S1547CRsJUN20

Legislation News & Report (TM)

TheWeekInCongress.com (TM)

Managing America: Authorizations Senate Comm. Rpt.

Home

Contact: House / Senate

Newest Public Laws

Monthly Budget Review

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

Explanation of tables

The following tables provide the program-level detailed guidance for the funding authorized in title I of this Act. The tables also display the funding requested by the administration in the fiscal year 2008 budget request for procurement programs, and indicate those programs for which the committee either increased or decreased the requested amounts. As in the past, the Department of Defense may not exceed the authorized amounts (as set forth in the tables or, if unchanged from the administration request, as set forth in budget justification documents of the Department of Defense), without a reprogramming action in accordance with established procedures. Unless noted in this report, funding changes to the budget request are made without prejudice.

Rapid Acquisition Fund (sec. 105)

The committee recommends a provision that would authorize $100.0 million for the rapid acquisition fund.

SUBTITLE B--ARMY PROGRAMS

Multiyear procurement authority for M1A2 Abrams System Enhancement Package upgrades (sec. 111)

The committee recommends a provision that would provide authority to the Secretary of the Army to enter into a multiyear contract for the upgrade of Abrams tanks to the M1A2 System Enhancement Package (SEP) versions.

Section 2306b of title 10, United States Code, authorizes the Department of Defense to enter into multiyear contracts for the purchase of property, but only if six statutory criteria are met. One of these criteria is that the use of a multiyear contract must result in `substantial savings' compared to the anticipated costs of carrying out the program through annual contracts.

The Department estimates that the multiyear contract for the M1A2 Abrams SEP upgrades will result in savings of approximately $178.0 million, or a total of approximately 10 percent, compared to the cost of five annual contracts. The committee considers these savings to be substantial and concludes that the multiyear proposal meets the statutory criteria.

Multiyear procurement authority for M2A3/M3A3 Bradley fighting vehicle upgrades (sec. 112)

The committee recommends a provision that would provide authority to the Secretary of the Army to enter into a multiyear contract for the upgrade of Bradley Fighting Vehicles and Bradley Fire Support Team Vehicles to the M2A3/M3A3/BFIST versions.

The Department estimates that a multiyear contract for the Bradley upgrades over 4 fiscal years beginning in fiscal year 2008 and ending in fiscal year 2011 will result in savings of approximately $131.0 million, or a total of approximately 5 percent, compared to the cost of four annual contracts. Because the Department plans to purchase a procurement quantity of 525 in the first year, the Department assumes that savings resulting from larger procurement quantities will be achieved in that year regardless of whether a multiyear contract is approved. However, the Department estimates that a multiyear contract will result in savings of $131.0 million, or a total of 10 percent, compared to the cost of annual contracts over the final 3 years of the contract. The committee considers these savings to be substantial and concludes that the multiyear proposal meets the statutory criteria.

Stryker Mobile Gun System (sec. 113)

The committee recommends a provision that would withhold all funding for the procurement of the Stryker Mobile Gun System (MGS) until 30 days after the date on which the Secretary of the Army certifies to Congress that the results of the initial operational test and evaluation indicate that the Stryker MGS is operationally effective, suitable, and survivable. The Secretary of Defense may waive the limitation on MGS funding if the Secretary determines that further procurement of the Stryker MGS is in the national security interest of the United States, submits to the Congress, in writing , a notification of the waiver together with a discussion of the reasons for the waiver and the actions that will be taken to mitigate any deficiencies which cause the system to be deemed not operationally effective, suitable, and/or survivable.

In January 2007, the Army decided to deploy the Stryker MGS with the Stryker Brigade Combat Team (SBCT) that was deploying to Iraq as part of the `surge' of units called for by the revamped Baghdad security plan. This was done despite the Director of Operational Test and Evaluation's concern that planned operational and live fire ballistic test and evaluation were not complete and were not yet adequate to support a final assessment of MGS crew and system survivability, operational effectiveness, and operational suitability. The Director expressed concern about the current reliability and operational effectiveness of the vehicle, with mean rounds between system aborts being well below the entrance criteria for entry into initial operational test and evaluation (IOT&E), and with significant `fightability' shortfalls, particularly with regard to the functioning of the two machine guns. More troubling are the unique survivability concerns expressed by the Director, with MGS crews at greater risk than crews in other Stryker configurations, the details of which are classified and cannot be discussed in this report.

The committee is troubled by the Army's decision and shares the concerns expressed by the Director of Operational Test and Evaluation and believes that no more Stryker MGS's should be procured until adequate testing shows that the system is operationally effective, suitable, and survivable. The committee notes that the MGS IOT&E has been delayed from earlier this year to November 2007, because of the SBCT's early deployment to Iraq, and a full rate production decision is not expected until February 2008.

Consolidation of Joint Network Node program and Warfighter Information Network--Tactical program into a single Army tactical network program (sec. 114)

The committee recommends a provision that would direct the Secretary of the Army to consolidate the joint network node (JNN) and warfighter information network--tactical (WIN-T) programs into one Army tactical network program.

The budget request included $312.6 million in Other Procurement, Army (OPA) for JNN and fiscal year 2008 budget requested an additional $2.2 billion in war-related funding in OPA for JNN. The combined budget request for JNN totals over $2.5 billion. If approved, the Department of the Army would procure 10 JNN hubs, 175 JNNs, 557 battalion command post nodes, and would sustain all previous JNN units fielded.

The JNN is a commercially-based Ku-band satellite system that supports the Army's tactical communications requirements for the exchange of voice, data, and video from theater to the battalion level. The JNN was designed to be operational within 30 minutes of the time that the tactical operations center ceases movement and sets up in a static position. The Army began the JNN program as a quick-start initiative funded by emergency supplemental dollars in response to an urgent operational need statement from U.S. Central Command. The committee recognizes the importance of this capability in the theater today and notes that the urgent operational need has now been met. The committee notes that the budget request would complete the fielding of JNN to the rest of the Army.

The committee is concerned that the Army did not comply with title 10 of the United States Code in its acquisition of Lots 1-9 of JNN by not adequately testing the JNN platform and its associated systems before it was produced and fielded. The committee is also concerned that the Army does not own, nor does it have access to, the technical data package for JNN.

The committee directs the Department to perform an initial operational test and evaluation (IOT&E) and deliver to the congressional defense committees a low rate initial production report before a full rate production decision has been made by the Department. The committee is concerned that the Army's investment in JNN is not appropriately aligned with its knowledge of its shortcomings and an IOT&E will help the Army develop a better understanding of its investment and the additional investments necessary for the sustainment of JNN.

In addition to the JNN request, the Army's fiscal year 2008 baseline budget request included $222.3 million for the continued research and development of the WIN-T program.

As envisioned, WIN-T will also support the Army's tactical communications, including video, data, imagery, and voice services, for commanders at all echelons at remote locations throughout the battle space. WIN-T is also expected to interface with the Joint Tactical Radio System, which extends to the individual warfighter platform level, and will be integral to the Army's modernization to the Future Combat Systems (FCS). The committee believes that the Army should move as quickly as possible to incorporate this capability into JNN.

JNN and WIN-T are duplicate programs. However, WIN-T will meet the requirements of JNN, but with greater capability, providing on-the-move capabilities to Army commanders--a long-standing requirement. It is estimated that the Army will require well over $2.0 billion to field JNN to all Army units.

In September 2004, after competitively awarding two contracts for the Systems Development and Demonstration phase for the WIN-T communications system, the Army received approval to merge the winning contractors into a single team to accelerate WIN-T development. Since that time, and mostly due to affordability issues, the Army has restructured the WIN-T program, further delaying its fielding.

According to the Army's February 2007 `Report to Congress on the Bridge to Future Networks,' the Army intends to replace JNN with WIN-T beginning in 2014. The committee is concerned that the Army cannot afford to field both JNN and WIN-T in such a short time period and that the training, logistical, and maintenance burdens for the rapid fielding of two highly complex communication networks in such a close time frame has not been sufficiently analyzed.

The committee is also concerned about the Secretary of the Army's January 2007 notification to Congress of the WIN-T breach of the Nunn-McCurdy unit cost threshold which was a result of the Army's decision to expand WIN-T's capability and increase the scope of its fielding. The committee shares the concern of the Government Accountability Office that the WIN-T program has been operating without a bona fide acquisition program baseline for 18 months, and may not have a new approved acquisition program baseline until well after the June 2007 Nunn-McCurdy certification.

The committee believes that, should JNN and WIN-T remain as two programs on separate and parallel paths, the result may be two sub-optimal systems instead of a single, integrated, fully-capable system as currently envisioned. Therefore, the committee directs the Secretary of the Army to consolidate these two programs into a single tactical network program which will provide a seamless transition from JNN to WIN-T as soon as possible, and at optimum cost.

Further, the committee recommends transferring the $2.6 billion in title XV, OPA for JNN to title I, OPA for JNN. Further, the committee recommends a reduction of $1.0 billion in OPA for JNN.

BUDGET ITEMS--ARMY

Armed reconnaissance helicopter

The budget request included $468.2 million in the base budget request for 37 Armed Reconnaissance Helicopters (ARH), and $222.6 million in the fiscal year 2008 war-related budget request for an additional 29 Armed Reconnaissance Helicopters to replace OH-58D Kiowa Warrior combat losses.

In April 2007, the Army issued a `stop work notice' to the contractor, giving the company 30 days to address cost and scheduling performance problems for the ARH program. The Army subsequently evaluated the contractor's response and proposal for executing the ARH program, and after a special meeting of the Army Systems Acquisition Review Council on May 18, 2007, decided that continuing with the current contractor enables ARH fielding sooner and at less cost than re-competing the program.

The committee recommends a transfer of $131.0 million from title I, Aircraft Procurement, Army (APA), for the Armed Reconnaissance Helicopter, including $31.0 million to APA for OH-58D cockpit display system software upgrades and mast mounted sight circuit cards, and $100.0 million to PE 64220A to fund remaining research and development requirements for ARH.

The committee also recommends a reduction of $38.6 million in title XV, APA for ARH, and a transfer of $184.0 million--including $86.0 million to Operations and Maintenence, Army (OMA) for the recapitalization of UH-60A Blackhawk helicopters, $38.0 million to APA for the upgrade of UH-60A helicopters to UH-60L models, and $60.0 million to APA for common missile warning systems for fixed wing aircraft.

The committee recognizes the long standing Army requirement for an ARH and commends the Army for taking a critical look at the program as currently structured and executed. The committee urges the Army to continue rigorous oversight of the contractor's performance and expects frequent consultation with the congressional defense committees on the results of that oversight. The committee encourages the Army to submit a comprehensive reprogramming that will adequately fund the required restructuring of the ARH program.

CH-47 Chinook helicopter

The budget request included $157.9 million in Aircraft Procurement, Army (APA) for six new build CH-47 helicopters and $577.3 million in PE 23744A for CH-47 cargo helicopter modifications. These amounts assumed savings for procurement and modifications under a 5-year multiyear contract authority requested by the Department of Defense.

The Department estimates that the multiyear contract will result in savings of approximately 3.8 percent for the new build CH-47 helicopters and 4.3 percent for the modifications. The committee does not consider these savings to be substantial and concludes that the statutory standard for approval of a multiyear contract has not been met. The committee encourages the Department to resubmit its proposal for a multiyear contract in the future, if it determines that more substantial savings can be achieved.

To meet the cost of an annual contract in fiscal year 2008, the committee recommends an increase of $6.0 million in APA, a total of $163.9 million, for CH-47 helicopters; and an increase of $16.0 million in APA, a total of $593.3 million, for CH-47 cargo helicopter modifications.

Enhanced electronic digital engine control unit

The budget request included $13.0 million in Aircraft Procurement, Army (APA) for UH-60 Blackhawk helicopter modifications, but no funding for the Enhanced Electronic Digital Engine Control Unit (EDECU).

The common EDECU will standardize engine controls among all Army helicopter platforms flying GE-T700-701C and GE-T700-701D engines, and provide increased processing capability and memory beyond the capacity of the legacy Digital Engine Control Unit (DECU). The EDECU provides single channel engine supervisory control for engine governing, over-speed protection, temperature limiting protection, and integral auto relight capability.

The EDECU is a common engine control unit designed for interchangeable support for UH-60L/M and Apache AH-64D Block II/III aircraft equipped with T700-GE-701C or -701D engines. The EDECU has greater reliability, serviceability, and a lower unit cost than its legacy predecessor system, the DECU. The EDECU hardware will be common for all platforms, and will be introduced directly to production or fielded through depot level replacement.

The committee recommends an increase of $3.0 million for the EDECU, for a total of $16.0 million.

Aircraft survivability equipment infrared countermeasures

The budget request included $365.5 million in Aircraft Procurement, Army (APA) for Advanced Threat Infrared Countermeasure (ATIRCM)/Common Missile Warning System (CMWS) installation kits (A-Kits) and mission kits (B-Kits) to provide an integrated warning and countermeasure system for aircraft survivability against infrared guided missile systems. The committee notes that the Chief of Staff of the Army identified additional funds for this aircraft survivability equipment among his unfunded priorities for fiscal year 2008. Therefore, the committee recommends an increase of $207.4 million in APA, for a total of $572.9 million.

Aircrew integrated systems

The base budget request included $42.7 million for aircrew integrated systems, including $2.2 million for an encrypted Aircraft Wireless Intercom System (AWIS), but no funding for a non-encrypted version. The budget request also contained no funding for the Air Warrior Generation 3 Primary Survival Gear Carrier (PSGC).

The AWIS is a cordless, voice-activated crew intercommunications system integrated with the aircraft communications system. The system provides a wireless communication capability between crew members in flight and during ground service operations, allows medical personnel freedom of both hands to perform onboard medical procedures while communicating with the flight crew, and eliminates the operational hazards and operational restrictions inherent to the existing tethered system. Currently there is no integrated or qualified communication system between the crew flying medical evacuation (MEDEVAC) aircraft and the medic on the ground preparing a patient for transport or suspended beneath the hovering aircraft over hazardous terrain during critical rescue hoist operations. Hand and arm signals are currently used as the means for communication.

The committee notes that the Army MEDEVAC community has requested the immediate fielding of an unencrypted AWIS based upon Hurricane Katrina relief experience. Funding appropriated in fiscal year 2007 was sufficient to procure only 60 AWIS of the 363 required for the Army's UH-60 MEDEVAC aircraft.

The Air Warrior Generation 3 PSGC is a modular, integrated, rapidly reconfigurable combat aircrew ensemble that saves lives and maximizes Army aircrew member mission performance. The PSGC incorporates first aid, survival, signaling, and communications equipment with body armor, microclimate cooling, and an integrated extraction capability.

The Generation 3 PSGC incorporates numerous system and safety improvements based upon combat lessons learned, including the Universal Camouflage pattern, and will result in a significant signature reduction for a downed aircrew member in a desert environment.

The committee recommends an additional $5.0 million in Aircraft Procurement, Army to procure non-encrypted AWIS for the remaining 303 MEDEVAC aircraft, and $2.0 million to replace over 3,500 previously-fielded Generation 1 PSGCs with the improved Generation 3, for a total $49.7 million.

Patriot Advanced Capability-3

The budget request included $472.9 million in Missile Procurement, Army (MPA) for procurement of 108 Patriot Advanced-Capability-3 (PAC-3) missiles. The committee recommends an increase of $75.0 million in MPA to procure an additional 25 PAC-3 missiles.

The committee notes that the Army Chief of Staff included in the Army's fiscal year 2008 unfunded priorities list an initiative to upgrade three Patriot PAC-2 battalions to the most modern and capable PAC-3 configuration. This PAC-3 `Pure Fleet' initiative was the number three priority for the Army, for $452.2 million. This upgrade will increase significantly the capability of Patriot battalions to defend against longer-range and more complex missile threats currently facing forward-deployed U.S. forces, allies, and friends.

Since the submission of the original budget request, the Army clarified its plans for funding the PAC-3 Pure Fleet initiative, and prepared a fiscal year 2007 reprogramming proposal for $212.0 million to begin the initiative. Additionally, it has budgeted $208.0 million in its fiscal year 2008 `Grow the Army' budget plan to complete the initiative. Furthermore, the Grow the Army plan includes funding to add two additional PAC-3 battalions to the force structure to meet the requirements of regional combatant commanders. This plan, with the Pure Fleet initiative, would bring the Patriot force to a total of 15 PAC-3 battalions, which represents a significant increase in capability from today's force. The committee supports this proposed funding for the PAC-3 system.

The committee notes that the PAC-3 system is in high demand by regional combatant commanders, and that U.S. forces do not have a sufficient inventory of PAC-3 missiles to meet the requirements of U.S. military operational plans. The committee commends the Army for taking steps to fund the PAC-3 Pure Fleet initiative, and urges the Army to plan and budget for increased PAC-3 missile inventory in the future to meet the needs of regional combatant commands.

Section 223 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) named the Patriot PAC-3 system as one of the effective, near-term missile defense systems that the Department of Defense shall make a missile defense priority. Patriot is the only combat-tested and combat-proven missile defense system in the U.S. arsenal.

Stryker Vehicle

The base budget request included $1.0 billion and the fiscal year 2008 war-related budget request included $402.8 million in Weapons and Tracked Combat Vehicles (WTCV) for Stryker vehicles.

The committee notes that the Chief of Staff of the Army identified additional funds for Stryker among his unfunded priorities for fiscal year 2008, including add-on armor, ballistic shields, remote weapons stations, medical evacuation vehicles, and additional Stryker vehicles for depot repair cycle floats.

The committee recommends an increase of $658.1 million in the base budget, and an increase of $117.0 million in the war-related budget to replace projected Stryker battle losses.

Improved recovery vehicle

The budget request included $36.8 million in Weapons and Tracked Combat Vehicles (WTCV) for the M88A2 Heavy Equipment Recovery Combat Utility Lift and Evacuation System (HERCULES). The HERCULES is the only single-recovery vehicle capable of performing recovery, evacuation, and limited repair of the Abrams tank. Without improvements incorporated in the M88A2 HERCULES, units must use two recovery vehicles to perform the spectrum of recovery missions. The committee notes that the Chief of Staff of the Army identified additional funds for the HERCULES among his unfunded priorities for fiscal year 2008. Therefore, the committee recommends an increase of $24.9 million, a total of $61.7 million for the M88A2 HERCULES.

System enhancement program: SEP M1A2

The budget request included $52.9 million in Weapons and Tracked Combat Vehicles (WTCV) to upgrade M1A2 Abrams tanks to the System Enhancement Package (SEP) configuration. The fiscal year 2007 main supplemental budget request included $325.0 million for the same purpose. The committee understands that all of the remaining M1A2 Abrams tanks will be upgraded to the SEP configuration with the fiscal year 2007 funding. Therefore, the committee recommends no funding for upgrading M1A2 Abrams tanks to the SEP configuration in fiscal year 2008.

M240 medium machine gun

The base budget request included $37.1 million for the M240 medium machine gun and the fiscal year 2008 war-related request included $42.7 million for the same. The committee notes that the Chief of Staff of the Army identified additional funds for the M240 among his unfunded priorities for fiscal year 2008. Therefore, the committee recommends an increase of $19.4 million in Weapons and Tracked Combat Vehicles, a total of $56.5 million for M240 medium machine guns in the base budget.

Arsenal support program initiative

The budget request included no funding in Weapons and Tracked Combat Vehicles (WTCV) for the Arsenal Support Program Initiative (ASPI).

The military arsenals serve a compelling national security need by providing rapid manufacturing capabilities for specialized and unique defense manufacturing requirements. The arsenals, however, suffer from underutilization which has affected overhead rates, making it increasingly difficult for them to compete with private industry and maintain a base of skilled workers.

The ASPI was established in 2001 to address that problem. The program integrates commercial activity in the arsenals to reduce the Army's cost of ownership and modernize the facilities, while maintaining their core competencies in support of national defense requirements. The program establishes broad economic goals, maintains the viability of the Army manufacturing arsenals, and encourages the sharing of manufacturing facilities and unique capabilities on a `pay as you go' basis for non-governmental entities performing commercial work at Army manufacturing arsenals.

The committee recommends an increase of $12.0 million for the ASPI.

Grenades

The budget request included $13.9 million in Procurement of Ammunition, Army for yellow and green smoke grenades. The committee recommends an increase of $13.0 million in PAA for the procurement of additional yellow and green smoke grenades.

Ammunition outloading test bed

The budget request included $11.8 million in Procurement of Ammunition, Army (PAA) for ammunition-peculiar equipment, but did not include funds necessary to complete an automated ammunition outloading test bed. The test bed combines state of the art Gantry robotic equipment with conveyor systems allowing ammunition plant personnel to outload ammunition directly from trucks to shipping containers. The benefits of the automated outloading capability include increased capacity and increased personnel safety. The Army acknowledges that its current outloading capability is less than half that required to meet readiness goals. The committee recommends an increase of $5.0 million in PAA to complete an automated ammunition outloading test bed.

Ammunition plant solvent recovery system

The budget request included $143.7 million in Procurement of Ammunition, Army (PAA) for the provision of industrial facilities, but included no funds for a centralized solvent recovery system. The Army uses ether and alcohol as the primary solvents in the manufacture of propellants. A study last year indicated that 5 million pounds of solvents were used for production at one ammunition plant. Of that level, only 1.2 million pounds were recovered by the current system. The committee understands that a modern system will significantly increase the amount of solvent recovered, resulting in reduced environmental risks and lower costs of propellent production. The committee recommends an increase of $7.2 million in PAA for an ammunition plant solvent recovery system.

Acid containment and storage system

The budget request included $143.7 million in Procurement of Ammunition, Army (PAA) for the provision of industrial facilities, but included no funds for the modernization and upgrade of acid containment and storage systems. The committee understands that a modern system will reduce maintenance costs and increase safety. The committee recommends an increase of $13.2 million in PAA for an ammunition plant acid storage and containment system.

Single channel ground and airborne radio system family

The base budget request included $137.1 million in Other Procurement, Army (OPA) for single channel ground and airborne radio system (SINCGARS) hardware units. The fiscal year 2008 war-related budget request included $1.4 billion in OPA for the SINCGARS hardware units. SINCGARS provides the primary means of command and control for combat, combat support, and combat service support units in the Army.

From fiscal year 2003 to fiscal year 2007, the Army received $2.0 billion to acquire approximately 210,000 SINCGARS hardware units. In the fiscal year 2007 supplemental budget, the Army requested an additional $532.5 million for 31,425 hardware units. The combined fiscal year 2008 budget request would permit the Army to procure an additional approximately 107,000 units of SINCGARS radios. According to the Army, the combined budget request is intended to address modular force structure increases, the need to equip National Guard units, and support an effort to provide SINCGARS communications in all combat service and combat service support tactical wheeled vehicles.

The SINCGARS program is currently in the third year of a 5-year base contract with 2 option years. The largest discount is available for orders of 10,000 or more hardware units. The Secretary of the Army recently directed the SINCGARS program office to determine if a new competition for SINCGARS radios is warranted, given the increased demand and requirement for radios. Given that the government owns the technical data package, additional discounts may be available if a second contractor can be established. Currently, the Army is conducting a market assessment to ascertain if there are any potential vendors interested in and capable of meeting the Army's SINCGARS requirements. In the event that there will not be a new competition for SINCGARS, the Army could still seek additional quantity discounts through a renegotiation with the current contractor.

It is the committee's understanding that the Army plans to make a contract award in June 2008, to acquire the over 100,000 SINCGARS hardware units. The SINCGARS units funded with fiscal year 2008 dollars are expected to be delivered beginning in May 2009, and continue at a monthly delivery rate of 4,000 to 6,600 units through October 2010. Based on the contractor's production rates, the Government Accountability Office has determined that the Army does not need to acquire all of the radios it is requesting in the fiscal year 2008 war-related budget request given supplier lead times and delivery schedules.

The committee is also reluctant to approve the Army's full SINCGARS budget request in light of program uncertainties related to the Army's requirements for SINCGARS radios. Currently, there are Army and Office of Secretary of Defense force structure and communications studies underway that may impact requirements for SINCGARS radios. Both studies are scheduled for completion in the summer of 2007. The committee expects these studies will address the Army's acquisition of commercial off-the-shelf radios and the prospects for joint tactical radio systems future production and fielding.

Therefore, the committee recommends transferring the $1.4 billion in title XV, OPA for SINCGARS family to title I, OPA for SINCGARS family. Further, the committee recommends a reduction of $375.0 million in OPA for SINCGARS hardware units.

Information systems

The budget request included $156.2 million in Other Procurement, Army for information systems, a 700 percent increase over the amount requested in fiscal year 2007. According to Army budget justification materials, $81.4 million of the increase in the base budget is for Grow the Army initiative requirements at locations such as Forts Carson, Leonard Wood, and Lee. The Army again requested the same amount in its justification materials for Grow the Army, duplicating the request of $81.4 million for information systems. While the committee endorses the Army's need to increase force structure, some of the requested funding to support the increase in troop strength is unjustified. The committee recommends a decrease of $81.4 million in information systems, leaving only the initial base budget request of $156.2 million.

Installation information infrastructure modernization program

The budget request included $217.3 million in Other Procurement, Army (OPA) for the Installation Information Infrastructure Modernization program (I3MP). I3MP encompasses the modernization and upgrade of the telecommunications/information infrastructure on Army installations in the continental United States, Europe, and Pacific theaters, and the management of the Army Enterprise Systems. At the installation level, I3MP delivers a secure, interoperable network that is capable of passing large data packages at high speeds to a user's desktop. The committee notes that high bandwidth connectivity provides military users with enhanced capabilities for data, voice, and video communications. These capabilities enable military organizations to better support deployed forces and other Department of Defense activities. The committee recommends an additional $1.7 million for hardware enhancements to the Defense Information System Network, especially to increase network geographic diversity and alternative data pathways.

Explosive ordnance disposal equipment

The budget request included $33.3 million in Other Procurement, Army (OPA) for explosive ordnance disposal (EOD) equipment. Explosive ordnance disposal personnel are in constant contact with the most dangerous threats to coalition forces in Iraq and Afghanistan. They need adequate equipment for operations and training. The committee notes that the Chief of Staff of the Army identified additional funds for EOD equipment among his unfunded priorities for fiscal year 2008. Therefore, the committee recommends an increase of $25.0 million in OPA for EOD equipment.

Land warrior

Many analysts believe that the most prevalent threats the Nation will confront over the next 2 decades will be similar to those it currently faces in Iraq and Afghanistan. The committee understands that the Army must be organized, trained, and equipped to respond to all threats at any level on the spectrum of conflict. However, the most likely missions the Army will be called upon to conduct will be counterinsurgency and stability and support operations. These missions are infantry-intensive. The Army itself has recognized this and has increased the number of infantry in the modular brigade combat teams (BCTs), and plans to do the same in the Future Combat Systems BCTs.

Given that the Army will depend more on infantry, not less, the committee is troubled that the Army has not requested funding for procurement of the Land Warrior system after 10 years of development at a cost of $2.0 billion. The committee has no clear understanding as to how the Army intends to take advantage of the technologies already developed and ready to field that will give the infantry advantages it needs on the battlefield today.

Land Warrior, under its latest configuration, gives the infantry small unit leaders a suite of capabilities that enhance situational awareness and command and control. It includes an advanced combat helmet with an optical display attachment, a modified M-4 rifle, digital imaging equipment, a 12-hour lithium-ion battery, a voice and data radio, a Global Positioning System, a computer subsystem, a multifunction laser, and a control card for identity management.

The committee is aware that over the years Land Warrior suffered not only from management, cost, performance, and schedule problems, but also with requirements growth and the challenges associated with so many information technology and software-based systems. However, the Department of Defense Director of Operational Test and Evaluation (DOT&E) recently assessed Land Warrior during tests with the 4th Battalion, 9th Infantry, a Stryker unit preparing to deploy to Iraq. The Director, in a carefully worded report to this committee, determined that the system was `on track' to be operationally effective and suitable, even though it has not completed its Initial Operational Test.

Although Land Warrior still has two technological issues to address, the committee understands that DOT&E has indicated that the system's test items could deploy with the 4th Battalion, 9th Infantry, that the battalion is eager to take the system to Iraq, and that the Army has approved the plan.

The committee notes that funding to support Land Warrior items of equipment in Iraq was originally on the Chief of Staff of the Army's unfunded requirements list, but understands that the Army has now identified sources of funding for that purpose.

