:

[In thousands of dollars]
------------------------------------------------------------------------
------------------------------------------------------------------------
Budget Activity 1: Operating Forces                                     
  23450 Operating Forces/Initial Issue                           10,000 
  23450 Operating Forces/Lightweight Maintenance Enclosure (LME)  2,000 
Undistributed:                                                          
  24150 Unobligated Balances                                     -1,900 
------------------------------------------------------------------------

OPERATION AND MAINTENANCE, AIR FORCE RESERVE


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $2,189,534,000 
Fiscal year 2006 budget request  2,445,922,000 
Committee recommendation         2,465,122,000 
Change from budget request         +19,200,000 
-----------------------------------------------

The Committee recommends an appropriation of $2,465,122,000 for Operation and maintenance, Air Force Reserve. The recommendation is an increase of $275,588,000 above the $2,189,534,000 appropriated for fiscal year 2005 and $19,200,000 above the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 41 21172A.035

The adjustments to the budget activities for Operation and maintenance, Air Force Reserve are shown below:


[In thousands of dollars]
--------------------------------------------
--------------------------------------------
Budget Activity 1: Operating Forces         
  24970 Depot Maintenance            10,000 
Undistributed:                              
  25665 932nd Airlift Wing           23,100 
  25680 Unobligated Balances        -13,900 
--------------------------------------------

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $4,058,342,000 
Fiscal year 2006 budget request  4,118,175,000 
Committee recommendation         4,142,875,000 
Change from budget request         +24,700,000 
-----------------------------------------------

The Committee recommends an appropriation of $4,142,875,000 for Operation and maintenance, Army National Guard. The recommendation is an increase of $84,533,000 above the $4,058,342,000 appropriated for fiscal year 2005 and $24,700,000 above the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 042 21172A.036

Insert graphic folio 024 21172A.037

The adjustments to the budget activities for Operation and maintenance, Army National Guard are shown below:

[In thousands of dollars]
Budget Activity 1: Operating Forces
26420 Base Operations Support 20,000
Budget Activity 4: Administration and Servicewide Activities:
26680 Information Management/Integrated Command, Control, Communication Unit 1,000
Undistributed:
26820 Angel Gate Academy 3,000
26830 National Emergency and Disaster Information Center 2,000
26890 Joint Training and Experimentation Program 4,000
26970 National Guard Global Education Project 500
27100 Adv Emergency Medical Response Training Program 2,500
27110 Homeland Operational Planning System 10,000
27345 Unobligated Balances -48,100
27350 Enterprise Resource Planning for Army Guard Installations and Deployment Support 2,000
27365 Regional Geospatial Service Center 1,000
27381 Community Emergency Response/Info Analysis Center 1,000
27383 Strategic Biodefense Initiative 10,000
27384 Advanced Starting Systems 500
27390 Internal Airlift, Helicopter Slingable Units (ISU) 4,000
27391 Advanced Solar Covers 3,200
27392 Civil Support Team Trainer (CSTT) Program 1,000
27393 RCAS 5,000
27394 Florida NG Operation Family Safe at Home 2,100

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $4,242,096,000 
Fiscal year 2006 budget request  4,554,300,000 
Committee recommendation         4,547,515,000 
Change from budget request          -6,785,000 
-----------------------------------------------

The Committee recommends an appropriation of $4,547,515,000 for Operation and maintenance, Air National Guard. The recommendation is an increase of $305,419,000 above the $4,242,096,000 appropriated for fiscal year 2005 and $6,785,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2006:

Insert graphic folio 044 21172A.038

The adjustments to the budget activities for Operation and maintenance, Air National Guard are shown below:

[In thousands of dollars]
Budget Activity 1: Operating Forces:
27650 Aircraft Operations 5,000
27650 Aircraft Operations/Training Capability Upgrade 315
27650 Aircraft Operations/Air Refueling Operational Support 4,000
27750 Base Support/Advanced Video Surveillance Equip 1,000
Undistributed:
28320 Unobligated Balances -22,100
28381 Distributed Training Technology Project 3,000
28382 Eagle Vision 2,000

TRAINING CAPABILITY UPGRADE

The Committee recommends an increase of $315,000 above the budget request to upgrade and enhance training for the 139th Airlift Wing associated with increased demands of night vision training operations.

MOFFETT FEDERAL AIRFIELD

The Committee recommends an increase of $1,000,000 above the budget request for advanced video surveillance equipment for the monitoring of Moffett Federal Airfield.

OVERSEAS CONTINGENCY OPERATIONS TRANSFER ACCOUNT


--------------------------------------------
--------------------------------------------
Fiscal year 2005 appropriation  $10,000,000 
Fiscal year 2006 budget request  20,000,000 
Committee recommendation         20,000,000 
Change from budget request                  
--------------------------------------------

The Committee recommends $20,000,000 for the Overseas Contingency Operations Transfer Account. The recommendation is an increase of $10,000,000 from the amount appropriated in fiscal year 2005 and equal to the request for fiscal year 2006.

UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES


--------------------------------------------
--------------------------------------------
Fiscal year 2005 appropriation  $10,825,000 
Fiscal year 2006 budget request  11,236,000 
Committee recommendation         11,236,000 
Change from budget request                  
--------------------------------------------

The Committee recommends an appropriation of $11,236,000 for the United States Court of Appeals for the Armed Forces. The recommendation is an increase of $411,000 from the amount appropriated in fiscal year 2005 and equal to the request for fiscal year 2006.

OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID


--------------------------------------------
--------------------------------------------
Fiscal year 2005 appropriation  $59,000,000 
Fiscal year 2006 budget request  61,546,000 
Committee recommendation         61,546,000 
Change from budget request                  
--------------------------------------------

The Committee recommends an appropriation of $61,546,000 for Overseas Humanitarian, Disaster, and Civic Aid. The recommendation is an increase of $2,546,000 from the amount appropriated in fiscal year 2005 and equal to the request for fiscal year 2006.

FORMER SOVIET UNION THREAT REDUCTION ACCOUNT


---------------------------------------------
---------------------------------------------
Fiscal year 2005 appropriation  $409,200,000 
Fiscal year 2006 budget request  415,549,000 
Committee recommendation         415,549,000 
Change from budget request                   
---------------------------------------------

The Committee recommends an appropriation of $415,549,000 for Former Soviet Union Threat Reduction Account. The recommendation is an increase of $6,349,000 from the amount appropriated in fiscal year 2005 and equal to the request for fiscal year 2006.

TITLE III

PROCUREMENT

ESTIMATES AND APPROPRIATIONS SUMMARY

The fiscal year 2006 Department of Defense procurement budget request totals $76,635,410,000. The accompanying bill recommends $76,806,886,000. The total amount recommended is an increase of $171,476,000 above the fiscal year 2006 budget estimate and is $872,917,000 below the total provided for fiscal year 2005. The table below summarizes the budget estimates and the Committee's recommendations.

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SPECIAL INTEREST ITEMS

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

REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

The Committee directs the Department of Defense to continue to follow the reprogramming guidance specified in the report accompanying the House version of the fiscal year 2005 Department of Defense Appropriations bill (House Report No. 108-553). Specifically, the dollar threshold for reprogramming will remain at $20,000,000 for procurement, and $10,000,000 for research, development, test and evaluation. The Department shall continue to follow the limitation that prior approval reprogrammings are set at either the specified dollar threshold or 20% of the procurement or research, development, test and evaluation line, whichever is less. These thresholds are cumulative. Therefore, if the combined value of transfers into or out of a procurement (P-1) line or research, development, test and evaluation (R-1) line exceed the identified threshold, the Department of Defense must submit a prior approval reprogramming to the congressional defense committees. In addition, guidelines on the application of prior approval reprogramming procedures for congressional special interest items are established elsewhere in this report.

REPORTING REQUIREMENT FOR BELOW THRESHOLD REPROGRAMMINGS

The Committee is concerned about what it considers to be the potential abuse of below threshold reprogramming authority granted to the Department of Defense. A recent example involving the Air Force's reprogramming of B-1 research and development funds from a terminated program contrary the expressed interests of the Committee has given this concern a greater urgency. While not seeking to directly interfere with the Department's authority to transfer funds where necessary, the Committee needs to be informed of below threshold reprogrammings. Accordingly, the Committee directs the Under Secretary of Defense (Comptroller), to provide a quarterly report to the congressional defense committees on all below threshold reprogrammings from or to accounts in this title. The report should be submitted not later than 30 days after the end of the previous fiscal quarter and include the reprogramming source, the account to which the funds have been transferred, the reason for which funds are available for reprogramming, and the requirement for the funds to be reprogrammed.

EQUIPMENT RESET AND RECONSTITUTION

The Committee understands that both the Army and Marine Corps face significant financial commitments to reset their equipment in light of operations in Iraq and Afghanistan. Unfortunately, the extent of these requirements has not been adequately articulated to date. Accordingly, the Committee directs the Secretary of the Army and the Secretary of the Navy to each provide a report to the congressional defense committees, to accompany the fiscal year 2007 Department of Defense budget request, that provides the best current estimate of the requirements to reset combat, logistical and support equipment items of all types supporting operations in Iraq and Afghanistan. This report shall detail requirements associated with replacing combat losses, assets deemed lost because they are no longer economically repairable, and equipment required to reconstruct prepositioned equipment sets.

CLASSIFIED ANNEX

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

AIRCRAFT PROCUREMENT, ARMY


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-----------------------------------------------
Fiscal year 2005 appropriation  $2,854,541,000 
Fiscal year 2006 budget request  2,800,880,000 
Committee recommendation         2,879,380,000 
Change from budget request         +78,500,000 
-----------------------------------------------

This appropriation finances acquisition of tactical and utility airplanes and helicopters, including associated electronics, electronic warfare equipment for in-service aircraft, ground support equipment, components and parts such as spare engines, transmission gear boxes, and sensor equipment. It also funds related training devices such as combat flight simulators and production base support.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $2,879,380,000 for Aircraft Procurement, Army, which is $24,839,000 more than the amount provided in fiscal year 2005 and $78,500,000 more than the request for fiscal year 2006.

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MULTIYEAR PROCUREMENT PROGRAMS

The Committee includes a general provision (Sec. 8008) described elsewhere in this report, that approves multiyear procurement authority for several Army aviation programs including the UH-60M Blackhawk helicopter; Apache Block II Conversions; and the Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor (MTADS/PNVS) for Apache helicopters.

UH-1 AIRCRAFT REPLACEMENT

The Committee understands that the Army is considering replacement of H-1 helicopters presently assigned to the 1st U.S. Support Battalion attached to the Multi National Force and Observers deployed in the Sinai. The Committee is also aware that the Army is considering replacement of these aircraft with UH-60 Blackhawks. However, there are both operational and cost reasons which strongly suggest that this is not the best course of action. A potential alternative would be the early fielding of the planned Light Utility Helicopter (LUH). Accordingly, the Committee directs the Secretary of the Army to provide a report to the House Committee on Appropriations not later than November 1, 2005, detailing plans to replace these H-1 helicopters.

PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2006:

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MISSILE PROCUREMENT, ARMY


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $1,307,000,000 
Fiscal year 2006 budget request  1,270,850,000 
Committee recommendation         1,239,350,000 
Change from budget request         -31,500,000 
-----------------------------------------------

This appropriation finances the acquisition of surface-to-air, surface-to-surface, air-to-surface, and anti-tank/assault missile systems. Also included are major components, modifications, targets, test equipment and production base support.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriations of $1,239,350,000 for Missile Procurement, Army, which is $67,650,000 less than the amount provided in fiscal year 2005 and $31,500,000 less than the request for fiscal year 2006.

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HIGH MOBILITY ARTILLERY ROCKET SYSTEM (HIMARS)

The Committee fully supports the Army and Marine Corps HIMARS program and believes this to be an important part of DoD's future force capability. However, the Committee notes significant growth in the cost per launcher from fiscal year 2005 to 2006 without any accompanying rationale. Accordingly, the Committee recommends a reduction of $7,500,000 from the Missile Procurement, Army account for the HIMARS program based on unit cost growth of launchers. Adjustments to the Marine Corps portion of this program are discussed elsewhere in this report.

ADVANCED PRECISION KILL WEAPON SYSTEM (APKWS)

While the Committee supports efforts to develop and field the Advanced Precision Kill Weapon System (APKWS), the Committee notes that in the transition from the System Design and Development (SDD) phase to production, significant problems have arisen with this program. This is evident in recent test failures and suggestions by the Army that it may take a year or more for the program to stabilize. Accordingly, the Committee recommends a reduction totaling $32,079,000 to this program, including $24,000,000 from Missile Procurement, Army and $8,079,000 from Procurement of Ammunition, Navy and Marine Corps as described elsewhere in this report.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $2,467,495,000 
Fiscal year 2006 budget request  1,660,149,000 
Committee recommendation         1,670,949,000 
Change from budget request         +10,800,000 
-----------------------------------------------

This appropriation finances the acquisition of tanks; personnel and cargo carriers; fighting vehicles; tracked recovery vehicles; self-propelled and towed howitzers; machine guns; mortars; modification of in-service equipment; initial spares; and production base support.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,670,949,000 for Procurement of Weapons and Tracked Combat Vehicles, Army, which is $796,546,000 less than the amount provided in fiscal year 2005 and $10,800,000 more than the request for fiscal year 2006.

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OBJECTIVE INDIVIDUAL COMBAT WEAPON (OICW)

The fiscal year 2006 budget request includes $32,484,000 for procurement of the Objective Individual Combat Weapon. In the House-passed version of the fiscal year 2005 Department of Defense Appropriations bill, $25,900,000 was added in an attempt to accelerate fielding this weapon. Although the procurement request for fiscal year 2006 is similar in some respects to the proposed acceleration of the program last year, the Committee notes that the Army has altered its acquisition strategy for the program and added requirements as well. As a result, the Committee recommends a reduction of $10,200,000 from the procurement request for this program. In addition, the Committee directs the Secretary of the Army to provide a report to the congressional defense committees, not later than October 31, 2005, which provides the following information: a detailed explanation of the extent to which the Army will replace the M-16, M-4, and any other families of weapons, to include the overall Army Acquisition Objective; a description of the OICW fielding plan to include support units; and, the length of time over which the Army intends to field this weapon.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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PROCUREMENT OF AMMUNITION, ARMY


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $1,590,952,000 
Fiscal year 2006 budget request  1,720,872,000 
Committee recommendation         1,753,152,000 
Change from budget request         +32,280,000 
-----------------------------------------------

This appropriation finances the acquisition of ammunition, modification of in-service stock, and related production base support including the maintenance, expansion, and modernization of industrial facilities and equipment.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,753,152,000 for Procurement of Ammunition, Army, which is $162,200,000 more than the amount provided in fiscal year 2005 and $32,280,000 more than the request for fiscal year 2006.

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AMMUNITION PRODUCTION FACILITIES

Over the past year, the Congress has provided an additional $109,700,000 to improve the capacity of the ammunition industrial base, including $51,900,000 in the Department of Defense Appropriations Act, 2005, and $57,800,000 in the fiscal year 2005 Emergency Supplemental Appropriations Act. The Committee understands that DoD needs to increase production of small arms ammunition to a level of at least 1.5 billion rounds per year to meet requirements associated with fighting the global war on terrorism, greater training due to the Army's modular force initiative, and rebuilding war reserves. In light of these requirements, the Committee directs the Secretary of the Army to provide a report to the congressional defense committees, not later than February 28, 2006, detailing projects undertaken or planned with the funding described above. In addition, this report should address plans to eliminate single points of failure for critical ammunition production capabilities such as Load Assemble and Pack (LAP), chemical constituent production, and production of other ammunition components.

LIFE CYCLE MANAGEMENT COMMANDS

Since mid-2004, the Army has been engaged in implementing Life Cycle Management Commands (LCMCs). The Army's stated goal for this effort is to establish an integrated business enterprise to develop, test, acquire, field, sustain, modernize, recapitalize and dispose of Army equipment. The Committee understands that the LCMC construct is a pilot program that will undergo periodic review beginning in the 3rd quarter of fiscal year 2005 and thereafter. The Committee is concerned about the effect that LCMC may have on the Army overall, and on the Program Executive Officer (PEO) Ammunition in particular. Specifically, the Committee is concerned that ammunition management will be subordinated beneath the Field Support and Mobility functions of the Army. In addition, given that the Secretary of Defense has recommended that Picatinny Arsenal become the home for a joint integrated weapons and armaments specialty site for guns and ammunition, the Committee believes the Army must evaluate how this organization should be structured. Accordingly, the Committee directs the Secretary of the Army to submit a report to the House Committee on Appropriations, not later than November 1, 2005, that provides a summary of the Army's LCMC review, and that rationalizes the duties and responsibilities of PEO Ammunition under the LCMC construct and under the proposed joint integrated weapons and armaments specialty site for guns and ammunition.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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OTHER PROCUREMENT, ARMY


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $4,955,296,000 
Fiscal year 2006 budget request  4,302,634,000 
Committee recommendation         4,491,634,000 
Change from budget request        +189,000,000 
-----------------------------------------------

This appropriation finances the acquisition of (a) tactical and commercial vehicles, including trucks, semi-trailers, and trailers of all types to provide mobility and utility support to field forces and the worldwide logistical system; (b) communications and electronic equipment of all types to provide fixed, semi-fixed, and mobile strategic and tactical communications; and (c) other support equipment, generators and power units, material handling equipment, medical support equipment, special equipment for user testing, and non-system training devices. In each of these activities, funds are also included for the modification of in-service equipment, investment spares and repair parts, and production base support.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $4,491,634,000 for Other Procurement, Army, which is $463,662,000 less than the amount provided in fiscal year 2005 and $189,000,000 more than the request for fiscal year 2006.

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TACTICAL WHEELED VEHICLE MODERNIZATION STRATEGY

The Committee notes that the Army is actively considering the acquisition of a new class of non-developmental trucks. The Committee believes that modernizing the Army's truck fleet is necessary and supports the direction expressed in the House-passed version of the National Defense Authorization Act for fiscal year 2006 recommending that the Army and Marine Corps consider embarking on a joint program for this new class of trucks. However, the Committee is concerned that the strategy is incomplete because it fails to fully address either recapitalization or replacement of those tactical wheeled vehicles supporting the Global War on Terrorism.