The committee also understands that the Army intends to take the Land Warrior program to a Milestone C acquisition decision to begin low rate initial production (LRIP), but does not intend to actually fund LRIP.

The committee believes that such a decision may be short-sighted, especially in light of the Army's recognition of the centrality of the infantryman to the likely missions the Army will face over the next decades. The committee urges the Army to review its decision to terminate the Land Warrior program. Accordingly, the committee recommends an addition of $30.4 million in PE 64827A, and $49.5 million in Other Procurement, Army, to continue development of the Land Warrior program, and to procure LRIP items of equipment to field to the remaining two battalions of the Stryker brigade combat team currently equipped with Land Warrior.

Recon and navigation system

The budget request included $2.3 billion in Other Procurement, Army (OPA) for other support equipment, but included no funds for the Recon and Navigation System (RNAV). This navigation system supports the mission requirements of Army special operations divers. The committee recommends an increase of $4.5 million in Other Procurement, Army for RNAV.

Army combat training centers

The budget request included $16.3 million in Other Procurement, Army (OPA) to support improvements at the Army's premier training ranges: the National Training Center (NTC), the Joint Readiness Training Center (JRTC), and the Joint Multinational Readiness Center (JMRC). The committee notes that the Army's force generation and rotation training strategies have strained the time available for units to conduct their normal mission rehearsal exercises at either the NTC, JRTC, or JMRC.

The Army currently plans to invest modestly over the next 3 years and up to $176.7 million through the future-years defense plan to upgrade and modernize the combat training centers. The committee is concerned that this investment profile is inadequate to meet the mid-term demands of operations in Iraq and Afghanistan, and the Army's plans to increase its end strength. The committee notes that the Chief of Staff of the Army identified additional funds for the combat training centers among his unfunded priorities for fiscal year 2008. Therefore, the committee recommends an increase of $102.4 million in OPA for the combat training centers.

Urban training technologies

The budget request included $94.9 million in Other Procurement, Army (OPA) for training range instrumentation and modernization. The committee notes that the Army's readiness and rotation training strategies call for units to accomplish more of their mission training and rehearsals at their local training areas and facilities. The Army is using several technologies to increase the flexibility and value of local training ranges and facilities including the Deployable Range Package, the Homestation Instrumentation System, and the Integrated Military Operations in Urbanized Terrain Training System. The committee recommends an increase of $24.8 million in OPA to accelerate the procurement of these training systems and for the instrumentation of a regional urban operations training center.

The committee understands that the Army's Force Generation model (ARFORGEN) depends heavily on increasing the readiness of reserve units prior to mobilization. To accomplish this, in part, the Army plans to consolidate equipment at regional training facilities where units rotate through weapons and maneuver qualification then return to their home stations.

The committee is concerned that the Army has not developed a comprehensive modernization plan for local and regional training installations, such as Camp Atterbury, Fort Pickett, Camp Blanding, Camp Shelby, Fort McCoy, and many others necessary to support its reserve component ARFORGEN concept. The committee directs the Army to provide the defense committees with its regional training facilities modernization plan--including identification of installations, projected training demand, facilities modernization requirements, priorities, costs, and schedules, by January 31, 2008.

Laser collective combat training system

The budget request included $201.4 million in Other Procurement, Army (OPA) but did not include funds for the Laser Collective Combat Training System (LCCATS). This is a laser-based marksmanship training system currently in use by National Guard units for urban operations, reflexive fire training, close quarters marksmanship, and small unit maneuver drills. The committee recommends an increase of $10.0 million for the laser collective combat training system for the procurement and fielding of 250 additional systems.

Call for fire trainer

The budget request included $4.1 million in Other Procurement, Army (OPA) for the Call For Fire Trainer (CFFT), but included no funds for the conclusion of the Joint Fires and Effects Trainer System (JFETS) demonstration project. JFETS is a next generation, virtual reality call for fire training simulation. The committee recommends an increase of $5.0 million in OPA to complete this demonstration project.

SUBTITLE C--NAVY PROGRAMS

Multiyear procurement authority for Virginia class submarine program (sec. 131)

The committee recommends a provision that would authorize the Secretary of the Navy to enter into a multiyear contract to purchase Virginia class submarines, subject to the Secretary's providing a certification that all of the criteria in section 2306b of title 10, United States Code, have been met.

Navy officials have said that contracting for the next set of Virginia class submarines under a multiyear contract would allow the Federal Government to achieve roughly 13 percent savings when compared to acquiring the same submarines using annual contracts.

BUDGET ITEMS--NAVY

H-46 modifications

The budget request included $22.1 million in Aircraft Procurement, Navy (APN, line 29) for modifications of H-46 helicopters, but included no funding to upgrade H-46 communications equipment. The H-46 helicopter was initially designed for a service life of 10,000 hours, but that life has been extended twice, and is now expected to reach more than 15,000 hours before the MV-22 will replace all of them. Extending this venerable platform has caused the Marine Corps to experience critical obsolescence and sustainment issues. The committee recommends an increase of $2.0 million for the procurement of H-46 communications upgrades.

H-53 modifications

The budget request included $48.1 million in Aircraft Procurement, Navy (APN, line 31) for modifications of H-53 helicopters, of which $2.3 million is for the Integrated Mechanical Diagnostics Health and Usage Management System (IMDS). Since 2001, the Marines have been equipping the fleet of H-53 helicopters with the IMDS, and have procured kits for nearly half of the fleet of 148 helicopters. The systems flying have already provided a significant improvement in aircraft readiness rates and ability to maintain the aircraft to support high tempo operations, while simultaneously improving the accuracy of the fleet health and material status reporting. The committee recommends an increase of $2.9 million for the procurement of additional IMDS systems.

P-3 modifications

The budget request included $262.6 million in Aircraft Procurement, Navy (APN, line 35) for modifications of P-3 aircraft, but included no funding for the procurement of integrated tactical picture (ITP) systems until fiscal year 2009. The P-3 aircraft is the workhorse of the U.S. Navy, providing a wide array of missions from conducting anti-submarine warfare to identifying and validating targets on the ground or on the ocean's surface, to participating in humanitarian relief operations. The P-3 aircraft host a wide variety of sensors, from video to radars, to antennas and communications, but lack the ability to fuse these inputs into one complete tactical picture. Because of this need, the Navy developed an ITP system (the automatic fusion of data), but deferred procurement funding for ITP until the fiscal year 2009 budget. The committee recommends an increase of $8.9 million for the procurement of ITP systems for P-3 aircraft.

Weapons industrial facilities

The budget request included $3.7 million for various activities at government-owned, contractor-operated weapons industrial facilities. The committee recommends an increase of $30.0 million to accelerate the facilities restoration program at the Allegany Ballistics Laboratory.

Ship Self Defense System for carrier replacement program

The budget request included $2,879.2 million in Shipbuilding and Conversion, Navy (SCN, line 1) for the Carrier Replacement program. Within the budget for the CVN-78, the committee notes that the unit cost for the Ship Self Defense System (SSDS) is 150 percent greater than the similar system procured for the fiscal year 2007 amphibious assault ship, LHA(R). The committee has placed significant emphasis on the importance of the Navy's managing shipbuilding costs in other sections of this report on costs from the shipbuilding prime contractors. Given the high proportion of ship costs that accrue from sources other than the prime contractors, the committee believes that it is equally important for the Navy to manage the cost for Government-furnished equipment.

The committee recommends a reduction of $20.0 million in SCN for the SSDS for CVN-78.

Virginia class submarine advance procurement

The budget request included $702.7 million for advance procurement for the Virginia class submarine program. However, the budget request included no funding for economic order quantity (EOQ) procurement of long lead material in conjunction with the fiscal year 2009 multiyear procurement request. The Navy has reported that roughly 13 percent savings will be achieved through the multiyear procurement for the seven Virginia class submarines programmed in fiscal years 2009 through 2013. Further, as reported by the Navy and testified by the Chief of Naval Operations and Secretary of the Navy to the Subcommittee on Seapower, additional advance procurement for economic order quantity purchases of long lead material would increase multiyear savings, help stabilize the Nation's critical submarine industrial base, provide greater opportunity to achieve program schedule reductions, and provide for an efficient transition to build two submarines per year. The Navy estimates that approximately 14 percent savings can be achieved on an additional $470.0 million investment in advance procurement.

The Navy has identified the requirement for a fleet of 313 ships, including 48 attack submarines. However, the Navy projects that attack submarine levels will fall as low as 40 boats, and remain below the 48-boat requirement for more than a decade.

The Navy is now claiming that it will be able to mitigate this shortage in forces using three techniques:

(1) building the new Virginia class submarines faster by reducing the time between the start of construction to delivery from the current level of 86 months for the last boat to deliver to a level of 60 months;

(2) extending the life of some boats currently in the fleet from 3 to 24 months; and

(3) increasing the length of deployments.

By using a combination of these measures, the Navy claims that it will be able to maintain no fewer than 42 boats in the force and will be able to maintain the current level of commitments to the combatant commanders (roughly 10 boats continuously on deployment).

The committee commends the Navy for exploring alternatives for maintaining the current levels of commitment to the combatant commanders. However, these potential actions are not without some risk.

Reducing the construction start-to-delivery time would certainly speed the arrival of new construction boats in the fleet. However, the committee understands that on the whole SSN-688 class consisting of 62 boats, the contractors were only able to deliver three boats with a start-to-delivery interval of 60 months or less. The maximum building time was 86 months and the average for all 62 boats was 72 months.

In addition, extending the length of deployments would help produce more deployed days for meeting requirements, but the committee wonders about the price that this could exact. The Navy's previous attempts to extend times on deployment (and reduce the amount of time spent at home) have resulted in retention problems. In fact, submarine sailors already spend much more time deployed on average than the rest of the Navy.

But even if one assumes that these measures are successful, current deployments are not sufficient to meet all of the priority national requirements and less than 60 percent of the combatant commanders' overall requirements.

The committee believes that it is essential for the Navy to increase attack submarine production rates as soon as practicable in order to minimize the risk to our national security posture posed by the long-term shortfall to the attack submarine force. Therefore, the committee recommends an increase of $470.0 million for Virginia class advance procurement, which would support building two submarines in fiscal year 2010.

DDG-51 program completion costs

The budget request included $78.1 million in Shipbuilding and Conversion, Navy (SCN, line 13) for DDG-51 program completion and production shutdown costs. This request is in addition to approximately $500 million that has been previously appropriated for these activities. The committee understands the necessity to properly fund these activities in order to support the efficient and effective delivery of remaining ships in the program, and to transition special tooling and program material for in-service support. The committee notes that the full scope of the program closeout effort continues to be defined as shipbuilders and vendors plan to transition from DDG-51 production to DDG-1000 production. Previous appropriations provide sufficient funding to support program completion activities through fiscal year 2008, while the Navy completes its determination of the scope of requirements for closing out the DDG-51 program. The committee expects the Navy to refine estimates for program completion based on the ongoing determination of requirements, and to include remaining funding requirements in the fiscal year 2009 budget request.

The committee recommends a decrease of $30.0 million in SCN for DDG-51 program completion.

Littoral combat ship

The budget request included $910.5 million in Shipbuilding and Conversion, Navy (SCN, line 15) for the construction of three Littoral Combat Ships (LCS). The Navy intends this to be a relatively smaller, more affordable vessel that carries modular payloads. The Navy concept is that, on one day, an LCS might be configured to operate as an anti-submarine vessel. However, as a mission needs to change, it could rapidly change the whole mission payload, within a day or so, and operate in an anti-surface warfare or mine warfare mode.

Each of the two prime contractor teams had contracts to build two ships. The prime contractors have teamed with smaller shipyards in both cases in order to keep LCS costs lower than would be possible in one of the major yards that normally build Navy ships.

The first ship (LCS-1) was scheduled to deliver in late 2006. The Navy is now estimating that the first ship will deliver sometime in the middle of 2008. The LCS-1 contractor team had barely started on their second ship (LCS-3) when the program ran into major cost problems earlier this year. The Navy then issued a stop work order on LCS-3 in order to reduce expenditures and limit further cost exposure on the program while it separately re-evaluated program cost estimates.

The Navy entered into negotiations with the LCS-1 team to sign up to a fixed price contract on the two ships or face outright cancellation on the second ship. These negotiations occurred during this past spring. When the stop work order was nearly ready to expire, the Navy announced that it and the LCS-1 contractor team were unable to reach an agreement and that the Navy was terminating the contract for LCS-3 for the convenience of the Government. It is too early to precisely estimate the termination costs, but the Navy has reported that significant funds for LCS-3 are on hold pending completion of the termination negotiations.

The second contractor team has a contract to build two LCS vessels of another design (LCS-2 and LCS-4). The Navy awarded this contract later, so LCS-2 is roughly 1 year behind the LCS-1. Unfortunately, it appears that this team is experiencing similar cost problems. The Navy has not issued the same ultimatum to this contractor team, but has claimed that the Navy will do so if the cost of LCS-2 continues to grow toward the Navy's estimate. Meanwhile, the Navy is proceeding with the start of construction on LCS-4, although it is not clear that the root causes for early cost growth on LCS-2 have been addressed.

The committee is disappointed that the cost of the lead ship has more than doubled and the delivery schedule has slipped several times.

The committee commends the Secretary of the Navy for exercising oversight and for trying to bring cost and schedule discipline to this troubled program. The committee is also interested in supporting the Secretary's efforts to improve the Navy's acquisition process. Reviewing this LCS situation will undoubtedly result in a new set of `lessons learned' that the acquisition community will dutifully try to implement. However, the committee has previously expressed concerns about the LCS concept and the LCS acquisition strategy. The LCS situation may be more a case of `lessons lost.' Long ago, we knew that we should not rush to sign a construction contract before we have solidified requirements. We also knew that the contractors will respond to incentives, and that if the incentives are focused on maintaining schedules and not on controlling cost, cost growth on a cost-plus contract should surprise no one. After the fact, everyone appears ready to agree that the original ship construction schedule for the lead ship was overly aggressive.

The Navy has said that the capability that this vessel will bring to the fleet is of the utmost urgency for responding to asymmetric threats. The committee believes that if the Navy really believed that the threat were that urgent, it might have taken more near-term steps to address it. For example, the Navy might not have cancelled the remote minehunting system (RMS) capability on a number of the DDG-51 class destroyers, ships that will be available to the combatant commanders much sooner than LCS. The Navy might also have taken this modular capability slated for the LCS and packaged those modules to deploy sooner on ships of opportunity. Rather, the Navy is waiting on a shipbuilding program to deliver that capability (in a useful quantity) at some future date.

The Navy now proposes to use the funds requested in fiscal year 2008 to award contracts for two LCS vessels, rather than the three originally envisioned. Given the uncertainty about what is happening with the earlier ships in the program and uncertainties about the options for an acquisition strategy that will remain available to the Navy next year, the Navy does not intend to award these two contracts until late in fiscal year 2008.

In summary:

(1) a high degree of cost uncertainty will continue to overshadow the LCS program until the two lead ships execute test and trials, starting late in 2007.

(2) the Navy's current estimate is that the approximately $1.6 billion appropriated for the first six ships will be required to complete the three ships currently under contract, with significant additional funding being held for termination of a fourth ship.

(3) if the Navy's estimates are correct, or low, then the Navy will be engaging in fixed price negotiations with the second prime contractor for LCS-2 and LCS-4 late in 2007, with the distinct possibility that LCS-4 would be terminated.

(4) if the Navy's estimates are high, then sufficient funding from within previous appropriations should be available for a newly procured LCS.

(5) the Navy has yet to formulate its acquisition strategy for the LCS program, however, the challenges inherent to fair competition between two dissimilar ship designs have become significantly more complex in light of the recent termination of LCS-3 (or potential termination of LCS-4).

(6) the Navy has announced a delay for conducting a program downselect decision until 2010, at which time it also plans to revise the LCS combat system, which raises concerns regarding the infrastructure and life cycle support costs for the three or four ships of the LCS variant not selected for `full rate production.'

(7) program delays have pushed the next notional contract award until late in fiscal year 2008.

(8) termination negotiations for LCS-3 will likely be proceeding at the same time the prime contractor is being solicited for a proposal to build another LCS ship, in which case the material procured for LCS-3 would likely revert back to the contractor for this new procurement. The net effect is that the current LCS-3 obligations that are fenced for termination costs would sufficiently cover the contractor's fiscal year 2008 obligations for a newly procured LCS.

The committee recommends $480.0 million for LCS in fiscal year 2008, a decrease of $430.5 million. We cannot relive the early days of the LCS program and remember `lessons learned,' but we have the opportunity to take positive steps now to right the program. Before awarding contracts for additional ships in the LCS program, we need to maintain focus on delivering the most capability possible for the $1.6 billion invested thus far for six ships. This would require that we impose accountability for the quality of program estimates; halt further changes to program requirements; and ensure that the contracts provide effective incentives for cost performance.

The Secretary of the Navy has advised the committee that the Navy's estimates appear to be quite conservative based on contractor performance over the past quarter, as measured against recently revised baselines. Although further risk is acknowledged, the Navy has expressed confidence that the program will be able to improve on the Navy's worst case estimates and avoid further termination action. If the Navy and industry are successful in managing costs going forward, this should allow four ships to be delivered within previously appropriated funds.

The committee notes that the LCS-1 contractor was awarded a lead ship contract that targeted a significantly lower price and a significantly more aggressive schedule for starting construction. The risks inherent in this aggressive schedule were exacerbated by changes to Navy requirements. These factors may have contributed to the decision to terminate LCS-3--an outcome referred to as `winner-loses.' The resultant imbalance between the two competing shipbuilders jeopardizes the Navy's ultimate goal for a competitive downselect in 2010, followed by full and open competition for the winning LCS variant.

Therefore, the committee directs that funds authorized for a fiscal year 2008 LCS ship may only be used when combined with LCS SCN funds appropriated in prior years, to solicit, on a competitive basis, bids for two fixed price LCS ship construction contracts, one for each of the two competing LCS variants. The Secretary of the Navy may waive this requirement only if: he determines that there is only one acceptable LCS variant, based on completion of acceptance trials on the two LCS variants; and he notifies the congressional defense committees 30 days before releasing a solicitation based on that waiver determination.

The committee believes that the history of the LCS acquisition strategy has been one of documenting decisions, rather than guiding and informing decisions. Therefore, the Secretary of Defense is directed to submit a report on the approved acquisition strategy for the LCS program at least 90 days prior to issuing any solicitation or requests for proposal, but no later than December 1, 2008.

Outfitting and post-delivery

The budget request included $419.8 million in Shipbuilding and Conversion, Navy (SCN, line 23) for outfitting and post-delivery funding. Outfitting and post-delivery is a centrally-managed account for all ship programs funded in the SCN account. Outfitting and post-delivery requests are made annually based on projected vessel delivery schedules. The Navy has requested funding in the fiscal year 2008 budget request for post-delivery purposes in advance of execution requirements because ship delivery schedules across multiple programs have been delayed.

The committee recommends a decrease of $40.0 million in SCN for outfitting and post-delivery.

LCS modules

The budget request included $80.3 million for assembling and outfitting Littoral Combat Ships (LCS) mission modules. The Navy intends the LCS to be a relatively smaller vessel that carries modular payloads. The Navy concept is that, using these mission modules, an LCS might be configured to operate as an anti-submarine vessel on one day. On the next day, the Navy might change the whole mission payload and operate the LCS in an anti-surface warfare mode.

As described elsewhere in this report, the LCS program has run into serious problems. The committee sees no particular reason to acquire mission modules at the pace planned by the Navy, since there have been significant delays in the ship program. The committee recommends a decrease of $65.0 million for LCS modules.

SPQ-9B radar

The budget request included $14.5 million for procurement of SPQ-9B radar equipment. The SPQ-9B radar provides surface ships with a gunfire control radar that also enhances ship self-defense capabilities. The Navy plans to buy another SPQ-9B in fiscal year 2010. The committee believes that the Navy could achieve more efficient production by combining the procurement of the two buys. Therefore, the committee recommends an increase of $6.0 million to procure an additional SPQ-9B radar.

Sonobuoys

The budget request included $67.4 million in Other Procurement, Navy (OPN, line 88) for sonobuoy procurement. The Navy's current sonobuoy inventory and planned procurement for fiscal year 2008 fall short of the Navy's Non-Nuclear Ordnance Requirement (NNOR), which was established to support the National Military Strategy plus annual training requirements.

Anti-submarine warfare (ASW) continues to be a core mission of the United States Navy. Our naval force could face modern, highly capable submarines operating in littoral waters where acoustic conditions are poor and sonobuoy expenditures could greatly exceed projections.

The committee recommends an increase of $15.0 million for sonobuoy procurement to improve training and readiness.

Weapons range support equipment

The budget request included $58.2 million in Other Procurement, Navy (OPN, line 89) for the procurement of equipment to implement the Navy fleet training range instrumentation training plan, but included no funding for the continued procurement of the multi-spectral threat emitter system (MTES).

The proliferation of lethal surface-to-air missiles and anti-aircraft artillery presents a clear threat to the warfighter. Threat emitters replicate the electronic signatures of these threats on training ranges. Additional funding would permit the Navy to expand usage of MTES capabilities to other fleet training ranges. The committee recommends an increase of $8.0 million for the procurement of two MTES.

NULKA anti-ship missile decoy system

The budget request included $42.4 million for anti-ship missile decoy systems, including $25.5 million for procuring 55 new NULKA decoys. Procuring additional NULKA decoys would ensure that fleet installations remain on a reasonable schedule, would keep production rates above the minimum sustaining level, and would achieve more reasonable unit production costs. The committee recommends an increase of $6.0 million for the NULKA procurement program to purchase additional decoys.

Submarine training device modifications

The budget request included $32.1 million to procure submarine training device modifications. The Navy has critical training requirements to support submarines in the fleet and has been using performance support systems (PSS) that would enhance training quality opportunities. The committee understands that the Navy could expand the development of the oxygen generator and air purification PSS capabilities to be used to support onboard qualifications, operation, and maintenance activities for the submarines. Therefore, the committee recommends an increase of $5.0 million to expand the use of performance support systems in conducting submarine training.

SUBTITLE D--AIR FORCE PROGRAMS

Limitation on retirement of C-130E/H tactical airlift aircraft (sec. 141)

The committee recommends a provision that would prohibit the Secretary of the Air Force from retiring any C-130E/H tactical airlift aircraft in fiscal year 2008.

The committee believes it would be premature to retire C-130 aircraft until an Air Force Fleet Viability Board has conducted an assessment of the C-130E/H fleet of aircraft and the results of the Intra-theater Lift Capability Study (ITLCS) and the Force Mix Study identify the right mix and number of intra-theater airlift assets, and the results of the assessment and the ITLCS and Force Mix studies have been provided to the congressional defense committees.

Limitation on retirement of KC-135E aerial refueling aircraft (sec. 142)

The committee recommends a provision that would prohibit the Secretary of the Air Force from retiring any KC-135E aircraft during fiscal year 2008 unless the Air Force provides the congressional defense committees with a request to retire KC-135E aircraft during fiscal year 2008 in accordance with established procedures similar to those used for prior approval reprogramming requests. The Air Force's number one acquisition priority is to replace its aged KC-135E fleet of aircraft with a new tanker, the KC-X. Two contractor teams have submitted offers responding to the KC-X request for proposals. The Air Force is currently reviewing those offers.

The committee notes that multiple studies have been conducted, both by the Air Force and independent groups, on service life and viability of the KC-135 fleet. These include: (1) `Air Force Fleet Viability Board, KC-135 Assessment Report,' September 2005; (2) `Defense Science Board Task Force Report on Aerial Refueling Requirements,' May 2004; (3) `The Tanker Requirement Study 2005'; (4) `KC-135 Economic Service Life Study (ESLS)'; and (5) `CNA Summary Analysis of the Material Condition of the KC-135 Aerial Refueling Fleet,' August 2004.

The committee remains concerned, however, that as recommended in the `Air Force Fleet Viability Board, KC-135 Assessment Report,' the Air Force has still not done destructive testing on a KC-135E aircraft. In addition, the Air Force has a history of retiring aircraft before fielding a replacement, creating its own shortfall in capabilities. The committee expects that the retirement of KC-135E aircraft should be informed by the progress made on the KC-X acquisition strategy and the outcome of the destructive testing.

BUDGET ITEMS--AIR FORCE

B-2 bomber

The budget request included $316.1 million for Aircraft Procurement, Air Force (APAF), for the B-2 bomber, of which $270.6 million was for radar modernization. The budget request also included $244.0 million for the B-2 bomber in PE 64240F. The fiscal year 2008 budget requested $45.8 million in war-related funding for APAF line 23 for the B-2, of which an additional $10.0 million was for B-2 radar modernization. The radar modernization program has experienced a number of problems and is in the process of being restructured. To address the requirements of the restructured program the committee recommends a decrease of $38.0 million in APAF and an increase of $38.0 million in PE 64240F for the restructured B-2 bomber radar modernization program. The committee recommends a further decrease of $10.0 million in APAF line 23 due to the delay in the radar program and an additional $14.1 million reduction in the fiscal year 2008 budget request for war-related funding, which is excess to the restructured program.

B-52 bomber aircraft

The budget request included $18.1 million for the B-52 bomber in Aircraft Procurement, Air Force (APAF) line 25 for aircraft modernization, but no funds for the electronic countermeasure improvement (ECMI) program and avionics midlife improvement (AMI) program. The committee recommends an additional $19.0 million to ensure that AMI and ECMI capabilities are available for all 76 B-52 bomber aircraft. The committee urges the Air Force to include full funding in the fiscal year 2009 budget request to support 76 modernized bomber aircraft with 44 combat coded aircraft.

Large aircraft infrared countermeasures system

The budget request included $73.7 million in Aircraft Procurement, Air Force (APAF, line 47) for procurement of aircraft installation kits for the large aircraft infrared countermeasures (LAIRCM) system for various C-130 aircraft. The LAIRCM system provides protection against man-portable air defense systems (MANPADS) which are widely available and have been used by terrorists in Operations Enduring Freedom and Iraqi Freedom against both military and commercial aircraft. Additional funding for LAIRCM, including funding for nonrecurring engineering and kit production for Special Operations Command (SOCOM) AC-130 and MC-130 aircraft, is included on the Chief of Staff of the Air Force's unfunded priorities list. The committee recommends an increase of $14.0 million to accelerate LAIRCM upgrades for the SOCOM C-130 aircraft.

C-135 global air traffic management

The budget request included $118.6 million in Aircraft Procurement, Air Force (APAF, line 49) for modifications to the C-135 and KC-135 aircraft, including $103.3 million for the procurement of Global Air Traffic Management (GATM) modifications. The GATM modification includes avionics upgrades, wiring interfaces, and associated preparation activities for added communications, navigation, and surveillance equipment needed for operations in oceanic airspace where there are reduced spacing requirements between aircraft. To accelerate this program, the committee recommends an increase of $9.0 million for procurement of additional KC-135 GATM modifications.

Advanced targeting pod

The budget request included $683.1 million in Aircraft Procurement, Air Force (APAF, line 78) for miscellaneous production charges, including $105.4 million for the procurement of advanced targeting pods (ATPs). Advanced targeting pods provide targeting capability for use with precision guided munitions on fighter, bomber, and attack aircraft. The LITENING ATP is currently in use by both the active and reserve components of the Air Force. The Air Force Chief of Staff included $22.0 million for additional ATPs in his unfunded priorities list. The committee recommends an increase of $49.5 million for the procurement of 33 additional LITENING ATPs.

Joint Air-to-Surface Standoff Missile

The budget request included $201.1 million in Missile Procurement, Air Force (MPAF, line 2) for the Joint Air-to-Surface Standoff Missile (JASSM). The committee notes that the JASSM program has recently suffered a series of four unsuccessful flight tests, covering the first four production lots. In addition, the Air Force notified Congress in April that the JASSM program had suffered a Nunn-McCurdy breach due to cost growth. Press reports quote the Assistant Secretary of the Air Force for Acquisition as saying the program is currently under review and termination is one possible course of action.

The committee recognizes that JASSM was designed to meet a needed capability. However, increasing production from 163 missiles in fiscal year 2007 to 210 missiles in fiscal year 2008 appears unwarranted given the program's current difficulties.

The committee recommends a reduction of $40.0 million in MPAF for the JASSM.