The Committee is aware that at least 20% of the Army's tactical wheeled vehicles are presently deployed supporting operations in Iraq and Afghanistan. As a result of operating tempo and environmental conditions, these vehicles may be irreparable and thus may have to be replaced. In addition, the Committee understands that the prepositioned equipment sets supporting operations in the CENTCOM Area of Responsibility (AOR) may have to be largely rebuilt as operations subside. Similarly, the strategy does not provide an indication of how the Army will meet truck requirements stemming from the modular force initiative (Modularity). Accordingly, the Committee directs that the Secretary of the Army provide the congressional defense committees a report, not later than January 31, 2006, describing plans to acquire tactical wheeled vehicles to support modularity and reset requirements including requirements associated with reconstituting prepositioned equipment sets. The report shall include detailed estimates of the cost of this acquisition plan. The report shall also explain the relationship between modularity, reset and reconstitution requirements, and the Army's plans to field a new class of non-development tactical wheeled vehicles.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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AIRCRAFT PROCUREMENT, NAVY


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-----------------------------------------------
Fiscal year 2005 appropriation  $8,912,042,000 
Fiscal year 2006 budget request 10,517,126,000 
Committee recommendation         9,776,440,000 
Change from budget request        -740,686,000 
-----------------------------------------------

This appropriation provides funds for the procurement of aircraft and related support equipment and programs; flight simulators; equipment to modify in-service aircraft to extend their service life, eliminate safety hazards and improve aircraft operational effectiveness; and spare parts and ground support equipment for all end items procured by this appropriation.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $9,776,440,000 for Aircraft Procurement, Navy, which is $864,398,000 more than the amount provided in fiscal year 2005 and $740,686,000 less than the request for fiscal year 2006.

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KC-130J AIRCRAFT

The Committee recommendation provides for 4 aircraft, the same quantity as provided in fiscal year 2005. The reduction of 8 aircraft and $771,654,000 from the budget estimate provides the offset needed to restore funding to `Aircraft Procurement, Air Force' to maintain the existing C-130J multiyear contract. The Department of Defense recently announced its intent to continue this contract throughout fiscal year 2006. The Committee recommendation also provides $45,626,000 for advance procurement of KC-130J aircraft to be acquired in fiscal year 2007. These funds were not included in the President's budget because the 12 aircraft in the budget proposal would have bought out the entire Marine Corps requirement in fiscal year 2006. The Committee reduction of $28,413,000 in aircraft spares and repair parts reflects the lower number of KC-130J aircraft to be procured in fiscal year 2006.

C-130 SERIES

The Committee recommends $32,698,000, a reduction of $10,000,000 from the budget estimate. While the Committee supports this program, the proposed increase from $17,919,000 in fiscal year 2005 to $42,698,000 in fiscal year 2006 is excessive. The Committee believes this broad portfolio of modernization activities can be reprioritized and rephased without overall impact to the program.

COMMON AVIONICS

The Committee recommends $181,395,000, a reduction of $32,807,000 from the budget estimate. The recommendation allows a higher rate of growth than in fiscal year 2005, and a funding level more consistent with outyear funding.

COMMON GROUND EQUIPMENT

The Committee recommends $475,579,000, a reduction of $23,890,000. The recommendation includes a reduction of $21,890,000 in Other Training Equipment, which finances the upgrade of simulators and other aviation training equipment. This recommendation defers two new starts, Undergraduate Naval Flight Officer Training and USMC Federation Simulators, due to lack of detailed justification and budget constraints. The recommended level also provides a smoother funding profile more consistent with outyear levels.

EA-6B SERIES

IMPROVED CAPABILITIES (ICAP III) PROGRAM

The Committee notes that this program has experienced significant developmental delays, and that the Navy's verification of correction of deficiencies is ongoing. The Committee remains hopeful that this improved capability will ultimately be declared operationally suitable and effective. At that time, the Committee will consider further production funding or a reprogramming request to continue the program.

PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2006:

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WEAPONS PROCUREMENT, NAVY


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-----------------------------------------------
Fiscal year 2005 appropriation  $2,114,720,000 
Fiscal year 2006 budget request  2,707,841,000 
Committee recommendation         2,596,781,000 
Change from budget request        -111,060,000 
-----------------------------------------------

This appropriation provides funds for the procurement of strategic and tactical missiles, target drones, torpedoes, guns, associated support equipment, and modification of in-service missiles, torpedoes, and guns.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $2,596,781,000 for Weapons Procurement, Navy, which is $482,061,000 more than the amount provided in fiscal year 2005 and $111,060,000 less than the request for fiscal year 2006. The following report and project level tables provide a summary of the Committee's recommendation.

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MK 48 ADCAP TORPEDO MODS

The Committee recommends $35,920,000 for modifications to the MK-48 Advanced Capability (ADCAP) torpedo, a reduction of $25,389,000 from the budget estimate. The Navy had proposed to enter full rate production in fiscal year 2006 for a modification involving the Common Broadband Advanced Sonar System (CBASS), after low rate production in fiscal years 2004 and 2005. The Committee understands that the program has experienced late hardware deliveries and obligation delays during the past year. Given these problems, the Committee recommendation allows funding for 30 mod kits instead of the 84 kits proposed. This is still twice the LRIP rate of 15 kits per year, and will allow a more gradual acceleration to full production.

GUN MOUNT MODIFICATIONS

The Committee recommendation includes a reduction of $29,415,000 in proposed funding for the MK 38 Mod 2 gun mount. The budget had proposed an increase from 16 units in fiscal year 2005 to 113 units in fiscal year 2006, effectively funding three future years of requirements in a single year. While the Committee continues to support this program, the proposed rate of growth is neither justified nor affordable. The Committee recommendation allows one-half the planned growth, which is sufficient to fund 65 gun mounts in fiscal year 2006.

TOMAHAWK

The Committee recommends $301,153,000 in this appropriation to procure 308 Tomahawk missiles. In addition, funding of $81,696,000 is provided in title IX for an additional 111 missiles, for a total fiscal year 2006 buy of 419 missiles. The Committee is disturbed to learn that, in contrast to other weapon systems, the Navy is not replacing Tomahawk missiles consumed in the Global War on Terror, but is instead drawing down the existing stockpile and cross-decking weapons. The Committee finds this practice unacceptable. Funds in title IX will help restore the inventory losses caused by Operation Iraqi Freedom and Operation Enduring Freedom.

PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2006:

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PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS


---------------------------------------------
---------------------------------------------
Fiscal year 2005 appropriation  $888,340,000 
Fiscal year 2006 budget request  872,849,000 
Committee recommendation         885,170,000 
Change from budget request       +12,321,000 
---------------------------------------------

This appropriation finances the acquisition of ammunition, ammunition modernization and ammunition related material for the Navy and Marine Corps.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $885,170,000 for Procurement of Ammunition, Navy and Marine Corps, which is $3,170,000 less than the amount provided in fiscal year 2005 and $12,321,000 more than the request for fiscal year 2006. The following report and project level tables provide a summary of the Committee's recommendation.

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PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2006:

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SHIPBUILDING AND CONVERSION, NAVY


------------------------------------------------
------------------------------------------------
Fiscal year 2005 appropriation  $10,427,443,000 
Fiscal year 2006 budget request   8,721,165,000 
Committee recommendation          9,613,358,000 
Change from budget request         +892,193,000 
------------------------------------------------

This appropriation provides funds for the construction of new ships and the purchase and conversion of existing ships, including hull, mechanical and electrical equipment, electronics, guns, torpedo and missile launching systems, and communication systems.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $9,613,358,000 for Shipbuilding and Conversion, Navy (SC,N) which is $814,085,000 less than the amount provided in fiscal year 2005 and $892,193,000 more than the request for fiscal year 2006. In addition, the bill includes rescissions of fiscal year 2005 SCN appropriations totaling $325,000,000. The following report and project level tables provide a summary of the Committee's recommendation.

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STABILITY OF NAVY SHIPBUILDING PLAN

The Committee remains concerned over the continued instability in Navy's shipbuilding program. In last year's report, the Committee wrote:

`The Committee remains deeply troubled by the lack of stability in the Navy's shipbuilding program. Often both the current and outyear ship construction profile is dramatically altered with the submission of the next budget request. Programs justified to Congress in terms of mission requirements in one year's budget are removed from the next. The continued shifting of the shipbuilding program promotes confusion and frustration throughout both the public and private sectors'.

~Unfortunately, the fiscal year 2006 budget creates even more instability and uncertainty than in the recent past. The President's budget for fiscal year 2006 includes funds for only 4 new ships, (and only 2 under the SCN appropriation). This is one-half the number funded in fiscal year 2005. However, the long-term Navy plan suggests that, in only three years, the shipbuilding program will be up ~to 9 ships with an annual budget of almost ~~~~~~~~~$14 billion. By the end of the Future Years Defense Program (FYDP)~, the Navy projects almost $18 billion a year for 12 ships. The Committee believes that not only does fiscal year 2006 constitute a dangerous `notch' in the shipbuilding plan, but the outyear plan appears unrealistic. To more effectively address these issues, the Committee directs the Navy to submit to the ~congressional defense committees a ten-year shipbuilding plan, not later than the date of submission of the fiscal year 2007 President's budget. This plan should include total program quantities required, unit and budget costs assumed, and an assessment of technological risks remaining in each new design class. The plan should include new construction vessels funded in Research, Development, Test, and Evaluation, Navy, the National Defense Sealift Fund, and the Shipbuilding and Conversion, Navy appropriation.

The Committee recommendation, over all appropriations, includes 8 new construction ships. This provides a more stable shipbuilding program than proposed, and helps bridge the gap between today's ongoing programs and future needs. Although some difficult choices have been made to offset these requirements, the Committee believes the proposed funding profile ~will maintain today's shipbuilding capacity and provide additional warfighting capability while the Navy decides what it needs, what it can afford, and what technology is achievable in the outyears. Compared to the budget request, the Committee recommendation includes an additional DDG-51 destroyer, an additional T-AKE dry cargo/ammunition ship, and two additional littoral combat ships.

AFFORDABILITY OF NAVY'S SHIPBUILDING PLAN~

The Committee is concerned over the affordability of the Navy's future shipbuilding program. Over the current Future Years Defense Plan (fiscal years 2006 through 2011), the service plans to construct 49 new ships at a cost of approximately $73.5 billion. Over that time period, the amount of funding allocated to new construction would rise from $6.2 billion in fiscal year 2006 to an estimated $17.7 billion in fiscal year 2011. The Navy is currently projecting a requirement for a fleet size of between 260 and 325 ships, at an estimated annual ship construction cost of $12 billion to $15 billion. However, the Congressional Budget Office, in a report dated ~~April 25, 2005, concluded that those estimates are understated by approximately $3 billion per year. In other words, $18 billion annually may be needed to sustain a program that, in fiscal year 2006, is budgeted at slightly more than $6 billion. OSD's Force Transformation Office recently observed that none of the five key financial assumptions upon which the Navy's plan relies are materializing. Instead, they suggest that `trends in all five areas are moving in the wrong direction'. The Committee encourages the Navy to redouble its efforts to lower costs for ship classes on the drawing boards, to provide a more affordable plan for the future.

The Committee believes the Navy will not be able to afford the fleet it needs if it cannot control costs better for ships under construction, and lower costs for ship classes on the drawing boards, as discussed more fully in the paragraphs below.

I~89cost growth and cost control in ongoing programs

The Committee is dismayed over continuing cost growth in ongoing shipbuilding programs. The Navy is now estimating a total government liability of $6,057,000,000 on the CVN-77--a program with a statutory cost cap of $4,600,000,000. The fiscal year 2006 budget includes ~funds for cost growth in this program as well as the LPD-17 and SSN-774 programs, and the Committee understands that even further funding may be needed to complete those efforts in future budgets. The Government Accountability Office, in a report dated February 28, 2005, found a number of problems in Navy's ship cost estimating process. Among other things, GAO auditors concluded that:

These substandard practices lead to cost growth, which drains away the resources needed to build additional ships. The Committee expects the Navy to expeditiously address the findings and recommendations of the GAO report. Further, the Committee directs the Navy to submit, not later than December 31, 2005, a plan for resolving contract cost growth on existing shipbuilding programs such as the Virginia-class submarine and the LPD-17, including the option of possibly converting remaining work to fixed price contracts.~~~

DDG-51 MODERNIZATION PROGRAM

~The Committee recommends $50,000,000 to continue the DDG-51 Modernization Program. This is the same level as enacted for fiscal year 2005. Once again this year, the Committee expects the program to focus on expanded warfighting capability, reduced total ownership cost, and the expanded use of open architecture.

LITTORAL COMBAT SHIP

The Committee recommends $440,000,000 to construct two additional Littoral Combat Ships (LCSs) out of the SCN appropriation. The President's budget requested, and the Committee bill includes, $249,000,000 for an additional LCS ship in the RDT&E, Navy appropriation. The Committee remains very supportive of the LCS program, and believes that further procurement in fiscal year 2006 is prudent and reasonable given the status of the program at this point in time. The Committee directs that, prior to obligation of SCN funds for the third and fourth `flight zero' LCS ships, the Navy certify in writing to the congressional defense committees that the ship designs from each prime contractor are sufficiently stable to allow ~further construction. The Committee also believes that, while the LCS ship itself is of stable and mature design, the mission modules essential to LCS warfighting capabilities are less mature. A number of these technologies have not been demonstrated in an operational environment, and cost estimates for the mission modules appear immature as well. To address this issue, the Committee directs the Navy to submit, not later than February 1, 2006, a report on the development and procurement plan for LCS mission modules, including a description of the development status of each subsystem. The report shall include a schedule showing how production of those modules align with planned LCS ship delivery schedules and an allocation scheme showing how modules would be allocated among LCS-class ships.

LHA(R)

The Committee recommends $200,447,000 for advance procurement of the LHA(R), an increase of $50,000,000 above the budget estimate. The Committee supports the LHA(R) program, and directs the Navy to reconsider its proposal to request split funding for LHA(R) over the FY07-08 timeframe, and instead follow the full funding principle for this ship class, to ensure an adequate budget is in hand before contract award.

DD(X) DESTROYER

The Committee recommendation deletes the $715,992,000 requested for advance procurement for the DD(X) next generation destroyer, and rescinds fiscal year 2005 advance procurement funding of $304,000,000. The recommendation on fiscal year 2006 funding is consistent with recommendations of the House in H.R. 1815, the National Defense Authorization Act for Fiscal Year 2006. The DD(X) program has encountered serious problems over the past year, on two separate fronts:

Outyear funding and acquisition strategy.--When internal budget decisions in late 2004 reduced the planned buy of this ship class to one per year, unit costs rose significantly, causing the Navy to propose an early downselect and `winner take all' competition. This change to the program of record was denied by the Congress. With such low quantities, ships included in the current FYDP would cost approximately $2.75 billion each. This is double the cost of DDG-51 destroyers procured in fiscal year 2005.

Technological difficulties.--The development program has run into difficulties over the past year. The integrated power system, the volume search radar, the peripheral vertical launch system, and the integrated deckhouse have all experienced problems. Although not unusual for a program of this size and complexity, these difficulties highlight the fact that much development work remains to be done. In addition, several changes have added weight to the ship design, which raises technical risk and reduces flexibility for potential changes in the future.

Considering the uncertainty in this program and the lack of authorization, the Committee believes the program is likely to be restructured, and a new cost and acquisition strategy developed, before proceeding to advance procurement. As discussed further under `Research, Development, Test, and Evaluation, Navy', the Committee bill includes $670,000,000 for DD(X) to continue development efforts.

DDG-51 GUIDED MISSILE DESTROYER

In last year's report, the Committee expressed the view that because of likely schedule delay in the DD(X) next generation destroyer program, at least one DDG-51 destroyer would be necessary in fiscal year 2006. At that time, the Committee recommended advance procurement funding for a new DDG-51, and directed the Navy to include the remaining funds in its fiscal year 2006 budget request. The DDG-51 is a highly capable warship. This is especially true for the most recent ships, that have been outfitted with crew reduction technologies. The DDG-51 program is currently in full rate production, with 14 ships under construction or in the planning phase at shipyards by the end of this year. Because of the delay in the DD(X) program, as well as significant technology risks remaining in the DD(X) development program, the Committee believes it is imperative to procure an additional DDG-51 destroyer, and $1,400,000,000 has been included for this purpose.

PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2006:

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OTHER PROCUREMENT, NAVY


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-----------------------------------------------
Fiscal year 2005 appropriation  $4,875,786,000 
Fiscal year 2006 budget request  5,487,818,000 
Committee recommendation         5,461,196,000 
Change from budget request         -26,622,000 
-----------------------------------------------

This appropriation provides funds for the procurement of major equipment and weapons other than ships, aircraft, missiles and torpedoes. Such equipment ranges from the latest electronic sensors for updates of naval forces, to trucks, training equipment, and spare parts.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $5,461,196,000 for Other Procurement, Navy, which is $585,410,000 more than the amount provided in fiscal year 2005 and $26,622,000 less than the request for fiscal year 2006. The following report and project level tables provide a summary of the Committee's recommendation.

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LM-2500 GAS TURBINE

The Committee recommendation of $6,894,000 allows a smoother ramp up of production for FADEC shipsets by funding 3 units in fiscal year 2006 compared to 1 in each of the previous two years. The budget had proposed 5 shipsets in fiscal year 2006.

SUBMARINE PERISCOPES AND IMAGING EQUIPMENT

This program provides funds for ship alterations (ShipAlts) of Patriot type 18 and type 8 rangefinder and infrared search and track (IRST) systems. The Committee recommendation of $62,642,000 allows funding for 9 systems, which is the same quantity as funded in fiscal year 2005.

VIRGINIA CLASS SUPPORT EQUIPMENT

The Committee recommends $128,072,000, a reduction of $47,500,000 from the budget estimate. The Committee believes the proposed technology insertion upgrades and test and maintenance system improvements can proceed at a slower pace without overall impact to the program. The recommended level is still a significant increase over the $57,800,000 provided in fiscal year 2005.

SHIP COMMUNICATIONS AUTOMATION

The Committee recommends $202,000,000, a reduction of $51,960,000 from the budget estimate. This program funds a variety of upgrades to both internal and external shipboard communications. The fiscal year 2006 budget proposed to raise funding in this program by 58 percent, from $160,733,000 in fiscal year 2005 to $253,960,000 in fiscal year 2006. This level of funding drops significantly in fiscal year 2007. The Committee recommendation provides a lower rate of growth that is more in line with outyear funding plans.

COAST GUARD EQUIPMENT

This program provides for Navy-type, Navy-owned equipment for Coast Guard vessels such as the Integrated Deepwater Systems (IDS) National Security Cutter. Given the uncertainty over fiscal year 2006 funding for the IDS program, the Committee recommends $15,000,000 for Coast Guard equipment, a reduction of $16,377,000 from the budget estimate. This mirrors the Committee's proposed reductions in the overall IDS program, and is well above the amounts provided for fiscal year 2004 and 2005.

SSN COMBAT CONTROL SYSTEMS

The President's budget requested $6,981,000 for SSGN sustaining support, which is described in the budget justifications as an upgrade to the Tomahawk Weapon Control System. Since all 4 of these vessels are in shipyards now, with sea trials not beginning on the first ship until later this year, the Committee believes these funds are premature. The Committee notes that these submarine conversions are on an accelerated construction schedule, which would suggest that their mission systems incorporate the most current technology available. The Committee defers these funds without prejudice.

PHYSICAL SECURITY EQUIPMENT

The Committee recommendation reduces this program by $48,800,000, and includes such funds under title IX of the bill. The Committee is advised by the Navy that this funding is directly related to Operation Iraqi Freedom, and would fund the procurement of 16 shipsets of the Shipboard Protection System. These are urgent requirements to provide in-theater capabilities for harbor defense and shipboard protection.

PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2006:

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PROCUREMENT, MARINE CORPS


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-----------------------------------------------
Fiscal year 2005 appropriation  $1,432,203,000 
Fiscal year 2006 budget request  1,377,705,000 
Committee recommendation         1,426,405,000 
Change from budget request         +48,700,000 
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This appropriation funds the procurement, delivery, and modification of missiles, armaments, communication equipment, tracked and wheeled vehicles, and various support equipment.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,426,405,000 for Procurement, Marine Corps, which is $5,798,000 less than provided in fiscal year 2005 and $48,700,000 more than the request for fiscal year 2006.

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MAGTFTC RANGE TRANSFORMATION INITIATIVE

The Committee recognizes the need for a large-scale urban warfare training facility to ensure realistic training is provided for our troops preparing to deploy overseas to hostile combat zones. The United States Marine Corps has proposed a fiscal year 2008 initiative to begin construction of an urban operations training complex of unprecedented capability. The Committee applauds this effort and has provided funding to accelerate this initiative in fiscal year 2006.

HIGH MOBILITY ARTILLERY ROCKET SYSTEM (HIMARS)

The Committee fully supports the Army and Marine Corps HIMARS program and believes this to be an important part of DoD's future force capability. However, Committee notes that there is a cost differential of $2,000,000 between launchers purchased for the Marine Corps and for the Army. The Army budget materials indicate the unit cost of launchers is just over $3,000,000 and the Marine Corps budget request indicates that the cost is just under $5,100,000. This difference is especially striking considering that the Army and Marine Corps purchase the same launcher using the same contracting vehicle. In this respect, the Marine Corps budget justification materials indicate that the unit price for HIMARS launchers is determined by Army contract pricing and includes a contract surcharge for full rate product contracting cost to the Marine Corps. The Committee believes this surcharge and cost differential are excessive, and therefore recommends a reduction of $30,000,000 from the budget request.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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AIRCRAFT PROCUREMENT, AIR FORCE


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Fiscal year 2005 appropriation  $13,648,304,000 
Fiscal year 2006 budget request  11,973,933,000 
Committee recommendation         12,424,298,000 
Change from budget request         +450,365,000 
------------------------------------------------

This appropriation provides for the procurement of aircraft, and for modification of in-service aircraft to improve safety and enhance operational effectiveness. It also provides for initial spares and other support equipment to include aerospace ground equipment and industrial facilities. In addition, funds are provided for the procurement of flight training simulators to increase combat readiness and to provide for more economical training.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $12,424,298,000 for Aircraft Procurement, Air Force, which is $1,224,006,000 less than the amount provided in fiscal year 2005 and $450,365,000 more than the request for fiscal year 2006.

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JOINT STRIKE FIGHTER ADVANCE PROCUREMENT

The budget request includes $152,400,000 for procurement of long lead items to support the low rate initial production of five conventional ~take-off and landing variants of the Joint Strike Fighter. The Committee notes that under the revised aircraft build sequence all of these aircraft do not require full funding prior to the beginning of fiscal year 2008. Accordingly, a request to begin advance procurement of long lead items two years prior, in fiscal year 2006, is funding early to need and contrary to a conventional aircraft procurement strategy. Advance procurement funds should be requested in the Air Force's fiscal year 2007 budget submission. Full funding for these five aircraft should be requested in the fiscal year 2008 budget.

The Committee believes it remains to be seen whether the JSF program will be able to keep the aggressive schedule to begin production of the 23 developmental test aircraft in the next thirty-three months. Previous aircraft production programs have all faced significant schedule delays in delivering test aircraft, which have in turn consistently forced delays in the delivery of early production representative aircraft. In an effort to prevent any instability in the system development and demonstration (SDD) of the Joint Strike Fighter, the Committee has fully funded the joint Air Force and Navy request of $4,867,776,000 for the development program. The Committee believes that keeping SDD on schedule and on budget will be critical to preventing these kinds of production delays and any subsequent reductions in aircraft procurement.

FUTURE YEARS PROCUREMENT STRATEGY FOR THE F/A-22 RAPTOR

The budget request proposes reducing advance procurement for three F/A-22 aircraft in fiscal year 2007 based upon a Department of Defense program budget decision to terminate procurement in fiscal year 2009. In hearings on the fiscal year 2006 request, the Committee questioned the basis for this decision and received a response that the decision was under review and would be evaluated as part of the Quadrennial Defense Review (QDR).

The Committee believes that a fair and objective review of the F/A-22 business case is necessary and that consideration should be given to options to continue procurement of this aircraft after 2009. The Committee directs the Secretary of Defense to report to the congressional defense committees on alternatives for the continued acquisition of the F/A-22. The report should consider, but not be limited to, the following; an analysis of the costs and benefits of a multiyear procurement program, extending the F/A-22 procurement profile, and the effects of F/A-22 procurement on the Joint Strike Fighter production line.

F-15 ACTIVE ELECTRONICALLY SCANNED ARRAY PROCUREMENT

The Committee has provided an additional $72,200,000 to begin procurement of APG-63(V)3 radars. Of the funds provided, $20,000,000 is to procure low rate factory specialized test equipment, fund array verification and procure one APG-63(V)3 array that can be used for attrition reserve for the Alaska F-15C/D squadron. The remaining funds, $52,200,000, are to procure six systems for Air National Guard F-15s. Funds have also been included in Research, Development, Test and Evaluation, Air Force for continued development of these radars to increase capability. ~~~~~~~

C-130J MULTIYEAR PROCUREMENT PROGRAM

The C-130J multiyear procurement program of record as approved in the Department of Defense Appropriations Act, 2005, provided advance procurement funding for nine Air Force C-130J aircraft in fiscal year 2006. The fiscal year 2006 budget request proposes terminating the C-130J multiyear procurement program, eliminating all of these aircraft, and instead providing funding in Aircraft Procurement, Navy, for an additional eight Marine KC-130J aircraft for a total of twelve Marine aircraft. The Committee denies this recommendation and has provided funding to restore the multiyear procurement program of record by transferring funding from Aircraft Procurement, Navy, to Aircraft Procurement, Air Force, for the procurement of nine Air Force C-130J and four Marine KC-130J aircraft in fiscal year 2006.

The Committee notes that during hearings on the fiscal year 2006 budget request with the Secretary of Defense, the Committee raised significant concerns regarding the department's recommendation to terminate the multiyear procurement program. In a letter to the Committee dated May 10, 2005, the Secretary of Defense acknowledged these concerns and recommended the continuation of the multiyear procurement program.~

The Committee continues to be concerned with the terms of the C-130J multiyear procurement contract as identified in the Committee report on the Department of Defense Appropriations Act, 2005, including terms that reduced future flexibility. However, given the capability of these new aircraft, the requirement for them as emphasized by the recent grounding of a large number of older C-130 aircraft, and the taxpayer savings derived from the multiyear procurement commercial nature of this contract, the Committee believes there are justifiable reasons for continuation of procurement. The Committee expects the Air Force and the manufacturer to work together to ensure that present and future C-130Js under the multiyear contract meet all operational requirements and that manufacturing achieves economic order quantities.~

C-17 PROCUREMENT

The Committee recognizes the tremendous performance of the C-17 and the contributions these aircraft have made in the global war on terrorism and other operations. Having flown over 85,000 airlift missions and having logged over 400,000 flying hours in support of the war on terror, Operation Enduring Freedom and Operation Iraqi Freedom, C-17s have proven themselves as one of the most reliable of our airlift assets. These aircraft have also been key enablers for non-combat operations as well, such as during the tsunami relief effort in Southeast Asia when they carried over 2.4 million pounds of cargo in 30 days.

The Committee has fully funded the budget request for 15 C-17 aircraft in fiscal year 2006 and provided the requested advance procurement funding for an additional 7 aircraft in fiscal year 2007. These funds are provided to protect the option of continuing procurement beyond the current multiyear procurement program which ends in fiscal year 2007. However, the Committee believes it is premature to provide authorization for the Air Force to enter into a follow-on multiyear pending the conclusion of the Mobility Capabilities Study and the Quadrennial Defense Review. Should these efforts establish a requirement for further C-17 aircraft, the Committee would support procurement through a multiyear strategy in accordance with the requirements identified in section 8008 of this bill, and section 2306b of title 10, United States Code.

GLOBAL HAWK

The budget request includes $327,700,000 for procurement of five Global Hawk unmanned air vehicles and $70,000,000 for advance procurement of six air vehicles in fiscal year 2007. The Committee has reduced the request for fiscal year 2006 aircraft by 2 air vehicles and $110,000,000. Advance procurement for fiscal year 2007 is reduced by 1 air vehicle and $10,000,000.

In the Committee's report accompanying the Department of Defense Appropriations Act, 2005, the Committee expressed concern with the Air Force strategy to accelerate the Global Hawk development and production programs. The compressed schedule created significant cost and schedule risk as the program transitioned from the stable design and manufacturing of the RQ-4A model to the larger RQ-4B model. The Air Force's failure to heed these concerns has since resulted in $194,000,000 in development cost overruns, a Nunn-McCurdy breach due to cost growth in the average procurement unit cost of 18 percent since the last rebaseline in December of 2002, and air vehicle delivery delays of up to 12 months.

The Committee does not dispute the requirement for these aircraft or their capability to provide persistent high value surveillance. However, the contractor has been unable to meet the production levels that the Air Force has requested. The Committee believes that reducing the number of air vehicles to be procured in fiscal years 2006 and 2007 will give the program an opportunity to stabilize both the development and the manufacturing programs.

A-10 MIDS JOINT TACTICAL RADIO SYSTEM

The budget request includes $42,800,000 for procurement and installation of MIDS JTRS radios on A-10 aircraft. The Committee notes that this request was based on a delivery schedule that has since experienced a six-month delay in initial deliveries. Based upon an estimated 12-18 month lead-time to produce the MIDS JTRS terminals and corresponding Group A kits, the AF requirement now is only $17,920,000. Accordingly, the request has been reduced by $24,000,000.

AIRBORNE FIRE-FIGHTING SYSTEM

The Committee notes the drastically decreased availability of commercial firefighting aircraft and applauds the Department of Defense for its willingness to provide assets to assist states in mitigating the impact of wild fires. The Committee is concerned, however, that even though Congress has for three years provided funding specifically for the development and procurement of a replacement for the obsolete Modular Airborne Fire Fighting System used by Air National Guard and Air Force Reserve units to fight wild fires for more than 30 years, the designated replacement system, the Airborne Fire-Fighting System (AFFS) has yet to be fielded. As civilian airborne assets become increasingly unavailable, expedited AFFS fielding for C-130J aircraft has become a critical issue for western States and other regions routinely afflicted with massive wild fires.

The Committee understands that final specifications for a replacement system still have yet to be determined. In addition, specifications originally approved by an Air Force Technical Review Board have been substantially changed by the Air Force. These factors are causing both a delay in fielding a replacement system and a substantial increase in projected per unit cost. The Committee directs the Air Force to identify the specifications required for the AFFS system within 120 days of enactment of this legislation. In identifying these specifications, the Air Force shall include development representatives from all federal activities normally involved with fighting wild fires and from Service agencies normally involved in the air worthiness certification process. The Committee expects AFFS systems to be fully certified and fielded to Air National Guard and Air Force Reserve units with C-130Js by March 2006 in time to support fire fighting needs during the 2006 fire fighting season, and at a per unit cost commensurate with the original replacement system cost briefed to Congress. ~

EURO-AFGHAN AIR SAFETY

Recent aircraft crashes in Afghanistan that claimed over 100 lives and over 40 other documented incidents that required maneuver to avoid collision have raised the Committee's concerns about the safety of aircraft operations along the Euro-Afghan corridor and in Afghanistan. Aircraft operations along this heavily traveled route are conducted in an area of mountainous, hostile, and remote terrain along a corridor that possesses minimal or no air safety capabilities. While the Committee understands that the Air Force is undertaking some measures to improve the air safety situation in Afghanistan, the Committee believes that the nature of the problem and the urgency of the matter justifies a broader comprehensive approach. The Committee directs that the Secretary of Defense provide the congressional defense committees by January 1, 2006, a report detailing a plan, timeline and budget providing options for improving air safety along the Euro-Afghan corridor, as well as in Afghanistan, consistent with authorities in existing law.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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MISSILE PROCUREMENT, AIR FORCE


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Fiscal year 2005 appropriation  $4,458,113,000 
Fiscal year 2006 budget request  5,490,287,000 
Committee recommendation         5,062,949,000 
Change from budget request        -427,338,000 
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This appropriation provides for procurement, installation, and checkout of strategic ballistic and other missiles, modification of in-service missiles, and initial spares for missile systems. It also provides for operational space systems, boosters, payloads, drones, associated ground equipment, non-recurring maintenance of industrial facilities, machine tool modernization, and special program support.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $5,062,949,000 for Missile Procurement, Air Force, which is $604,836,000 more than the amount provided in fiscal year 2005 and $427,338,000 less than the request for fiscal year 2006.

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JOINT AIR TO SURFACE STANDOFF MISSILE~

The Committee continues to have grave concerns regarding the viability of the Joint Air to Surface Standoff Missile (JASSM). Responding to the Committee's concerns included in the House Report accompanying the fiscal year 2005 defense appropriations act, the Air Force stated that the Committee's findings regarding flight tests were outdated and based on old test data. `The JASSM design is sound and proven in testing', stated the Air Force, while the contractor stated that the Committee's views did not `reflect corrective actions nor validations of fixes incorporated during or after those flight tests'. Despite these assurances, in the summer of 2004 another JASSM test failed and testing was ordered to stop.

When the program returned to test earlier this year, two successful verification tests enabled the program to resume follow-on operational tests. On April 26th, 2005, two separate JASSMs were launched from B-2s. One missile successfully achieved its objectives, while the other failed to obtain controlled flight and crashed at sea. During the most recent test on May 16th, a JASSM was launched from a B-52 at White Sands Missile Range. The wings failed to properly deploy and the missile crashed before hitting its target. Preliminary findings have indicated that binding of the wings on deployment may have caused the failure, a potential new production related deficiency.

The statement of the managers accompanying the conference report on the Department of Defense Appropriations Act, 2005 stated that failure to increase the reliability of JASSM would cause the Committee to reconsider support for the program. The Committee has lost the confidence it may have had in JASSM's ability to achieve even its minimal reliability and mission performance requirements. Accordingly the Committee has provided no funding for JASSM missile procurement and instead recommends the program be terminated.

EVOLVED EXPENDABLE LAUNCH VEHICLE (EELV) ~

The Air Force requested $838,347,000 for the Evolved Expendable Launch Vehicle (EELV). The Committee recommends $747,347,000, a reduction of $91,000,000 for the launch vehicle associated with the first Space Based Infrared High (SBIRS High) geo-synchronous satellite.

The SBIRS High program is extremely troubled. The total estimated cost for the program has increased from $4 billion to over $10 billion. The Air Force has experienced three Nunn-McCurdy breaches in four years and satellite launch dates have slipped repeatedly. The Air Force request in fiscal year 2006 includes $91,000,000 to support a fourth quarter 2008 launch of the first SBIRS High satellite. Given the troubled history of this program, the Committee believes it is highly likely that over the next three and a half years the first SBIRS satellite will experience additional slips. A launch delay of just three months would defer the requirement to budget for the launch vehicle to fiscal year 2007. The Committee believes such a delay is highly likely, and has deferred the associated fiscal year 2006 funding accordingly.

The Committee recommendation also includes a Government Accountability Office (GAO) recommended rescission of $92,000,000 from the launch services associated with the first Advanced EHF (AEHF) satellite. These funds are available based on the restructured method the Air Force has adopted for the EELV contracting.

Finally, the Committee directs that all future EELV contracts be negotiated on an annual basis, eliminating the practice of `block buys' and `pre-awards' of outyear launch services. The Committee notes that competition has effectively been eliminated in the program, and such `multiyear'-like contracts are no longer in the interest of the taxpayers.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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PROCUREMENT OF AMMUNITION, AIR FORCE


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Fiscal year 2005 appropriation  $1,327,459,000 
Fiscal year 2006 budget request  1,031,207,000 
Committee recommendation         1,031,907,000 
Change from budget request            +700,000 
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This appropriation finances the acquisition of ammunition, modifications, spares, weapons, and other ammunition-related items for the Air Force.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,031,907,000 for Procurement of Ammunition, Air Force, which is $295,552,000 less than the amount provided in fiscal year 2005 and $700,000 more than the request for fiscal year 2006.