Advanced Extremely High Frequency satellite

The budget request included $0.7 million in Missile Procurement, Air Force for the Advanced Extremely High Frequency (AEHF) satellite. The committee recommends an increase of $125.0 million for advanced procurement for the fourth AEHF satellite.

The AEHF is a satellite that provides secure, survivable anti-jam, anti-scintillation communications for tactical and strategic users. It will provide low, medium, and high data rate capability to all military services and defense agencies. It is the successor satellite system to the Milstar system, but provides 10 times more capacity. The first AEHF launch is on schedule for the third quarter of fiscal year 2008, with follow launches in 2009 and 2010.

In 2002, the Air Force decided that new technology, particularly laser communications, would provide greater communications capability and established the Transformational Satellite Communications system (TSAT) as a successor to AEHF. Originally the first TSAT was going to replace the fourth AEHF satellite and launch in 2012. As a result of schedule, technical, and other issues the TSAT program has been delayed with a first launch now scheduled for the first quarter of fiscal year 2016. The fourth AEHF was to have launched in 2011.

With the slip in TSAT there is a gap in projected communications capability that is worrisome. General Cartwright, Commander of United States Strategic Command testified before the Subcommittee on Strategic Forces that `the constellation of satellites is critical to us. We cannot afford a gap in that capability.' The Government Accountability Office (GAO) has recommended a fourth AEHF as a way to mitigate the risk of the communications gap.

The committee notes that in the AEHF program, as in several other space modernization programs, early termination of one program in favor of a new, technically complex replacement program could increase the risk that gaps in capability might arise when there are delays in the new program. While the committee fully supports the TSAT program and the significant improvements in capabilities that it provides, including communications on the move, the committee believes that it is prudent to procure a fourth AEHF to mitigate the risk of subsequent delays in TSAT, which would result in increasingly significant communications gaps.

The committee also directs the Air Force to fund TSAT fully to minimize any further gaps resulting from future TSAT program delays. Delays will surely occur for a variety of reasons that are unknown at this time and the Air Force should avoid deliberate programmatic delays. The committee is not aware of any satellite program that launched on the schedule and budget in place 8 years prior to the first launch.

Joint threat emitter

The budget request included $9.5 million in Other Procurement, Air Force (OPAF, line 28) for the joint threat emitter (JTE) program. This Air Force program provides a state-of-the-art surface-to-air missile (SAM) threat simulation incorporating commercial technology into a modular architecture to maximize diverse capabilities and configurations for joint aircrew training. A transportable, single reprogrammable unit provides multiple (up to three) threat presentations, realistic aircraft tracking simulation, and video feedback debrief functions. JTE is designed to reduce range operations and maintenance requirements up to 80 percent as compared to previous systems. The committee recommends an increase of $8.0 million for JTE procurement to allow the Air Force to deploy JTE systems at additional training sites.

Space-Based Infrared Satellite system mission control station backup

The budget request included $4.0 million in Other Procurement, Air Force (OPAF) line 36 for Space-Based Infrared Satellite (SBIRS) system ground control mobile and fixed site communications and electronics upgrades. The committee recommends an additional $27.6 million for the SBIRS backup mission control ground station. This additional funding is needed to provide the backup ground station with capabilities compatible with both the legacy missile warning satellites and both SBIRS elements. This item is listed on the Air Force Space Command unfunded priority list.

Self-deploying infrared streamer

The budget request included no funding in Other Procurement, Air Force (OPAF) for personal safety and rescue equipment items less than $5.0 million. The self-deploying infrared streamer (SDIRS) system aids in the rescue of downed aircrew at sea. The SDIRS system is attached to an ejection seat and automatically deploys and activates upon submergence in the water, making the wearer highly visible to search and rescue teams using the naked eye during daylight and night vision equipment during hours of darkness. The SDIRS installation requires only minimal modification to the existing system without affecting other components of the pilot's survival kit.

The committee recommends an increase of $2.5 million for procurement of the self-deploying infrared streamer.

BUDGET ITEMS--DEFENSE-WIDE

Defense Information Systems Network enhancement

The budget request included $48.9 million in Procurement, Defense-wide (PDW), line 18 for Defense Information System Network related procurement. The committee notes that high bandwidth connectivity provides military users with enhanced capabilities for data, voice, and video communications. These capabilities enable military organizations to better support deployed forces and other Department of Defense activities. The committee recommends an additional $14.0 million for enhancements to the Defense Information System Network, especially to increase network geographic diversity and alternative data pathways.

CV-22 procurement

The fiscal year 2008 budget request included $238.6 million in Procurement Defense-wide (PDW) for Special Operations Command aviation programs for the CV-22 Special Operations Forces modifications. The Navy has been slow to obligate funds for the aircraft. Therefore, $8.7 million will not be required in fiscal year 2008 to fund procurement for the modifications.

The committee recommends a decrease of $8.7 million in PDW for Special Operations Command aviation programs for the CV-22 Special Operations Forces modifications.

M291 skin decontamination kit

The budget request included $28.6 million in Procurement, Defense-wide (PDW) for chemical and biological decontamination equipment, of which $13.0 million is to procure M291 Skin Decontamination Kits (SDK) for high threat areas. The committee recommends an increase of $14.0 million in PDW to procure additional M291 SDKs. The committee notes that decontamination capabilities are not sufficiently robust, and the additional funding would help to increase the primary personal decontamination system for U.S. forces, pending approval by the Food and Drug Administration of the follow-on skin decontamination system.

Collectively protected deployable medical system

The budget request included $38.9 million in Procurement, Defense-wide (PDW) for procurement of collective protection equipment to protect U.S. forces from chemical and biological warfare agents. Of this amount, $3.5 million is for procurement of collectively protected field hospitals, including the Army's Collectively Protected Deployable Medical system (CP DEPMEDS). The committee recommends an increase of $1.5 million for procurement of an additional Army CP DEPMEDS unit. These systems fill a collective protection capability requirement to sustain medical operations in a chemical and biological contaminated environment for 72 hours.

Automatic chemical agent detector and alarm

The budget request included $211.3 million in Procurement, Defense-wide (PDW) for contamination avoidance equipment to support the procurement of chemical and biological detection, warning and reporting, and reconnaissance systems, such as the M-22 Automatic Chemical Agent Detector and Alarm (ACADA). The committee recommends an increase of $20.0 million in PDW to meet procurement shortfalls in fielding ACADA systems. The committee notes that a number of Army National Guard units are deployed in support of military operations, but do not have adequate chemical agent detection and warning equipment. These units must have the best available equipment for defense against chemical warfare threats. Additional ACADA procurement will provide this needed equipment.

Improved chemical agent monitor

The budget request included $211.3 million in Procurement, Defense-wide (PDW) for chemical and biological contamination avoidance equipment, but included no funding for the Improved Chemical Agent Monitor (ICAM). The committee recommends an increase of $10.0 million in PDW for procurement of additional ICAM units, to increase the Army National Guard's chemical contamination avoidance capabilities.

The ICAM is a hand-held, soldier operated, post-attack device that provides a means of quickly detecting the presence of chemical agent contamination on personnel and equipment. The committee notes that Army National Guard units do not all possess the capability to rapidly and effectively detect the presence of chemical agents. These units must have the best available force protection equipment to detect the presence of chemical threats.

Joint biological point detection system

The budget request included $211.3 million in Procurement, Defense-wide (PDW) for chemical and biological contamination avoidance equipment, including $77.8 million for the Joint Biological Point Detection system (JBPDS). The JBPDS provides continuous, rapid, and fully automated collection, detection, and identification of biological warfare agents. It is configured for a variety of service operating platforms and environments. The committee recommends an increase of $4.0 million in PDW for procurement of additional JBPDS units, which are high-demand, low-density systems.

ITEMS OF SPECIAL INTEREST

C-5 Reliability Enhancement Re-engining Program

The 2005 Mobility Capability Study (MCS), submitted with the fiscal year 2007 President's budget request, determined that the Department of Defense requires 292 to 383 large aircraft to meet the strategic airlift requirements of the National Military Strategy (NMS). The quantity and mix of aircraft planned for the strategic airlift fleet reflects: (i) the Department's tolerance for risk associated with accomplishing the strategic airlift mission; (ii) the Department's plan to augment organic airlift assets with commercial assets to meet peak airlift demands; and (iii) the Department's determination of the mix and utilization of large aircraft that would most affordably accomplish the anticipated strategic lift missions.

The MCS concluded that a strategic airlift force of 112 modernized C-5 aircraft plus 180 C-17 aircraft would meet the NMS requirements with acceptable risk. The 2006 MCS update, submitted with the fiscal year 2008 President's budget request, further verified that the current program plan for 301 strategic airlift aircraft (111 modernized C-5 aircraft plus 190 C-17 aircraft) would meet the NMS requirements with acceptable risk.

The modernization plan for C-5 aircraft includes the Reliability Enhancement Re-engining Program (RERP), which intends to increase reliability significantly and reduce operating costs for the C-5 fleet. The Air Force's plan to modernize all 111 remaining C-5 aircraft reflects the unique capability and critical capacity contributed by the C-5 fleet to the airlift mission, and the affordability of modernizing C-5 aircraft as compared to procuring new replacement aircraft. The contractor team has completed the RERP modification on one C-5A and two C-5B aircraft. The Air Force plan is to complete operational testing on these three aircraft in fiscal year 2009. The fiscal year 2008 President's budget request included $253.3 million in procurement funding for the first lot of low rate initial production RERP aircraft. The program of record would complete the final C-5 RERP in 2021.

The committee is aware that the Department is reviewing C-5 RERP cost performance to determine whether it will incur a Nunn-McCurdy breach. Since C-5 RERP is a critical element of all force planning scenarios under consideration, inability by the Department to control C-5 RERP cost increases the risk associated with the U.S. Transportation Command's ability to meet U.S. objectives in a national emergency. The committee is concerned by the apparent cost growth on the program and the implications of this cost growth to airlift capability. The Air Force's reaction to these potential cost increases appears to be focused on revisiting the `business case' for whether to modernize C-5A aircraft or replace them. It is not clear to the committee whether the Department has formulated an effective strategy for restoring affordability to the critical program.

In view of these concerns, the committee directs the Secretary of the Air Force to submit a report on C-5 RERP within 30 days of enactment of this Act. The report shall: provide a current assessment of C-5 RERP qualification testing; estimate projected in-service performance of C-5 aircraft with the RERP modification; and outline the current estimated program costs, the causes for cost growth, and the Air Force's strategy to employ lessons learned with the developmental RERP aircraft to reduce cost risk for RERP production.

DDG-51 Arleigh Burke class destroyer modernization program

The Secretary of the Navy's fiscal year 2007 report to Congress on the long-range plan for construction of naval vessels identified the requirement to operate the 62-ship DDG-51 class for a full 35-year service life in order to meet the Navy's surface combatant force structure requirements. The DDG-51 modernization program, which upgrades the DDG-51 class with key technologies for improved warfighting capability and reduced operating and support cost, is essential to achieving this 35-year expected service life. The Navy plans to accomplish the modernization at the approximate mid-life point for each ship, commencing with USS Arleigh Burke (DDG-51) in 2010. As currently programmed, the 62-ship modernization effort would span approximately 20 years at a cost in excess of $5.0 billion.

The magnitude of this investment, coupled with the criticality of the modernization effort to surface combatant mission effectiveness, warrants a thorough understanding of how the Navy is balancing requirements for system performance, affordability, schedule, competition, quality of life, industrial base factors (including consideration of the building yards, other private yards, and the Navy shipyards), risk, and other priorities in its procurement of the DDG-51 modernization program. Accordingly, the committee directs the Secretary of the Navy to submit a report to the congressional defense committees, with the fiscal year 2009 budget request, outlining the alternative acquisition strategies under consideration for the DDG-51 modernization program. The report shall address the specific factors identified above, the priorities assigned to these factors, and the methodology the Navy is using to optimize the DDG-51 modernization program in accordance with its established priorities.

MQ-1C Predator/Warrior

The budget request included $45.6 million for development and $118.5 million for procurement of an extended range/multi-purpose (ERMP) unmanned aerial vehicle (UAV). This vehicle is a variant of the Air Force MQ-1 Predator A, with 50 percent greater payload and other improvements, such as an automatic takeoff and landing system and a heavy fuel engine. The Air Force has designated the air vehicle as the MQ-1C, and the Army has named it Warrior. The budget request also included $278.0 million in procurement for the MQ-1 Predator for the Air Force.

The Air Force has expressed interest in procuring the Army MQ-1C. The committee directs that the Air Force attempt to change over to MQ-1C production on the existing Predator A production line in fiscal year 2008, if possible. As noted elsewhere in this Report, the MQ-1C's additional payload will allow the Air Force to field better signals intelligence payloads.

The committee notes that the Air Force has proposed that it be designated as the executive agent for medium- and high-altitude UAVs. The Air Force asserts that an executive agency would provide efficiencies in acquisition and airspace control, and ensure interoperability and responsiveness to the joint theater commander. The concern of the Army at this juncture is assuredness of support to ground forces.

The committee does not believe that a service must build and operate its own systems in order to ensure that it is adequately supported. Indeed, the mutual dependencies of each of the specialized military services are clear and numerous. At the same time, the committee is not naive about how hard it can be at times for one service to gain adequate and timely support from the others.

The committee agrees that the Air Force has raised a legitimate issue for the Chairman of the Joint Chiefs of Staff and the Secretary of Defense. However, the committee wants to ensure that all pertinent aspects of the issue are considered. For example, the Air Force emphasizes the benefits of tight integration into the Joint Force Air Component Command (JFAC) structure, but the Army stresses tight coupling into the major elements of its ground and helicopter forces. Another example is the cost savings that the Army will achieve by using enlisted personnel instead of rated-pilot officers to fly the MQ-1Cs. It also appears that the Army may have gained a significantly better Predator than the one the Air Force planned to continue buying, through a competition that might never have occurred under an executive agency.

The committee expects a careful study of the issue of executive agency for UAVs, including different levels of comprehensiveness. In the meantime, the Office of the Secretary of Defense, the Air Force, the Marine Corps, the Navy, and the Army should strive to achieve as much commonality, interoperability, and flexibility as possible between UAV acquisitions.

Mine resistant ambush protected vehicle reporting requirement

The committee directs the Secretary of Defense to submit a report to the congressional defense committees not later than 60 days after enactment of this Act, and every 60 days thereafter until the termination of Operation Iraqi Freedom (OIF), setting forth the respective military services' requirements for all armored tactical and support vehicles, such as the Mine Resistant Ambush Protected (MRAP) vehicle, and the extent to which those requirements have been met. This report shall be submitted as part of the Up-armored High Mobility Multi-purpose Wheeled Vehicle (HMMWV) reporting requirement included in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief for Fiscal Year 2005 (Public Law 109-13).

The committee supports the urgency with which the Department of Defense plans to produce and field the MRAP vehicle. However, there is concern about how the demands of this new production program in addition to the current production of HMMWVs and other tactical and support armored vehicles, will impact the availability of raw materials such as suitable steel. Therefore, the committee directs the Under Secretary of Defense for Acquisition, Technology, and Logistics to provide the congressional defense committees not later than January 31, 2008, and annually thereafter until the termination of OIF, an assessment of the Department's ability to acquire suitable steel to meet its armored vehicle production requirement.

Navy harbor tugs

Since the mid-1980s, the Navy has been decommissioning its aging harbor tug (YTB) fleet at its bases around the world and replacing the YTBs with time-charter contracts with commercial tug boat companies. Competition among tug boat operators for these contracts has been intense. The Military Sealift Command (MSC) has employed contract tug services though the use of performance specifications, commercial procurement practices, and communication with the harbor craft industry to ensure our solicitations and contracts did not impose unnecessary administrative burdens. By requiring commercial firms to provide fully operational tugs, including logistics, maintenance, and management/crewing support, the Navy has been able to reassign military personnel previously operating these Navy tugs.

The Navy's transition from organic to commercial tug services holds the promise of achieving additional savings. The committee encourages the Navy to review the potential for shifting to commercial tug services in areas where the Navy is still operating YTBs.

LPD-17 amphibious transport dock

The budget request for fiscal year 2008 included funding for the ninth ship of the USS San Antonio (LPD-17) class amphibious ship program. The Secretary of the Navy's 2007 report to Congress on the long-range plan for construction of naval vessels calls for a `below threshold' expeditionary warfare force. Specifically, the plan would reduce expeditionary force size, including a reduction in the LPD-17 class from a total of 12 to 9 ships. The committee is concerned that this plan does not provide the total number of amphibious ships needed to support the Department of the Navy's two Marine Expeditionary Brigade lift requirements for forcible entry operations. In testimony before Congress in fiscal years 2005, 2006, and 2007, Marine Corps leadership stated that a class of 10 LPD-17 ships was required to meet Marine Corps forcible entry requirements, with acceptable risk. The Chief of Naval Operations has identified procurement of a tenth LPD-17 ship in 2008 as the Navy's top unfunded priority.

The committee is aware that construction for a tenth LPD-17 ship would not commence until fiscal year 2009, but delaying procurement beyond 2009 would cause significant cost growth and jeopardize industrial base stability by introducing production breaks in the program. Therefore, the committee directs the Secretary of the Navy to submit a report not later than November 1, 2007, that outlines the funding required for a `smart buy' of LPD-26, maintaining continuous, uninterrupted production at critical vendors' and shipbuilders' facilities.

Procurement requests related to increasing the size of the Army and the Marine Corps

The fiscal year 2008 budget submitted by the President in February included `placeholder' line items totaling $4.1 billion in the Army procurement budget and an additional $2.3 billion in the Navy and Marine Corps procurement accounts. These amounts were set aside for increased equipment procurement to support the proposal in the fiscal year 2008 budget to increase the size of the Army and the Marine Corps. On April 3, 2007, the Army submitted a proposed program, project, and activity level allocation of the $4.1 billion in Army funds, together with justification material to support that proposal. Later in April the Marine Corps made a similar unofficial request and provided justification material to support that request. Although neither of these requests were submitted by the administration as budget amendments, the committee has reviewed them and incorporated these proposed allocations in this legislation where warranted. Reductions in the `placeholder' line items, and increases proposed by the services in their detailed proposals to allocate those funds, are reflected in the Army procurement tables and the tables relating to Procurement, Marine Corps and Procurement of Ammunition, Navy and Marine Corps in this report. All such reallocations are designated in the table as relating to `Grow the Force' (GTF).

Shipboard personal locator beacon

In response to the Naval Safety Center's recommendation to improve safety for sailors operating topside while underway, the committee has supported increases to the President's budget request in fiscal years 2006 and 2007 for the procurement of man overboard indicator systems for the fleet. The technology incorporated in such personal locator beacons may potentially provide applications for improved response to damage control, security alert, or other shipboard actions requiring accountability for personnel location and movement. The committee is aware that the Navy is developing state-of-the-art damage control information management systems for coordination of shipboard response to casualties. Personal locator beacon technology could be integrated with this development effort to provide an automated personnel tracking and monitoring capability for improved casualty response. The committee believes that such capability is an intrinsic requirement of the Navy's overarching effort to reduce shipboard manning.

Therefore, the committee directs the Secretary of the Navy to submit a report to the congressional defense committees with the fiscal year 2009 President's budget request that provides the Navy's assessment of: (i) the feasibility of developing an automated personnel location and monitoring system; (ii) the benefits such a system would provide to shipboard operations and safety; (iii) an estimate of the cost to develop and integrate such capability; and (iv) an estimate of the potential reduction to manpower costs or workload provided by such capability.

Strike fighter gap

The committee is concerned that the Department of Defense (DOD) has not adequately studied the potential risks associated with shortages in U.S. strike fighter aircraft over the next decade. Last year, Navy witnesses testified before the committee about a potential gap in strike fighters that might develop toward the end of the next decade, and could reach as high as 50 aircraft. While the uncertainties of the service life of the current F-18s and the production schedules for the future F-35 were mentioned then, the potential gap now under discussion could be as high as 220 Navy aircraft by the middle of the next decade. The Government Accountability Office (GAO) recently released a study entitled `Tactical Aircraft: DOD Needs a Joint Integrated Investment Strategy,' that reached several interesting conclusions. The report concluded that DOD does not have a single, integrated investment plan for recapitalizing and modernizing its tactical air forces, and without a joint, integrated investment strategy, it is difficult to evaluate the efficacy and severity of capability gaps or, alternatively, areas of redundancy. The GAO report additionally asserts, `[l]ooking forward over the next 20 years, the Department's collective tactical aircraft recapitalization plans are likely not affordable as currently planned.'

Under the Department's current plans, the DOD would spend, on average, about $13 billion annually through 2020 developing and purchasing tactical combat aircraft. Over the long-term, that demand for funding will coincide with increases needed to execute other major Air Force and Navy acquisitions, including space systems, cargo aircraft, and surface combatants. In the near-term, it will coincide with the funding needed to `reset' and replace equipment worn out and lost during operations conducted in Iraq and Afghanistan.

To better understand the challenges DOD faces as it modernizes its fleets of tactical combat aircraft, the committee directs the Congressional Budget Office (CBO) to conduct a study of alternative approaches to structuring and investing in our Nation's tactical air forces. The CBO analysis should include alternatives that address shortfalls in the size and composition of tactical aircraft forces relative to the services' current and past stated requirements. CBO should also develop other alternatives that, while not necessarily satisfying all current requirements, could require less funding to execute than the Department's current plans. Such options should include, but not be limited to, the potential for unmanned air systems to bridge part of the looming gap in strike fighter capability. CBO should provide the committee with a briefing describing interim results by April 2008, and a final report no later than October 2008.

To Top

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

Explanation of tables

The following tables provide the program-level detailed guidance for the funding authorized in title II of this Act. The tables also display the funding requested by the administration in the fiscal year 2008 budget request for research, development, test, and evaluation programs, and indicate those programs for which the committee either increased or decreased the requested amounts. As in the past, the Department of Defense may not exceed the authorized amounts (as set forth in the tables or, if unchanged from the administration request, as set forth in budget justification documents of the Department of Defense), without a reprogramming action in accordance with established procedures. Unless noted in this report, funding changes to the budget request are made without prejudice.

Insert graphic folio 175 here 35737.088

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS

Advanced Sensor Applications Program (sec. 211)

Section 211 would require that $20.0 million in funds authorized and appropriated for the Foreign Material Acquisition and Exploitation program and for activities of the Office of Special Technology in the Office of the Under Secretary of Defense for Intelligence shall be allocated to the Advanced Sensor Applications program (ASAP). Section 211 also would require that the ASAP program be promptly transferred to the Defense Threat Reduction Agency and executed by the Navy's Program Executive Officer for Aviation. Additional information is contained in the classified annex to this report.

Active protection systems (sec. 212)

The committee recommends a provision to accelerate the development and evaluation of active protection systems (APS), enabling accelerated deployment if APS is determined to be the most effective counter to current and emerging direct- and top-attack threats. The committee notes that these systems have the potential to deal with the threat of anti-tank guided munitions, rocket propelled grenades, kinetic energy rounds, and other emerging and proliferating threats. The committee is aware that the Department of Defense has undertaken and is currently investing in a number of research and development programs for APS. The committee notes that the recent independent assessment of APS, as required by section 234 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), made a number of specific recommendations that would serve to enhance the Department's efforts to deploy these systems.

The committee's recommended provision includes a number of these recommendations, including a requirement for a comparative live fire test of appropriate active protection systems; an assessment of current and developing foreign and domestic active protection systems to assess technologies and analyze the operational impact on military forces of the deployment of APS and countermeasures to those systems; and a number of funding increases to accelerate the fielding of the systems to United States forces. These funding increases are described elsewhere in this report.

Obligation and expenditure of funds for competitive procurement of propulsion system for the Joint Strike Fighter (sec. 213)

The committee recommends a provision that would require the Secretary of Defense to obligate sufficient annual amounts to develop and procure a competitive propulsion system for the Joint Strike Fighter (JSF) program, in order to conduct a competitive propulsion source selection, from funds appropriated pursuant to an authorization of appropriations or otherwise made available for research, development, test, and evaluation, and procurement for the JSF program. The committee notes that current plans for the competitive JSF propulsion system would complete the development of the competitive propulsion system so that a competition for the JSF propulsion system would occur in fiscal year 2012 with the sixth lot of low-rate initial production.

The budget request contained $1.7 billion in PE 64800N, and $1.8 billion in PE 64800F for development of the JSF, but contained no funds for development of a competitive JSF propulsion system.

The competitive JSF propulsion system program is developing the F136 engine, which would provide a competitive alternative to the current baseline F135 engine. Section 211 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) required that, by March 15, 2007, the Secretary of Defense, acting through the Department of Defense Cost Analysis Improvement Group, the Comptroller General, and a federally funded research and development center, each provide an independent life cycle cost analysis of the JSF propulsion system, which would include a competitive engine program. The committee has been briefed on the results of these reviews and believes those results were, in the aggregate, inconclusive on whether there would be a financial benefit to the Department of Defense in continuing to develop a competitive propulsion system for the JSF program.

However, the committee notes that all studies identified significant non-financial factors of a two-engine competitive program that should be considered in deciding between the alternatives. These factors include: better engine performance; improved contractor responsiveness; a more robust industrial base; increased engine reliability; and improved operational readiness. The committee believes that the potential benefits from the non-financial factors favor continuing the JSF competitive propulsion system program. Therefore, the committee recommends an increase of $480.0 million for this purpose, including $240.0 million in PE 64800N, and $240.0 million in PE 64800F.

SUBTITLE C--MISSILE DEFENSE PROGRAMS

LIMITATION ON AVAILABILITY OF FUNDS FOR PROCUREMENT, CONSTRUCTION, AND DEPLOYMENT OF MISSILE DEFENSES IN EUROPE (SEC. 231)

The committee recommends a provision that would limit the availability of funds authorized to be appropriated in this Act from being obligated or expended for procurement, site activation, construction, preparation of equipment for, or deployment of a long-range missile defense system in Europe until two conditions have been met: (1) the governments of the countries in which major components of the missile defense system (including interceptors and associated radars) are proposed to be deployed have each given final approval to any missile defense agreements negotiated between such governments and the United States concerning the proposed deployment of such components in their countries; and (2) 45 days have elapsed following the receipt by Congress of a report required by the provision.

The provision would also limit funds for the acquisition or deployment of operational interceptor missiles for the proposed long-range missile defense system in Europe until the Secretary of Defense certifies to Congress, after receiving the views of the Director of Operational Test and Evaluation, that the proposed interceptor to be deployed as part of such a missile defense system has demonstrated, through successful, operationally realistic flight testing, that it has a high probability of working in an operationally effective manner.

The provision would also require a federally funded research and development center (FFRDC) to conduct an independent assessment of options for missile defense of Europe. The assessment would consider the ballistic missile threat to Europe, particularly from Iran, including short-range, medium-range, intermediate-range, and long-range missiles, and would consider a number of related issues, technologies, and factors. The FFRDC would be required to provide the results of its assessment, including any findings and recommendations, in an unclassified report not later than 180 days after the enactment of this Act.

The provision makes clear that it would not limit continuing obligation and expenditure of funds for missile defense, including for research and development and for other activities not otherwise limited by the provision. This would include site surveys, studies, analysis, and planning and design for the proposed missile defense deployment in Europe.

The administration requested $310.4 million in the budget request for planning, design, development, construction and deployment activities for 10 Ground-based Interceptors (GBIs) to be deployed in Poland, and a large X-band radar to be deployed in the Czech Republic. The committee believes that construction and deployment activities are premature for the reasons explained below.

The two-stage interceptor proposed for deployment in Europe has not yet been developed or tested, and is not currently planned to be flight-tested until 2010. It could be several years before it is known if the interceptor will work in an operationally effective manner.

The United States is just beginning to negotiate with the Governments of Poland and the Czech Republic on detailed agreements for the proposed deployments in their nations. These negotiations may not be concluded before the end of this year, and then would have to be ratified by the parliaments in each nation. The Missile Defense Agency has estimated that such ratification would not take place before 2009. Construction and deployment would not begin before such ratification.

The budget request seeks funds to deploy up to 10 GBIs at a third deployment site, either in Europe or at Fort Greely, Alaska. The budget request anticipates the possibility of not deploying the interceptors in Europe, and both deployment options are under consideration.