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LASER GUIDED BOMB

The Committee is pleased to note that since the Air Force started to procure Laser Guided Bomb (LGB) kits from two vendors in fiscal year 2002, the savings to the Treasury have been over $300,000,000. Since the second source supplier paid the qualification costs for entry, there were no initial costs to the government. A second source provides the benefits of cost competition and a surge capacity requiring low quantity to maintain an economic sustaining rate. The synergies of engineering expertise engendered by competition have led to recent improvements in the performance of the GBU-10, increased LGB accuracies in other configurations and additional cost savings. LGB capability is further enhanced by the competitive development of a dual mode guided bomb that would provide both visual and all-weather guidance for General Purpose Bombs. Dual source competition has produced a superior product with significant cost savings, better serving both the war fighter and the taxpayer.

The Committee is a strong believer in the benefits provided by a competitive sourcing procurement strategy for LGB. Therefore, prior to any determination by the Air Force, which also procures LGBs for the Navy, to move to a single supplier, the Secretary of the Air Force is directed to provide a report to the congressional defense committees detailing the benefits derived from a single source procurement. The report should contain a cost-benefit analysis of how a single source would retain the benefits of the current procurement while preventing cost growth in the future.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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OTHER PROCUREMENT, AIR FORCE


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Fiscal year 2005 appropriation  $13,071,297,000 
Fiscal year 2006 budget request  14,002,689,000 
Committee recommendation         13,737,214,000 
Change from budget request         -265,475,000 
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This appropriation provides for the procurement of weapon systems and equipment other than aircraft and missiles. Included are vehicles, electronic and telecommunications systems for command and control of operational forces, and ground support equipment for weapon systems and supporting structure.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $13,737,214,000 for Other Procurement, Air Force, which is $665,917,000 more than the amount provided in fiscal year 2005 and $265,475,000 less than the request for fiscal year 2006.

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PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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PROCUREMENT, DEFENSE-WIDE


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Fiscal year 2005 appropriation  $2,956,047,000 
Fiscal year 2006 budget request  2,677,832,000 
Committee recommendation         2,728,130,000 
Change from budget request         +50,298,000 
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This appropriation provides funds for the procurement, production, and modification of equipment, supplies, materials, and spare parts.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $2,728,130,000 for Procurement, Defense-Wide, which is $227,917,000 less than the amount appropriated in fiscal year 2005 and $50,298,000 more than the request in fiscal year 2006. The following report and project level tables provide a summary of the Committee's recommendations.

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USSOCOM--EMERGENT CRITICAL COMBAT MISSION NEEDS

The Committee is aware that the United States Special Operations Command (USSOCOM) receives numerous Combat Mission Needs Statements from its war fighters in Iraq and Afghanistan to provide equipment, which is urgently needed to fulfill unforeseen requirements. These requirements are often met by below threshold reprogrammings because of their urgency, which is inconsistent with the intent of Congress. The Committee has provided $43,000,000 in a new program for the Special Operations Command to begin to meet these needs and directs the Commander of USSOCOM to provide a quarterly report to the Congressional defense committees on the use of these funds. The Committee also strongly suggests that funds for this program be included in future budget requests.

USSOCOM--MODERNIZATION OF THE HC-130 LEGACY FLEET

The Committee is aware and concerned about the aircraft shortfall in the Air Force Special Operations aerial refueling fleet and the Air Force Combat Search and Rescue HC-130 fleet. This shortfall is exacerbated by the recent groundings and operational restrictions placed on the fleet as a result of center wing box cracks found in the oldest models of HC-130s. The Committee directs the Air Force to investigate whether spending additional funds for repair of legacy C-130s would be better spent modernizing variants of the C-130J, and to report its findings to the Committee not later than six months after enactment of the fiscal year 2006 Defense Appropriations Act.

BUY AMERICA

The Committee directs the Secretary of Defense to instruct the relevant offices within the Department of Defense to take note of subsection 2553a, of Title 10, United States Code, referred to as the `Berry amendment,' giving protection to certain domestic products. It is not only vital, but required, that Defense FAR Supplement clauses relating to the `Berry Amendment' are incorporated by reference in all solicitation contracts by checking the clause in the appropriate box where they are applicable so as to insure that department procurements are consistent with the requirements of this provision. Compliance with the `Berry amendment' is vital to support the U.S. industrial base for these products, which help to preserve U.S. national security.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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NATIONAL GUARD AND RESERVE EQUIPMENT


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Fiscal year 2005 appropriation  $350,000,000 
Fiscal year 2006 budget request              
Committee recommendation                     
Change from the budget request               
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The Committee has provided funds for National Guard and Reserve forces consistent with the budget request and has earmarked funds within the procurement accounts as requested. The Committee has also added funding for Guard and Reserve equipment in several of the procurement accounts as described elsewhere in this report. Therefore, the Committee considers the earmarks included in the bill designating dollar amounts for the Guard and Reserve components a floor rather than a ceiling. In addition, the Committee has also added $200,370,000 for Army Reserve equipment in title IX of this bill. Since Guard and Reserve forces are so integral to our efforts in Iraq and Afghanistan, the Committee expects the Department to provide deploying and deployed Guard and Reserve units with the same quality and quantity of equipment as they provide to the active duty components.

DEFENSE PRODUCTION ACT PURCHASES


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Fiscal year 2005 appropriation  $42,765,000 
Fiscal year 2006 budget request  19,573,000 
Committee recommendation         28,573,000 
Change from budget request       +9,000,000 
--------------------------------------------

The Committee recommends an appropriation of $28,573,000 for Defense Production Act Purchases, which is $14,192,000 less than the amount provided in fiscal year 2005 and $9,000,000 more than the request for fiscal year 2006.

The Committee recommendation shall be distributed as follows:

Project Amount
High performance coatings production initiative $3,868,000
High performance batteries and fuel cells production initiative 5,800,000
Next generation radiation hardened microprocessors 2,905,000
Beryllium supply industrial base 6,000,000
Amplifying fluorescent polymer based IED detection devices 2,000,000
Flexible aerogel material supplier initiative 2,000,000
ALON and spinel optical ceramics 3,000,000
Thermal battery industrial base infrastructure 3,000,000

TITLE IV

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

ESTIMATES AND APPROPRIATION SUMMARY

The fiscal year 2006 Department of Defense research, development, test and evaluation budget request totals $69,356,040,000. The accompanying bill recommends $71,656,892,000. The total amount recommended is an increase of $2,300,852,000 above the fiscal year 2006 budget estimate and is $1,724,710,000 above the total provided in fiscal year 2005. The table below summarizes the budget estimate and the Committee's recommendations.

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SPECIAL TERMINATION COST CLAUSE

The Committee reaffirms the existing policy (as previously stated in House Report No. 106-244) of providing the congressional defense committees notification 30 days prior to contractual implementation of a special termination cost clause (STCC). Further, the Committee notes that the need to budget for termination liability for each contract is a fundamental financial management principle and therefore discourages, as a general principle, the use of special termination cost clauses or any variations of the special termination cost clause such as including areas not covered by STCC and the potential use of funds that are obligated on other contracts and in other Program Elements to cover termination liability.

VISUAL INFORMATION DISPLAY SYSTEM

The Committee understands that the Air Force and the Navy are developing new systems for controlling and monitoring navigational and visual aids for implementation at their airfield towers. The Committee further understands that the FAA has implemented the Integrated Control and Monitor System (ICMS) at several airports nationally. ICMS controls, monitors and displays the operational/ready status of many precision landing and visual aids. It also provides for the interlocking of ILSs, a NAS safety requirement, and archives data/information essential in providing historical information regarding the integrity of the operational status of NAVAIDS and VISAIDS. The Committee directs the Navy and Air Force to work together and leverage, as much as possible, the ICMS as the solution for controlling and monitoring of navigational and visual aids for our military airfields' towers.

PROBLEMS IN DOD SPACE PROGRAMS

The Committee appreciates the Administration's emphasis on space programs and firmly believes that these programs provide critical capabilities in support of the nation's security. However, in recent years the acquisition of these capabilities has become increasingly problematic with recurring rounds of significant cost growth and schedule delay. The Committee is deeply concerned about the negative trends in space acquisition which, if left unchecked, could reduce the nation's strategic advantages in this area. The Committee notes that these problems are occurring despite heavy investment of taxpayer dollars.

In 2002, DoD leadership saw unsettling trends in the management of these programs and commissioned a Defense Science Board (DSB) task force to conduct an independent review. In 2003, the task force reported numerous systemic problems, including a strong bias towards unrealistic cost estimates, an undisciplined process for requirements definition, and a serious erosion in government management and engineering expertise. Since publication of the DSB report, the programs have collectively gotten worse, with virtually every major space acquisition program under the cloud of a Nunn-McCurdy cost breach. One notable example, the Space Based Infrared High (SBIRS HIGH) satellite, has experienced three Nunn-McCurdy breaches in just four years. SBIRS High costs have grown from $4 billion to over $10 billion.

Rather than slowing down to take stock of the problems, DoD has instead embarked on a path that requires a significant ramp-up in space expenditures over the future year defense plan. Thus, the same space ~acquisition professionals (both in the government and in industry) that are struggling to execute the current level of investment will soon face greater challenges managing the additional programmatic content and complexity that comes with the budget ramp-up. Unless DoD takes significant corrective action, the Committee is very concerned that the space acquisition workforce may not meet these challenges effectively. In fact, the Committee is concerned whether DoD is in a position to make appropriate choices regarding which programs to pursue given the systemic deficiencies that reduce the availability of good data (cost, technical maturity, acquisition approach, schedule) to senior leadership.

Given these concerns, the Committee has worked closely with the House Armed Services Committee to develop a package of recommendations responsive to the problems we currently face in the space community. In particular, the Committee has funded the Space Radar and the Transformational Satellite Programs at the levels authorized by the House. Further, the Committee has also included additional funds, as authorized, for the Office of Force Transformation to promote development of low cost, quick to launch satellites that have the potential of responding to warfighter needs in months rather than decades. The Committee also fully supports the space acquisition reform measures authorized by the House. The Committee expects DoD to take the problems in space acquisition seriously and implement appropriate management reforms expeditiously.

JOINT TACTICAL RADIO SYSTEM

The Joint Tactical Radio System (JTRS) program is developing a software-defined radio designed to interoperate with existing radios and significantly increase communications capabilities. A Joint Program Executive Office is responsible for developing the JTRS architecture and waveforms, while service-led program offices are working on development, and eventual procurement of radio hardware for platforms with similar requirements. Estimates from the Government Accountability Office (GAO) indicate that the total cost of JTRS Clusters 1 and 5 (ground vehicle and helicopter mounted radios, and man-portable radios, respectively) may exceed $24,000,000,000. The Committee supports the concepts behind JTRS and has generally supported full funding of the program. However, events of the past several months indicate that the program is experiencing serious difficulties in several respects which the Committee understands will result in a significant restructuring of the program.

In January 2005, the Undersecretary of Defense (Acquisition, ~Technology and Logistics) placed a stop work order on the JTRS program ~which the Committee understands will not be lifted until the Defense ~Acquisition Board (DAB) meeting scheduled for August 2005. ~The Office of the Secretary of Defense (OSD) also directed that the schedule for JTRS development be extended by 22-24 months. On April 25, 2005, OSD issued a Show Cause Notice for JTRS Cluster 1. The fundamental program concerns include: hardware design immaturity; hardware components that do not meet specifications and will require major redesign; inability to meet size, weight, and power (SWaP) requirements; inability to manage waveform simultaneity; software~~ immaturity; no ability to estimate overall costs and schedule; and no ability to estimate integration and its effect on cost and schedule. As a result of these developments, the Committee recommends a reduction totaling $340,100,000 which includes reductions for procurement of radios as well as hardware development, both of which will be significantly altered due to the impending changes to the program. $82,100,000 of this amount is taken in the form of rescissions of fiscal year 2005 funding since ~this amount has been withheld from the program. Despite~ these reductions, the Committee has fully funded amounts requested for fiscal year 2006 to continue waveform development, and ha~s allowed for modest growth in research and development funding to continue hardware development. The table below summarizes the reductions included in the Committee's recommendation:~~

($ thousands)
Fiscal Year 2006 Reductions:
Aircraft Procurement, Army -12,300
Procurement, Marine Corps -7,000
Aircraft Procurement, Air Force -24,100
Research, Development, Test and Evaluation, Army -69,500
Research, Development, Test and Evaluation, Navy (including Marine Corps programs) -54,100
Research, Development, Test and Evaluation, Air Force -94,000
Total -258,000
Rescissions:
Other Procurement, Army FY 05/06 -60,500
Research, Development, Test and Evaluation, Army FY 05/06 -21,600
Total -82,100
Grant Total -340,100

In addition, the Committee directs that the Secretary of Defense provide a report to the congressional defense committees not later than September 30, 2005, on the status of JTRS which shall include the following elements: mitigation plans of the Military Services to compensate for the restructuring of the JTRS program including a detailed description of the legacy or other radios required, as well as detailed estimates of the cost of these plans; an assessment of changes to the JTRS Waiver process which has limited procurement of legacy radios; an explanation of Army plans to meet Future Combat System requirements associated with all developmental spirals as a result of the JTRS program revisions to include a detailed description of the compatibility between legacy radios and the Army's Warfighter Information Network-Tactical (WIN-T) as well as the compatibility between JTRS and WIN-T; and a summary of DoD acquisition decisions including the results of the scheduled JTRS status meeting scheduled for May 2005 and the results of the JTRS rebaselining DAB scheduled for the 4th quarter of fiscal year 2005. In addition, the Committee directs the Government Accountability Office (GAO) to continue its ongoing review of the JTRS program to include a review of technical, management, cost and schedule issues associated with the program.

JOINT COMMON MISSILE

The Joint Common Missile (JCM) program involves the Army (lead), Navy and Marine Corps and an associated Cooperative Development Program with the United Kingdom. The Committee notes that the program is succeeding in meeting its developmental milestones and was the first system to successfully clear the requirements determination process implemented in the Joint Capabilities Integration and Development System (JCIDS). This process prioritizes requirements from a joint perspective and incorporates revised DoD 5000 series acquisition policies early in the process. Given the thorough review to which JCM has been subjected, it strikes the Committee as counterintuitive that DoD chose to recommend terminating this program in the fiscal year 2006 budget request. Given the relative success of the program thus far, and the fact that the partners to this program will require an eventual replacement for the Hellfire missile, the Committee recommends $50,000,000 for this program to continue its development. Of this amount, $45,000,000 is provided in Research, Development, Test and Evaluation, Army, and $5,000,000 is available for Research, Development, Test and Evaluation, Navy, as described elsewhere in this report.

SPECIAL INTEREST ITEMS

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

REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

The Committee directs the Department of Defense to continue to follow the reprogramming guidance specified in the report accompanying the House version of the fiscal year 2005 Department of Defense Appropriations bill (House Report No. 108-553). Specifically, the dollar threshold for reprogramming will remain at $20,000,000 for procurement, and $10,000,000 for research, development, test and evaluation. The Department shall continue to follow the limitation that prior approval reprogrammings are set at either the specified dollar threshold or 20% of the procurement or research, development, test and evaluation line, whichever is less. These thresholds are cumulative. Therefore, if the combined value of transfers into or out of a procurement (P-1) line or research, development, test and evaluation (R-1) line exceed the identified threshold, the Department of Defense must submit a prior approval reprogramming to the congressional defense committees. In addition, guidelines on the application of prior approval reprogramming procedures for congressional special interest items are established elsewhere in this report.

REPORTING REQUIREMENT FOR BELOW THRESHOLD REPROGRAMMINGS~

The Committee is concerned about what it considers to be the ~~potential abuse of below threshold reprogramming authority granted to the Department of Defense, as discussed elsewhere in the report. Accordingly, the Committee directs the Under Secretary of Defense (Comptroller), to provide a quarterly report to the congressional defense committees on all below threshold reprogrammings from or to accounts in this title. The report should be submitted not later than 30 days after the end of the previous fiscal quarter and include the reprogramming source, the account to which the funds have been transferred, the reason for which funds are available for reprogramming, and the requirement for the funds to be reprogrammed.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY


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Fiscal year 2005 appropriation  $10,698,989,000 
Fiscal year 2006 budget request   9,733,824,000 
Committee recommendation         10,827,174,000 
Change from budget request       +1,093,350,000 
------------------------------------------------

This appropriation finances the research, development, test and evaluation activities of the Department of the Army.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $10,827,174,000 for Research, Development, Test and Evaluation, Army, which is $128,185,000 more than the amount provided in fiscal year 2005 and $1,093,350,000 more than the request for fiscal year 2006.

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FUTURE COMBAT SYSTEM (FCS~)

The Committee notes that within the past year the Army has initiated two major revisions to the FCS program. First, in July 2004 the Army restructured the program and introduced developmental spirals with the objective of fielding mature elements of FCS more quickly. Second, the Army is in the process of changing the current FCS contract from Other Transaction Authority (OTA) to a Federal Acquisition Regulation (FAR) based contract. The Committee understands that this revision will be in place by the end of fiscal year 2005, and will be utilized for the remainder of System Development and Design (SDD) for FCS. In addition to these changes, the Army describes fiscal year 2006 as a critical year during which there is a planned broad industry ramp-up in both the FCS network and platforms. This should include extensive software and hardware deliveries as well as the first major FCS field experiment: Experiment 1.1, JEFX06.

Despite the revisions to the program, and the Army's optimistic assessment of progress for the coming fiscal year, the Committee harbors serious concerns about the FCS program. The Committee notes that for the foreseeable future FCS will equip only a small portion of the Army. Yet it is the most expensive and complicated modernization program ever undertaken by the Army. At the same time, the Army has initiated its modular force initiative (Modularity), and will have to reset much of the equipment presently deployed in support of the global war on terrorism. The Committee has deep concerns about whether there will be sufficient funding available in the coming years for the Army to afford these efforts. In addition, despite the claimed acceleration of FCS due to the incorporation of spiral development, the Committee notes that the schedule to field all of the elements of FCS required for a complete Unit of Action was extended to 2014 in the restructuring described above. Accordingly, the Committee recommends a reduction of $449,000,000 from the Armored Systems Modernization program element. The Committee directs the Secretary of the Army to report to the congressional defense committees within 30 days of enactment of this Act on its plan to distribute this reduction to the projects within the Armored Systems Modernization program element as outlined below. In addition, the Committee directs the Army to provide a report to the congressional defense committees not later than December 1, 2005, which provides a detailed list and description of the systems and technologies to be included in each of the FCS developmental spirals.

The statement of the managers accompanying the conference report on the Department of Defense Appropriations Act, 2005 (House Report No. 108-622) established a structure for budget preparation and execution for FCS which included broadly defined projects within the Armored Systems Modernization program element. In addition, the conferees directed the Army to establish separate program elements for the Non Line of Sight Launch System (NLOS-LS) and the Non Line of Sight Cannon (NLOS-C). The Committee believes that this remains a reasonable structure and directs the Army to continue to use this as the basis for executing appropriations provided by the Congress, and as the basis for preparing the fiscal year 2007 and subsequent budget submissions. This funding structure includes the following components:

Program Element 0604645A Armored Systems Modernization to include the following projects:~

Program Element 0604646A Non Line of Sight Launch System (NLOS-LS) ~

Program Element 0604647A Non Line of Sight Cannon (NLOS-C)

In addition, the projects identified within program element 0604645A, Armored Systems Modernization, are congressional special interest items for the purpose of prior approval reprogrammings as discussed elsewhere in this report. The NLOS-LS and NLOS-C program elements are subject to normal prior approval reprogramming procedures as described elsewhere in this report.

NON LINE OF SIGHT CANNON (NLOS-C)

The Committee is increasingly concerned by the Army's apparent lack of progress in complying with the provisions of section 8109 of the Department of Defense Appropriations Act, 2005 (Public Law 108-287). This section requires the Army to field 8 operational pre-production NLOS-C vehicles by the end of calendar year 2008. A variation of this language has been included in each of the past three Department of Defense Appropriations Acts. The Committee understands that the Army has failed to adequately program and budget sufficient funding to meet the requirements of this provision. Informal Army estimates suggest that $77,000,000 is needed over the next three years, above the currently programmed levels, to produce the required number of vehicles. Accordingly, the Committee recommends an increase of $50,000,000 above the budget request to initiate the purchase of a sufficient number of NLOS-C chassis. In addition, the Committee directs the Secretary of the Army to provide a report to the House Committee on Appropriations prior to conference on the DoD Appropriations Act, 2006, providing detailed cost estimates and a detailed program plan to comply with the requirements of section 8109.

EXCALIBUR, XM982 155MM EXTENDED RANGE ARTILLERY~ PROJECTILE~

The Committee is aware that U.S. commanders in Iraq have submitted an Urgent Need Statement calling for an artillery-fired guided projectile that can respond to enemy mortar and rocket fire while minimizing collateral damage. U.S. forces are under increasing attack from insurgents employing highly mobile weapons that do not require great accuracy to do harm. Commanders require a lethal and accurate artillery-fired munition that can address this threat efficiently without causing civilian casualties, particularly in an urban environment. Based on the current demonstrated capability of the Excalibur XM982, the Committee recommends that this capability be fielded according to the Advance Early Fielding schedule which calls for fielding in the second quarter of fiscal year 2006.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY


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Fiscal year 2005 appropriation  $17,043,812,000 
Fiscal year 2006 budget request  18,037,991,000 
Committee recommendation         18,481,862,000 
Change from budget request         +443,871,000 
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The appropriation provides funds for the research development, test and evaluation activities of the Department of the Navy, which includes the Marine Corps.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $18,481,862,000 for Research, Development, Test and Evaluation, Navy, which is $1,438,050,000 more than the amount provided in fiscal year 2005 and $443,871,000 more than the request for fiscal year 2006. The following report and project level tables provide a summary of the Committee's recommendation.

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DD(X)~

The Committee recommends $670,000,000 for further development of the next generation DD(X) destroyer. As discussed under `Shipbuilding and conversion, Navy', this program has experienced numerous difficulties over the past year, and the total requirement for these vessels is still uncertain. Despite these issues, however, the Committee believes there is value in keeping the DD(X) development effort moving forward. In addition, many of these technologies are expected to have utility for the next generation CG(X) cruiser, currently funded for lead ship procurement in fiscal year 2011 and discussed further below. Considered together, the bill includes $750,000,000 for development of the DD(X) and CG(X).

CG(X)

The Committee recommendation accelerates concept design, concept studies, and other development work for the CG(X) next generation cruiser. Given the age of the current CG-47 Ticonderoga class and the potential use of CG(X) to fulfill ballistic missile defense and other missions, the Committee believes it is imperative to accelerate this work. The Committee bill raises this funding from $30,000,000 to $80,000,000.

LITTORAL COMBAT SHIP

The Committee recommends $576,454,000 for Littoral Combat Ship (LCS), the same as the budget request. Funding includes $249,236,000 for construction of one flight zero LCS ship, $209,908,000 for mission modules, and $117,310,000 for other program costs. Additional funding of $440,000,000, for procurement of two ships, is discussed under `Shipbuilding and Conversion, Navy'.

MAST-MOUNTED IN-PORT VIDEO FORCE PROTECTION SURVEILLANCE SYSTEM

The bill includes $5,000,000 for SBIR phase III development of a mast-mounted, video-based system capable of detecting terrorist threats to naval vessels in ports and harbors.

MARITIME BATTLE CENTER

The Committee recommendation allows $24,000,000 for Maritime Battle Center, an increase of $9,622,000 over the fiscal year 2005 enacted level and $8,519,000 below the budget estimate. The reduction is due to budget constraints and lack of justification.

EA-18(G)

The Committee recommends $400,000,000 for further development of the EA-18(G) aircraft, a reduction of $9,097,000 from the budget estimate. The Committee continues to strongly support this program. However, some non-contract support costs appear to be overstated and excess to fiscal year 2006 needs.

BONE MARROW REGISTRY

The Committee provides $35,000,000, to be administered by the C. W. Bill Young Marrow Donor Recruitment and Research Program, also known and referred to, within the Naval Medical Research Center, as the Bone Marrow Registry. This DoD donor center has recruited more than 358,000 DoD volunteers, and provides more marrow donors per week than any other donor center in the Nation. Over 1,800 service members and other DoD volunteers from this donor center have provided marrow to save the lives of patients. The Committee is aware of the continuing success of this national and international life saving program for military contingencies and civilian patients, which now includes over 5,600,000 potential volunteer donors, and encourages agencies involved in contingency planning to continue to include the C. W. Bill Young Marrow Donor Recruitment and Research Program in the development and testing of their contingency plans. DD Form 1414 shall show this as a special congressional interest item, and the Committee directs that all of the funds appropriated for this purpose be released to the C. W. Bill Young Marrow Donor Recruitment and Research Program within 60 days of enactment of the Department of Defense Appropriations Act, 2006.

MULTINATIONAL INFORMATION SHARING

The Committee recommends $22,000,000 for Multinational Information Sharing (MNIS), a reduction of $11,557,000 from the budget estimate. MNIS is a DoD joint program designed to provide an enterprise network standard for the exchange of classified information with foreign nations. The Navy may be designated the executive agent for this program. The recommendation defers a portion of funding for this new start due to lack of justification and the uncertain organization and schedule for the development effort.

TARGET SYSTEMS DEVELOPMENT

The Committee recommends $41,555,000 for Target Systems Development, a reduction of $11,408,000 from the budget estimate. The recommendation includes $1,000,000 for development of the Air Coyote Supersonic Sea-Skimming Target, and $11,000,000 for the QF-4 Full-Scale Aerial Target. The recommendation finances the procurement of 3 QF-4 targets, which is the same level as in fiscal year 2005, and more consistent with outyear procurement plans.

MOBILE USER OBJECTIVE SYSTEM

The Navy requested $470,000,000 for the Mobile User Objective System (MUOS) within the Satellite Communications budget line-item. The Committee recommends $370,000,000, a reduction of $100,000,000. The Committee notes that the MUOS development contract was awarded at the end of fiscal year 2004. In fiscal year 2005, contract manning is expected to steadily ramp-up before leveling out next year. Though, on average, fiscal year 2006 will have significantly more personnel on the contract than in the prior year, the funding available to the contract in fiscal year 2006 is not comparably higher. Consequently, the Committee believes significant funding in fiscal year 2005 will carry forward into the following year and will be available to cover fiscal year 2006 requirements. Accordingly, the Committee recommendation includes a reduction of $100,000,000 to account for this prior year carryforward.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE


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Fiscal year 2005 appropriation  $20,890,922,000 
Fiscal year 2006 budget request  22,612,351,000 
Committee recommendation         22,664,868,000 
Change from budget request          +52,517,000 
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This appropriation finances the research, development, test and evaluation activities of the Department of the Air Force.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $22,664,868,000 for Research, Development, Test and Evaluation, Air Force, which is $1,773,946,000 more than the amount provided in fiscal year 2005 and $52,517,000 more than the request for fiscal year 2006.

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OPTICAL MAXIMUM ENTROPY VERIFICATION

~The Committee supports the Optical Maximum Entropy Verification (OMEV) authentication verification technology, begun as an Air Force prototype demonstration program. OMEV has the potential to satisfy several critical military, government and commercial security requirements on a global scale. The Committee therefore recommends an additional $5,000,000 in the Aerospace Sensors budget line-item only to develop integrated systems designs and prototype hardware for a fully integrated secure laboratory facility demonstration for near term fielding of OMEV. The Committee further encourages the Army and Navy to consider participation in this program.

TRANSFORMATIONAL SATELLITE COMMUNICATIONS

The Air Force requested $835,769,000 for the Transformational Satellite Communications program (TSAT). The Committee recommends $435,769,000, a decrease of $400,000,000 consistent with the amount authorized by the House. The Committee agrees with the House Armed Services Committee on the risks associated with the TSAT program, especially given the concerns about the current capabilities of the space acquisition community. The Committee further supports an independent review and analysis that includes alternatives that would defer TSAT in favor of evolving the Advanced Extremely High Frequency (AEHF) and the Wideband Gapfiller (WGF) satellite programs.

SPACE RADAR~

The Air Force requested $225,839,000 for the Space Radar program (otherwise known in the budget as Space Based Radar). The Committee recommends $100,000,000, a reduction of $125,839,000 consistent with recommendations made by the House Armed Services Committee and approved by the House.

The Committee recommendation includes funds only for the purposes authorized by the House, including: 1) development of ground exploitation capabilities; 2) horizontal integration; 3) radar technology maturation; and especially, 4) new technology breakthroughs that will lower program cost. The Committee directs that 30 days prior to obligation of fiscal year 2006 funds, the Air Force provide the congressional defense committees with a spend plan for the funds consistent with the activities described above.

SMALL DIAMETER BOMB

The budget request includes $46,000,000 to begin development of Increment II of the Small Diameter Bomb attack mode for mobile targets in weather. The Air Force recently announced that it would comply with the Government Accountability Office recommendation to compete Increment II. This decision was made subsequent to the budget submission and will likely effect program schedule as a result. The Committee recommends providing $26,000,000 of the funds requested for Increment II contract award due to this program delay.

PERSONNEL RECOVERY VEHICLE

The budget request includes $113,825,000 to begin development of the Air Force replacement for the HH-60 combat search and rescue vehicle. A Request for Proposal is scheduled to be released in June 2005, with a contract award in February 2006. The Committee believes that eight months from RFP to contract award on a program of this magnitude is unrealistic given the amount of interest in this competition. The Committee has provided $71,825,000 to realign the program with a more realistic schedule and contract award date.

NEXT GENERATION BOMBER TIER I SUPPLIER SUSTAINMENT

The Committee directs that of the amount appropriated in PE 060401F for Next Generation Bomber, not less than $3,500,000 shall be applied to develop and test major structural assemblies directly applicable to technical challenges inherent in the Next Generation Bomber. This effort shall be performed by a Tier I supplier with the innate ability to translate system technical challenges into structural concepts and then design, build, and test the resulting structural components. The results will be provided uniformly to all major prime system integrators.

LASER SPARK COUNTERMEASURE PROGRAM

The Committee has provided an additional $6,000,000 in Advanced Weapons Technology only for Laser Spark development, integration, design and test with existing IRCM based subsystem elements such as tracker hardware.

ADVANCED SATELLITE THERMAL CONTROL PROGRAM

The Committee has provided an increase of $2,000,000 in Aerospace Propulsion and Power only for the development of Plasma Enhanced Chemical Vapor Deposition techniques for thermal control satellite coatings for the Advanced Satellite Thermal Control Program, to enable advancement of mission ready thermal control satellite coatings.

NATIONAL AEROSPACE LEADERSHIP INITIATIVE

As charged by Congress, the National Aerospace Leadership Initiative (NALI) has been initiated under the direction of the Secretary of the Air Force. This initiative is designed to counter the pervasive and growing global challenge to United States aerospace leadership and the potential adverse effects on our national defense. A primary focus of NALI is to develop programs that will enhance the U.S. aerospace manufacturing supply chain and attract qualified scientists and engineers into the aerospace field. The Committee appreciates the Air Force's response to this initiative and strongly encourages the service to continue to work with the Committee and the participating public and private sector entities to further the goals of this program. As such, the Committee recommends an additional $25,000,000 under this heading for NALI.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE


------------------------------------------------
------------------------------------------------
Fiscal year 2005 appropriation  $20,983,624,000 
Fiscal year 2006 budget request  18,803,416,000 
Committee recommendation         19,514,530,000 
Change from budget request         +711,114,000 
------------------------------------------------

This appropriation provides funds for the research, development, test and evaluation activities of the Department of the Defense for defense-wide activities.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $19,514,530,000 for Research, Development, Test and Evaluation, Defense-Wide, which is $1,469,094,000 less than the amount provided in fiscal year 2005 and $711,114,000 more than the request for fiscal year 2006. The following report and project level tables provide a summary of the Committee's recommendation.

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MISSILE DEFENSE AGENCY--PROGRAM ELEMENT RESTRUCTURE

The Committee recommends $7,631,531,000 for the Missile Defense Agency, which is a $1,151,873,000 decrease from fiscal year 2005 and $143,712,000 below the President's request. The Committee commends the Missile Defense Agency on achieving an initial defensive capability (IDC) by December 2004 in response to the Presidential Directive issued in 2002. In order for MDA to achieve this goal, considerable financial flexibility was granted by Congress to allow the agency to respond rapidly to achieve IDC. Now that a working system operated by trained warfighters has been fielded, the Committee wishes to enhance financial oversight as the missile defense effort continues to move forward. The Administration's budget request distributed funding in only twelve program elements many of which total greater than $400,000,000 in a single line. This level of funding in an individual program element obscures funding details and creates significant oversight issues. Accordingly, the Committee has included in it's recommendation a restructure of the Missile Defense Agency program elements to allow for greater visibility and oversight of the programs. The Committee directs the Missile Defense Agency to follow the recommended budgetary program element construction in the future.

MISSILE DEFENSE AGENCY--TERMINATION LIABILITY

The Missile Defense Agency budget assumes approval of a new type of Special Termination Cost Clause, which waives the requirement to budget for termination liability on a contract-by-contract basis. The Special Termination Cost Clause (STCC) approach as recognized by the Department of Defense and the Congress allows for a contract clause that identifies certain contingent termination costs and allows those costs to be covered with available funds not on the contract. MDA proposes a variation of the STCC, with two modifications: all contingent termination costs are eligible (vice just the five categories in the Defense Federal Acquisition Regulations) and if funds are not available on contract to cover termination(s), termination costs are sourced from all available Ballistic Missile Defense System funds, including funds obligated on contracts but not earned (vice just unobligated funding). The Committee notes that the Missile Defense Agency has not yet submitted an STCC-like notification letter to the Congress nor has MDA provided justification for the change.

Therefore, the Committee directs the Under Secretary of Defense (Comptroller) to provide a report to the congressional defense committees no later than 60 days after the enactment of this Act on the degree to which MDA is complying with the DFAR and FAR with respect to termination liability and the reasons why MDA would be exempt from complying with current regulations.

DUAL BOOSTER STRATEGY

The Committee is concerned that the Missile Defense Agency is planning to discontinue using a dual booster strategy for the Ground-based Midcourse Defense program. The Committee directs the Secretary of Defense to provide a report to the congressional defense committees within 60 days after the enactment of this Act regarding the implications of going to a single booster and its potential impact on the United States industrial base.

SPACE SURVEILLANCE AND TRACKING SYSTEM (SSTS)

The Missile Defense Agency requested $235,536,000 for the Space Surveillance and Tracking System. The Committee recommends $231,358,000, a decrease of $4,178,000 including a reduction of $3,640,000 for program support and $538,000 for the SSTS Block 12 program. The Committee anticipates that the Block 12 program will require significant investment. To gain a better understanding of the associated life cycle costs, the Committee expects the OSD Cost Analysis Improvement Group (OSD CAIG) to complete an independent cost estimate for the SSTS Block 12 program for delivery to the congressional defense committees no later than February 1, 2006.

BOOST AND ASCENT PHASE ENGAGEMENT STUDY

The Committee directs the Secretary of Defense to conduct a joint study with the Government Accountability Office to review the early engagement of ballistic missiles to include boost and ascent phase intercepts. The report should be submitted to the congressional defense committees no later than 90 days after the enactment of this Act. Specifically, the report should include but not be limited to the following elements in its comparison:

(1) An assessment of the operational capabilities of systems against ballistic missiles launched from North Korea or a location in the Middle East against the continental United States, Alaska, or Hawaii;

(2) An assessment of the quantity of operational assets required for deployment periods of seven days, thirty days, ninety days and one year;

(3) Basing options; and

(4) An assessment of life-cycle costs to include research and development efforts, procurement, deployment, operating and infrastructure costs.

AS~YMMETRIC MISSILE THREAT

The Committee has become increasingly concerned about the possibility of an asymmetric missile threat against the United States homeland. In particular, the Committee believes that a sea-based missile threat now has a low probability of detection, despite the fact that such a threat could place important U.S. economic assets, population, and property at risk. As such, the Committee recommends an additional $20,000,000 for the Missile Defense Agency (MDA) to initiate a comprehensive analysis of the need for and deployment of an asymmetric missile defense capability. This analysis should consider deployment options that would protect significant population centers, use mature technologies, and include progressions for spiral technology upgrades that would enhance missile defense capabilities over time. The Committee expects the MDA to periodically inform the Committee of its progress on this matter.

VENTURE AND INITIATIVE FUNDS

While the Committee believes the Department needs some flexibility to address emergent issues, the Committee is troubled by the proliferation of initiative and venture funds that have developed within the Department of Defense. The Committee has identified multiple programs in various appropriations that request funds but do not have specific programmatic justification and in some cases, the programs seem duplicative. The Committee is also concerned about the apparent lack of oversight across the various funds. Accordingly, the Committee directs the Department to review all appropriations for such programs for duplication and oversight and report the findings to ~the congressional defense committees no later than 60 days after the enactment of this Act.