The proposed European deployment would not defend all of the North Atlantic Treaty Organization (NATO) European territory. Additional missile defense systems, such as those described below, would be needed to provide coverage of all NATO European territory against all ranges of Iranian ballistic missiles. NATO, which has not yet decided to pursue missile defense of its territory, has not endorsed or rejected the proposed deployment.

The proposed deployment is intended to counter a potential future threat to the United States or Europe from Iranian long-range or intermediate-range ballistic missiles armed with nuclear warheads. There is uncertainty about whether Iran will have such long-range missiles, or nuclear warheads that could work on such missiles, by 2015.

However, there is no doubt that Iran currently has the largest inventory of short-range and medium-range ballistic missiles in the Middle East, and is working to increase their number, range, and capability. It is also clear that forward-deployed U.S. forces and some NATO allies are currently within range of those missiles, and that the United States does not have adequate regional missile defense capability in place today to protect our forward-deployed forces.

There are a number of near-term missile defense options to provide such defenses against short-range and medium-range missiles (and future intermediate-range missiles), including the Patriot PAC-3 system, the Aegis Ballistic Missile Defense (BMD) system and its Standard Missile-3 (SM-3) interceptor, and the Terminal High Altitude Area Defense (THAAD) system.

General James Cartwright, the Commander of U.S. Strategic Command, who has operational responsibility for global integrated missile defense, testified to the committee that his missile defense focus this year is to expand `beyond long-range intercontinental ballistic missiles to start to address those that hold at threat our forward deployed forces, or allies and our friends. Those are more in the short and medium-range ballistic missiles, things that Patriot, Standard Missile-2 and [Standard Missile]-3 will be able to address, and THAAD as it comes on.' All such options should be considered as Congress makes decisions on what missile defense capabilities are appropriate for Europe.

The current Ground-based Midcourse Defense (GMD) system deployed in the United States already has the range to provide defense of the United States against a potential future long-range missile threat from Iran.

Russia has expressed strong concerns about the proposed deployment, and it will take time to work through these issues in a manner that ensures improved security, rather than reduced security in Europe. The administration is planning high-level talks with the Russian Government starting in the fall of 2007.

The proposed European missile defense deployments would cost an estimated $4.0 billion through fiscal year 2013, all of which the United States would be expected to pay.

Given these considerations, the committee believes that it is premature to authorize the appropriation of funds for construction or deployment of the proposed system without conditions. The committee notes that fiscal year 2008 research, development, test and evaluation funds authorized and appropriated for this proposed deployment would remain available for two years, during which time negotiations and development activities could move forward.

As discussed elsewhere in this report, the committee recommends a reduction of $85.0 million proposed for site activation and construction activities for the proposed European GMD deployment.

Limitation on availability of funds for deployment of missile defense interceptors in Alaska (sec. 232)

The committee recommends a provision that would limit the availability of funds authorized to be appropriated in this Act from being obligated for the deployment of more than 40 Ground-based Interceptors at Fort Greely, Alaska, until the Secretary of Defense certifies to Congress, after receiving the views of the Director of Operational Test and Evaluation, that the Block 2006 Ground-based Midcourse Defense (GMD) element of the Ballistic Missile Defense system (BMDS) has demonstrated, through operationally realistic end-to-end flight testing, that it has a high probability of working in an operationally effective manner.

The committee notes that section 234 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) required the Director of Operational Test and Evaluation to provide to the Secretary of Defense and to Congress an assessment of the operational capability of each block of the BMDS, starting with the 2006 block, at the completion of test and evaluation for each block. This assessment will be available well before any additional interceptors would be ready to deploy in Alaska. If the Department of Defense decides it wants to deploy additional interceptors at Fort Greely beyond the 40 already planned, it would have to certify that the Block 2006 GMD system is operationally effective. If the system is not operationally effective, then it would not make sense to deploy more interceptors.

Budget and acquisition requirements for Missile Defense Agency activities (sec. 233)

The committee recommends a provision that would require the Missile Defense Agency (MDA) to submit its annual budget request, starting in fiscal year 2009, using all of the major categories of funding: research, development, test and evaluation (RDT&E); procurement; operation and maintenance; and military construction. The provision would also establish acquisition objectives for MDA to improve transparency, accountability, and oversight of its budget and programs. To accomplish these objectives, the provision would establish a number of specific acquisition improvements, including acquisition baselines for cost, schedule, and performance for those missile defense elements that have either entered the equivalent of the System Development and Demonstration phase of acquisition, or are being produced and fielded for operational use.

The extraordinary flexibility granted to the MDA to use exclusively RDT&E funds for all its activities, including such non-RDT&E activities as procurement, operation and maintenance, and military construction, was sought and granted in order to permit MDA to implement the President's December 2002 decision to deploy an initial missile defense system for the United States within 2 years, and without any of the normal acquisition or testing rules that apply to all other major defense acquisition programs. Now that the system has been developed and deployed, the rationale for this extraordinary flexibility, and the resultant lack of accountability, has expired.

As the Government Accountability Office (GAO) reported in March 2007, the extraordinary acquisition flexibility granted to the MDA has resulted in a lack of accountability, transparency, and oversight, such that it is not possible for GAO to determine the cost of a 2-year block of work performed on the Ballistic Missile Defense (BMD) system, nor to determine the unit cost for such a fundamental item as the Ground-Based Interceptor (GBI) of the Ground-based Midcourse Defense (GMD) element.

After studying the MDA acquisition program and process, GAO concluded that there were a number of improvements that MDA should make. GAO recommended several steps designed to improve accountability, transparency, and oversight of the BMD program, including that MDA should use procurement funding for missile defense elements that are in the equivalent of the System Development and Demonstration phase, or are being fielded for operational use. GAO also recommended that MDA should establish acquisition baselines for cost, schedule, and performance for these elements, and that it should provide unit cost data, and other information that would help improve accountability. The committee agrees with the GAO recommendations and believes that MDA should make significant progress in accomplishing these objectives.

Participation of Director, Operational Test and Evaluation, in missile defense test and evaluation activities (sec. 234)

The committee recommends a provision that would provide authorities for the Director of Operational Test and Evaluation to have the same access to information concerning ballistic missile defense test and evaluation activities that exists for test and evaluation information for all other major defense acquisition programs under section 139 of title 10, United States Code.

The committee commends the Missile Defense Agency and the Director of Operational Test and Evaluation for establishing a constructive and cooperative relationship. This provision is intended to ensure that this important and necessary cooperation continues in the future.

Extension of Comptroller General assessments of ballistic missile defense programs (sec. 235)

The committee recommends a provision that would extend by 5 years the period during which the General Accountability Office (GAO) would continue to assess and report to Congress annually on the progress of the Missile Defense Agency to meet its annual goals for cost, schedule, testing, and performance of the ballistic missile defense system.

The committee has found the previous GAO annual assessments and reports to be valuable sources of oversight and insight into the ballistic missile defense program. This provision would ensure that such valuable assessments would continue for the period of the current future-years defense program.

SUBTITLE D--OTHER MATTERS

Modification of notice and wait requirement for obligation of funds for the foreign comparative test program (sec. 251)

The committee recommends a provision that would enhance the efficiency of the Foreign Comparative Test program by modifying the congressional reporting requirement associated with the program, so that obligation of funds can occur after Congress reviews the program's intended action for 7 days. The committee understands that Congress has never utilized its current statutorily mandated 30 day review period to change a Foreign Comparative Test funding recommendation. This proposed change to the statute will expedite the execution of the Foreign Comparative Testing program, allowing contracting officers to enter into negotiations with potential vendors earlier and funds to be obligated and expended more quickly.

Modification of cost sharing requirement for Technology Transition Initiative (sec. 252)

The committee recommends a provision that would give the Department of Defense more flexibility in its execution of the Technology Transition Initiative, but would remove restrictions on the types of cost sharing arrangements allowed between a service or agency and the initiative manager in funding technology transition projects. The committee notes that this program, originally established by the committee in the National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314) has successfully transitioned a number of technologies from the Department's science and technology programs into fielded systems.

The committee notes that the Department has expressed concern that the current statute requires the Office of the Secretary of Defense through the initiative manager to provide no less than 50 percent of funds towards a transition project, with the balance coming from the sponsoring service or agency. This has restricted the number of projects that the program could support and on occasion prevented the sponsoring service or agency from contributing more funding to the projects. The committee's recommended proposal would allow the initiative manager complete flexibility in determining the appropriate cost sharing arrangement for each technology transition initiative project.

Strategic plan for the Manufacturing Technology Program (sec. 253)

The committee recommends a provision that would require the Secretary of Defense to develop and publish a biennial strategic plan for the manufacturing technology program. The committee notes that advanced manufacturing technologies are the key to a vital defense industrial base, as well as a support for United States economic competitiveness. The manufacturing technology program has traditionally been the activity through which the Department of Defense has pursued defense-related manufacturing technologies that serve to improve the performance and reduce the life cycle costs of defense systems. The committee commends the Department for attempting to expand the scope and reach of the program, through the creation of the Joint Defense Manufacturing Technology Panel, the utilization of manufacturing readiness assessments as metrics on acquisition programs, and the establishment of a manufacturing science and technology initiative.

The committee notes that the 2006 Defense Science Board Task Force on the Manufacturing Technology Program recommended that the Department `must not only publish a strategic plan, but also ensure its implementation with periodic reviews of the plan's execution.' The committee provision would implement the DSB's recommendation. The committee encourages the Secretary to consider the other strategic planning recommendations of the DSB task force described in their report.

Modification of authorities on coordination of Defense Experimental Program to Stimulate Competitive Research with similar Federal programs (sec. 254)

The committee recommends a provision that would give the Department of Defense more flexibility in its execution of the Defense Experimental Program to Stimulate Competitive Research (DEPSCoR) program. The provision would enable the Department to award merit-based grants and other support under the program's authority directly to entities in participating DEPSCoR states, or by using the existing mechanism of awarding contracts through state planning committees.

The committee notes that the DEPSCoR program funds defense-related research in eligible states where educational institutions historically performed less well in full and open competitions, with the intent of enabling them to become more successful in merit-based competitions. The committee notes that the Department plans to terminate its support for the program in fiscal year 2010, due to an inability to identify any DEPSCoR award `which led to any application used by, or supportive of, the warfighter,' due to resource constraints on science and technology programs and due to the need to provide more resources for the activities of the National Defense Education Program (NDEP). The Department has indicated that it intends to work with researchers in DEPSCoR states through NDEP.

The committee believes that the flexibility provided by this provision will enable the Department to better utilize DEPSCoR funding to support warfighter needs, including potentially supporting educational activities, while still preserving the important role of state planning committees to coordinate activities with other similar federal programs and state-based efforts where appropriate.

Enhancement of defense nanotechnology research and development program (sec. 255)

The committee recommends a provision to assist in the acceleration of the development, integration, and fielding of appropriate nanotechnology-based capabilities in defense systems. This recommendation is consistent with a series of actions taken by Congress over the past few years to highlight the importance that the growing nanotechnology research area can help both our national security and global competitiveness. Previously, with the intent to ensure that the United States had global superiority in nanotechnology necessary for meeting national security requirements, the committee established the defense nanotechnology research program in section 246 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314), which this provision updates and enhances. Later, Congress also passed the 21st Century Nanotechnology Research and Development Act (Public Law 108-153) to coordinate Federal Government investments and activities related to nanotechnology.

The committee notes that the Department of Defense has invested roughly $2.0 billion in nanotechnology research and development since fiscal year 2000. These investments have been in areas such as advanced sensors, structural materials, and electronic systems based on the unique properties enabled by nanotechnology. The Department has also established a number of nanotechnology-focused research centers, including the Institute for Nanoscience at the Naval Research Laboratory and the Army's Institute for Soldier Nanotechnologies. These investments are developing technologies that will soon be integrated into deployed systems, and enable advanced capabilities that will enhance our forces' battlefield superiority.

The committee believes that nanotechnology is at the stage where the Department needs to focus more on transitioning technologies to demonstrate the return of the significant research investment made thus far. Therefore, the committee's provision directs the Department to focus more closely on the manufacturing of nanotechnologies and ensuring the vitality of the nanotechnology industrial base, since these are key to adoption of new technologies in defense systems. The committee notes that the Department should conduct state-of-the art research on nanomanufacturing involving collaborations between academic institutions, Department of Defense laboratories, and industry partners, as well as working through the Department's manufacturing technology programs. Further, the committee notes that there would be significant value in collaborating with National Science Foundation centers working on nanomanufacturing and working toward a national nanomanufacturing enterprise that encourages extensive industrial collaboration, in order to maintain United States global leadership.

The committee's recommended provision also strengthens the connection between Department nanotechnology efforts and the Government-wide National Nanotechnology Initiative, by requiring participation in coordination activities, as well as in participation in and support of the mandatory external reviews of the program. The committee also recognizes the need for metrics and goals to ensure that the Department's nanotechnology program is well structured and successfully developing needed defense technologies. Therefore, the committee recommends a review by the Government Accountability Office of the overall Department nanotechnology program.

Finally, the committee is concerned that the United States may be losing its lead in the development of defense nanotechnologies to international competitors and partners. Therefore, the committee's recommended provision strengthens the monitoring and assessment of international nanotechnology research and development capabilities in areas of interest to the Department of Defense.

BUDGET ITEMS

ARMY

Army basic research

The budget request included $137.7 million in PE 61102A for defense research sciences. The committee notes that the National Research Council's 2005 `Rising Above the Gathering Storm' report highlighted the important role that basic research funding plays in areas like global competitiveness and national security. The report noted that with respect to basic research funding ` . . . the Department of Defense research picture is particularly troubling in this regard.' It went on to note that the Department of Defense funds 40 percent of the engineering research performed at universities, including more than half of all research in electrical and mechanical engineering and 17 percent of basic research in mathematics and computer science.

The committee supports increasing investments in basic research typically performed at universities to develop next generation military operational capabilities. The committee recommends increases of: $2.0 million for research on the development of vaccines to combat respiratory infections; $1.0 million for research on organic semiconductor materials for use in military flexible electronics; and $1.5 million for research on nanomaterials that can speed the de-icing of Army rotary wing vehicles.

University research initiatives

The budget request included $64.8 million in PE 61103A for Army university research initiatives. The committee notes that this is down by approximately 20 percent in constant dollars from the fiscal year 2004 request, when the program was originally transferred to the services from the Office of the Secretary of Defense (OSD). The committee notes that all of the service university research initiatives programs are below the original fiscal year 2004 request in constant dollars, despite OSD assurances to Congress that the programs would at least keep pace with inflation.

To continue to preserve the Department of Defense efforts to support the valuable defense research undertaken at universities, the committee recommends an increase of $9.0 million in PE 61103A for Army university research initiatives, an increase of $9.0 million in PE 61103N for Navy university research initiatives, and an increase of $10.0 million in PE 61103F for Air Force university research initiatives.

Army university research centers

The budget request included $84.0 million in PE 61104A for university and industry research centers. The committee notes that basic research investments by the Army serve the dual purpose of developing next generation military capabilities through the exploration of fundamental scientific issues, as well as training the next generation of scientists, engineers, and technology entrepreneurs at our nation's academic institutions. The committee also notes that the National Research Council's committee on Department of Defense Basic Research recommended that the Department `should redress the imbalance between its current basic research allocation, which has declined critically over the past decade, and its need to better support the expanded areas of technology, the need for increased unfettered basic research, and the support of new researchers.' In support of that recommendation, the committee recommends a number of increases to the Army basic research program.

The committee recommends increases of: $1.5 million for information assurance research; $2.5 million for nanotechnology-based biosensors to detect biological threats; $3.0 million for military automotive research; $2.0 million for research on wireless optical communications systems; $1.4 million for research on training and simulation in urban terrain; $2.0 million for military network security research; $1.5 million for research on soldier health monitoring systems; $300,000 for nanocomposite transparent armor materials research; $2.0 million for research on nanotechnologies for advanced lightweight armor systems; and $2.0 million for research on the low temperature performance of Army vehicles.

Army materials research

The budget request included $18.6 million in PE 62105A for applied research on materials technologies. The committee notes that the development of modular protective systems for future force assets and the development of vehicle armor technology are two of the official Army Technology Objectives (ATO). This includes the development of `advanced composite materials with properties tailorable for blast and ballistic protection . . . ' Therefore, the committee recommends an additional $2.0 million for the development of composite armor materials for Future Combat Systems (FCS) vehicles and an additional $3.0 million for research on advanced composite materials for Army air and ground vehicles. The Army's soldier protection technologies ATO focuses on the development of innovative materials for improved individual armor systems. Therefore, the committee recommends an additional $2.0 million for development of armor for soldier torso and extremity protection, and an additional $4.0 million for the development of lightweight armor systems designed to reduce casualties due to improvised explosive device blast effects.

The committee notes that the interagency National Nanotechnology Initiative has identified nanomanufacturing as one of its program component areas of emphasis. The Director of Defense Research and Engineering, in a May 2006 report to Congress entitled `Defense Nanotechnology Research and Development,' indicated that increased support of nanomanufacturing was recommended `in order to facilitate transitioning and the sustained supply of research results for defense technologies.' Therefore, the committee recommends an additional $2.0 million for the development of advanced nanomanufacturing capabilities for sensors and other defense needs.

Electronics and space research

The budget request included $39.8 million in PE 62120A for applied research on sensors and electronic survivability. The committee notes that the National Research Council's report `Materials Research to meet 21st Century Defense Needs' highlights the need for continued defense research on electronic microsystems. The report listed fabrication of microsystems for displays as a high priority research area for the Department of Defense. Consistent with this analysis, the committee recommends an increase of $2.0 million for research on advanced microelectronics manufacturing for Army display applications.

The committee understands the Department of Defense's need to track hundreds of moving targets in space or terrestrial environments, including space debris or chemical and biological agents. The committee recommends an additional $2.0 million for research on integrated remote sensing technologies.

The committee established the Joint Program Office for Operationally Responsive Space in the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) with the responsibility to pursue innovative approaches to the development of operationally responsive space capabilities. In coordination with the efforts of that office, the committee recommends an increase of $5.0 million for operationally responsive space research efforts.

Materials for insensitive munitions

The budget request included $53.0 million in PE 62303A for applied research on missile technology. The Army's Insensitive Munitions Technology Objective seeks to develop energetic materials and system-level innovations to maintain and improve munitions safety at lower weight and cost. The committee also notes that the Office of the Secretary of Defense has initiated new research efforts specifically aimed at improving capabilities in insensitive munitions. In support of these efforts, the committee recommends an additional $2.0 million for the development of advanced materials for munitions protection in missile systems.

Sniper detection systems

The budget request included $16.7 million in PE 62308A for advanced concepts and simulation technologies. The committee notes that urgent operational needs statements have called for the development of sniper detection systems for potential use in urban environments. Therefore, the committee recommends an additional $4.0 million for the development of wearable sniper detection systems to aid in localizing sniper fire and mortar launches.

Army vehicle research

The budget request included $53.3 million in PE 62601A for applied research on combat vehicles and automotive technology. The committee notes that research in this area will lead to: enhanced survivability for Army ground vehicles, including against improvised explosive devices and other threats; improved energy efficiency for vehicles--resulting in extended ranges and combat capability, as well as life cycle cost savings; and the development of more capable unmanned systems to extend the reach and capabilities of Army forces, while reducing the risks to soldiers.

The committee notes that the Army is developing a fuel cell strategy that is exploring the use of fuel cells in vehicles in tactical and support missions. In coordination with that effort, the committee recommends an increase of $3.0 million for the development of hydrogen fuel cells for medium and heavy Army vehicles. Consistent with the efforts of the Department of Defense's Energy and Power Technology Initiative to examine the utility of alternative fuels for military platforms, the committee recommends an increase of $2.0 million for research on alternative military fuels.

The Army's Vehicle Armor Technology Objective is developing a comprehensive solution to threats to Future Combat Systems ground vehicles. In coordination with these efforts, as well as similar efforts in the Army's small business innovative research program, the committee recommends an increase of $2.0 million for nanotechnology research to develop transparent armor for Army vehicles.

Recoil mitigation technologies

The budget request included $7.0 million in PE 62623A for the joint service small arms program. The committee notes that the research goal of this program is to develop `new technologies for improved accuracy and greater lethality . . . while reducing the weight of the Soldier's weapon.' To support these efforts, the committee recommends an increase of $2.0 million for research on recoil mitigation technologies which reduce small arms weight while maintaining and improving weapons lethality.

Unmanned ground vehicle weaponization

The budget request included $40.5 million in PE 62624A for weapons and munitions technology. The committee has been supportive of the development of unmanned ground systems to reduce casualties and to enable new operational concepts and capabilities. The committee notes that the Near Autonomous Unmanned Systems Army Technology Objective is developing robotic technologies for future unmanned systems, and working to transition technologies to programs such as Future Combat Systems and the Armed Robotic Vehicle. To support these efforts, the committee recommends an increase of $3.0 million to develop remotely controlled unmanned systems with lethal and non-lethal capabilities.

Army electronics research

The budget request included $43.4 million in PE 62705A for applied research on electronics and electronic devices. The committee notes that all of the services are developing needs for higher frequency and high power systems, as well as systems that operate at higher temperatures. These systems will require the development of semiconductor materials that operate efficiently at these power levels and temperature ranges. Accordingly, the wide-bandgap technology development Defense Technology Objective includes specific technical challenges for the development of new semiconductor materials and devices to meet military missions. In support of these efforts, the committee recommends an increase of $3.0 million for research on high frequency, high power electronic and optoelectronic devices.

The Army's effort to reduce the load on soldiers includes a desire to develop smaller, lightweight battery technologies to power radios, computers, and other man-portable equipment. The Mounted/Dismounted Soldier Power Army Technology Objective addresses these challenges through the development of novel power technologies. In support of those efforts, the committee recommends an increase of $3.0 million for the development of high capacity portable battery technologies.

Standoff explosives detection technologies

The budget request included $21.8 million in PE 62712A for applied research on countermine systems. The committee notes that the standoff detection of explosives is a capability that is of critical concern to the Department of Defense as it seeks to combat the use of improvised explosive devices in Iraq and Afghanistan. The National Research Council's 2004 report entitled `Existing and Potential Standoff Explosives Detection Techniques' recommended that `research into both new sensor types and new systems of real-time integration and decision making is needed.' Therefore, the committee recommends an additional $5.0 million in PE 62712A for the development of standoff explosives detection technologies.

Force protection materials research

The budget request included $23.1 million in PE 62786A for applied research on warfighter technologies. The committee notes that the Army is developing requirements documents that call for the development of advanced modular force protection systems for base camps, which are coming under attack from mortars and improvised explosive devices in Iraq and Afghanistan. The committee also notes that the Army's Modular Protective Systems for Future Force Assets Technology Objective is seeking to develop advanced composite materials with properties tailorable for blast and ballistic protection. To support these efforts, the committee recommends an increase of $5.0 million for research on advanced materials for enhanced ballistic protection of assets.

Unmanned air systems

The budget request included $53.9 million in PE 63003A for aviation advanced technology. The committee is supportive of efforts to explore the use of unmanned systems in a variety of roles and missions on the battlefield, as was indicated in the requirements of section 941 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). To support the development of new capabilities for unmanned systems, the committee recommends an increase of $2.0 million for the development of unmanned systems for the precision delivery of supplies to friendly forces.

In section 220 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398) the committee also established the goal that by 2010, one-third of all operational deep strike force aircraft will be unmanned. Further, the committee notes that the Unmanned Aircraft Systems Roadmap calls for development of weapons optimized for concept of employment from unmanned systems. In order to support this goal, the committee recommends an additional $3.0 million for development of advanced munitions for unmanned air systems.

Army medical research

The budget request included $76.5 million in PE 62787A for applied research on medical technologies. The committee notes that research in this area contributes significantly to the successful treatment of battlefield injuries. The committee recommends a number of increases in this account to address a variety of medical issues resulting from current operations. The committee recommends increases of $1.0 million for advanced battlefield head injury diagnostic tools; $2.0 million for biomechanics research to address head, neck, and chest injuries; $1.5 million for bioengineering research to support combat casualty care missions; and $2.0 million for the development of advanced wound dressings.

Guided airdrop systems

The budget request included $47.1 million in PE 63001A for advanced warfighter technologies. The committee notes that the 82nd Airborne Division recently submitted an operational needs statement for guided airdrop systems. The committee also notes that the Army and United States Joint Forces Command are investing in the Joint Precision Airdrop System to meet urgent needs in Iraq and Afghanistan. In support of those efforts, the committee recommends an additional $2.0 million for research on guided airdrop systems.

Army medical technologies

The budget request included $53.3 million in PE 63002A for advanced medical technologies. The committee recognizes the critical need to advance military medical technologies to address battlefield injuries. The committee has taken a number of steps to advance those efforts, including the establishment of a Department of Defense-wide initiative to prevent, mitigate, and treat blast injuries in section 256 of the National Defense Authorization Act for Fiscal year 2006 (Public Law 109-163). To support these and similar efforts, as well as to support a number of Army Technology Objectives in medical technologies, the committee recommends a number of increases in medical research investments.

The committee notes that improvised explosive devices have created a new set of challenges for medical personnel in dealing with soft tissue and bone damage. The committee recommends an increase of $2.0 million for research on the treatment of combat wounds. To help address the treatment of blast injuries, in coordination with the Blast Mitigation Initiative, the committee recommends an increase of $2.0 million for the development of technologies to efficiently detect blunt trauma injuries, and an increase of $2.0 million for remote vital signs monitoring systems.

The committee recognizes the continuing need to develop advanced lower limb prostheses for battlefield amputees. The committee recommends an additional $3.0 million for the development of advanced lower limb prosthesis technologies.

The committee notes that the Battlefield Treatment of Fractures and Soft Tissue Trauma Care Defense Technology Objective includes a specific challenge to improve tissue viability technologies. In support of this goal, the committee recommends an increase of $3.0 million for research on novel tissue regeneration techniques to treat battlefield injuries. In addition, to support advances in military capabilities to treat battlefield injuries, the committee recommends an additional $2.0 million for the development of advanced technologies to support telesurgery applications in battlefield environments.

Dengue infection research

The budget request included $53.3 million in PE 63002A for advanced medical technology. The committee notes that dengue viruses have proven highly debilitating to U.S. military personnel in a number of past operational deployments, and that the military has long pursued a vaccine against all four types of dengue viruses. The committee also notes that the Joint Requirements Oversight Council has identified the Army as the lead agent to develop capabilities to address the Initial Capabilities Document for Infectious Disease Countermeasures. To support these efforts, the committee recommends an additional $5.0 million in PE 63002A for research on the development of vaccines and therapeutics for dengue infections.

Lightweight cannon recoil technologies

The budget request included $59.4 million in PE 63004A for advanced weapons and munitions technologies. The committee notes that the Army has a goal to reduce the size and weight of weapon systems associated with Future Combat Systems (FCS) to maintain lethality while being rapidly transportable. The committee recommends an additional $1.0 million for the development of technologies to reduce the weight of FCS cannon systems using advanced recoil reduction technologies.

Combat vehicle armor technologies

The budget request included $131.4 million in PE 63005A for advanced combat vehicle and automotive technologies. The Vehicle Armor Technology Army Technology Objective (ATO) seeks to provide comprehensive solutions for Future Combat System (FCS) ground vehicles to address a variety of threats, including mines, rocket propelled grenades, improvised explosive devices, and other ballistic threats. In conjunction with that objective, the Army's long term armoring strategy, and the need for armor technologies to be robust, lightweight, and affordable, the committee recommends a number of increases for armor technologies. The committee recommends an increase of $3.0 million for the development of composite armored cabs, $1.0 million for research on ceramic composite materials for armor, and $4.0 million for development of windshield armor systems.

The committee continues to be concerned about the development of technologies to support force protection missions in Iraq and Afghanistan, including defenses against snipers and rocket propelled grenades. To enhance the force protection capabilities of our deployed forces, the committee recommends an increase of $3.0 million for the development of counter sniper detection systems in coordination with the Defense Advanced Research Projects Agency, and an additional $7.5 million for the development and testing of vehicle-based active protection systems (APS) for use on light tactical vehicles. The committee notes that the recent independent technical assessment of APS indicated that the best possible system `may be based on `best of breed' solutions developed within multiple programs.'

Unmanned ground vehicle initiative

The budget request included $131.4 million in PE 63005A for advanced combat vehicle and automotive technologies. The committee notes that section 220 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398) established a goal that by 2015, one-third of the operational ground combat vehicles acquired through the Army's Future Combat Systems (FCS) program will be unmanned. The committee understands that the Army believes that given current development and fielding schedules for the FCS program, this goal will be met. Significant technical challenges remain in the development of unmanned ground vehicles, including development of propulsion systems, intelligent navigation systems, human-machine interfaces, and reliability. Therefore, the committee recommends an increase of $12.0 million for this initiative.

Combat vehicle energy and power technologies

The budget request included $131.4 million in PE 63005A for advanced combat vehicle and automotive technologies. The committee notes that the Department of Defense's Energy & Power Technology Initiative includes a thrust on energy storage technologies to support hybrid electric vehicle mobility, including research on batteries, fuel cells, and safety issues. The committee also notes that the Army is developing hybrid systems for use on Future Combat Systems vehicles and other vehicle applications. The committee recommends a number of funding increases which will demonstrate the viability of hybrid technologies in military environments and explore the feasibility of deploying hybrid engines for military applications. The committee recommends increases of $10.0 million for a program to develop advanced hybrid vehicle technologies including research on engine technology, power electronics, control technology, and other areas; $4.0 million for advanced solid hydrogen storage technologies for military vehicles; $3.0 million for research on improving the reliability and reducing the cost for fuel cells in military materiel handling equipment applications; and $1.5 million for developing manufacturing processes needed to reduce fuel cell costs to the military.

Combat vehicle reliability and readiness technologies

The budget request included $131.4 million in PE 63005A for advanced combat vehicle and automotive technologies. The Prognostics and Diagnostics for Operational Readiness and Condition-based Maintenance Army Technology Objective has a goal to improve near-term and Future Combat Systems commodity readiness and maintainability through improvements in the capability to detect and predict equipment health status and performance. In coordination with this objective and as part of efforts to improve the readiness of Army forces, the committee recommends an increase of $1.5 million for research on computer models and simulations to better predict military vehicle reliability, and an increase of $3.0 million for the development of test facilities to evaluate advanced combat vehicle power train designs. Further, the committee notes that the Army is planning an initiative to invest in research activities that develop advanced mechanical fastening and joining technologies that will increase vehicle reliability and performance. In support of that effort, the committee recommends an additional $1.5 million for ground vehicle fastening and joining research.

Leadership training simulators

The budget request included $18.7 million in PE 63015A for next generation training and simulation systems. The committee understands that the Army's Learning with Adaptive Simulation and Training Technology Objective is developing virtual training simulations that incorporate political and cultural effects of the environment and behaviors of adaptive enemies. The committee also notes that the Subcommittee on Emerging Threats and Capabilities heard testimony indicating that leadership training that improves cultural awareness will enhance operational performance in the future. To support efforts to improve leadership training of this type, and in conjunction with efforts at the Army's Institute for Collaborative Technologies, the committee recommends an increase of $4.0 million for the development of leadership training models and simulations.

Fuel cells for military applications

The budget request included $6.8 million in PE 63734A for military engineering advanced technology. The committee notes the Department of Defense's efforts to develop technologies to support continuity of operations missions. The committee also notes that under the Department's Energy and Power Technology Initiative, one of the technical challenges in power distribution technologies is the improvement of component and system reliability and availability. In support of these challenges, the committee recommends an increase of $3.0 million for the development of fuel cell systems that support continuity of operations missions.

The committee also notes that the Energy and Power Technology Initiative identified an objective of developing fuel cell portable power systems using methanol as a fuel. In support of that objective, the committee recommends an increase of $3.0 million for the development of direct methanol fuel cells.

Counter rocket, artillery, and mortar radar technologies

The budget request included $67.0 million in PE 63772A for advanced tactical computer science and technology. The committee understands that the Extended Area Protection and Survivability Army Technology Objective (ATO) has a goal to develop concepts and supporting technologies for a system capable of providing extended area protection and distributed survivability from rocket, artillery, and mortar (RAM) threats. To support this effort, the committee recommends an increase of $3.0 million to develop radar systems to support counter RAM missions.

Language translation technologies

The budget request included $67.0 million in PE 63772A for advanced tactical computer science and sensor technology development, $76.3 million in PE 63122D8Z for combating terrorism technology support, and $137.7 million in PE 61102A for defense research sciences. The Subcommittee on Emerging Threats and Capabilities received testimony highlighting the need for the Department of Defense to significantly improve its language translation capabilities for a variety of operational missions--including intelligence analysis and peace and stability operations. Technologies being developed by the Department include speech and text translators, including handheld and bidirectional systems being designed to assist in translating a growing number of target languages. The committee notes that the Defense Science Board recently emphasized the need to advance these capabilities in its recent `21st Century Strategic Technology Vectors' study. To support these efforts, the committee recommends an increase of $3.0 million in PE 63772A to continue the development of handheld translation systems, $2.0 million in PE 63122D8Z for research on Arabic language analyses, and $3.0 million in PE 61102A for research on document exploitation systems to assist intelligence analysts.

Radiation hardening initiative

The budget request included $14.4 million in PE 63305A, Army Missile Defense Systems, but no funds for radiation hardening integration. The committee recommends an increase of $2.0 million for a radiation hardening initiative to improve understanding of radiation transport and effects, modeling and simulation tools, and radiation-hard design approaches. This activity should be closely coordinated with the Joint Radiation Hardened Electronics Oversight Council.

Active protection systems development and integration

The budget request contained $142.5 million in PE 63653A for the advanced tank armament system, which includes funding for the integration of a suitable active protection system (APS) onto Stryker vehicles. The committee notes a recent December 2006 decision to restructure the Future Combat System (FCS) and designate the APS as a key spin out component, with a plan for fielding available systems on Stryker vehicles first. The committee notes that a recent independent assessment has expressed concern over the Army's chosen technological approach to APS and the feasibility of its fielding as planned by 2010.

Given the likely acceleration of a number of threats, the committee supports the acceleration of the best possible protection systems to the current force, including tactical vehicles, and considers this a top force protection priority for the Army. Therefore, the committee directs the Army, in conjunction with the Office of the Secretary of Defense, to closely monitor the development and deployment of foreign and domestic APS, including where appropriate through the establishment of data exchange agreements and joint exercises and demonstrations.

To accelerate the fielding of operationally suitable APS onto Stryker vehicles, the committee recommends an increase of $40.0 million in PE 63653A for technology integration efforts. The committee directs the Secretary of the Army to provide a detailed technical plan and schedule for efforts related to the technological maturation of APS technologies and the integration of APS onto current force vehicles, prior to the obligation of any of these additional authorized funds. Further, the committee directs the Army to include sufficient funding in its future years budget, beginning with the fiscal year 2009 budget, to accomplish the stated goal of integration on Stryker by fiscal year 2010, which may require additional funding for both technological maturation of the APS technologies as well as funding for integration issues.

The budget request included $142.5 million in PE 64660A for FCS manned ground vehicles and common ground vehicle. Given concerns about the maturity of APS currently under development, the committee recommends an increase of $25.0 million in PE 64660A to support the development and testing of APS for FCS manned ground vehicles.

Undersea chemical weapons assessment program

The budget request included $6.1 million in PE 63779A for environmental quality technology, but did not provide any funds for the Undersea Chemical Assessment program. This program will provide a comprehensive definition of risks presented by chemical weapons disposed of by the Department of Defense in selected undersea locations. The committee recommends an increase of $8.0 million in PE 63779A for the Undersea Chemical Assessment program.

Warfighter information network--tactical

The budget request included $222.3 million in PE 63782A for the continued research and development of the Warfighter Information Network--Tactical (WIN-T) program. The committee notes with concern that this program has been troubled for a number of years, culminating in its January 2007 Nunn-McCurdy unit cost breach.

In title I of this Act, the committee has directed the Secretary of the Army to consolidate the joint network node program and the WIN-T program into one single Army tactical network program. The committee believes the Army can incrementally provide WIN-T capabilities to the warfighter in the near-term. However, the committee believes the Army cannot spin into the force these incremental improvements without funding support. Therefore, the committee recommends a $100.0 million increase in funding for WIN-T research, development, test, and evaluation.

The committee also directs the Secretary of the Army, in consultation with the Assistant Secretary of Defense for Networks and Information Integration and the Secretary of the Navy, to report to the committee, no later than 180 days after the enactment of this bill, on whether the Marine Corps should also be part of the single Army tactical network program. The committee is concerned that the two military services are not working in concert on the development of this important and expensive communications technology.

Future medical shelter systems

The budget request included $12.5 million in PE 63807A for advanced development of medical systems. The committee notes that the Army is in the process of evaluating technologies for advanced combat support hospitals. These systems are vitally important for the care of military casualties in theater, as well as for responding to domestic natural disasters. The committee recommends an additional $7.5 million for the next phase of combat support hospital development.

Nickel boron metal coating technology for crew served weapons

The budget request included $18.2 million in PE 63827 for soldier systems advanced development, but no funding for nickel boron metal coating technology for crew served weapons.

Blowing dust and sand as experienced in Iraq and Afghanistan penetrate weapon mechanisms and contribute to accelerated wear rates and reduced reliability. Worse, these conditions can result in weapons jamming in the middle of combat at great risk to the soldiers. Applying lubricious coatings to selected high-wear parts will significantly reduce or eliminate wear, while doing so to the entire weapon system will allow weapons to be operated without lubrication.

Funding is required to complete development and evaluate performance of nickel boron coatings on the M249 Squad Automatic Weapon to minimize the amount of lubricant needed during weapon functioning.

The committee recommends an increase of $5.3 million for that purpose.

Integrated broadcast service

The budget request included $38.2 million for Research, Development, Test, and Evaluation (RDT&E) for the Integrated Broadcast Service program within the Army. This line item funds development of improvements for the Joint Tactical Terminals (JTT) used to receive the broadcast service. The fiscal year 2008 request reflects an increase of $37.1 million over the fiscal year 2007 funding level, and the projected request for fiscal year 2009 falls back to $13.7 million. The large single-year rise apparently reflects a decision by the Office of the Secretary of Defense to almost fully fund in 1 year a series of upgrades to all JTT radios. The committee recommends a reduction of $10.0 million to fund higher priorities because the remaining requirement can be deferred until next year.

Family of heavy tactical vehicles

The budget request included $2.0 million in PE 64622A for Research, Development, Test, and Evaluation (RDT&E), Army for work associated with the family of heavy tactical vehicles, which includes the variants of the heavy expanded mobility tactical truck. This program element will fund the development of the Army's next generation tactical truck, as part of the Army's Tactical Wheeled Vehicle Modernization Strategy. The committee recommends an increase of $5.0 million to fund the RDT&E of oil and thermal management systems. Oil and thermal management systems have proven to extend the life of vehicle engines and other engine components, particularly in vehicles designed for long-haul missions.

Light Tactical Wheeled Vehicles

The budget request included $82.3 million in PE 64642A for technology development for Light Tactical Wheeled Vehicles. Under this account, the Army pursues survivability, mobility, communications, energy and power, and autonomous technology improvements for the High Mobility Multi-purpose Wheeled Vehicle (HMMWV) and the next generation HMMWV, known as the Joint Light Tactical Vehicle (JLTV). The committee recommends an increase of $3.0 million in PE 64642A for fuel cell vehicle propulsion research. This funding will permit the Army to pursue potential advanced fuel cell technologies and applications in the development of the JLTV.

Future combat systems

The budget request included $3.6 billion for the Future Combat Systems (FCS). The committee has been, and continues to be, a strong supporter of Army transformation, and believes that the FCS program is the centerpiece of that transformation.

For many years the committee has expressed concern about the lack of strategic mobility for ground combat forces. This issue was illustrated by the problems the Army faced in projecting forces rapidly into the Balkans during the Kosovo crisis, and also by the length of time required to build up ground combat forces and the required logistical stockpiles for both Operation Desert Storm and Operation Iraqi Freedom. These latter operations were aided to some degree by the availability of pre-positioned equipment and by an adversary who failed to take advantage of the risk to U.S. forces from a slow build-up of combat power by launching a pre-emptive strike. Those conditions may not be present the next time ground combat forces must be quickly inserted into a hostile environment.

While strongly supporting the Army's plan to build the Objective Force, which was the term for the transformed force nearly a decade ago, the committee was admittedly skeptical of the Army plan to buy several brigades of interim armored vehicles. The committee believed at the time that the Army should indeed reorganize a number of its units into lighter, more mobile brigades, but believed that could be accomplished using combat vehicles currently in the inventory, such as the upgraded M113A3 armored personnel carrier. The committee was concerned that the added cost of acquiring `off-the-shelf' interim armored vehicles might eventually put the transformation to a new fleet of modern medium-weight combat vehicles at risk.

Responding to committee concerns, the Army did extensive analyses and comparative testing, and reconfirmed its decision, backed by the Secretary of Defense, to build new Interim Brigade Combat Teams with a new family of vehicles--the Strykers.

The committee notes that the Stryker Brigade Combat Teams (SBCT), by all reports, have been very successful in Iraq, and has supported additional funding for Strykers elsewhere in this report. The committee has also expressed concern about the Stryker Mobile Gun System elsewhere in this report, but believes that the SBCTs have provided a hint as to the future potential that the vastly more capable FCS Brigade Combat Teams will bring to the Army. However, adding seven SBCTs has provided only a hint, and it would be a critical mistake to abandon the Army's core modernization effort, believing that seven Stryker Brigade Combat Teams solve the strategic mobility problem the Army continues to confront, or that marginal modernization of the current force postures the Army for the challenges of the future.

The committee believed that the original FCS program was much too risky, and was fully in agreement with the first program restructure, and in particular supported the addition of previously deferred systems and the spin out of promising FCS technologies to the current force.

Consequently, the committee is concerned about the most recent restructure, which now eliminates or defers four of the systems and stretches the fielding of FCS Brigade Combat Teams over a longer period of time. The committee believes this decision was purely a result of budgetary concerns, and does not reflect either a change in requirements or programmatic difficulties. The committee believes FCS is a well-run program which is well within cost and schedule parameters of the earned value management system.

Most troubling in the latest restructure is the elimination of the Armed Robotic Vehicle (ARV), both the Assault and Reconnaissance, Surveillance, and Target Acquisition (RSTA) variants, which will provide a survivable means for the commander to sense and deliver desired effects on the enemy without jeopardizing the lives of soldiers. The ARV is highly mobile and well suited for both mounted and dismounted forces--the only robotic platform that is capable of maneuvering with the FCS manned ground vehicles, survivable in direct engagements, and lethal enough to defeat the enemy. The committee believes that it is short sighted to eliminate such a capability.

The committee also believes that any proposals or decisions to further curtail or stretch out the FCS program are also extremely short sighted. The Nation cannot afford to mortgage the future to pay current bills by curtailing Army transformation to meet the demands of the current conflict. History teaches that, while we do not know precisely the nature of future conflict, we do know that future conflict will come. If history is a guide, the Americans most at risk will be those who engage in direct ground combat.

The committee believes that the FCS program, the centerpiece of Army transformation and modernization, will provide the American soldier with lethal and survivable systems, and a versatile organization which will allow him to prevail no matter the nature of future conflicts.

The committee recommends an increase of $90.0 million in PE 64663A to restore the ARV to the FCS program, and encourages the Army to include adequate funding in the future years defense program for that purpose.

Combat identification

The budget request included $11.3 million in PE 64817A for combat identification. Under this account, the Army seeks to maximize overall combat effectiveness by mitigating incidents of fratricide and maximizing the situational understanding of the warfighter. This is achieved by rapid, reliable identification of friends, foes, and neutrals in the battle space. To accelerate research in this area, the committee recommends an increase in PE 64817A of $2.0 million for the research and development of a single channel ground and airborne radio system-based combat identification technology.

High energy laser systems test facility

The budget request included $2.8 million in PE 65605A for the Department of Defense High Energy Laser Systems Test Facility (HELSTF). The committee understands that this low level of funding will result in a reduction in contractor support personnel and reduces the Department's ability to adequately test planned high energy laser weapon systems such as the Airborne Laser and the High Energy Laser Technology Demonstrator, as well as support for work of the Joint Technology Office for High Energy Lasers. The committee recommends an increase of $7.5 million for operations at HELSTF.

The committee directs the Secretary of the Army, the Director of the Test Resource Management Center, and the Director of the High Energy Laser Joint Technology Office to report jointly to Congress on a plan, including required funding over the Future Years Defense Program, to develop and maintain adequate personnel, resources, and facilities to test current and future high energy laser systems, no later than March 1, 2008.

HIMARS modular launcher communications system

The budget request included $54.1 million in PE 63778A for the Multiple Launch Rocket System (MLRS) product improvement program, but no funding for the High Mobility Artillery Rocket System (HIMARS) Modular Launcher Communications System (MLCS).

The HIMARS Operational Requirements Document (ORD) contains a requirement for a sensor-to-effects capability using the M142 HIMARS launchers assigned to active component and National Guard HIMARS units. Sensor-to-effects capability significantly reduces target engagement timelines, improves combat effectiveness, and increases flexibility associated with attacking time-sensitive, high value targets.

The committee notes that work is currently on-going for this system upgrade and additional funding is required in fiscal year 2008 to accelerate this needed capability.

The committee recommends an increase of $2.5 million in PE 63778A for HIMARS MCLS to accelerate the development, integration, and testing of sensor-to-effects.

Combat vehicle improvement programs

The budget request included $27.6 million in PE 23735A for combat vehicle improvement programs, but no funding for Vehicle Health Management systems development or for combat vehicle transmission improvement.

Vehicle Health Management is a set of maintenance processes and capabilities derived from real-time assessments of weapon system conditions obtained from embedded sensors and software. The goal of Vehicle Health Management is to perform maintenance only upon evidence of need and to limit the time it takes to troubleshoot failures. Vehicle Health Management represents a conscious effort to shift equipment maintenance from a reactive, preventive approach at the time of failure to a more routine and predictive approach using real-time vehicle information. It will improve maintenance and readiness, and reduce major sustainability costs.

Funding is needed to support design efforts and to prototype data collection systems on-board the Heavy Brigade Combat Team (HBCT) vehicles, to design and procure network systems to offload the vehicle data, and to analyze the vehicle data to perform failure analysis and failure prediction.

Tank and armored personnel carrier transmissions have not significantly changed in 30 years and are the second largest cost driver in terms of operation and support costs.

Funding is needed for electronic controls for the Abram tank X1100 series transmission. These controls immediately make available a wealth of information and data that can be mined by a Vehicle Health Management system to monitor transmission function and health. Proper diagnosis of faults prior to transmission removal offers one of the most effective means of reducing operating and support costs.

The committee recommends an increase of $6.0 million for Vehicle Health Management systems development, and $4.9 million for combat vehicle transmission improvement, for a total of $38.5 million.

Helicopter autonomous landing system

The budget request included $325.6 million in PE 23744A for aircraft modifications and product improvement programs, but no funding for the Helicopter Autonomous Landing System (HALS).

Utility flight operations are accomplished today using best available training, tactics, and procedures to minimize flight in degraded visual conditions. However, this is not always possible --for example, one recent unofficial study of all 251 U.S. Army Class A-B rotary wing mishaps ascribed to `human factors' from fiscal years 1985 to 2005 counted 52 landing mishaps. These 52 landing mishaps involved a total of 8 fatalities and 20 major injuries. All these fatalities and all these major injuries except one occurred in degraded visual conditions (brownout, whiteout, or instrument flight rules). Materiel solutions, to include hover symbology and fully coupled flight directors, are being integrated into the UH-60M helicopter and will significantly improve operations in degraded visual conditions.

The materiel solution to counter brownout conditions consists of a three-phase approach. Phase-1 or Brownout Situational Awareness Upgrade (BSAU) is precision hover symbology cockpit display; Phase-2 is two-axis automated hover hold; Phase-3 or Helicopter Autonomous Landing System (HALS) is a visual based `see-through' capability based on radar and/or forward looking infrared technology. Additional funding is needed to bring the HALS Phase-3 design achieved through funding in fiscal year 2006 to a level capable of production for potential application onto both legacy and modernized UH-60 helicopters.

The committee recommends an increase of $5.0 million for HALS, for a total of $330.6 million.

Joint tactical ground station

The budget request included $23.5 million in PE 28053A for Research, Development, Test, and Evaluation (RDT&E) of the Joint Tactical Ground Station (JTAGS). Army and Air Force plans for mobile ground stations to receive and exploit the Space-Based Infrared System (SBIRS) are not synchronized and are not funded across the future-years defense program. The committee recommends a reduction to the request of $10.0 million, to offset higher funding priorities.

NAVY

Navy science and technology educational outreach

The budget request included $374.1 million in PE 61153N for defense research sciences. The committee notes that many expert studies, including efforts by the services and the National Academies of Sciences have concluded that a greater emphasis must be placed on K-12 educational activities in math and science in order to increase the likelihood that the nation will have enough scientific and engineering talent to meet its future needs. The need for a highly qualified pool of technical specialists is particularly acute for the Department of Defense, given its need for clearable scientists and engineers. To support initiatives to stimulate math and science education and outreach efforts by Navy scientists and engineers, the committee recommends an increase of $1.0 million for naval science and technology educational outreach activities.

Infrared materials research

The budget request included $83.4 million in PE 62114N for applied research in power projection technologies. The committee notes that the Navy and Marine Corps have a number of initiatives developing infrared seeker technologies, and that the Army has official technology objectives in third-generation infrared technologies and low-cost, high-resolution infrared focal plane arrays. In support of these efforts, and in conjunction with ongoing efforts of the Army's small business innovative research program, the committee recommends an increase of $3.0 million for infrared materials research for military applications.

Undersea perimeter security technologies

The budget request included $155.9 million in PE 62123N for applied research on force protection technologies. The Navy's Maritime Domain Awareness science and technology focus area has a specific technology objective of improving homeland and port defense monitoring capabilities by developing `new systems and protocols for target identification and tracking using fixed and deployable cueing systems.' Consistent with this technology objective, the committee recommends an increase of $3.5 million for the development of a deployable undersea threat detection, classification, and response system; and an increase of $2.0 million for the development of deployable, rapid under-hull inspection capabilities.

Navy energy and power technologies

The budget request included $155.9 million in PE 62123N for applied research on force protection technologies. The committee notes that the Navy is seeking to develop next generation shipborne directed energy weaponry, which will require advanced power and energy systems, as well alternative energy technologies for a variety of platforms. Consistent with the Navy's High Energy and Pulse Power Technology Objective which seeks to develop energy storage power system architectures and pulsed power control systems, the committee recommends an additional $2.0 million to develop energy delivery technologies for advanced naval weapons systems. Consistent with the Navy's Energy Storage Technology Objective to provide reliable power sources for all non-nuclear systems, the committee recommends an additional $2.0 million for the development of fuel cells for unmanned aerial vehicle applications, and an additional $3.0 million for propulsion systems for unmanned surface vessels.

Composites research for special operations craft

The budget request included $155.9 million in PE 62123N for applied research on force protection technologies. The committee recommends an additional $1.0 million for critical composites technologies for special operations forces medium range endurance craft.

Situational awareness processing technologies

The budget request included $26.8 million in PE 62131M for applied research on force protection technologies. The committee notes that one of the Marine Corps' science and technology objectives is the development of `improved situational awareness for warfighters at all echelons.' Consistent with that objective, the committee recommends an additional $4.5 million for applied research on the distribution of tactical information to individual warfighters.

Navy electronics research

The budget request included $45.5 million in PE 62271N for radio frequency systems applied research. The committee notes that next generation Navy radars, communications, and electronic warfare systems will all depend on advanced high power microelectronics. The Navy's Power and Energy science and technology focus area includes the specific objective of developing new materials to increase the efficiency and power density of Navy systems. To complement these efforts, the committee recommends an increase of $3.0 million for research on advanced semiconductor radio frequency power technologies.

Undersea sensor arrays

The budget request included $68.5 million in PE 62747N for applied research on undersea warfare technologies. The committee notes that the Navy's Maritime Domain Awareness science and technology focus area has a vision to `locate and track any target of interest on, under or above the water . . . using integrated networks of persistent sensors.' This focus area has a specific technology objective of developing tactical sensor networks that are secure, survivable, self-healing, and adaptable. The committee further notes that the Chief of Naval Operations has indicated that critical anti-submarine warfare enhancements are among the Navy's highest unfunded priorities. Consistent with those priorities and goals, the committee recommends an additional $3.0 million for the development of advanced sensor arrays to enhance maritime domain awareness.

Tactical unmanned air vehicles

The budget request included $49.7 million in PE 63114N for advanced power projection technologies. The committee has long supported the efforts of the services to increase the number of unmanned air systems being used for military operations. The committee notes that the Marine Corps' highly responsive loitering munitions science and technology objective seeks to develop munitions which can be deployed aboard an unmanned air vehicle. In support of this goal, the committee recommends an increase of $1.0 million for development of tactical unmanned air vehicles in coordination with Army efforts in this area.

Free electron laser research

The budget request included $49.7 million in PE 63114N for advanced technologies for power projection. The committee notes that the Navy has explored the use of free electron lasers as a weapons system, as well as for industrial manufacturing applications. The committee recommends an increase of $4.0 million for research on the use of free electron lasers for manufacturing of military systems.

Force protection advanced technology

The budget request included $70.8 million in PE 63123N for force protection advanced technology. This program addresses applied research associated with providing force protection capability for all naval platforms.

The budget request included no funding for development of a transportable manufacturing and repair cell. This cell would reduce operating and support costs, while maintaining equipment readiness in theater. The cell would be deployable by ships and large ground vehicles, and would provide precision, on-demand manufacturing of critical parts for the Navy and Marine Corps. The committee recommends an increase of $5.0 million for the development of a transportable manufacturing and repair cell.

The budget request included no funding for continuing the development of wide band gap semiconductor substrate materials. These materials offer capability for higher power and higher frequency operation in high temperature environments across a broad spectrum of applications. The committee recommends an increase of $5.0 million for the continued development of wide band gap semiconductor substrate material.

The budget request included no funding for any initiative to leverage rapidly developing ongoing advances in hydrogen-powered fuel cell vehicle technology to enable revolutionary changes in the Department of the Navy non-tactical vehicle fleet. Fuel cells powered by hydrogen could totally change the present dependence on petroleum as the logistics fuel and could offer the ability to run systems silently and with significantly reduced thermal signatures for missions requiring low probability of detection. In previous years, the Department of the Navy conducted several short-term demonstrations of hydrogen fuel cell powered vehicles. The committee recommends an increase of $4.9 million for an expanded demonstration of fuel cell vehicles, to include an extended vehicle range refueling capability enhancement to include testing that could establish the basis for a potential full qualification of a hydrogen-powered fuel cell vehicle for fleet operations.

The budget request included no funding for development of autonomous superconducting fault current limiting systems. Modern electric power generation and distribution systems on naval ships are susceptible to catastrophic high current surges (i.e., fault currents) that may result in permanent equipment damage and total power system shutdowns. Efficient, reliable, and stable shipboard power systems are critical to the operation of present and future naval surface combatants. Conventional hardware systems (e.g., fuses, circuit breakers, etc.) provide some degree of protection, but are insufficient to meet the critical requirements for reliable, uninterrupted power under the most adverse conditions of warfare. The committee recommends an increase of $3.0 million to develop a current limiting system to help address current and future shipboard power systems issues.

The budget request included no funding for continued development of an electrochemical field-deployable system for generating potable water. The Department of Defense Appropriations Act for Fiscal Year 2007 (Public Law 109-289) provided $1.0 million to accomplish Phase I objectives to develop, establish, and demonstrate an economical process to make sodium hypochlorite, and team with potential industrial and medical end users. If the program is to succeed, the Navy needs to complete Phase I and begin Phase II of the program which would: (i) conduct long-term testing of sub-scale electrochemical cell membrane modules; (ii) demonstrate a sub-scale technology unit; and (iii) begin concept design of full-scale electrochemical cell membrane modules. The committee recommends an increase of $3.0 million to complete Phase I and begin Phase II of this activity.

The budget request included no funding for improving the capability to manufacture fuel cells to help accelerate the application of fuel cells for a wide range of Department of Defense electrical power needs, including ships and submarines, ground vehicles, mobile electric power for bases and other field equipment, and aircraft. The committee recommends an increase of $3.4 million to enable the Department of the Navy to advance fuel cell manufacturing feasibility and readiness for field testing.