Additionally, the Committee directs the Secretary of Defense to provide quarterly reports beginning the first fiscal quarter after the enactment of this Act to the congressional defense committee detailing the specific programs that are funded from the Quick Reaction Special Projects, the Counter Terrorism Technology Support Program and the Combating Terrorism Technology Task Force Fund to include project descriptions with funding levels, potential transition plans to the services for further development and lesson~s learned from completed projects. The Committee further recommends that the Secretary of Defense provide the reports to the Director of National Intelligence and the Secretary of Homeland Security.

CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM

The Committee commends the Department on the continued execution of the `Chem-Bio Defense Initiatives Fund' and recommends continuing the program within the Department's Chemical and Biological Defense Program. The Committee's recommendation provides an increase of $25,000,000 for this fund. The Secretary of Defense is directed to allocate these funds among the programs that yield the greatest gain in our chem-bio defensive posture. The Committee further directs that funds not be obligated for the Chem-Bio Initiative Fund until 15 days after a report, including a description of projects to be funded, is provided to the congressional defense committees.

ANTI-TERRORISM PROTECTION STANDARDS

The Committee directs the Office of the Secretary of Defense, in cooperation with the military services, to submit a report to the congressional defense committees by December 30, 2005, which identifies the costs for implementing the DoD Minimum Anti-terrorism Standards (UFC 4-010-01) and compares DoD and GSA anti-terrorism standards for buildings. The report should explain differences in criteria used by the two agencies and propose alternatives for reconciling any conflicts between the standards to ensure that managers have one set of rules for meeting federal government anti-terrorism criteria. Finally, the report should identify DoD advanced anti-terrorism technology capabilities that can be incorporated into UFC 4-010-01, particularly anti-blast technologies.~~

ROLL-ON ROLL-OFF INFECTION CONTROL FACILITY

The Committee is aware of the role the Centers for Disease Control and Prevention (CDC) play in the Nation's efforts to protect the homeland. As the lead federal organization for safeguarding the health of the public, CDC is often called upon to investigate and contain disease threats caused by biological, chemical or radiological agents. The CDC collaborates closely with the Department of Defense, and in particular the U.S. Army Medical Research Institute of Infectious Diseases (USAMRIID), on a variety of issues including outbreak investigations. Over the last several years, CDC has encountered difficulties due to a variety of reasons in transporting infectious patients and specimens from remote parts of the world to CDC's Atlanta facilities that house state-of-the-art laboratories, including Biosafety level 4 labs that contain deadly microbes such as biological agents potentially used in terrorist events, and to state-of-the-art patient isolation and treatment facilities.

To address this critical need for safe, secure, rapid, and timely transport, the Committee has provided $3,000,000 for USAMRIID to collaborate with the CDC and the Air Force in the exploration, design, and development of a military transport aircraft-based Roll-on Roll-Off Infection Control Facility. This facility shall include appropriate infection control, medical evacuation (MEDEVAC) capabilities, a patient isolation area, patient medical life support and treatment equipment, and a medical crew rest/operations area.

DEMANUFACTURING OF ELECTRONIC EQUIPMENT FOR REUSE AND RECYCLING

The Committee recognizes the potential environmental hazards associated with the disposal of a rapidly increasing number of expiring legacy computer and electronic systems, and encourages the Department to pursue recovery methods to reuse and recycle these components in an environmentally friendly manner. An August 2000 Mission Need Statement for the Demanufacturing of Electronic Equipment for Reuse and Recycling (DEER2) expressly stated needs of industry for such methods and appropriations were subsequently provided to the Department for this purpose. However, it has come to the Committee's attention that this initiative has since stalled. Therefore, the Committee directs the Department to review the need for component reuse and recycling, to investigate cost-effective partnerships with industry to utilize existing recovery solutions, and to provide a report to the House Committee on Appropriations not later than 180 days after enactment of this Act.

OPERATIONALLY RESPONSIVE SPACE

The Committee recommendation includes an increase of $47,000,000 for Operationally Responsive Space (ORS) projects. Of this amount, $20,000,000 is only for standardized bus development, and $25,000,000 is only for operationally responsive payload development. The Committee strongly supports the ORS concept and expects DoD to increase its funding commitment in this area in future budget submissions.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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OPERATIONAL TEST AND EVALUATION, DEFENSE


---------------------------------------------
---------------------------------------------
Fiscal year 2005 appropriation  $314,835,000 
Fiscal year 2006 budget request  168,458,000 
Committee recommendation         168,458,000 
Change from budget request                   
---------------------------------------------

This appropriation funds the Operational Test and Evaluation activities of the Department of Defense.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $168,458,000 for Operational Test and Evaluation, Defense, which is $146,377,000 less than the amount provided in fiscal year 2005 and equal to the budget request. The reduction from the fiscal year 2005 level in this account is primarily due to the transfer of the Defense Test Resources Management Center to the Research, Development, Test and Evaluation, Defense-Wide account.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006:

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TITLE V

REVOLVING AND MANAGEMENT FUNDS

DEFENSE WORKING CAPITAL FUNDS


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $1,174,210,000 
Fiscal year 2006 budget request  1,471,340,000 
Committee recommendation         1,154,340,000 
Change from budget request        -317,000,000 
-----------------------------------------------

The Committee recommends an appropriation of $1,154,340,000 for the Defense Working Capital Funds. The recommendation is a decrease of $19,870,000 below the amount appropriated for fiscal year 2005 and a decrease of $317,000,000 from the fiscal year 2006 request.

NATIONAL DEFENSE SEALIFT FUND


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $1,204,626,000 
Fiscal year 2006 budget request  1,648,504,000 
Committee recommendation         1,599,459,000 
Change from budget request         -49,045,000 
-----------------------------------------------

This appropriation provides funds for the lease, operation and supply of pre-positioning ships, operation of the Ready Reserve Force, and acquisition of ships for the Military Sealift Command, the Ready Reserve Force, and the Marine Corps.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,599,459,000 for the National Defense Sealift Fund, which is $394,833,000 more than the amount provided in fiscal year 2005 and $49,045,000 less than the request for fiscal year 2006. The following report and project level table provides a summary of the Committee's recommendation.

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T-AKE DRY CARGO/AMMUNITION SHIP

The Committee recommends $714,143,000 for two T-AKE ships, which is one ship and $334,000,000 more than the budget request. If enacted, the budget proposal would cause termination of the existing contract options and renegotiation of the prices under those options. Navy officials consider the existing prices to be favorable to the Government as well as executable within the overall program budget. The expected additional cost to the Government, and potential program delay, is unacceptable to the Committee.

MPS LEASE BUYOUT

The Committee recommends $375,000,000 for the planned buyout of Maritime Prepositioning System (MPS) leased vessels. The President's ~budget proposed $749,787,000 for the buyout of 13 vessels of the Amsea class, th~e Maersk class, and the Waterman class. The Committee believes the Navy has made a good business case for this program, but would support a program phased over the next few years rather than entirely funded in fiscal year 2006. Although the purchase price of these vessels is likely to be determined through negotiation, the Committee believes the funding provided will be sufficient to procure approximately 6 of these vessels.

MARITIME PREPOSITIONING FORCE (FUTURE)

The Committee recommends $59,000,000 for further development, concept studies, and concept design for the Maritime Prepositioning Force (Future), or MPF(F). This is more than twice the $28,000,000 provided for fiscal year 2005, and a reduction of $7,301,000 from the budget request. The reduction should be allocated to management, engineering, and acquisition overhe~ad, which otherwise would account for approximately 40 percent of the total program budget.

TAOE(X)

The Committee recommends the budget request level of $22,490,000 for concept studies for a new oiler class designated TAOE(X). This program received $9,412,000 in fiscal year 2005.~~~

TITLE VI

OTHER DEPARTMENT OF DEFENSE PROGRAMS

CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY


-----------------------------------------------
-----------------------------------------------
Fiscal year 2005 appropriation  $1,372,990,000 
Fiscal year 2006 budget request  1,405,827,000 
Committee recommendation         1,355,827,000 
Change from budget request         -50,000,000 
-----------------------------------------------

This appropriation funds the Chemical Agents and Munitions Destruction activities of the Department of the Army.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,355,827,000 for Chemical Agents and Munitions Destruction, Army, which is $17,163,000 less than the amount provided in fiscal year 2005 and $50,000,000 less than the request for fiscal year 2006.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2006.

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CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY

The Committee believes the Chemical Agents and Munitions Destruction program has been operating at less than expected budget execution rates and therefore, without prejudice against any particular program or site, recommends a reduction in Operation and Maintenance of $50,000,000.

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE


---------------------------------------------
---------------------------------------------
Fiscal year 2005 appropriation  $906,522,000 
Fiscal year 2006 budget request  895,741,000 
Committee recommendation         906,941,000 
Change from the budget           +11,200,000 
---------------------------------------------

This appropriation provides funds for Military Personnel; Operation and Maintenance; Procurement; and Research, Development, Test and Evaluation for drug interdiction and counter-drug activities of the Department of Defense to include activities related to narcoterrorism.

COMMITTEE RECOMMENDATION

The Department of Defense requested $895,741,000 for Drug Interdiction and Counter-Drug Activities. The Committee recommends $906,941,000, which is $419,000 more than the amount provided in fiscal year 2005 and an increase of $11,200,000 above the budget request for fiscal year 2006.

EXPLANATION OF PROJECT LEVEL CHANGES


[In thousands of dollars]
--------------------------------------------------------------
--------------------------------------------------------------
Southwest Border Fence                                +$5,000 
Multi-Jurisdictional Counter-Drug Task Force Training  +3,500 
Florida National Guard Counter-Drug Activities         +3,000 
Young Marines                                          +2,700 
Indiana National Guard Counter-Drug Activities         +1,000 
Nevada National Guard Counter-Drug Program             +3,500 
Project Athena Beta Site                               +2,500 
ADNET                                                  -1,000 
RINGGOLD                                               -1,000 
OCONUS OPS Support                                     -2,000 
ROTHR                                                  -2,000 
ISR/AEW/Tanker Support                                   -500 
SOF CN Support                                         -1,500 
SOUTHCOM CN Operational Support                        -2,000 
--------------------------------------------------------------

OFFICE OF THE INSPECTOR GENERAL


---------------------------------------------
---------------------------------------------
Fiscal year 2005 appropriation  $204,562,000 
Fiscal year 2006 budget request  209,687,000 
Committee recommendation         209,687,000 
Change from budget request                   
---------------------------------------------

The Committee recommends an appropriation of $209,687,000 for the Office of the Inspector General. Of this amount, $208,687,000 shall be for operation and maintenance, and $1,000,000 shall be for procurement. The recommendation is an increase of $5,125,000 above the amount appropriated for fiscal year 2005 and equal to the fiscal year 2006 request.

TITLE VII

RELATED AGENCIES

NATIONAL INTELLIGENCE PROGRAM

The National Intelligence Program (NIP) consists of those intelligence activities of the government that provide the President, other officers of the Executive Branch, and the Congress with national intelligence on broad strategic concerns bearing on U.S. national security. These concerns are stated by the National Security Council in the form of long-range and short-range requirements for the principal users of intelligence.

The National Intelligence Program budget funded in the Department of Defense Appropriations Act consists primarily of resources for the Director of National Intelligence, the Intelligence Community Management Staff, the Central Intelligence Agency (CIA), the Defense Intelligence Agency, the National Reconnaissance Office, the National Security Agency, the National Geospatial-Intelligence Agency, the intelligence services of the Departments of the Army, Navy, and Air Force, and the CIA Retirement and Disability Fund.

CLASSIFIED ANNEX

The Committee's budget reviews are published in a separate, detailed and comprehensive classified annex. The intelligence community, Department of Defense and other organizations are expected to fully comply with the recommendations and directions in the classified annex accompanying the Department of Defense Appropriations Act, 2006.

CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND


---------------------------------------------
---------------------------------------------
Fiscal year 2005 appropriation  $239,400,000 
Fiscal year 2006 budget request  244,600,000 
Committee recommendation         244,600,000 
Change from budget request                   
---------------------------------------------

This appropriation provides payments of benefits to qualified beneficiaries in accordance with the Central Intelligence Agency Retirement Act of 1964 for Certain Employees (P.L. 88-643), as amended by Public Law 94-522. This statute authorized the establishment of a CIA Retirement and Disability System (CIARDS) for certain CIA employees and authorized the establishment and maintenance of a fund from which benefits would be paid to those beneficiaries.

COMMITTEE RECOMMENDATION

The Committee recommends the budget request of $244,600,000 for the Central Intelligence Agency Retirement and Disability System Fund. This is a mandatory account.

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT


---------------------------------------------
---------------------------------------------
Fiscal year 2005 appropriation  $310,466,000 
Fiscal year 2006 budget request  354,844,000 
Committee recommendation         376,844,000 
Change from budget request       +22,000,000 
---------------------------------------------

This appropriation provides funds for the activities that support the Director of National Intelligence and the intelligence community.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $376,844,000 for the Intelligence Community Management Account, an increase of $22,000,000 above the President's budget. Of the amount appropriated under this heading, $39,000,000 is for transfer to the Department of Justice for operations at the National Drug Intelligence Center (NDIC).

The National Drug Intelligence Center (NDIC) has a unique position as both a member of the intelligence community and a component of the Department of Justice. As such, it serves as a critical link between law enforcement and intelligence activities--a connection that increases in value as the nation continues its battle against terrorism. The NDIC's expertise in analyzing classified and open source materials to uncover possible connections between drug suppliers, criminal activities, and terrorists make it uniquely positioned to address a wide variety of threats to this country. For example, shortly after the September 11th attacks, NDIC deployed analysts to the FBI Terrorist Financing Operation Section (TFOS) to provide analytical and technical support. The TFOS selected a database created by NDIC, entitled the Real Time Analytical Intelligence Database (RAID), to collect and analyze the voluminous data gathered in the wake of the attacks. Further, NDIC's document exploitation analysts have played a key role in high profile international investigations, to include corruption in the Nicaraguan and Haitian governments, and drug trafficking and money laundering in the United States, Mexico, Co~lumbia, Canada, Jamaica, and Vietnam.~

The Committee strongly endorses the work of NDIC and provides a total of $39,000,000 to fund NDIC at current operating levels. The Committee urges the Administration to take full advantage of the expertise available at NDIC and allocate in future budget requests funding sufficient to maintain current operations.

NATIONAL SECURITY EDUCATION TRUST FUND


-------------------------------------------
-------------------------------------------
Fiscal year 2005 appropriation  $8,000,000 
Fiscal year 2006 budget request            
Committee recommendation                   
Change from budget request                 
-------------------------------------------

The National Security Education Trust Fund was established to provide scholarships and fellowships to U.S. students to pursue higher education studies abroad and to provide grants to U.S. institutions for programs of study in foreign areas and languages.

COMMITTEE RECOMMENDATION

The Committee recommends no funding for these activities under this appropriations account, as requested. The Committee understands that funds for these activities are now included in the Community Management Account.

TITLE VIII

GENERAL PROVISIONS

The accompanying bill includes 102 general provisions. Most of these provisions were included in the Department of Defense Appropriations Act for fiscal year 2005 and many have been included in the Defense Appropriations Act of a number of years.

Actions taken by the Committee to amend last year's provisions or new provisions recommended by the Committee are discussed below or in the applicable section of the report.

DEFINITION OF PROGRAM, PROJECT AND ACTIVITY

For purposes of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177) as amended by the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100-119) and by the Budget Enforcement Act of 1990 (Public Law 101-508), the following information provides the definition of the term `program, project, and activity' for appropriations contained in the Department of Defense Appropriations Act. The term `program, project, and activity' shall include the most specific level of budget items, identified in the Department of Defense Appropriations Act, 2006, the accompanying House and Senate Committee reports, the conference report and the accompanying joint explanatory statement of the managers of the Committee in Conference, the related classified reports, and the P-1 and R-1 budget justification documents as subsequently modified by Congressional action.

In carrying out any Presidential sequestration, the Department of Defense and agencies shall conform to the definition for `program, project, and activity' set forth above with the following exceptions:

For Military Personnel and Operation and Maintenance accounts the term `program, project, and activity' is defined as the appropriations accounts contained in the Department of Defense Appropriations Act.

The Department and agencies should carry forth the Presidential sequestration order in a manner that would not adversely affect or alter Congressional policies and priorities established for the Department of Defense and the related agencies and no program, project, and activity should be eliminated or be reduced to a level of funding which would adversely affect the Department's ability to effectively continue any program, project, and activity.

TITLE IX

ADDITIONAL APPROPRIATIONS

INTRODUCTION

The Committee is recommending $45,254,619,000 in funding for overseas contingency operations as a `bridge fund' for the first six months of fiscal year 2006 in order to ensure the uninterrupted delivery of resources to our troops in the field, and to avoid any disruption in funding for the global war on terrorism. The appropriation of these funds for contingency operations related to the global war on terrorism is made pursuant to section 402 of H. Con. Res. 95 (109th Congress), the concurrent resolution on the budget for fiscal year 2006. The Committee is determined to ensure continuity of combat operations in Iraq, Afghanistan, and elsewhere around the world as part of the global war on terrorism.

The Committee recognizes that as in fiscal year 2005, the military services cannot support the present level of combat operations by the numbers of ground maneuver brigades, and expeditionary air and naval forces, solely by diverting resources from peace time training and support activities. Therefore, the Committee recommends the additional funds in this title to ensure robust and uninterrupted resourcing of military operations in Afghanistan and Iraq without degrading home station training, maintenance, and base operations. The amounts recommended are based on the best budget execution information available from the Department of Defense, the so-called `budget burn rate'.

COMMITTEE RECOMMENDATION

In this title, the Committee recommends total new appropriations of $45,254,619,000. Funding by category is as follows:


----------------------------------------------------------
----------------------------------------------------------
Military Personnel                         $8,015,755,000 
Operation and Maintenance                  32,238,450,000 
Procurement                                 2,857,314,000 
Research, Development, Test and Evaluation     88,100,000 
Defense Working Capital Funds               2,055,000,000 
----------------------------------------------------------

Funds are provided for specific appropriations accounts, and quarterly reports are required on the obligation of funds.