The budget request included no funding for development of a lithium battery technology that could replace one of the three generators normally in operation or reserve aboard all large Navy ships. The primary purpose would be to save the costs of fuel consumed by the primary reserve generator, which must operate constantly as a back-up source of power for the ship's primary propulsion and electrical systems. Such a battery system could provide a lower cost, higher quality source of electrical power that would replace redundant back-up power sources dedicated to subsystems throughout the ship. The battery would also eliminate the possibility of a ship experiencing a catastrophic loss of power (`going dark') due to a cascading failure of generators and an inability to restart the main engines following a loss of main power. The committee recommends an increase of $5.0 million to enable the development of such lithium battery technology.

The committee recommends a total authorization of $100.1 million in PE 63123N for force protection advanced technology.

Ground sensor networks

The budget request included $71.0 million in PE 63640M for Marine Corps advanced technology demonstrations. The committee notes that small arms fire accounts for a large number of coalition casualties in Iraq and Afghanistan, and that a number of services and defense agencies are pursuing technological solutions to meet urgent needs of deployed forces. To support these efforts, the committee recommends an increase of $5.0 million for the development of ground sensor networks that can detect and locate hostile fire.

Navy sensor arrays

The budget request included $16.0 million in PE 63506N, but included no funding to develop new technology sensors that would exploit the advantages of these sensors in arrays and integrate them into micro-arrays. The committee understands that there have been some innovative developments in sensor technology that offer significant promise for the fielding of better sensor arrays for torpedo defense and for other potential applications on the battlefield. The committee recommends an increase of $1.5 million to pursue better array technology.

Shipboard system component development

The budget request included $9.4 million in PE 63513N for shipboard system component development, but included no funding for Smart Valve development, power conversion equipment for high density power generation packages, high temperature superconductor alternating current (HTS-AC) synchronous marine propulsion motor development, or shipboard flywheel energy storage systems.

Smart Valve is an advancement in control system technology applied to the design for bleed air regulating, control, and relief valves on existing and future gas turbine naval vessels. Existing bleed air valves for gas turbine ships are subject to high maintenance costs and reliability concerns. Smart Valve provides an advanced linear electro-mechanical actuator design for accurate and quick response, and includes self-diagnostic capability for preventive, condition-based maintenance. Increased service life and improved functional design with Smart Valves results in reduced maintenance and reduced life cycle cost. The committee recommends an increase of $3.0 million to complete development and testing of a prototype Smart Valve.

The development of component technologies for power system management is critical to the success of the Navy's efforts to field the all-electric warship. Power conversion equipment for high density power generation is one of the key enabling capabilities required by the integrated power distribution systems required by the all-electric warship. The committee is aware that ongoing efforts to develop next generation power conversion equipment for the DDG-1000 destroyer and CG(X) cruiser programs requires funding to complete the proof of concept. The committee recommends an increase of $2.5 million to complete development of power conversion equipment for an advanced high density power generation system.

The Navy has been developing and testing a 36.5 megawatt prototype HTS-AC synchronous propulsion motor. The Navy will take delivery of a prototype of such a motor for final testing during fiscal year 2007. Additional funding is required in fiscal year 2008 to support full power testing of the prototype motor, and to complete the preliminary design for militarization of the HTS-AC motor and associated drive system for potential application to a future surface combatant. The committee recommends an increase of $14.4 million to continue development and testing of the HTS-AC synchronous marine propulsion motor.

Flywheels have long been targeted as an energy storage technology for emerging applications, and as such, are included in the Militarily Critical Technologies list. In particular, the Navy has identified a list of critical shipboard applications of flywheel energy storage systems that includes: `Dark Start,' uninterrupted power to essential loads, leveling loads faced by the electrical system, and single generator operation. Additional efforts would develop and test a flywheel energy storage system with greater power density and output that is fully adapted to the shipboard environment. The committee recommends an increase of $9.5 million to continue development and testing of a flywheel energy storage system.

The committee recommends a total authorization of $38.8 million in PE 63513N for shipboard system component development.

Surface vessel torpedo tubes

The budget request included no funds in PE 63513N for developing better torpedo tube technology for surface ships. The Navy has been managing a Small Business Innovative Research (SBIR) project to develop a modular, gas generator launch canister. This project is employing commercial, off-the-shelf (COTS), automobile-style air bags for launch energy. Employing such long shelf life COTS components could greatly reduce the maintenance burden of keeping air flask-based torpedo tubes in operational condition. Additional funding in fiscal year 2008 would continue fabrication and testing of two advanced development models (ADMs) that could launch lightweight torpedoes from unmanned surface vessels (USV) planned for the Littoral Combat Ship. These ADMs could also serve as the basis for an option to backfit during the Arleigh Burke class destroyer modernization program. Therefore, the committee recommends an increase of $4.0 million in PE 63513N to continue development of an improved launch capability for surface vessel torpedo tubes.

Advanced submarine system development

The budget request included $134.9 million in PE 63561N for advanced submarine systems development. The design and development efforts in these programs are to evaluate a broad range of system and technology alternatives to directly support and enhance the mission capability of current submarines and future submarine concepts.

The budget request included no funding to begin studies that would lead to developing a replacement for the Ohio class strategic missile submarine program which was designed in the 1970s. The Navy has begun low level studies under a program called the Undersea Launch Missile Study (ULMS). The efforts within ULMS will involve exploring new technologies, conceptual design of ship configurations, supporting ship systems, consideration of strategic payloads, and development of other payloads.

However, there appears to be insufficient work to maintain the skill set among submarine designers until the Navy would otherwise start designing a replacement for the Ohio class. A recent report by the RAND Corporation evaluating the submarine design industrial base concluded that it would be less expensive to sustain some number of workers in excess of those needed to meet the residual design demands during such a gap. One means of achieving this goal would be to begin the more extensive design activities earlier than the Navy would otherwise start them to support a specific date to start building the next class. The committee believes that the Navy should start that effort in fiscal year 2008 and recommends an increase of $25.0 million for that purpose.

The budget request included $13.5 million for a variety of advanced submarine sensors, including the twin line, thin line towed array. Twin line towed array geometries lead to improved gain and better target motion analysis by resolving the right-left ambiguity of a single line array without the need for ship maneuvering. This approach would provide an efficient means of achieving significant improvement in detection, fire control, and self-defense capabilities. The committee recommends an additional $4.5 million to demonstrate twin line, thin line towed array technology.

The committee recommends a total authorization of $164.4 million in PE 63561N for advanced submarine system development.

Next generation shipboard monitoring

The budget request included $30.9 million in PE 63563N for Ship Concept Advanced Design, but included no funding for next generation shipboard monitoring. The Navy has placed a priority on reducing operating and maintenance costs for in-service and future ship classes, which requires that all ships in the fleet transition to condition-based maintenance. Condition-based maintenance requires ships to be equipped with a system that effectively monitors equipment performance, performs diagnostics, and provides predictive analysis for plant operation and maintenance. Additional funding for next generation shipboard monitoring is necessary to integrate and implement open system diagnostic data infrastructure and monitoring systems for shipboard equipment. The committee recommends an increase of $4.0 million in PE 63563N for next generation shipboard monitoring.

Expeditionary fighting vehicle

The budget request included $288.2 million in PE 63611M for the Expeditionary Fighting Vehicle (EFV). The EFV is a high speed, amphibious, armored tracked vehicle for transporting marines from amphibious ships over the horizon to shore and inland. The Department of Defense Office of Program Analysis and Evaluation directed a reduction to the Marine Corps' acquisition objective, which was reduced from 1,013 to 573 vehicles in fiscal year 2006.

The EFV program entered the system development and design phase in December 2000, and was scheduled to award a Low Rate Initial Production (LRIP) contract late in fiscal year 2006. Operational assessment of the vehicle's performance during 2006 determined that the EFV, while meeting most key performance parameters, fell critically short of requirements for system reliability. Therefore, the Department deferred LRIP and conducted an independent review, which determined that redesign of the EFV would be required in order to correct significant system engineering deficiencies.

The compounding impacts of a 45 percent reduction to the EFV program's acquisition objective and a 3 or 4 year further delay to the LRIP decision resulted in a critical Nunn-McCurdy breach. The committee is awaiting the Secretary of Defense's determination on whether the EFV program meets the certification requirements under section 2433 of title 10, United States Code.

The Department's reliance upon the EFV test program to reveal failures in fundamental systems engineering for this major program reflects a disturbing trend in systems acquisition. Equally troubling is the belated acknowledgment that the vehicle design has been overly-influenced by performance requirements that are unreasonable and unnecessary.

If the EFV program is certified by the Secretary of Defense, it would resume development in the third quarter of the current fiscal year. The resultant under-execution in fiscal year 2007 provides significant carryover of funding into fiscal year 2008. The committee recommends a reduction of $100.0 million in fiscal year 2008 in PE 63611M.

The committee is aware that the Department's corrective action plan includes production of new vehicles, which adds significant cost and schedule to the development effort. The committee is concerned that the Department arrived at this decision independent of root cause analysis of the operational assessment results. The committee directs the Secretary of the Navy to submit a report to the congressional defense committees providing the root cause analysis for the EFV reliability failures prior to obligation of funding toward production of a new prototype EFV. The report shall include the Department's assessment correlating the reliability failures to the requirement to produce new test vehicles.

Joint light tactical vehicle

The budget request included $80.4 million in PE 63635M for Research, Development, Test, and Evaluation (RDT&E) for Marine Corps Ground Combat/Support Systems. The war-related budget request for fiscal year 2008 also included $35.8 million for the same program element. Of this $35.8 million, $20.0 million is requested for acceleration of the development of the Joint Light Tactical Vehicle (JLTV). The JLTV development program has nothing to do with ongoing military operations and should be funded exclusively in the base budget. The committee recommends a reduction to the war-related budget request for JLTV of $20.0 million and an increase of $20.0 million for JLTV development in the base budget.

Optical interconnect

The budget request included $3.5 million in PE 63739N for Navy logistics productivity initiatives, but include no funding to develop low cost, high quality fiber optic interconnect technology for military aerospace application. The Department of Defense continues to demand increasing data processing, communication, and system control capabilities. The next generation data and communication management systems needed for weapons systems will depend upon tightly integrated optical fiber solutions, also known as optical interconnect. This solution optimizes space utilization while achieving high bandwidth, decreased weight, immunity to electromagnetic interference, resistance to corrosion, and improved safety and security. The Navy has requirements for next generation optical interconnect technology for several aircraft platform systems, and anticipates that this technology could be applied to Navy vessels as well. The committee recommends an increase of $4.0 million to develop this important technology.

Tactical aircraft direct infrared countermeasures development

The budget request included $27.6 million in PE 64272N for developing and testing airborne electronic attack systems under the tactical aircraft direct infrared countermeasures (TADIRCM) development. The TADIRCM program develops electronic warfare systems for the United States Navy, United States Marine Corps, and the United States Army tactical aircraft, Marine Corps helicopters, Navy surface combatants, data link vulnerability assessments, Navy and Marine Corps jammers, and electronic warfare devices for emerging threats and emergency contingencies. The Navy down selected to one contractor in fiscal year 2005 for the pointer/tracker/laser systems to ensure the project did not exceed the budget. Therefore, the budget request for TADIRCM included no funding for taking advantage of different technical approaches potentially resulting from recent successful testing of a high power fiber laser (HPFL).

Given the seriousness of the threat posed by missiles with infrared seekers, the committee believes that the Department of Defense should pursue promising new approaches whenever such new testing results become available. The committee believes that a demonstration could provide important information to the Navy, which would permit accelerating initial operational capability by several years. Therefore, the committee recommends an increase of $4.0 million for conducting an HPFL demonstration.

Conventional Trident modification

The budget request included a total of $175.0 million for the conventional Trident modification (CTM), with $126.4 million in hard and deeply buried target defeat systems, PE 64327N; $36.0 million in Trident II modifications, Weapons Procurement, Navy (WPN) line 1; and $13.0 million in strategic systems missile equipment, Other Procurement, Navy (OPN) line 108. The committee recommends no funding for the CTM and further recommends that all of the funding for CTM be transferred to PE 65104D8Z for common prompt global strike concepts, discussed elsewhere in this title.

Permanent magnet motor

The budget request included $621.5 million in PE 64300N for DD-1000 destroyer total ship systems engineering. The budget request included no funding for completing the development and testing of the permanent magnet motor (PMM).

Present Navy and Marine Corps electric propulsion and power generation systems are several times larger and heavier than mechanical drive equivalents, limited by very heavy generation equipment and propulsion motors. The PMM was developed to resolve this. Congress provided funding in fiscal year 2006 which the Navy and the contractor team used to complete factory testing, ship the PMM engineering development model to the Navy's land based test site, and begin testing.

Because of the promise of this technology for future ship applications, the committee recommends an increase of $9.0 million to incorporate changes resulting from land based testing, repackage PMM design to reflect evolving DDG-1000 requirements, and perform shock analysis.

Wireless encryption technology

The budget request included $621.5 million in PE 64300N for DD-1000 destroyer total ship systems engineering, but included no funding to develop wireless encryption technology. With the reduced manning planned on the DDG-1000 and other vessels, the Navy will have to place greater reliance on automation and having the crews stay connected to the ships' computing environment. Absent better wireless encryption technology, the goal of being connected to all information systems will be problematic for very sensitive information. The committee recommends an increase of $6.0 million to develop better wireless encryption technology for use aboard Navy vessels.

Improved towed array handler

The budget request included $114.8 million for SSN-688 and Trident submarine modernization, but included no funding for developing or testing improved handling gear for submarine towed arrays. The committee understands that additional funding this year would complete the initial phase of the program. The Navy has now gathered data about stresses encountered by arrays during reeling cycles. The next step is to use this data to design engineering changes to both the handling system and the array that would preserve system performance while increasing system reliability and lowering life cycle costs of the combined system.

The committee recommends an increase of $4.4 million to complete the design, and develop and test prototype system changes to improve thin-line towed array system reliability.

Combat information center conversion

The budget request included $17.1 million in PE 64518N for Combat Information Center Conversion. The Combat Information Center Conversion is an essential upgrade for Navy anti-submarine warfare (ASW), including development of net-centric capabilities, improved command and control, incorporation of an open architecture computing environment, and upgrades to signal processing and display technologies. The Chief of Naval Operations has included critical ASW enhancements on the Navy's unfunded priorities list. The committee recommends an increase of $4.0 million to PE 64518N to accelerate the development of the ASW dead-reckoning table and other display requirements, in conjunction with the Combat Information Center Conversion.

Submarine electronic chart updates

The budget request included $224.0 million in PE 64558N, but include no funding for a program to update electronic charts for submarines.

Navy instructions mandate the use of electronic chart display products across the Navy. This requirement was conceived in stand-alone, display workstation applications, which no longer represent the state-of-the-practice of net-ready, web-service environments. The committee is aware that the Navy conducted a Small Business Innovative Research (SBIR) effort that focused on the demonstration of net-ready, web-service updates of electronic charts for submarines. The committee recommends an increase of $6.0 million to: (i) obtain certification of the common geographic display processing improvements already developed for submarines; (ii) adapt the results of this effort to Navy-wide applications; (iii) evaluate Navy instructions on the use of electronic chart systems to compare those requirements with best commercial practices; and (iv) establish a Navy certification benchmark for state-of-the-practice of net-ready, web-service environments.

Next generation Phalanx

The budget request included $67.4 million in PE 64756N for ship self-defense (hard kill), but included no funding for next generation Phalanx. The Phalanx weapon system is the Navy's principal close-in weapon system for ship self-defense, and has proven to be extremely adaptive for performance against emerging air and surface target sets. The continually evolving nature of the threat, unique challenges posed by operations in the littorals, increased emphasis on single ship probability of raid annihilation, and fact of life technology obsolescence require continued development effort to sustain the superior performance of this critical ship self-defense system. The committee recommends an increase of $9.8 million in PE 64756N for the continued development of the next generation Phalanx.

NULKA anti-ship missile decoy system

The budget request included $34.3 million for ship self-defense soft-kill systems development in PE 64757N, including $6.0 million for various development activities related to the NULKA anti-ship missile decoy system.

The Navy has identified a series of development activities associated with the NULKA system that are required to understand and deal with emerging threats:

(1) an improved payload that would provide radio frequency coverage of more than one band of the spectrum to deal with anti-ship missiles;

(2) better countermeasures techniques for advanced anti-ship cruise missiles with advanced seekers;

(3) an improved guidance and propulsion system to allow more precise positioning of the decoy during operations;

(4) increased duty cycle; and

(5) additional systems engineering and software support.

The committee recommends an increase of $9.0 million for the NULKA development program to continue these efforts.

Navy medical research

The budget request included $8.0 million in PE 64771N for medical development activities. The committee notes that field reports indicate that many battlefield deaths are caused by uncontrolled hemorrhage. The Navy's Warfighter Performance and Protection science and technology focus has a specific objective to improve casualty care and prevention. In support of that effort, the committee recommends an increase of $4.0 million for the development of technologies to control internal hemorrhage due to battlefield injuries.

Joint Strike Fighter research and development

The budget request included $1,707.4 million in PE 64800N and $1,708.9 million in PE 64800F to continue development and testing of the Joint Strike Fighter (JSF).

In recent analysis, the Government Accountability Office (GAO) investigated the size of award fees that the JSF program was not awarding, but retaining to provide additional incentives in future periods. Portions of this `roll over' amount can be awarded to the contractor at the discretion of the Government to provide performance incentives in designated target areas. However, March 2006 Department of Defense (DOD) guidance states that `rolling over' unearned award fees should be the exception rather than the rule. Since the March 2006 guidance, the JSF program has continued the practice of rolling over 100 percent of unearned award fees for the air system contract. The air system contract has a balance of $58.4 million in its cumulative reserve award fee pool. In addition, there is a balance of $22.1 million in the cumulative reserve award fee pool for `subjective' criteria for the F135 propulsion contract. The size of the award fee `roll over' has been growing steadily since the first award fee period in 2001, as unearned award fees were rolled over into the cumulative reserve award fee pool.

Given the 2006 DOD guidance and past award fee reserve pool activity for both contracts, GAO believes that a balance of $36.0 million in the air system contract and $5.0 million in the F135 propulsion contract cumulative award fee reserve pools would provide sufficient funding for future target areas. Therefore, approximately $39.5 million in previously unearned award fees should be excess to requirements in fiscal year 2008. The committee recommends a decrease of $19.7 million in each of these two budget lines.

Navy support of the reliable replacement warhead

The budget request included $81.3 million in Research, Development, Test, and Evaluation, Navy (RDTEN), PE 101221N, for strategic submarine and weapons system support of which $15.0 million was for phase 3 support to the reliable replacement warhead (RRW). The committee recommends a reduction of $15.0 million. The committee recommends no funds for RRW activities beyond phase 2A in fiscal year 2008.

Linear accelerator

The budget request included $81.3 million in PE 11221N, Research, Development, Test, and Evaluation, Navy (RDTEN), but no funding for the Crane linear accelerator (LINAC). The committee recommends an increase of $9.0 million for the LINAC to simulate the high radiation environment in space. The committee directs the Navy to develop and use this in conjunction with the Joint Radiation Hardened Electronics Oversight Council.

Structural life tracking

The budget request included $2.2 million in PE 25633N for the Navy's Aircraft Equipment Reliability and Maintainability Improvement program (AERMIP). The AERMIP effort is the only Navy program that provides engineering support for in-service, out-of-production aircraft equipment, and provides increased readiness at reduced operational and support cost. The committee recommends an increase of $4.0 million in PE 25633N to fund initiatives for parts fatigue tracking for military rotary-wing aircraft through structural life tracking of Navy and Marine Corps helicopters.

Ultrasonic consolidation technology

The budget request included $57.2 million in PE 26623M for the development of Marine Corps ground combat and supporting arms systems, but no funding for the Sense and Respond Support system. The committee understands that the Marine Corps will be entering the final year of a study to determine whether ultrasonic consolidation technology can be embedded in a variety of components of the Light Armored Vehicle (LAV) as part of a Sense and Respond system for vehicle health monitoring. The committee recommends an increase of $3.9 million for the LAV Sense and Respond system.

Anti-sniper infrared targeting system

The budget request included $6.2 million in PE 26623M for the development of joint and Marine Corps unique improvements to infantry weapons technology, but included no funding for the Anti-Sniper Infrared Targeting System (ASITS).

The system employs infrared thermal targeting technology to passively detect and locate sources of fire in real-time, and may be mounted on ground vehicles or low flying aircraft, or permanently emplaced. ASITS is particularly effective against incoming fire from concealed positions, and provides a unique capability to enhance survivability for urban operations and countersniper applications. Funding for accelerated development and fielding of a prototype system has been included on the Commandant of the Marine Corps' unfunded priorities list.

The committee recommends an increase of $9.8 million in PE 26623M for ASITS.

Satellite communications (space)

The budget request included $746.5 million in PE 33109N for satellite communications (space) including $611.6 million for the Multiple User Objective System (MUOS) satellite. MUOS is the Navy's next generation ultra high frequency (UHF) satellite. The first MUOS satellite is currently scheduled to launch in fiscal year 2010. The Ultra High Frequency Follow-on (UFO) satellite, the legacy UHF satellite system, is failing at a somewhat faster pace than anticipated. At the current failure rate, there will be a UHF communications capability gap beginning in January 2008 and continuing for approximately 23 months, until the launch of the first MUOS satellite. The committee recommends an increase of $10.0 million to evaluate the option to purchase UHF payloads that could be flown on commercial satellites to see if reducing the communications gap would be feasible.

Internet protocol version 6

The budget request included $736.6 in PE 33109N, Research, Development, Test, and Evaluation, Navy (RDTEN) for satellite communication space, but no funds for internet protocol version 6 (IPv6). The committee recommends an additional $3.0 million for IPv6 efforts to determine benchmarks, validate network connectivity, and test next generation warfighter applications in a service orientated architecture for transitioning from the current internet protocol version 4 (IPv4), to IPv6.

Navy manufacturing research

The budget request included $56.4 million in PE 78011N for industrial preparedness activities. The committee notes that the Navy's Affordability, Maintainability, and Reliability science and technology focus area has a specific objective to develop condition-based maintenance systems in order to reduce acquisition and life cycle costs of Navy platforms through intelligent diagnostics. In support of that goal, the committee recommends an increase of $2.5 million for systems to measure stress on airframe structures during maintenance and manufacturing.

National Shipbuilding Research Program--Advanced Shipbuilding Enterprise

The budget request included no funding in PE 78730N for maritime technology. The National Shipbuilding Research Program/Advanced Shipbuilding Enterprise (NSRP-ASE) is a collaborative effort between the Navy and industry which has yielded significant productivity improvements for Navy ship construction and repair. Under this program the Navy provides funding which is matched and exceeded by industry investment. Using this approach, the Navy has achieved a high return on investment by providing near-term savings and avoiding significant future costs. The committee believes that continuation of the NSRP-ASE effort is a vital element of the overarching objective of improving the affordability of naval warship construction and maintaining a healthy, innovative shipbuilding industrial base.

The committee recommends an increase of $15.0 million in PE 78730N for the NSRP-ASE.

AIR FORCE

Air Force basic research

The budget request included $104.3 million in PE 61103F for university research initiatives. The committee notes that this is a reduction from the fiscal year 2007 requested levels and is concerned about the commitment of the Air Force to protecting the funding levels of previously devolved science and technology, including the joint high energy laser programs and university research initiatives. At the same time, as the Air Force is reducing its investments in basic research, it is increasing investments in biological sciences, while not sufficiently supporting university research in areas of critical concern to the Air Force including propulsion and information sciences. To enhance investments in the development of necessary future Air Force capabilities and to support the training of the next generation of technical, military, and business leaders, the committee recommends a number of increases to Air Force basic research programs. The committee recommends an increase of $3.0 million for research on high energy lasers for detection, inspection and non-destructive testing applications; an increase of $3.0 million for research to improve the security of critical military networks; and an increase of $3.0 million for research on reducing military decision making cycle times.

Carbon fiber research

The budget request included $122.8 million in PE 62102F for applied research on materials. The committee notes that t is a growing need for advanced composite materials to support a number of next generation air platforms. As indicated by the 2006 JASON report `Reducing DOD Fossil-Fuel Dependence,' reducing vehicle weight through the use of advanced materials such as carbon reinforced polymers could lead to significant enhancements in the fuel efficiency of military platforms. Therefore, the committee recommends an increase of $3.0 million for research on advanced carbon fiber materials for Air Force applications.

Optical components for air vehicles

The budget request included $131.9 million in PE 62201F for applied research on aerospace vehicle technologies. The committee notes that the National Research Council, in its recent study `Future Air Force Needs for Survivability,' highlighted the need for better control of electronic emissions as an important element in reducing aircraft signatures. Therefore, consistent with current Air Force Small Business Innovative Research efforts, the committee recommends an additional $1.5 million in PE 62201F for research on optical components to replace electric components for potential use in onboard aircraft communications and flight control systems.

Scramjet technologies

The budget request included $179.2 million in PE 62203F for applied research on aerospace propulsion. The committee notes the role that hypersonic technologies can play in future Air Force operations, by enabling capabilities such as prompt global strike and space access. The committee notes the need for robust research funding and flight test schedules, clearly established technical goals for demonstration programs, and well-defined transition pathways to formal acquisition programs. The committee believes that it is the role of the Hypersonics Joint Technology Office, established in the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), to oversee and ensure that all of the Department of Defense's research, development, test, and evaluation programs in hypersonics are executed in this manner. In order to enhance Department efforts in developing hypersonic strike capabilities, the committee recommends an increase of $3.5 million for scramjet research.

Network centric collaboration technologies

The budget request included $108.1 million in PE 62204F for applied research on aerospace sensors. The committee notes that the Chief of Staff of the Air Force's unfunded priorities list included research on collaboration for sensor technology to allow a network of sensors to work securely in hostile operating environments. To support this need, the committee recommends an increase of $1.0 million for the development of secure collaborative sensor grids for military operations.

Air Force seismic research for nuclear test monitoring

The budget request included $109.6 million in PE 62601F, Research, Development, Test, and Evaluation, Air Force (RDTEAF), for space technology including $6.8 million for seismic technologies to support national requirements for monitoring nuclear explosions. The committee recommends an additional $11.8 million to improve operational seismic capability. The recent North Korean nuclear test highlighted a need for additional monitoring capability.

Acoustic shields for rocket payloads

The budget request included $109.6 million in PE 62601F for space technology. The committee notes the need to develop robust space technologies for use as the Department of Defense tries to develop operationally responsive space systems. The committee recommends an increase of $400,000 for research on acoustic shielding technology to protect rocket payloads.

Cyber attack mitigation

The budget request included $116.7 million in PE 62702F for applied research on command, control, and communications. The Information Assurance and Survivability Technology Base Defense Technology Objective includes the specific technical challenge of designing sensors to detect highly sophisticated, stealthy, distributed attacks spread out over time; detecting subtle integrity attacks; and developing algorithms for self-repair. In support of this objective, the committee recommends an increase of $2.0 million for the development of advanced systems for the detection and defeat of malicious software on military networks and information systems.

Aerospace metals research

The budget request included $39.7 million in PE 63112F for advanced materials for weapons systems. The committee notes that the Fighter/Attack/Strike Propulsion Defense Technology Objective has identified a technical challenge of improving a number of aircraft engine performance parameters with advanced materials and designs, as well as with lower cost manufacturing processes. In support of that effort, the committee recommends an increase of $5.0 million to support advanced aerospace metals research and manufacturing.

Deployable fuel cell processors

The budget request included $39.7 million in PE 63112F for advanced materials for weapons systems. The committee has supported efforts to develop energy efficient technologies specific to military applications that can increase operational performance while reducing energy costs and reducing logistics burdens on deployed forces. The committee notes that the Department of Defense has a number of ongoing efforts, including the Energy and Power Technology science and technology initiative, that seek to develop deployable energy and power systems. To support those efforts, the committee recommends an increase of $2.0 million for the development of deployable fuel cell processors as part of systems intended to replace conventional generators and provide efficient, reliable, and environmentally safe power to bare base and Air Expeditionary Force operations.

Aerospace titanium research

The budget request included $64.9 million in PE 63211F for aerospace technology development and demonstration. The Department of Defense's Materials and Processes Defense Technology Objectives (DTO) include a focus on materials and processes for affordable aircraft structures. The committee notes that the cost of next generation platforms such as the F-35 and unmanned air vehicles will be reduced through the development of low cost, reliable titanium structures. Therefore, in coordination with the Affordable Aircraft Structures DTO, the committee recommends an increase of $2.5 million for research on affordable aerospace titanium structures.

Thin film amorphous solar arrays

The budget request included $78.7 million in PE 63401F for advanced spacecraft technology. The committee recommends an increase of $5.6 million. Fiscal year 2008 will be the last year of a successful development and demonstration program of advanced solar arrays for space systems using thin film amorphous substrates. These solar arrays are 10 times cheaper, 3 to 5 times lighter, and significantly more efficient than current solar arrays. The recently launched TacSat-2 has included these innovative solar cells as part of its suite of research and demonstration activities. The committee believes these solar cells could be a key element of future TacSats and other small operational responsive satellites where weight and power efficiency are key program requirements.

High integrity global positioning system

The budget request included $70.8 million for the High Integrity Global Positioning System (IGPS) technology concept demonstrator in PE 63422F. The committee recommends no funding for IGPS in PE 63422F. The budget request also included $10.0 million for IGPS in PE 1160403BB. The committee recommends the amount of the budget request in PE 116040BB.

The committee believes that the IGPS, if successful, could provide a limited set of users an enhanced jam resistant and accurate Global Positioning Signal (GPS). The committee is nevertheless concerned that the potential development, transition, and user equipment costs, coupled with a rather limited useful life, make IGPS a low priority given the other demands on space systems funding. If, however, the Department of Defense can identify a specific user community that would share in the development costs and that would make a commitment to the purchase of user equipment, the committee would reconsider a request for IGPS in the future.

Optical interconnects for battlefield communications

The budget request included $27.4 million in PE 63789F for command, control, communications, and information (C3I) advanced development. The committee notes that the most recent Defense Technology Objectives (DTO) endorsed by the Department of Defense include the development of optical networking technology with a potential payoff of developing networks for controlling vehicle actuators and flight control computing. Consistent with that objective and with efforts in the Air Force Small Business Innovative Research program, the committee recommends an additional $2.0 million for the development of optical interconnects for battlefield communications.

Space control technology

The budget request included $37.6 million for Research, Development, Test, and Evaluation, Air Force (RDTEAF), PE 63438F, for space control technology. The committee recommends an increase of $50.0 million for the self-awareness space situational awareness program to develop a suite of sensors to detect and locate threats to a satellite and provide notification and characterization of nearby objects. This program is included on the Chief of Staff of the Air Force's unfunded priority list.

Space radar technology study

The budget request included no funds in Research, Development, Test, and Evaluation, Air Force (RDTEAF), PE 63858F. The committee recommends an increase of $80.0 million for space radar technology evaluation, testing, and development.

The committee supports the need to develop a single common radar system to support space radar capabilities, which would support equally the intelligence community and the warfighter. The committee is concerned, however, that the current program is unaffordable and may not provide the persistent capabilities for surface moving target indications that are desired. Radar options other than the current option may be more affordable and could provide some advantages when compared with the current program in the near-term. The approach to the near-term space radar capability should be joint so that the requirements of both the warfighter and the intelligence community are met, and the concepts of operations and tasking are developed jointly.

Work on the longer-term approach to space radar capabilities is equally important. These longer-term approaches should be based on new radar applications that are affordable and timed to fit within longer-term planning for space budgets and programs. Using the funds recommended, the committee directs that the Secretary of the Air Force and the Director of National Intelligence, acting through the Joint Program Office (JPO) established by the Air Force and the National Reconnaissance Office (NRO), explore future radar technologies in a science and technology environment with a focus on reducing the cost of space radars and increasing utility. The JPO should continue to validate operational concepts for both the near- and longer-term space radar systems.

Common aero vehicle

The budget request included $32.8 million for the Common Aero Vehicle (CAV) in PE 64856F. The committee recommends no funding for the CAV and further recommends that all of the funding for the CAV be transferred to PE 65104D8Z for common prompt global strike concepts, discussed elsewhere in this title.

Operationally responsive space

The budget request included $87.0 million for Operationally Responsive Space (ORS) in Research, Development, Test, and Evaluation, Air Force (RDTEAF), in PE 64857F. The committee recommends an increase of $15.0 million to have a more balanced program. The budget request supports launch and space vehicle work, but the committee believes additional attention is needed on sensor development as well.

The new ORS office is in the process of standing up with good participation by all of the military services and laboratories. This new office will work with the United States Strategic Command to explore fully the potential opportunities for ORS capabilities. Like many new ideas, such as Global Positioning Systems, the uses and benefits are unknown at the outset. The committee continues to believe that the ORS concept holds considerable promise and is encouraged by the increased interest which has developed over the past 2 years. Some recent successes, such as the launch of TacSat 2, have begun to demonstrate potential applications of small, responsive, low cost satellite and launch vehicles.

The committee directs the new ORS program to submit to the congressional defense committees at the conclusion of the first 6 months of operations, a report outlining any issues that the office has encountered, progress made, and highlighting any legislative or other requirements that the office needs in order to be successful.

Combat search and rescue replacement vehicle

The budget request included $280.0 million in PE 64261F for the Combat Search and Rescue Replacement Vehicle (CSAR-X). The primary mission of the CSAR-X is to recover downed aircrew and isolated personnel from hostile or denied territory.

The Air Force anticipated beginning CSAR-X system integration and demonstration activities in early fiscal year 2007, immediately after awarding the system development contract. However, these activities have been delayed because bid protests by competitors were sustained, requiring the Air Force to reopen the competition. These delays have affected the program's funding needs in two areas. First, $165.3 million in fiscal year 2007 funding apparently exceeds current needs as integration and demonstration activities slip into the next fiscal year. This funding, however, will still be available to support activities that occur in fiscal year 2008. Also, many development activities originally planned for fiscal year 2008 are likely to move into future fiscal years, thus making up to $80.0 million of the fiscal year 2008 request premature to needs. As a result, the fiscal year 2008 budget request could be reduced by $245.3 million, were it not for the fact that the Air Force already intends to reprogram $92.0 million of the fiscal year 2007 funds to other high priority programs.

Although the committee strongly supports the CSAR-X program, there is no need to authorize more funding for the program than is necessary to keep it on the revised schedule. Therefore, the committee recommends a decrease of $153.3 million.

Rapid attack identification detection and reporting system

The budget request included $53.4 million in PE 64221, Research, Development, Test, and Evaluation, Air Force (RDTEAF), for counterspace systems, including $13.8 million for Rapid Attack Identification Detection and Reporting system (RAIDRS) Block 20. The committee recommends an additional $5.0 million for RAIDRS Block 20. RAIDRS is a sensor system that will be able to detect and assess attacks on satellites. This program is on the Chief of Staff of the Air Force's unfunded priority list.

Space control test capability

The budget request included $53.4 million in PE 64421F, Research, Development, Test, and Evaluation, Air Force (RDTEAF), for counterspace systems, but no funds for the space control test capability. The committee recommends an additional $5.2 million for the space control test capability to continue the capability to test future space control options and determine costs in a simulated environment.

Space situation awareness systems

The budget request included $187.8 million for Research, Development, Test, and Evaluation, Air Force (RDTEAF), PE 64425F, for Space Situation Awareness. The committee recommends an increase of $35.0 million for Space-based Space Surveillance (SBSS) Block 10. SBSS is a program to develop a constellation of optical sensing satellites to find and track objects in Earth orbit, primarily those in Geosynchronous Earth Orbit (GEO). The additional funding would support the first SBSS satellite. This program is on the Chief of Staff of the Air Force's unfunded priority list.

Space fence

The budget request included $187.8 million in Space Situation Awareness systems Research, Development, Test, and Evaluation, Air Force (RDTEAF), PE 64425F, including $4.1 million to develop and field a new space fence. The committee recommends an increase of $9.8 million for the space fence. The space fence is a network of ground radars that detect and track small objects in Earth orbit with a primary focus on objects in low Earth orbit. The new system should increase by an order of magnitude the number of space particles that can be detected and tracked to avoid collision and damage to space satellites. This program is on the Chief of Staff of the Air Force's unfunded priority list.

Joint space intelligent decision support

The budget request included $187.8 million in PE 64425F, Research, Development, Test, and Evaluation, Air Force (RDTEAF), for Space Situation Awareness systems, but no funds for joint space intelligent decision support (JSIDS). The committee recommends an additional $7.5 million for JSIDS to support space situational awareness data analysis.

Space-Based Infrared Satellite System High GEO

The budget request included $587.0 million in Research, Development, Test, and Evaluation, Air Force (RDTEAF), PE 64441F, for Space-Based Infrared Satellite System (SBIRS) High. The committee recommends an increase of $100.0 million to address nonrecurring and other obsolescence issues to support SBIRS High GEO satellites three and four. As a result of the time elapsed between the acquisition of the SBIRS High GEO satellites one and two and the planned acquisition of satellites three and four, some significant redesign work is necessary. This gap has served to highlight an issue in the allocation between research and development funding for constellations with a small number of satellites. While the committee does not support incremental funding of satellite programs, production or acquisition gaps in these small constellations, in certain limited circumstances may dictate treatment of these later satellites as research and development satellites. This problem is limited to constellations of no more than four satellites and occurs when substantial nonrecurring costs are incurred.

The committee directs the Secretary of Defense to submit a report no later than August 1, 2007 outlining the budgetary and programmatic implications of utilizing Research and Development funds for small constellations of satellites in limited circumstances, including when such a funding approach might be appropriate. The committee also directs the Secretary to address in the report alternative approaches and options to fund satellite development and testing, including the establishment of a single Air Force budget line for space research, development, and testing.

Alternate infrared satellite system

The budget request included $230.9 million for the Alternate Infrared Satellite System (AIRSS) in PE 64443F. The committee recommends no funding for the AIRSS.

The AIRSS was initiated in fiscal year 2007 to provide an alternative approach for overhead non-imaging infrared (ONIR) for missile attack early warning at a time when the Spaced-based Infrared Satellite System (SBIRS) was suffering from repeated cost and schedule overruns. When the SBIRS program generated two Nunn-McCurdy breaches in a 2-year period, there was serious concern about whether the SBIRS-GEO portion of the program was salvageable.

Early missile attack warning is an essential capability that was to be performed by the SBIRS combination of highly elliptical orbit (HEO) and geosynchronous orbit (GEO) satellites as a replacement to the Defense Satellite Program (DSP). With the uncertainty in the SBIRS program, the Air Force wanted to explore alternatives in the event SBIRS-GEO was canceled after the first two GEO satellites. Since that time, and through the significant efforts of Air Force program managers and leadership, the SBIRS-GEO, while still facing a number of technical and cost challenges, has significantly improved.

With the improvement in the SBIRS-GEO program the Air Force started to look at AIRSS as a follow-on to SBIRS. The committee does not believe that AIRSS is appropriately structured at this point to be a follow-on satellite program and that the SBIRS-GEO should be able to provide the necessary missile attack early warning, technical intelligence, and battle space characterization for the next decade. The committee does support the Air Force's desire to explore next generation ONIR technologies in a science and technology environment, and urges the Air Force to include a request for such a technology development program in its fiscal year 2009 budget request.

Ballistic missile range safety technology

The budget request included $15.1 million in PE 65860F, Research, Development, Testing, and Evaluation, Air Force (RDTEAF), for Rocket Systems Launch Program, but no funds for the Ballistic missile range safety technology (BMRST). The committee recommends an additional $13.7 million for BMRST to continue certification of integration of additional units requested by several space launch ranges, including the Eastern and Western ranges, White Sands Missile Range, Pacific Missile Range, and Wallops Island launch facilities.

MQ-9 Reaper

The budget request included $61.1 million for development of the MQ-9 Reaper unmanned aerial vehicle (UAV) in PE 25219F. Military forces operating in Iraq, Afghanistan, and elsewhere today are reliant on a small number of greatly over-taxed airborne systems that are able to provide signals intelligence intercept and precise direction-finding (SIGINT-DF). In addition, some specialized aircraft not designed or intended for direct support to tactical forces currently must be used heavily for this purpose.

The Air Force is completing development of the scaleable Airborne Signals Intelligence Payload (ASIP). The so-called `2-box' configuration provides intercept and DF capabilities. This system would enable the MQ-9 Reaper to conduct area surveillance and use the SIGINT-DF capability to locate targets accurately enough to find them with on-board imaging systems. This in turn would enable the Reaper hunter-killer to prosecute the targets.

The committee recommends an increase of $10.0 million to integrate the ASIP 2-box payload on the existing MQ-9s for use in ongoing operations.

Predator trainer upgrade

The budget request included $61.1 million in 25219F for research and development for the MQ-9 Reaper unmanned aerial vehicle (UAV), including $0.5 million for developing an operator simulator. The MQ-9 is a derivative of the MQ-1 Predator UAV, and, hence, much of the ground support and training equipment for the MQ-9 will be the same equipment or product-iRTIProved versions of similar Predator equipment. The committee believes that the Air Force should be proceeding more rapidly to develop and field upgrades to the Predator trainer system to ensure that operators and ground support personnel will develop and maintain the necessary skills to conduct effective operations when the MQ-9 systems are delivered. The committee recommends an increase of $4.0 million to develop an upgraded Predator trainer to support the MQ-9 Reaper with iRTIProved performance, visual systems, and sensors.

Joint surveillance target attack radar system research and development

The budget request included $65.9 million in PE 27581F for research and development projects for the E-8 joint surveillance target attack radar system (JSTARS) and $291.6 million requested in fiscal year 2008 war-related research and development for JSTARS. In addition, the budget request included $39.7 million in PE 27450F for the E-10 aircraft program and $178.4 million requested in fiscal year 2008 war-related research and development for E-10 development.

The funding requested for the war-related JSTARS research and development included $251.0 million that would not be needed until fiscal year 2009 or fiscal year 2010. Although the committee strongly supports the JSTARS program, there is no need to authorize more funding for the program than is necessary to maintain the obligation schedule within the Air Force's own plans. Therefore, the committee recommends a decrease of $251.0 million in war-related research and development funding.

The E-10 aircraft was supposed to be a test bed for the multi-platform radar technology insertion program (MP-RTIP). The Air Force intends to field this MP-RTIP sensor suite on a number of air vehicles, including the Global Hawk unmanned aerial vehicle (UAV). The Air Force has now decided to cancel the E-10 program, but has not yet decided what to do instead. One possibility, which the Chief of Staff of the Air Force has discussed, would be to begin a program to modernize some or all of the existing E-8 JSTARS aircraft with an MP-RTIP radar system. In fact, the original Air Force plan was to backfit some number of these aircraft with the iRTIProved radar.

With the cancellation of the E-10 program, the committee believes that the Air Force should pursue another path to fielding the capability that would be provided by having the MP-RTIP radar on a platform larger than the Global Hawk. Therefore, the committee recommends a decrease of $178.4 million in the war-related funding for E-10 research and development and an increase in PE 27851F of $275.4 million, consisting of $178.4 million from the cancelled E-10 program and an additional $97.0 million to begin the effort to backfit MP-RTIP radar technology to the E-8 JSTARS aircraft.

Weather service research and development

The budget request included $39.7 million in PE 35111F for research and development projects for the Air Force weather weapon system (AFWWS), but included no funding to develop operations risk management visualization and integration (ORM-VIZ) upgrades for the system.

AFWSS and its warfighter application are charged with providing regional and tactical weather observations and forecasts to Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) systems used by commanders, planners, and operators throughout the world. The Air Force needs to upgrade AFWWS to provide commanders and mission planners with a better appreciation of the uncertainty of weather forecasts and observations. Such an upgrade should enable them to better determine the risk of ongoing and planned operations. The AFWWS is currently capable of calculating the needed uncertainty but is unable to provide computer-to-computer transfer of such information. Therefore, the committee recommends an increase of $6.0 million to upgrade the AFWSS and integrate all vital information (terrain, weather, risk assessment) into one visual display.

Classified program

The committee recommends an increase of $190.0 million to PE 35172F, Research, Development, Test, and Evaluation, Air Force (RDTEAF) for a classified item on the Chief of Staff of the Air Force's unfunded priority list.

Global Positioning System user equipment

The budget request included $120.9 million in Research, Development, Test, and Evaluation, Air Force (RDTEAF), PE 3516F, for Global Positioning System (GPS) user equipment. The committee recommends an increase of $60.0 million to develop the next generation of GPS user equipment that could utilize the GPS M code. There are already two GPS IIR-M satellites on orbit, there will be a third one launched by the end of fiscal year 2007, and four additional satellites will be launched in fiscal year 2008 and there is no user equipment available to utilize the M code. This program is on the Chief of Staff of the Air Force's unfunded priority list.

MQ-1 Predator signals intelligence direction finding

The budget request included $22.3 million in PE 35219F for development of the Predator MQ-1 unmanned aerial vehicle (UAV). In another section of this report, the committee presented a rationale for equipping many more tactical reconnaissance and hunter-killer aircraft with signals intelligence (SIGINT) and precise direction-finding (DF). The committee recommended integrating the Airborne Signals Intelligence Payload (ASIP) `2-box' SIGINT-DF on the MQ-9 Reaper UAV. The same logic applies to the Predator UAV.

The MQ-1 Predator that the Air Force is currently procuring does not have the payload capacity to carry the 2-box configuration of ASIP. However, the MQ-1C Warrior that the Army is preparing to produce will be able to support the full 2-box payload. In another section of this report, the committee directs that the Air Force convert the MQ-1 production line to the MQ-1C variant in fiscal year 2008. In conjunction with that changeover, the committee recommends an increase of $10.0 million to integrate the ASIP 2-box on the MQ-1C.

Network-centric collaborative targeting

The budget request included $8.6 million in PE 35221F for the Network-Centric Collaborative Targeting (NCCT) program. This innovative program networks airborne and national systems to enable tipping and cueing in near real-time based on commander's guidance to prosecute time-sensitive or otherwise critical targets. This networking program is necessary because it is usually impossible for a single sensor to provide all the data necessary to perform wide-area surveillance, detection, identification, localization, tracking, and support to target attack--but combinations of existing sensors can accomplish these tasks if properly networked. The speed of collaboration required, however, can exceed the ability of human operators to coordinate. Instead, `machine-to-machine' communication and automatic action are necessary, based on rules and guidance established in advance by appropriate authorities.

An example of such interactions might be using one signal's intelligence platform to automatically cue others to tune receivers to assist in geolocating a hostile emitter, then tipping an imagery system to locate and positively identify the target for attack.

The NCCT capability is being fielded to Rivet Joint, Senior Scout, the Distributed Common Ground System, air and space operations centers, and the Airborne Overhead Interoperability Office. Through these systems, many of the most important collection sensors will be able to participate and contribute--but not all. For example, the Joint STARS, Guardrail, EP-3, and Compass Call platforms are not tied into this network. The committee recommends an increase of $25.0 million to integrate these platforms into the NCCT network. In the future, the signals intelligence and imagery systems on Global Hawk, Predator, and Reaper should be integrated as well.

National Security Space Office

The budget request included $10.8 million for the National Security Space Office (NSSO) in PE 35924F. The committee recommends an increase of $7.0 million to increase the capabilities of the NSSO. NSSO is a multidisciplinary multiservice office within the Department of Defense (DOD) that was established to provide independent technical and other advice with respect to space systems and space architectures. All DOD space programs, including the National Reconnaissance Office (NRO), were to support and participate in the work of this office to ensure close coordination and integration of white and black space. In the past year the NRO decided not to participate in this office. The committee believes that this decision is shortsighted and in the long run will serve only to exacerbate the differences between the two space communities. The committee directs the Director of the NRO to resume full participation in the NSSO in fiscal year 2008 and to submit a notification to the congressional defense committees by December 1, 2007, describing the participation and the number of NRO personnel who are assigned to the NSSO office.

Space situational awareness operations

The budget request included $23.9 million in PE 35940F for space situational awareness operations. The committee recommends an increase of $16.8 million. The increase would provide additional funding for a variety of increases in operating costs for space situational awareness capabilities, including providing funds for the commercial and foreign entities program. This program is on the Commander of the Air Force Space Command's unfunded priority list.

C-130 deicing system

The budget request included $188.1 million in PE 41115F for the developing and testing modifications to the Air Force's fleet of 434 C-130 aircraft. The C-130 is the primary intra-theater airlift aircraft in the U.S. military's inventory, and its continued viability is critical to the success of current and future operations. The committee recommends an increase of $3.0 million in PE 41115F for ground-based engine testing, flight testing, and certification of metal fiber brushes in the C-130 aircraft's propeller deicing system.

KC-135 tanker replacement

The budget request included $314.5 million in PE 41221F for a KC-135 replacement, called the KC-X. This program is intended to produce the Air Force's next generation aerial refueling aircraft.

The committee notes that prior year unobligated appropriations of $173.5 million are available for the execution of the KC-X development program. The Air Force's request for proposals issued to industry on January 30, 2007, identified $250.0 million as the likely funding level available for KC-X developmental activities in fiscal year 2008. The committee fully supports the recapitalization of the KC-135 fleet and understands that a reduced funding request for fiscal year 2008 should not have a significant effect on the program execution.

The committee recommends a decrease of $140.0 million in PE 41221F for KC-X development.

Combat casualty management system

The budget request included $5.2 million in PE 48011F for research and development projects for improving the capability of the battlefield airman, but included no funding to improve the ability of combat medical personnel to operate more effectively within the personnel recovery system. The improvements needed to operate on today's battlefield include the capability to remotely activate communications links to tactical command centers or from low flying aircraft such as unmanned aerial vehicles (UAVs). Such improvements would involve providing combat medical personnel with ongoing situational awareness of the total battle space and aid in: minimizing the risk of exposure of personnel recovery aircraft and crews to battlefield threats; providing the ability to bring supplies to a medic where needed; increasing signal strength for distance and non-line-of-sight detection; and locating and tracking multiple survivors within the battle space.

The committee recommends an increase of $3.6 million to develop such improvements to the combat casualty management system.

Laser processing of materials

The budget request included $39.9 million in PE 78011F for industrial preparedness activities. The committee notes that advanced aircraft will incorporate advanced composite materials. Reducing the manufacture and processing costs of these materials can reduce the life cycle costs of many future major acquisition programs. Therefore, the committee recommends an additional $2.0 million for development of advanced laser manufacturing tools for polymer composite materials.

DEFENSE-WIDE

Semiconductor focus center research program

The budget request included no funding in PE 61111D8Z for Government/Industry Cosponsorship of University Research (GICUR) in semiconductor technology. This is despite the fact that in the January 2007 report to Congress entitled `Response to Findings and Recommendations of the Defense Science Board Task Force on High Performance Microchip Supply,' the Under Secretary of Defense for Acquisition, Technology, and Logistics indicated that the GICUR program `is a shared commitment between industry and the Department to sponsor next generation semiconductor electronics research,' which `capitalizes on university-based research, education, and training in technologies of strategic importance to national defense and also to industry.' The committee recommends an additional $5.0 million in PE 61111D8Z for the semiconductor focus center research program. The committee directs that the Director of Defense Research and Engineering ensures that this funding is combined with an adequate cost-sharing investment from industry partners, and is executed in coordination with similar authorized funding requested in PE 61101E.

Further, the committee directs the Director of Defense Research and Engineering to comply with the recommendation of the Defense Science Board Task Force on High Performance Microchip Supply to develop an `. . . estimate of Department of Defense 5- and 10-year future microelectronics needs (including processes and design methods)' as well as to `collect and organize known and projected technology requirements.' This estimate shall be delivered to the congressional defense committees no later than October 1, 2008.

Superstructural particle evaluation

The budget request included $72.0 million in PE 61384BP for chemical and biological defense basic research. This basic research improves the understanding of the scientific processes for protecting against chemical and biological agents. The committee recommends an increase of $3.0 million in PE 61384BP to continue work in superstructural particle evaluation and characterization with targeted reaction analysis. This program shows potential as an enabling technology for other efforts in the chemical and biological defense area.

Medical free electron laser

The budget request included no funding for the Medical Free Electron Laser (MFEL) program. The Department of Defense describes the program as developing `advanced, medical laser-based technology applications focusing on rapid diagnosis and treatment of battlefield medical problems,' while addressing `military mission and unique medical challenges on the battlefield.' The Department further noted that `most laser-based medical procedures used in surgery . . . for Operation Enduring Freedom and Operation Iraqi Freedom casualties have a research base and lineage' from the MFEL program. Therefore, the committee recommends an additional $8.0 million in PE 62227D8Z for the continuation of competitive research awards under the MFEL program. Further, the committee directs the Secretary of Defense to develop a strategic plan for the continuation of militarily relevant medical laser research, technology development, and technology transition to operational users, and to deliver that plan to the congressional defense committees along with the fiscal year 2009 budget request.

Chemical and biological infrared detector

The budget request included $305.3 million in PE 62384BP for chemical and biological defense applied research, but did not include any funds to develop miniaturized infrared detection technology. The committee recommends an increase of $2.0 million in PE 62384BP to continue development and miniaturization of an advanced infrared detection system for chemical and biological agents. The objective is to demonstrate a functional prototype that operates at high speed and sensitivity with minimal false alarm rates. This technology may provide an end product with significantly lower logistical burden than other technologies.

Chemical and biological protective textile fabric

The budget request included $305.3 million in PE 62384BP for chemical and biological defense applied research, but included no funds for research and development of protective fabrics based on advanced molecular matrices. The committee recommends an increase of $1.5 million in PE 62384BP for development of novel textile fabrics for protection against exposure to chemical and biological warfare agents. The committee notes that development of novel protective fabric concepts is currently a major thrust of the Department of Defense Chemical and Biological Defense Program, and this research could lead to important contributions in future protective fabric development.

Verification and validation of chemical agent persistence models

The budget request included $305.3 million in PE 62384BP for chemical and biological defense applied research, but included no funding for the verification and validation of chemical agent persistence models. The committee recommends an increase of $1.0 million in PE 62384BP, to complete verification and validation of chemical agent persistence models to help ensure U.S. forces are capable of operating effectively in a chemically contaminated environment.

The committee notes that the agent fate program is a joint service program that focuses on the acquisition of chemical warfare agent data and the development of models from that data. The continuation of the agent fate effort to validate and verify chemical agent persistence models meets a Defense Technology Objective, and will help U.S. military forces protect themselves and their equipment in a chemically contaminated environment.

Blast mitigation and protection

The budget request included $182.4 million in PE 62718BR for technologies to defeat weapons of mass destruction (WMD). The committee recommends an increase of $1.0 million in PE 62718BR for blast mitigation and protection analysis and software development to improve the Vulnerability Assessment and Protection Option analytic tool used by the Defense Threat Reduction Agency to predict the effects of explosive blasts on buildings, and to design mitigation and protection options for military facilities. Terrorist attacks using high explosives have become more sophisticated and powerful. This requires improved analytic and predictive capabilities for external and internal blast effects, identification of critical vulnerabilities, and designing protective measures against blast.

Comprehensive national incident management system

The budget request included $182.4 million in PE 62718BR for technologies to defeat weapons of mass destruction (WMD). The committee recommends an increase of $4.0 million in PE 62718BR for the Comprehensive National Incident Management system being developed by the Defense Threat Reduction Agency (DTRA) to improve national capabilities to analyze potential catastrophic events such as pandemic influenza and terrorist attacks using weapons of mass destruction. This technology has the potential to significantly improve the ability of the Department of Defense to analyze and plan for such catastrophic events, including its ability to provide support to civil authorities for consequence management of such events.

Advanced technologies for special operations

The budget request included $21.3 million in PE 1160401BB, $2.4 million in PE 1160407BB, and $29.9 million in PE 1160402BB for science and technology efforts to support the development of special operations capabilities. The committee notes that United States Special Operations Command (SOCOM) has highlighted `tagging, tracking, and locating' as a key technology challenge and plans to invest $17.6 million in the fiscal year 2008 budget in related research. The committee recommends an additional $2.5 million in PE 1160401BB for the development of multi-sensor data fusion systems to enhance detection and discrimination of targets hidden in foliage.