The Committee recommends providing appropriations for the Iraq Freedom Fund to provide flexibility to the Department of Defense, as was done in the Department of Defense Appropriations Act, 2005 (Public Law 108-287). Funds would be available for obligation five days after written notification is provided to the Congress. Also, the Committee bill provides transfer authority for funds in this title, permitting up to $2,500,000,000 to be reprogrammed among activities following approval by the congressional defense committees through regular order prior-approval notification and reprogramming procedures.

The Committee bill also includes certain authorities providing war-related support to allied forces, and training and equipping Iraqi and Afghan military and security forces, consistent with similar authorities provided in prior Acts and in the National Defense Authorization Act for fiscal year 2006 as approved by the House.

The following table summarizes, by appropriations account, the Committee's recommendations.

(In thousands of dollars)
Account Recommendation
Military Personnel:
Military Personnel, Army 5,877,400
Military Personnel, Navy 282,000
Military Personnel, Marine Corps 667,800
Military Personnel, Air Force 982,800
Reserve Personnel, Army 138,755
National Guard Personnel, Army 67,000
Total Military Personnel 8,015,755
Operation and Maintenance:
O&M, Army 20,398,450
O&M, Navy 1,907,800
O&M, Marine Corps 1,827,150
O&M, Air Force 3,559,900
O&M, Defense-Wide 826,000
Iraq Freedom Fund 3,500,000
O&M, Army Reserve 35,700
O&M, Marine Corps Reserve 23,950
O&M, Army National Guard 159,500
Total Operation and Maintenance 32,238,450
Procurement:
Procurement of WTCV, Army 455,427
Procurement of Ammunition, Army 13,900
Other Procurement, Army 1,501,270
Weapons Procurement, Navy 81,696
Procurement of Ammunition, Navy and Marine Corps 144,721
Other Procurement, Navy 48,800
Procurement, Marine Corps 389,900
Aircraft Procurement, Air Force 115,300
Other Procurement, Air Force 2,400
Procurement, Defense-Wide 103,900
Total Procurement 2,857,314
Research, Development, Test and Evaluation:
RDT&E, Navy 13,100
RDT&E, Defense-Wide 75,000
Total RDT&E 88,100
Revolving and Management Funds:
Defense Working Capital Funds:
Fuel 1,738,000
WCF Wartime Costs (war reserves, etc.) 317,000
Total Revolving and Management Funds 2,055,000
General Provision--Transfer Authority (non-add) [2,500,000]
Grand Total Title IX 45,254,619

CLASSIFIED PROGRAMS

Recommended adjustments to classified programs are addressed in a classified annex accompanying this report.

REPORTING REQUIREMENTS

The Committee directs the Secretary of Defense to provide a report to the congressional defense committees within 30 days of enactment of this legislation on the allocation of the funds within the accounts listed in this title. The Secretary shall submit updated reports 30 days after the end of each fiscal quarter until funds listed in this title are no longer available for obligation. The Committee directs that these reports shall include: a detailed accounting of obligations and expenditures of appropriations provided in this title for the continuation of the war in Iraq and Afghanistan; and a listing of equipment procured using funds provided in this title.

Finally, the Committee expects that in order to meet unanticipated requirements, the Department of Defense may need to transfer funds within these appropriations accounts for purposes other than those specified in this report. The Committee directs the Department of Defense to follow normal prior-approval reprogramming procedures should it be necessary to transfer funding between different appropriations accounts in this title.

MILITARY PERSONNEL

The Committee recommends a total of $8,015,755,000 for the active duty and Guard and Reserve military personnel accounts. Of the amount provided, the Committee provides $6,809,000,000 for six months incremental wartime costs of pays and allowances for active duty and Reserve personnel deployed in support of Operation Iraqi Freedom, Operation Enduring Freedom, and Operation Noble Eagle; $734,800,000 to support the services' recruiting, retention and advertising programs; and sufficient funds in support of the enhanced levels for the Death Gratuity and Servicemembers Group Life Insurance program, and other wartime authorities authorized in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief Act, 2005.

The following table provides details of the recommendations for the military personnel accounts:

(In thousands of dollars)
Account Recommendation
Military Personnel, Army:
Incremental OIF/OEF wartime costs 5,119,600
Army active duty overstrength 346,800
Recruiting and Retention Initiatives 257,000
SGLI/Death Gratuity 154,000
Total Military Personnel, Army 5,877,400
Military Personnel, Navy:
Incremental OIF/OEF wartime costs 276,000
SGLI/Death Gratuity 6,000
Total Military Personnel, Navy 282,000
Military Personnel, Marine Corps:
Incremental OIF/OEF wartime costs 435,600
Marine Corps active duty end strength increase 167,200
SGLI/Death Gratuity 65,000
Total Military Personnel, Marine Corps 667,800
Military Personnel, Air Force:
Incremental OIF/OEF wartime costs 752,400
Incremental Operation Noble Eagle costs 225,400
SGLI/Death Gratuity 5,000
Total Military Personnel, Air Force 982,800
Reserve Personnel, Army:
Recruiting and Retention Initiatives 68,000
SGLI/Death Gratuity 855
Special Training 47,700
Branch Officer Basic Course 22,200
Total Reserve Personnel, Army 138,755
National Guard Personnel, Army:
Initial Entry Training 67,000
Total Military Personnel 8,015,755

OPERATION AND MAINTENANCE

The Committee recommends $32,238,450,000 for operation and maintenance accounts. Funds are provided for personnel support requirements including travel, subsistence, individual and organizational equipment, reserve component activation costs, and incremental civilian personnel costs. Increases for operating support costs include funds for military operations, including spare parts and consumable supplies, transportation, pre-deployment training and training in theater, forward base operating costs, communications, vehicle maintenance, and contracts for linguists, logistics and infrastructure support.

The following table provides details of the recommendations for the operation and maintenance accounts:

(In thousands of dollars)
Account Recommendation
Operation and Maintenance, Army:
Incremental Wartime Operating Costs 13,543,000
Incremental Operation Noble Eagle Costs 181,000
Depot Maintenance 1,151,400
Reset (Unit and Intermediate Maintenance) 1,747,400
Rapid Fielding Initiative; Force Protection; IBA 1,233,000
Coalition Support; CERP; Other 1,314,600
Base Support Costs of Mobilization and Demobilization 448,700
Unit of Action Implementation 37,200
Second Destination Transportation 101,700
Operational C2 Connectivity 46,000
Sustainment System Technical Support 168,000
Personnel Sustainment for Added End Strength 124,700
Recruitment and Advertising 200,000
Virtual Combat Trainer 7,700
Ammunition Depot Operations and Maintenance 91,800
Travel for Family Member of Hospitalized Soldier 2,250
Total Operation and Maintenance, Army 20,398,450
Operation and Maintenance, Navy:
Incremental Wartime Operating Costs 1,870,000
Counter IED Collection and Exploitation 17,800
Recruiting and Advertising 20,000
Total Operation and Maintenance, Navy 1,907,800
Operation and Maintenance, Marine Corps:
Incremental Wartime Operating Costs 1,195,900
Base Support Including Mobilization 18,500
Second Destination Transportation 163,500
Reset, Organizational Maintenance, Spare Parts 250,000
Recruiting and Advertising 9,600
Depot Maintenance 151,400
Initial Issue Including Clothing, Body Armor, Tents 25,500
Personnel Sustainment for Added End Strength 12,000
Travel for Family Member of Hospitalized Marine 750
Total Operation and Maintenance, Marine Corps 1,827,150
Operation and Maintenance, Air Force:
Incremental Wartime Operating Costs 2,967,800
Incremental Operation Noble Eagle Costs 270,000
Predator Operations and Support 85,100
B-1 Deployable Phase Maintenance Kit 34,000
B-52 Deployable Phase Maintenance Kit 52,000
Depot Maintenance 151,000
Total Operation and Maintenance, Air Force 3,559,900
Operation and Maintenance, Defense-Wide:
Incremental Wartime Operating Costs 490,000
DISA 62,000
DLA 264,000
DHRA--Joint Advertising, Market Research and Studies 10,000
Total Operation and Maintenance, Defense-Wide 826,000
Iraq Freedom Fund:
Incremental Wartime Operating Costs 1,000,000
Classified Programs 2,500,000
Total Iraq Freedom Fund 3,500,000
Operation and Maintenance, Army Reserve:
Recruiting and Retention Support 13,900
Army Reserve Family Support Centers 12,500
Advertising and Marketing Support 9,300
Total Operation and Maintenance, Army Reserve 35,700
Operation and Maintenance, Marine Corps Reserve:
Operating Forces 22,575
Training Support 1,000
Base Operation Support 375
Total Operation and Maintenance, Marine Corps Reserve 23,950
Operation and Maintenance, Army National Guard:
Recruiting and Advertising 147,000
National Guard Family Support Centers 12,500
Total Operation and Maintenance, Army National Guard 159,500
Total Operation and Maintenance 32,238,450

~

IRAQ FREEDOM FUND

The Committee recommends $3,500,000,000 for the Iraq Freedom Fund to address emergent requirements. Of this amount, not less than $2,500,000,000 is available only for classified programs as described in a classified annex accompanying this report. Consistent with direction in prior appropriations acts, funds in the Iraq Freedom Fund may not be transferred for obligation unless the Secretary of Defense notifies the congressional defense committees in writing of the details of any transfer from this account five days prior to transfer. The Secretary is also directed to submit a report not later than 30 days after the end of each fiscal quarter to the congressional defense committees summarizing the details of the transfer of funds from this appropriation.

PROCUREMENT

The Committee recommends $2,857,314,000 for the procurement accounts.

The following table provides details of the recommendations for the procurement accounts:

(In thousands of dollars)
Account Recommendation
Procurement of Weapons and Tracked Combat Vehicles, Army:
Gun Trucks 2,450
Small Arms Programs:
M16 rifle mods 55,300
M240 medium machine gun mods 9,372
M240 medium machine gun (7.62mm) 107,944
M4 carbine mods 29,595
M4 carbine 168,237
M249 SAW mods 5,728
M249 SAW machine gun (5.56mm) 54,111
M107, Cal. 50 sniper rifle 9,274
Small Arms Equipment (Soldier Enhancement Program) 3,416
M2HB Enhanced .50 Caliber Machine Gun Kits 10,000
Total Procurement of WTCV, Army 455,427
Procurement of Ammunition, Army:
First Destination Transportation 2,000
(In thousands of dollars)
Account Recommendation
Ammunition Production Force Protection 11,900
Total Procurement of Ammunition, Army 13,900
Other Procurement, Army:
Up-Armor HMMWVs: M1114, M1151, M1152 170,000
Add-on-Armor plate for level III and ballistic glass 20,000
Tactical Wheeled Vehicle Recap Modernization Program:
HMMWV Recap 193,000
HMMWVs--Army Reserve 60,000
Up-armored HMMWVs (M1114)--Army Reserve 5,370
FMTVs 50,000
Light Medium Tactical Vehicle (LMTV) 2.5 ton--Army Reserve 15,000
Medium Tactical Vehicle 5 ton--Army Reserve 41,000
HEMTT Recap 60,400
Truck Cargo PLS M1075--Army Reserve 37,000
PLS Trailers--Army Reserve 9,000
M915A1 Replacements 15,000
SINCGARS Family 87,000
High Frequency Radio--Army Reserve 21,000
Defense advanced global positioning system receiver (DAGR) 5,000
Mounted Battle Command on the Move (MBCOTM) 30,000
Prophet/COBRA 145,000
IED Jammers 35,000
Low cost ECM production 10,000
Force XXI Battle Command BDE and Below (FBCB2) 116,900
Multi-Band SHF Terminal (Phoenix)--Army Reserve 12,000
Tactical Common Data Link 72,000
Biometrics Automated Toolset (BAT) 14,700
Tactical Operations Centers 84,000
Construction Equipment SLEP 25,000
Quick Clot Hemorrhage Control 5,000
Chitosan Hemorrhage Control Dressing 5,000
Self-contained Reusable Blood Container 10,000
HMMWV and Tactical Truck Crew Trainers 25,000
Counter Rocket, Artillery and Mortar (C-RAM) 107,900
Persistent Threat Detection System, OIF loss replacement 15,000
Total Other Procurement, Army 1,501,270
Weapons Procurement, Navy:
Tomahawk Missiles 81,696
Total Weapons Procurement, Navy 81,696
Procurement of Ammunition, Navy and Marine Corps:
Ammunition Requirements for FSRG 20,221
155mm Fuze-Electronic Time M762A1 10,000
Igniter-Time Blasting Fuze M81 5,000
Detonator, Non-Electric MK154 10,000
66mm Rocket-High Explosive M72A7 11,000
155mm Multi Option Fuze M782 6,000
120mm Tank Ammunition-M1028 Canister 3,000
155mm High Explosive Projectile M795 15,000
.50 Caliber Cartridges 13,000
7.62mm Cartridges 1,500
40mm M430 HEDP 30,000
120mm Cartridges M830A1 HEAT-MP-T 10,000
(In thousands of dollars)--Continued
Account Recommendation
C4 Charges M58A4 HE 10,000
Total Procurement of Ammunition, Navy and Marine Corps 144,721
Other Procurement, Navy:
Physical Security Equipment 48,800
Total Weapons Procurement, Navy 48,800
Procurement, Marine Corps:
Miniature Transceiver (Blue Force Tracker) 7,400
Light Armored Vehicle (LAV)--48 vehicles to support FSRG 102,500
Weapons under $5 million 10,800
Night Vision Equipment 225,000
PSS-14 Metal Detectors and Other Items 1,300
Tactical Radios (PRC-117 and PRC-150 radios) 25,000
JTRS Legacy Bridge--EPLRS 17,900
Total Procurement, Marine Corps 389,900
Aircraft Procurement, Air Force:
C-17 Modifications--LAIRCM installs 84,000
C-130 Modifications--LAIRCM installs 7,200
War Consumables--Initial/replacement of towed decoys and rocket launcher motors 24,100
Total Aircraft Procurement, Air Force 115,300
Other Procurement, Air Force:
HMMWV, Up-Armored 2,400
Total Other Procurement, Air Force 2,400
Procurement, Defense-Wide:
MH-47 infrared engine exhaust suppressor 7,700
High performance mobility FLIR (ground) 10,800
High performance mobility FLIR (maritime) 6,000
Multi-bank inter/intra team radio 13,500
Multi-band multi mission radio 65,900
Total Procurement, Defense-Wide 103,900
Total Procurement 2,857,314

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

The Committee recommends $88,100,000 for the research, development, test and evaluation accounts.

The following table provides details of the recommendations for the research, development, test and evaluation accounts:

(In thousands of dollars)
Account Recommendation
RDT&E, Navy:
Classified Program 13,100
Total RDT&E, Navy 13,100
RDT&E, Defense-Wide:
Counter-Terrorism Technical Working Group 25,000
Quick Reaction Special Projects 50,000
Total RDT&E, Defense-Wide 75,000
Total RDT&E 88,100

DEFENSE WORKING CAPITAL FUNDS

The Committee recommends an additional $2,055,000,000 for the Defense Working Capital Funds. These funds are recommended to address shortfalls due to unforeseen fuel price increases as well as to provide for the increased rate of consumption during wartime. In addition, funds are provided within this account to address necessary costs such as war reserves, spare parts, and underutilized plant capacity.

GENERAL PROVISIONS--THIS TITLE

Title IX of the Committee bill contains 12 general provisions. Several of these extend or modify war-related authorities included in Public Law 108-287, enacted in August of 2005. A description of the recommended general provisions follows.

Section 9001 has been included which establishes the period of availability for obligation for appropriations provided in this title.

Section 9002 has been included which provides that funds made available in title IX are in addition to amounts provided elsewhere in this Act.

Section 9003 has been included which provides for the transfer of funds between appropriations of up to $2,500,000,000 of the funds in title IX, and provides that the transfer authority in this section is in addition to any other transfer authority available to the Department of Defense.

Section 9004 has been included which deems funds appropriated in this Act for intelligence activities to be authorized by the Congress until an Intelligence Authorization Act for FY 2006 is enacted.

Section 9005 has been included which provides that none of the funds in title IX may be used to finance programs or activities denied by Congress, or to initiate a new start without prior congressional notification.

Section 9006 has been included which provides that not to exceed $500,000,000 of operation and maintenance funds made available in title IX may be used to train and equip military or security forces in Iraq and Afghanistan, and that such authority is in addition to any other authority to provide assistance. The provision also includes a requirement to notify congressional committees prior to providing assistance under the authority of this provision.

Section 9007 has been included which makes available $500,000,000 of operation and maintenance funds provided by title IX to fund the Commander's Emergency Response Program. In addition, the provision requires quarterly reports to the congressional defense committees, places certain limitations on the use of funds, and requires the Secretary of Defense to issue guidance on activities eligible for funding.

Section 9008 has been included which provides that operation and maintenance funds in title IX may be used to provide supplies, services, and transportation to coalition forces supporting military operations in Iraq and Afghanistan, and provides for quarterly reports.

Section 9009 has been included in which the Congress reaffirms that torture of prisoners of war and detainees is illegal and does not reflect the policies of the United States government or the values of the people of the United States.

Section 9010 has been included concerning reporting requirements for the use of funds provided in this Act.

Section 9011 has been included which provides that the Secretary of Defense may present promotional materials, including a United States Flag, to military members who participate in Operations Enduring Freedom or Iraqi Freedom.

Section 9012 has been included which expresses the sense of the Congress concerning the United States Air Force Academy.

HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS

The following items are included in accordance with various requirements of the Rules of the House of Representatives:

CHANGES IN THE APPLICATION OF EXISTING LAW

Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House of Representatives, the following statements are submitted describing the effect of provisions in the accompanying bill which directly or indirectly change the application of existing law.

Language is included in various parts of the bill to continue on-going activities which require annual authorization or additional legislation, which to date has not been enacted.

The bill includes a number of provisions which place limitations on the use of funds in the bill or change existing limitations and which might, under some circumstances, be construed as changing the application of existing law.

The bill includes a number of provisions, which have been virtually unchanged for many years, that are technically considered legislation.

The bill provides that appropriations shall remain available for more than one year for some programs for which the basic authorizing legislation does not presently authorize each extended availability.

In various places in the bill, the Committee has earmarked funds within appropriation accounts in order to fund specific programs, and has adjusted some existing earmarking.

Those additional changes in the fiscal year 2006 bill, which might be interpreted as changing exiting law, are as follows:

APPROPRIATIONS LANGUAGE

Language has been amended in the active duty Military Personnel accounts to include language concerning the Reserve Officers' Training Corps, and deletes this language from the related Reserve appropriations paragraphs.

Language has been amended in `Operation and Maintenance, Army' which changes the amount provided for emergency and extraordinary expenses, and earmarks funds for Fort Baker.

Language has been amended in `Operation and Maintenance, Navy' which changes the amount provided for emergency and extraordinary expenses.

Language has been deleted in `Operation and Maintenance, Air Force' which provides funds for minority aviation training.

Language has been amended in `Operation and Maintenance, Defense-Wide' which changes the amount provided for emergency and extraordinary expenses; deletes language which earmarks funds for an internship program for university students to participate in Defense educational programs; deletes language which provides funds for commercial imagery purchases; deletes language which provides authority for the Office of Economic Adjustment to make grants; includes language which provides funds to conduct a wind test demonstration project on an Air Force installation and to execute a renewable energy purchasing plan; and deletes language which provides funds for the Procurement Technical Assistance Cooperative Agreement Program.

Language has been amended in `Overseas Contingency Operations Transfer Account' which deletes the reference for transfer of funds in this paragraph to the Defense Health Program appropriation.

Language has been deleted in `Former Soviet Union Threat Reduction Account' which earmarks funds for dismantling and disposal of nuclear submarines.

Language has been included in the Army's procurement accounts which earmarks funds for the Army Reserve and Army National Guard.

Language has been included in `Aircraft Procurement, Army' which procures additional helicopters and designates these aircraft for the Army Reserve.

Language has been deleted in `Other Procurement, Army' concerning the purchase of vehicles required for physical security of personnel.

Language has been included in the Navy and Marine Corps' procurement accounts which earmarks funds for the Navy Reserve and Marine Corps Reserve.

Language has been deleted in `Other Procurement, Navy' concerning the purchase of vehicles required for physical security of personnel; and deletes language which allows funds to be available for TRIDENT modifications associated with force protection and security requirements.

Language has been included in the Air Force's procurement accounts which earmarks funds for the Air Force Reserve and Air National Guard.

Language has been deleted in `Aircraft Procurement, Air Force' with regard to the procurement of C-17 aircraft.

Language has been deleted in `Other Procurement, Air Force' concerning the purchase of vehicles required for physical security of personnel.

The appropriations account `National Guard and Reserve Equipment' has been deleted.

Language has been deleted in `Research, Development, Test and Evaluation, Army' which earmarks funds for Molecular Genetics and Musculoskeletal Research.

Language has been deleted in `Office of the Inspector General' which provides funds for Research, Development, Test and Evaluation.

Language has been amended in `Intelligence Community Management Account' which earmarks $27,454,000 for the Advanced Research and Development Committee; and which transfers $39,000,000 to the Department of Justice.

The appropriations account `National Security Education Trust Fund' has been deleted.

Language has been included in Title IX which provides $45,254,619,000 to certain appropriations accounts for additional war related expenses for ongoing military operations in Iraq and Afghanistan.

Language has been included in Title IX in the `Iraq Freedom Fund' that provides for the transfer of funds into and out of this account; provides that no less than $2,500,000,000 shall be for classified programs; requires the Secretary of Defense to notify the congressional defense committees prior to making transfers from this appropriation; and requires the Secretary of Defense to report quarterly on the transfer of funds from this appropriation.

Language has been included in Title IX in `Other Procurement, Army' which provides that not less than $200,370,000 shall be available only for the Army Reserve.

GENERAL PROVISIONS

Section 8005 has been amended which increases the level of general transfer authority for the Department of Defense, and provides that transfers between military personnel appropriations shall not be taken into account for purposes of the limitation of funds which may be transferred under this section.

Section 8008 has been amended to include language which provides multiyear authority for UH-60/MH-60 Helicopters, Apache Block II conversions, and MTADS/PNVS programs.

Section 8024 has been amended which earmarks $33,767,000 for the Civil Air Patrol Corporation.

Section 8025 has been amended to change the number of staff years of technical effort that may be funded for defense Federally Funded Research and Development Centers (FFRDCs); deletes language on the number of staff years that may be funded for defense studies and analysis by FFRDCs; amends language which changes the name of the National Intelligence Program referenced in this provision; and amends the amount for reduction for FFRDCs.

Section 8042 has been amended to make a change to the name of the National Intelligence Program referenced in this provision.

Section 8043 has been included which provides that of the funds available under `Operation and Maintenance, Defense-Wide', the Office of Economic Adjustment is authorized to make grants.

Section 8044 has been amended to include language which rescinds $633,550,000 from the following programs:

2005 Appropriations:
Other Procurement, Army:
Joint Tactical Radio System $60,500,000
Shipbuilding and Conversion, Navy:
DD(X) Advance Procurement 304,000,000
Service Craft 21,000,000
Aircraft Procurement, Air Force:
Global Hawk Advance Procurement 10,00,000
Other Procurement, Air Force:
Classified Programs 3,400,000
Research, Development, Test and Evaluation, Army:
Joint Tactical Radio System 21,600,000
Research, Development, Test and Evaluation, Navy:
Unit Operations Centers (Marine Corps) 5,100,000
Research, Development, Test and Evaluation, Air Force:
AEHF 92,000,000
Classified Programs 50,000,000
Research, Development, Test and Evaluation, Defense-Wide:
GMD Flight Test Delays 60,000,000
Classified Programs 5,950,000

Section 8047 has been amended to make a change to the name of the National Intelligence Program referenced in this provision.

Section 8060 has been amended to make a change to the name of the National Intelligence Program referenced in this provision.

Regarding section 8061, the Committee has taken careful notice of the growing challenges to U.S. security interests in Asia. These include the nuclear weapons program in North Korea, the attempts by that government to develop more capable ballistic missiles, and the rapid modernization of the Chinese military. The Committee urges the Administration to work with U.S. allies in the region to meet the challenges presented by these changing realities. Discussion with U.S. allies should, where deemed appropriate, include relevant information about future planned U.S. military capabilities. Section 8061 of this Act should not be interpreted as inhibiting such discussions.

Section 8066 has been amended which requires that funds provided under `Research, Development, Test and Evaluation, Defense-Wide' for a new start advanced concept technology demonstration project may only be obligated after a report is provided to the congressional defense committees.

Section 8067 has been amended which requires the Secretary of Defense to provide quarterly reports on certain matters directed in the classified annex to this Act.

Section 8075 has been amended to change the dollar amount available for transfer, and amends subsection (b) providing for additional transfers.

Section 8077 has been amended which provides funds for a grant to the Fisher House Foundation, Inc.

Section 8078 has been amended which reduces funds available in Operation and Maintenance accounts by $264,630,000 to reflect savings attributable to efficiencies and management improvements in the funding of the Services' miscellaneous or other contracts.

Section 8079 has been amended which reduces funds available in Operation and Maintenance accounts by $167,000,000 to limit excessive growth in the procurement of advisory and assistance services.

Section 8080 has been amended which requires that of the funds provided in `Research, Development, Test and Evaluation, Defense-Wide' $77,616,000 shall be for the Arrow missile program; and $15,000,000 shall be available for producing Arrow missile components in the United States and Israel.

Section 8081 has been amended to reflect fiscal year 2006 requirements for prior year shipbuilding costs, makes such funds available for obligation until September 30, 2006, and, for proper accounting purposes, transfers such funds to the original appropriations of the vessels for which the additional costs are needed.

Section 8086 has been amended which reduces funds available in Operation and Maintenance accounts by $250,000,000 to reflect cash balance and rate stabilization adjustments in Defense Working Capital Funds.

Section 8089 has been amended which provides $14,400,000 for various grants.

Section 8097 has been amended which earmarks funds in `Operation and Maintenance, Army' for the Fort Irwin Road project for which funds were appropriated in section 8103 of public law 106-79, and provides for limitations on using funds in this or any other Act for support of certain recreational facilities at Fort Irwin until completion of the project; and includes language which earmarks funds in `Operation and Maintenance, Marine Corps' for the Secretary of the Navy to make a grant for the widening of Adobe Road.

Section 8100 has been amended which reduces funds available in Operation and Maintenance accounts by $147,000,000, and deletes language concerning the effective date of this section on travel and transportation of persons.

Section 8101 has been included which reduces $176,500,000 from the title III procurement accounts for offsets due to the Global War on Terror.

Section 8102 has been included which provides for the transfer of unobligated balances from `Research, Development, Test and Evaluation, Army' for the continuation of the Army Venture Capital Fund.

An explanation for each of the general provisions included in title IX of the bill are provided in that title.

APPROPRIATIONS NOT AUTHORIZED BY LAW

Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House of Representatives, the following table lists the appropriations in the accompanying bill which are not authorized by law:

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TRANSFER OF FUNDS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, the following is submitted describing the transfer of funds provided in the accompanying bill.

TRANSFERS

Language has been included in `Operation and Maintenance, Army' which provides for the transfer of funds to Fort Baker.

Language has been included in `Operation and Maintenance, Defense-Wide' which provides for the transfer of funds relating to classified activities.

Language has been included in `Overseas Contingency Operations Transfer Account' which provides for the transfer of funds out of and into this account.

Language has been included in `Drug Interdiction and Counter-Drug Activities, Defense' which transfers funds to other appropriations accounts of the Department of Defense.

Language has been included in `Intelligence Community Management Account' which provides for the transfer of funds to the Department of Justice for the National Drug Intelligence Center.

Twelve provisions (Sections 8005, 8006, 8015, 8024, 8033, 8049, 8056, 8075, 8080, 8081, 8099, and 8102) contain language which allows transfers of funds between accounts.

Language has been included in title IX, `Iraq Freedom Fund' which transfers funds to other appropriations accounts of the Department of Defense.

Language has been included in title IX, section 9003, which provides transfer authority for funds in title IX.

RESCISSIONS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, the following table is submitted describing the rescissions recommended in the accompanying bill:


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Other Procurement, Army, 2005/2007                                  $60,500,000 
Shipbuilding and Conversion, Navy, 2005/2011                        325,000,000 
Aircraft Procurement, Air Force, 2005/2007                           10,000,000 
Other Procurement, Air Force, 2005/2007                               3,400,000 
Research, Development, Test and Evaluation, Army, 2005/2006          21,600,000 
Research, Development, Test and Evaluation, Navy, 2005/2006           5,100,000 
Research, Development, Test and Evaluation, Air Force, 2005/2006    142,000,000 
Research, Development, Test and Evaluation, Defense-Wide, 2005/2006  65,950,000 
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STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House of Representatives, the following is a statement of general performance goals and objectives for which this measure authorizes funding:

The Committee on Appropriations considers program performance, including a program's success in developing and attaining outcome-related goals and objectives, in developing funding recommendations.

CONSTITUTIONAL AUTHORITY

Clause 3(d)(1) of rule XIII of the Rules of the House of Representatives states that: `Each report of a committee on a bill or joint resolution of a public character, shall include a statement citing the specific powers granted to the Congress in the Constitution to enact the law proposed by the bill or joint resolution.'

The Committee on Appropriations bases its authority to report this legislation from Clause 7 of Section 9 of Article I of the Constitution of the United States of America which states: `No money shall be drawn from the Treasury but in consequence of Appropriations made by law . . .'

Appropriations contained in this Act are made pursuant to this specific power granted by the Constitution.

COMPARISON WITH THE BUDGET RESOLUTION

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives requires an explanation of compliance with section 308(a)(1)(A) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), as amended, which requires that the report accompanying a bill providing new budget authority contain a statement detailing how that authority compares with the reports submitted under section 302 of the Act for the most recently agreed to concurrent resolution on the budget for the fiscal year from the Committee's section 302(a) allocation. This information follows:


[In millions of dollars]
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              302(b) allocation                This bill         
               Budget authority Outlays Budget authority Outlays 
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Discretionary           363,440 372,696          363,440 371,740 
Mandatory                   245     245              245     245 
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FIVE-YEAR OUTLAY PROJECTIONS

In compliance with section 308(a)(1)(B) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), as amended, the following table contains five-year projections associated with the budget authority provided in the accompanying bill.

(Millions)
Budget Authority 363,440
Outlays:
2006 273,635
2007 94,854
2008 25,705
2009 7,527
2010 and beyond 5,737

FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

In accordance with section 308(a)(1)(C) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), as amended, no new budget or outlays are provided by the accompanying bill for financial assistance to State and local governments.

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ADDITIONAL VIEWS OF THE HONORABLE DAVID OBEY

Two issues addressed during Committee consideration of the FY 2006 Defense appropriations measure warrant further discussion.

IRAQ AND AFGHANISTAN `BRIDGE FUND'

In May, Congress passed an FY 2005 emergency supplemental funding bill that provided $75.9 billion for continuing military operations in Iraq and Afghanistan. Even as that bill was being signed into law, the military let it be known that additional supplemental funds would be need by October to avoid severe financial dislocation.

The Republican budget resolution set aside $50 billion to cover the FY 2006 costs of the war. In response to the military's pleas and `consistent' with the Republican budget resolution, this bill included $45.3 billion. At current expenditure rates, this funding will only cover 6 months worth of the wars' costs. Thus, the Republican budget resolution fails to accurately account for the full year's cost of the war, thereby continuing the fiction created by the Bush Administration surrounding our ongoing military involvement in the region. Since this bridge funding is only adequate to cover the costs of the war for half the year, the hard reality is that before the year is over the Pentagon will have to ask for more money for the war. This likely will `bust' the recently passed Republican budget resolution by more than $40 billion.

I offered two amendments related to this bridge funding. The first would have, in essence, required that the Majority take up a real budget resolution that included the full cost of the war in Iraq and Afghanistan. The second would have paid for roughly half of the bridge fund by reducing the size of the tax cuts for people making more than $1 million a year in order to reduce the amount the deficit will rise when the full annual costs of the war is finally revealed. The Committee rejected these amendments.

The purpose of both amendments was to force the Administration and the Congressional Majority to begin to face up to the full cost of the war in Iraq. As the Washington Post recently noted its editorial of March 12, 2005:

For the third year in a row, the Bush administration has chosen to fund operations in Iraq and Afghanistan, along with a grab bag of other programs, outside the normal appropriations process. To call this emergency spending is farcical. Though the precise cost of military operations was not known, there was no reason, especially as the war continued, not to budget for most, if not all, of it in the ordinary course of business. After a single emergency supplemental, the war in Vietnam was financed through regular appropriations.

Of course, if the Administration requested funds for Iraq and Afghanistan through the regular appropriations process it would force tradeoffs within the Federal budget, such as s1ending cuts or tax increases, to pay for the war. These are precisely the types of tradeoffs the Administration and the Congressional Majority have avoided and continue to avoid. Instead of making the tough choices, the cost of military operations and related expenses for these two engagements has been added directly to the deficit, forcing future generations to pay for this Administration's failure to pay the full price of its Iraq policy.

To date, according the Congressional Research Service, the Defense Department has received $277.1 billion in `emergency' funding for combat operations, occupation and support for military personnel or supporting operations for Iraq, Afghanistan and for enhanced security at military installations. Nearly 60 percent of these funds--$165.8 billion--were provided after the President declared an end to major combat operations in Iraq. Nearly 70 percent of the $277.1 billion provided--$192 billion--is solely for the Iraq war. Should Congress approve this $45.3 billion supplemental, which will only fund operations in Iraq for half the year, total funding for the Iraq war will reach nearly $240 billion. And this is not the end. Tens of billions, if not more, will be required as the Army fully expects to still be in Iraq at least through January 2007.

To put all this in context--even as Congress prepares to bust the Republican budget by more than $40 billion to pay for the cost of this misguided war, the Republican majority is simultaneously slashing the Labor-HHS-Education bill by $1.6 billion, decimating programs for children and gutting efforts to protect workers wages, all in the name of fiscal responsibility. The Majority's brand of fiscal responsibility is farcical at best, duplicitous at worst. It is past time the Republican Majority comes clean about the full cost of the Iraq policy. The Congress is being set up to bust the budget by an estimated $40 billion to pay for the remaining costs of the war--an amount more than 20 times larger than the amount they are saving by cutting the Labor-HHS bill.

House Democrats make no apologies for demanding greater accountability from the Administration about its conduct of the war in Iraq. Our efforts, however, should in no way be construed as criticism of our troops. Democrats strongly support the men and women of our military. Many of us worked in the last supplemental to increase the maximum death benefit for service members. We have also urged the Administration and the Congress to provide additional resources for the Veterans Administration so that returning service members receive the health care they deserve.

It is this support for the troops that leads to question the Administration's management of the war and to demand greater accountability. The Moran amendment, which was included in the most recent supplemental, is an example of the type of oversight Congress must conduct. The Moran amendment directs the Secretary of Defense to fully evaluate the situation in Iraq and provide Congress measurable, achievable criteria that will provide an accurate assessment of our progress in the war. If one thing has become clear through the fog of war, it is that this Administration will not come clean unless the Congress continues to ask questions. We must keep pressing for answers.

RELIGIOUS FREEDOM AT THE AIR FORCE ACADEMY

The Los Angeles Times reported on April 20, 2005, that an atmosphere existed on the campus of the U.S. Air Force Academy that appeared to tolerate disrespectful treatment of persons who were not evangelicals. Air Force officials have acknowledged the problem, which initially surfaced in early May 2004 when a survey of present and former cadets revealed that some students felt that `born-again' Christians received favorable treatment and that persons of faith that did not consider themselves born-again had been verbally abused.

I am pleased that the Committee responded to these reports by adopting an amendment condemning coercive or abusive proselytizing at the Academy and reaffirming that the military must be a place of tolerance for all faiths and backgrounds. The text of the amendment follows:

(a) Sense of Congress- It is the sense of Congress that--

(b) Report on Plan-

There are two things we do not want at any institution of higher learning, especially the military academies. First, we do not want disrespectful treatment of any student or cadet by their colleagues on the basis of religious differences. Second, we do not want this type of conduct from anyone in positions of authority or in the chain of command. America is blessed by the Air Force Academy cadets who have volunteered to serve their nation and defend our freedom. In taking up arms, those cadets are also agreeing to defend one of America's most cherished rights--religious freedom.

DAVID OBEY.



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