Special Operations Command has also highlighted the development of `alternative and advanced lightweight power sources' as a priority technology challenge. Consistent with that assessment, and with efforts in the SOCOM Small Business Innovative Research program, the committee recommends an additional $2.0 million in PE 1160402BB for research on systems to produce mobile electric power from a variety of fuels. Further, the committee recommends an additional $3.0 million in PE 1160402BB for the development of portable fuel cell systems for battlefield communications equipment. Special Operations Command has identified the development of systems that can reduce signatures across the spectrum without mission impact to enhance clandestine operations capability as a major technology challenge. To support efforts to address this challenge, the committee recommends an additional $3.0 million in PE 1160402BB to reduce antenna signatures and improve performance on airborne platforms. To support SOCOM's urgent need to enable precision fires in urban terrain and other operational settings, the committee recommends an increase of $6.0 million in PE 1160402BB for development of standoff precision guided munitions.

Directly printed electronic components

The budget request included $118.6 million in PE 63175C for ballistic missile defense technology development. The committee recommends an increase of $4.0 million in PE 63175C for development of directly printed electronic components for missile defense applications. Such components could have increased performance, greater reliability, and smaller size than currently available technology.

Semi-conducting metal oxide sensors

The budget request included $232.3 million in PE 63384BP for chemical and biological defense advanced technology. The committee recommends an increase of $2.0 million in PE 63384BP to develop miniaturized semi-conducting metal oxide sensor array technology for chemical warfare agents and toxic industrial chemicals. This technology effort meets the Department of Defense Chemical and Biological Defense Program objective to develop small, integrated chemical vapor sensors by targeting permissive exposure levels.

Improved chemical, biological, and radiological filters

The budget request included $232.3 million in PE 63384BP for chemical and biological defense advanced technology development, but included no funds for developing improved chemical, biological, and radiological (CBR) filtration capabilities. The committee recommends an increase of $2.0 million in PE 63384BP for design, engineering, and prototyping of improved CBR filters. Improved filters would fill a requirement for enhanced collective protection capability against a wider spectrum of threat agents. Such filters would be multi-use and multi-platform configurable, for use in buildings, ships, and shelters.

Raman chemical identification system

The budget request included $232.2 million in PE 63384BP for chemical and biological defense advanced technology development, but included no funding to develop a miniaturized Raman chemical agent identification system. The committee recommends an increase of $4.0 million in PE 63384BP for development of a hand-held Raman chemical identification system that is smaller and more reliable than existing systems, in order to improve the ability of U.S. forces to rapidly identify unknown chemical agents and substances.

Biometrics technologies

The budget request included $8.0 million in PE 63665D8Z for biometrics science and technology. The 2007 `Report of the Defense Science Board Task Force on Defense Biometrics' highlighted the need for improvements in the ability to perform biometric identification at standoff ranges, and recommended support of research efforts into `extended-range human biometric identifiability and tracking.' Therefore, the committee recommends an additional $4.0 million for the development of systems to perform clandestine identification of moving subjects at variable distances.

Manufacturing technologies

The budget request included $10.0 million in PE 63680D8Z for defense-wide manufacturing science and technology programs. The committee commends the Department of Defense for understanding the need to advance manufacturing technologies to support the defense industrial base, improve the performance of defense systems, and reduce life cycle costs. In title II, subtitle D of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163), the committee established the high performance defense manufacturing technology research and development program with a goal to identify and transition advanced manufacturing processes and technologies whose utilization would create significant productivity and efficiency gains in the defense manufacturing base. The committee notes that this legislation has been endorsed by the Defense Science Board (DSB) Task Force on the Manufacturing Technology Program. The committee recommends an increase of $10.0 million in PE 63680D8Z to continue activities under this program, including development of test beds and prototypes of advanced manufacturing technologies, diffusion of advanced manufacturing processes throughout the industrial base, and the development of technology roadmaps to ensure that the Department can access required manufacturing and technology capabilities in critical defense technologies.

The committee notes that the DSB recommended an increased investment in research on `disruptive' manufacturing technologies, which can radically alter traditional manufacturing processes and change the industrial base. These types of innovations would allow the Department to gain easier access to affordable low-volume, state-of-the-art production capabilities, as is often needed in the acquisition of defense unique technologies of low density, high demand systems. The DSB indicated that investments in areas such as nanomanufacturing and flexible manufacturing processes would be of high value to the Department. To support these efforts, the committee recommends an increase of $10.0 million in PE 63680D8Z for longer-term research into disruptive manufacturing techniques.

Printed circuit board technologies

The budget request included $18.7 million in PE 63712S for generic logistics research and development technology demonstrations. The committee notes that the National Research Council Committee on Manufacturing Trends in Printed Circuit Technology recommended that the Department of Defense `should ensure access to new printed circuit board (PrCB) technology by expanding its role in fostering new PrCB design and manufacturing technology.' In support of that recommendation the committee recommends an increase of $4.0 million for the development of emerging critical interconnect and printed circuit board technology.

Energy efficiency technologies

The budget request included $18.7 million in PE 63712S for generic logistics research and development (R&D) technology demonstrations. The committee is aware of a growing number of studies from organizations including the JASONs technical study group, the Defense Science Board, and the Energy Security Task Force that highlight the need for the Department of Defense to closely examine its energy use and technologies for improving energy efficiency. The use of energy efficient technologies by the Department can result in cost savings, enhanced operational performance, and reduce dependence on foreign oil. The committee also notes that the Marine Corps submitted an urgent request for renewable energy systems to be deployed in Iraq. Finally, the committee notes that Executive Order 13423 calls on federal agencies to increase their use of renewable energy for power, and for federal fleets to increase their consumption of non-petroleum-based fuels by 10 percent annually.

The committee supports efforts by the Department to invest in energy efficient and alternative energy technologies. To support these efforts the committee recommends increases of $10.0 million to continue the Vehicle Fuel Cell Program established in the National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314), $6.0 million for research on solid hydrogen storage materials and systems appropriate for military applications, $3.0 million for research on the production and use of biofuels for military operations, and $3.0 million for the development of deployable microgrid systems that can utilize a variety of energy sources to produce installation and vehicle power.

Unmanned air vehicle batteries

The budget request included $18.7 million in PE 63712S for generic logistics technology demonstrations. The committee has strongly endorsed the use of unmanned aerial vehicles (UAVs) for a growing number of military missions. The committee notes that one limiting factor in the use of UAVs on the battlefield is the limited power available on the platforms, which can limit both UAV flight range as well as the specific missions of each platform. In order to address this issue, the committee recommends an increase of $2.0 million for research on advanced battery technologies for UAVs.

Water remediation research

The budget request included $68.9 million in PE 63716D8Z for the strategic environmental research program. The committee understands that the Department of Defense has identified a large number of active and formerly used defense sites with issues of groundwater contamination. Many of these sites will require environmental remediation. To support those efforts, the committee recommends an additional $2.5 million for water remediation research.

High performance computing modeling and simulation

The budget request included $187.6 million in PE 63755D8Z for the high performance computing modernization program. The committee notes that one of the Army's major future force technology areas is advanced simulation technologies. These technologies are being developed to provide increasingly realistic training and mission rehearsal environments to support military operations and acquisition efforts. In order to support those efforts, the committee recommends an increase of $2.0 million for high performance computing modeling and simulation research.

Small craft common operating picture technology

The budget request included $109.5 million in PE 63826D8Z for quick reaction special projects. The committee notes that the Navy's assymetric and irregular warfare science and technology focus area has a specific technical objective of improving riverine surveillance capabilities, through the development of a `common and persistent maritime picture on and below the surface and shore.' To support those efforts, the committee recommends an increase of $1.5 million for the development of technology to provide a common tactical operating picture to riverine craft.

Active protection systems comparative testing

The budget request included $109.5 million in PE 63826D8Z for quick reaction special projects. The committee recommends an increase of $15.0 million for the comparative testing of foreign and domestic active protection systems as required elsewhere in this report. The committee further recommends an increase of $1.0 million for the assessment of current and future active protection systems as described elsewhere in this report.

Joint warfare experimentation

The budget request included $112.0 million in PE 63828D8Z for joint experimentation. The committee notes that Joint Forces Command (JFCOM) is playing the lead role in the development of joint operational concepts and in the development of joint experiments and wargames to test new operational concepts, capabilities, and technologies. The committee notes that JFCOM is conducting experiments to understand how multiple federal agencies, including the Department of Defense, should interact with each other and state and local entities in carrying out homeland defense missions. To support these efforts the committee recommends an increase of $1.5 million for wargaming and experimentation to simulate terrorist attacks against domestic military facilities. The committee also is supportive of JFCOM efforts to enhance Department language and cultural awareness capabilities and recommends an increase of $3.2 million to continue the development of cultural and societal modeling and simulation tools. The committee also commends JFCOM efforts in the development of urban operations concepts and capabilities and recommends an increase of $1.5 million to fund the JFCOM unfunded requirement for the development of a joint urban fires prototype.

Range readiness analyses

The budget request included $62.9 million in PE 63941D8Z for test and evaluation science and technology. The committee notes that the `Annual Report of the Test Resource Management Center' highlighted the fact that Department of Defense test facilities and ranges need to be protected against diminution in mission capability as an unintended consequence of environmental laws and encroachment. The committee recommends an additional $1.0 million for analysis of issues that may affect military mission readiness and test activities on and between installations and ranges.

Terminal High Altitude Area Defense

The budget request included $858.3 million in PE 63881C for the Terminal High Altitude Area Defense (THAAD) system. The committee recommends an increase of $105.0 million in PE 63881C, of which $40.0 million is to begin development of the Evolved THAAD Interceptor, $40.0 million is to increase the missile production rate to four per month, and $25.0 million is to conduct additional flight testing of the THAAD system.

The THAAD system is expected to have significant capability to defend against short-, medium-, and intermediate-range ballistic missiles, including potential Iranian missiles that could be launched at Europe. With evolutionary upgrades to the THAAD interceptor, the system would increase significantly its defensive area and its capability, to include the possibility of defending against some intercontinental ballistic missiles. The additional funding recommended would permit the Evolved THAAD Interceptor upgrade to begin development so that it could be tested and demonstrated on an accelerated schedule. This is not intended to interfere with the existing THAAD program of record.

The committee notes that the THAAD system is designed to have nine launchers per fire unit, but that initially the system will have only three launchers per fire unit, with eight interceptors per launcher. The Commander of the Joint Force Component Command for Integrated Missile Defense told the committee in April 2007 that recent analyses indicate a need to nearly double the number of planned THAAD interceptors, currently 96. The committee believes that the Missile Defense Agency (MDA) should plan and budget for a significantly larger number of THAAD interceptors to meet the needs of regional combatant commanders, as well as for a robust flight test program. The additional funding recommended to increase the interceptor production rate would permit production at rates that better meet the needs of combatant commanders.

The committee is disappointed that the MDA eliminated three flight tests from the THAAD testing program for budget reasons and because of difficulty delivering targets on time. This reduction is contrary to the direction provided by Congress last year for the Department of Defense to place priority on the development, testing, fielding, and improvement of effective, near-term ballistic missile defense systems, specifically including the THAAD system.

The testing reduction adds risk to the THAAD program, and increases the number of critical factors that must be accomplished in individual tests. It also eliminates two near-term flight tests. The additional funding recommended by the committee is intended to restore a THAAD flight test to reduce risk and allow a more measured pace of demonstrating critical factors in each test.

The committee is disappointed that the THAAD flight test program has suffered from target failures and target delivery delays, despite the availability to MDA of considerable sums of money for the targets program. The committee urges MDA to improve its performance on supplying reliable targets to the THAAD program and other element and system flight tests.

Arrow missile defense program

The budget request included $73.6 million in PE 63881C for the Israeli Arrow missile defense program, including $55.0 million for the Arrow System Improvement program, and $12.4 million for co-production of the Arrow interceptor missile. The committee recommends an increase of $35.0 million in PE 63881C for the Arrow missile defense program, including $25.0 million for increased co-production of the Arrow interceptor missile, and $10.0 million for the United States and Israel to conduct a detailed analysis of the potential for the Terminal High Altitude Area Defense (THAAD) system to serve as a follow-on to the Arrow system to provide an upper tier defense of Israel against longer-range and more advanced ballistic missiles armed with unconventional warheads.

The Arrow co-production program provides a means to increase the near-term inventory of operational Arrow interceptors. The Arrow system provides defense of Israel and defense of U.S. forces deployed in the region, thus allowing U.S. freedom of action in future contingencies. The Arrow system is designed to be interoperable with deployed U.S. missile defense assets.

The committee notes that the THAAD system is planned to have the capability to defend an area the size of Israel against regional ballistic missiles that could leak through Israel's improved Arrow weapon system. The committee believes that Israel should consider seriously the option of purchasing the THAAD system, rather than beginning a development program for a new upper tier interceptor system that would replicate the capabilities of THAAD. The committee urges the Department of Defense to assist in this effort.

Short-range ballistic missile defense

The budget request included $962.6 million in PE 63881C for terminal-phase missile defense efforts, of which $7.0 million is for short-range ballistic missile defense (SRBMD) research and development cooperation between the United States and Israel on the Israeli `David's Sling' weapon system. The committee recommends an increase of $25.0 million in PE 63881C for acceleration of the SRBMD development effort.

The short-range missile and rocket attacks by Hezbollah against Israel in the summer of 2006 reinforced the importance of developing affordable and effective short-range ballistic missile defense capabilities. The Missile Defense Agency wants to ensure that the technology developed for the David's Sling weapon system can be fully interoperable with the U.S. Ballistic Missile Defense system. The program seeks to produce an interceptor missile costing $350,000, which is less than 15 percent of the cost of a Patriot missile.

This program development objective is on an accelerated schedule to allow rapid demonstration and fielding of an initial capability by Israel starting as early as 2009.

Ground-based midcourse defense in Europe

The budget request included $2.5 billion in PE 63882C for midcourse ballistic missile defense, including $85.0 million for construction of facilities in Europe for the proposed deployment of Ground-based Interceptors in Poland and a midcourse X-band radar in the Czech Republic. As noted elsewhere in this report, the committee believes this proposed deployment request is premature. The committee recommends a reduction of $85.0 million in PE 63882C, the entire amount for site activation and construction activities for the proposed European deployment.

Should the international agreements be reached before or during fiscal year 2008, the Department of Defense could then seek a reprogramming request to fund site activation and construction activities.

Airborne Laser

The budget request included $548.8 million in PE 63883C for the Airborne Laser boost-phase missile defense technology demonstration program. The committee recommends a reduction of $200.0 million to PE 63883C for the Airborne Laser. The committee notes that the Airborne Laser (ABL) program has had a history of schedule delays and cost overruns since its inception in 1996. The Department of Defense previously told Congress that the system would be available for an emergency capability in 2003. The current schedule has delayed the first demonstration shoot-down flight test until 2009 and, if all the technology worked as hoped, the system would likely not be operational until 2018, or later.

The committee has concerns about the many technical challenges still facing the Airborne Laser program, as well as its operational constraints and very considerable cost. For example, the ABL demonstration program is expected to cost $5.0 billion dollars to get through the first demonstration of the proof of principle in a shoot-down flight test in 2009. Even if that flight test were to work, it would not demonstrate that the system could be made operationally effective. And it is unclear that the system would be affordable. The Congressional Budget Office has provided an initial estimate that an operational ABL system of 7 aircraft could cost as much as $36.0 billion.

Although the MDA says that the ABL program is a knowledge-based program, it did not meet all its knowledge points in 2006 before moving forward to the next knowledge point. This indicates too high a degree of technical risk, and an undue effort to meet a schedule for the flight test demonstration, rather than demonstrating all necessary knowledge point steps before proceeding to the next step.

The committee notes that near-term capabilities to defend against existing threats are a higher priority than far-term, high risk technology demonstrations. The committee urges the Department to consider restructuring the ABL program as a technology demonstrator.

Real-time non-specific viral agent detector

The budget request included $57.2 million in PE 63884BP for chemical and biological defense advanced component development and prototypes, but included no funds for development of a mobile non-specific viral agent detector. The committee recommends an increase of $4.0 million in PE 63884BP for development of a mobile real-time non-specific viral agent detector that would improve current capabilities. The committee notes that this effort would provide a significant upgrade to the current Joint Biological Agent Identification and Diagnostic system (JBAIDS). This technology, which would add the capability to detect infectious diseases, would be useful both for forward-deployed forces and for domestic consequence management missions.

Ballistic missile defense reductions

The budget request included $482.0 million in PE 63890C for Ballistic Missile Defense (BMD) systems Core; and $323.3 million in PE 63891C for Missile Defense Agency (MDA) Special Programs. The committee recommends a decrease of $50.0 million in PE 63890C for BMD systems Core; and a decrease of $150.0 million in PE 63891C for MDA Special Programs to partially offset the additional funding needed for the Patriot PAC-3, Aegis BMD, and THAAD programs, described elsewhere in this report. The committee notes that the proposed funding reductions are for projects that are of lower priority than the near-term capabilities provided by these three near-term programs, which meet the needs of combatant commanders to defend against existing short-range and medium-range missile threats to forward-deployed U.S. forces.

Aegis ballistic missile defense

The budget request included nearly $1.1 billion in PE 63892C, Research, Development, Test, and Evaluation, Defense-wide, for the Aegis Ballistic Missile Defense (BMD) system, including the Standard Missile-3 (SM-3) interceptor. The committee recommends an increase of $75.0 million in PE 63892C for the Aegis BMD system, of which $20.0 million is for increasing the SM-3 interceptor production rate to four per month; $45.0 million is for long lead production of an additional 15 SM-3 interceptors; and $10.0 million is for accelerating the development of the Aegis BMD Signal Processor (BSP) and Open Architecture software for the Aegis weapon system.

The committee notes that the Aegis BMD system, and its SM-3 interceptor, is deployed today and provides an important missile defense capability against short- and medium-range missiles deployed widely in theaters where U.S. forces are forward deployed. The system is planned for significant capability improvements in the future.

The Missile Defense Agency (MDA) increased the planned funding for SM-3 missiles in fiscal year 2008 to fund missiles it had previously cut for budget reasons. Currently MDA plans to procure only some 147 SM-3 missiles of all Block I varieties. The Commander, Joint Forces Component Command for Integrated Missile Defense (JFCC-IMD) testified in April 2007 that recent analyses indicate a need to nearly double the number of planned SM-3 interceptors. The committee urges MDA to plan and budget for increased numbers of SM-3 interceptors to meet the needs of regional combatant commanders, as indicated by the Commander, JFCC-IMD.

Space tracking and surveillance system

The budget request included $331.5 million in PE 63893C for the Space Tracking and Surveillance System (STSS). The committee recommends a reduction of $55.0 million in PE 63893C for STSS, the amount requested for product development of the follow-on satellites that will not be deployed until 2016. The committee notes that the STSS program is preparing to deploy two experimental STSS satellites to learn how the system works, and what changes or improvements are needed for the operational system. It is premature to plan to spend funds on developing the follow-on operational satellites before the Missile Defense Agency knows how the experimental satellites work, and what changes are needed in the follow-on satellites.

Space test-bed

The budget request included $27.7 million in PE 63895C for Ballistic Missile Defense system space programs, including $10.0 million for a new `space test-bed.' The committee recommends a decrease of $10.0 million in PE 63895C, the entire amount requested for the space test-bed.

The committee notes that the space test-bed is intended to be the initial step toward deploying space-based interceptors. There is no threat that justifies such a deployment, and therefore no justification to create such a test-bed. There are, however, numerous real missile threats for which near-term missile defense capabilities are needed, as Congress made clear in section 223 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). The committee believes it is more appropriate to support funding for those effective, near-term systems that meet current combatant commander needs against existing threats.

Surface-to-air missile threat simulators

The budget request included $133.8 million in PE 64940D8Z for central test and evaluation investment development. The committee notes the need to develop simulators for the large variety of threats that may face warfighters in the future. The fiscal year 2006 annual report of the Director of the Test Resource Management Center identified digital modeling and simulation of targets and threats as a test and evaluation gap. Therefore, the committee recommends an additional $4.0 million for the development of surface-to-air missile hardware simulators.

Prompt global strike

The budget request included a total of $175.4 million for the Conventional Trident Modification (CTM), with $126.4 million in hard and deeply buried target defeat systems, PE 64327N; $36.0 million in Trident II modifications, Weapons Procurement, Navy (WPN) line 1; and $13.0 million in strategic systems missile equipment, Other Procurement, Navy (OPN) line 108. The budget request also included $32.8 million for the Common Aero Vehicle, PE 64856F.

The committee believes that a coordinated look at a variety of kinetic non-nuclear concepts is necessary to address the feasibility of a prompt global strike (PGS) capability and to review, in a coordinated fashion, technologies that would be common to such a capacity, including thermal protection, guidance navigation, and control issues. The committee recommends that the funds identified above be transferred to technical studies, support, and analysis, PE 65104D8Z, to be used to establish an integrated PGS research program. Requirements for the program should be provided by the United States Strategic Command as informed by the ongoing analysis of alternatives for PGS and the PGS technology roadmap.

In addition to the research areas mentioned above, research should include advanced propulsion, payload delivery and dispensing mechanisms, weapon system command and control, and advanced non-nuclear, kinetic, and other enabling capabilities.

The committee is aware of several potential options for non-nuclear prompt global strike, including the Army's advanced hypersonic weapon technology demonstrator program, which is included on the Chief of Staff of the Army's unfunded priority list in the amount of $41.7 million. The committee recommends that of the funds provided for PGS, $41.7 million be provided to begin sounding rocket and flight vehicle tests, and to support booster development for the Army's advanced hypersonic weapon.

Other service program elements, including PE 63216F, aerospace propulsion and power technology, also include research and development areas that could be applied to the PGS mission. Included in the propulsion research and development efforts is the versatile, affordable advanced turbine engine high speed turbine engine demonstrator (HiSTED). The budget request included $2.5 million for this effort. The committee recommends an additional $10.0 million to allow the PGS effort to coordinate research and development activities with the Air Force HiSTED project.

The committee continues to believe that it is essential to maintain a bright line between legacy nuclear capabilities and any future PGS capability, and therefore recommends no funds for the CTM or other similar capability that could raise any nuclear ambiguity issues. The committee believes that PGS should be clearly and unambiguously non-nuclear.

The committee directs the Secretary of Defense, in consultation with the Commander of the Strategic Command, to submit a research plan for PGS for fiscal year 2008, including a funding plan, prior to initiating any PGS research.

Information systems security program technology development

The budget request included $394.3 million in PE 33140G for Research, Development, Test, and Evaluation (RDT&E) for the Information Systems Security program at the National Security Agency (NSA). The committee is concerned that the NSA information assurance program does not have a dedicated program for developing a technology base for future requirements for advanced products like high-speed encrypters for space and terrestrial applications.

Multiple Department of Defense and national intelligence major acquisition programs have been adversely affected by delays in the development of security features. These delays are in part the result of NSA security technology lagging behind the constant, rapid advance of communications technology.

The committee believes it is unwise for a critical mission area such as this to receive no tech base funding, especially in the current era when the communications technology that must be protected is growing relentlessly.

Accordingly, the committee directs the establishment of an anticipatory technology development program for advanced information assurance capabilities. The committee recommends an authorization of $30.0 million for this purpose.

The committee directs the Assistant Secretary of Defense for Network and Information Integration to develop a technology development plan that describes key challenges, critical capabilities, and technical goals for information assurance over the future-years defense program. This plan must delineate how the Department intends to structure the anticipatory development program, and to utilize commercial expertise and investments. This plan, as well as a spending plan for fiscal year 2008, must be submitted to the congressional defense committees prior to obligation and expenditure of authorized funds.

Software assurance education and research

The budget request included $394.3 million for Research, Development, Test, and Evaluation (RDT&E) in PE 33140G for the Information Systems Security program (ISSP), but no funds for the development and integration of secure software design practices in curricula of higher education institutions that teach computer science and software engineering.

The committee recommends an increase of $1.0 million for this purpose at one of the institutions designated as a national Center of Academic Excellence in Information Assurance Education by the National Security Agency.

Defense Logistics Agency manufacturing research

The budget request included $20.1 million in PE 78011S for industrial preparedness programs of the Defense Logistics Agency (DLA). The committee notes that efforts to adopt fuel cell technology by the military are inhibited by cost barriers. The reduction of fuel cell cost is a specific technical goal of the Department of Defense's Energy and Power Technology Initiative. Therefore, the committee recommends an additional $3.0 million for the improvement of manufacturing processes to reduce the cost of fuel cells for use in military applications. The committee directs that these activities will be undertaken in coordination with the efforts of the Joint Defense Manufacturing Technology Panel. The DLA has indicated that a disproportionate share of equipment backorders are due to an unavailability of critical cast parts. Therefore, the committee recommends an increase of $2.0 million to develop systems to accelerate the manufacturing and procurement of high priority castings. Further, the committee notes that the DLA has set an objective to improve supply chain performance through a number of improvements including supply chain integration. Therefore, the committee recommends an increase of $3.0 million for continued improvements in supply chain integration and accelerating response times to equipment backorders. Finally, the committee notes that DLA and the Army have a need for shelf stable combat rations, especially items sensitive to heat, such as produce and eggs, and recommends an increase of $4.0 million for development of equipment to improve processing of rations to enhance their produceability, quality, and shelf life.

Manufacturing processes to support surge requirements

The budget request included $20.1 million in PE 78011S for Defense Logistics Agency manufacturing technology programs. The committee notes that this is part of the overall Department of Defense manufacturing technology program which has total funding of $193.3 million in the budget request. The committee notes that the 2006 Defense Science Board (DSB) Task Force on the Manufacturing Technology Program called for increased funding levels for the program over a 5-year period to a level of `one percent of the RDT&E budget,' to align the Department with the level of manufacturing technology investments in the early 1980s. The committee notes that 1 percent of the requested RDT&E budget in fiscal year 2008 would be approximately $750.0 million.

The committee recommends that the Department seriously consider implementing the DSB recommendations for increased manufacturing research funding and has recommended a series of investments throughout this bill to support the ramp up in this important area.

As part of that effort the committee recommends an increase of $30.0 million in PE 78011S for the establishment of an industrial base innovation fund. The committee directs that these funds be executed in coordination with the Joint Defense Manufacturing Technology Panel and the Deputy Under Secretary of Defense for Industrial Policy to ensure that investments are made to develop manufacturing processes and technologies to support both long-term and short-term needs of the Department. The committee has noted that the surge production requirements of current operations have stressed the industrial base and lead to intolerable wait times for the delivery of some much needed materiel to the battlefield. The committee believes that this recommended increased investment should be used to begin the development of advanced manufacturing technologies that can reduce the time required to produce high demand items during surges in military operations.

ITEMS OF SPECIAL INTEREST

Adaptive optics

The committee notes that adaptive optics are an important enabling technology for a wide variety of military applications, including laser weapons and space surveillance systems. The committee is concerned that the domestic research and industrial base may not be able to meet the innovation and production demands of the Department of Defense in the future. Therefore, the committee directs the Secretary of Defense to develop a report not later than September 1, 2008, analyzing and recommending a multiyear funding requirement and a set of technical challenges for research to maintain a viable domestic manufacturing base for adaptive optics that can support the meeting of military requirements.

Advanced cruise missile threats

The committee is concerned about the limited effort that the Navy is undertaking in developing test resources that can adequately simulate emerging advanced cruise missile threats to Navy platforms. The committee is aware that the lack of this test capability has been raised specifically by the Director of Operational Test and Evaluation as potentially impacting the operational testing of a number of major Navy acquisition programs. The committee also notes that the Deputy Secretary of Defense is currently reviewing Navy plans to address this shortfall.

The committee directs the Secretary of the Navy, jointly with the Director of Operational Test and Evaluation and the Director of the Test Resource Management Center to report on plans to develop test resources to adequately test naval assets against advanced cruise missile threats. The report should include a classified analysis of the current and projected future threat, required funding and schedule for the development and acquisition of relevant test resources, and impacts on test schedules and adequacy of testing for specific relevant Navy systems. Further, the Secretary of the Navy shall provide the committee with a report containing an assessment of international advanced cruise missile capabilities relative to the United States' capabilities and the feasibility, cost, and schedule for developing similar capabilities for the Navy. The committee directs that these two reports shall be delivered to the congressional defense committees no later than April 15, 2008.

Analyses of the Air Force test and evaluation proposals

The committee notes that both the Department of Defense Appropriations Act for Fiscal Year 2007 (Public Law 109-289) and the statement of managers accompanying the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) expressed concern over proposed realignments and closures of Air Force test and evaluation facilities. In response to these concerns, the Air Force has delivered an analysis of one such proposal to Congress, and has undertaken a second overall assessment of Air Force test and evaluation activities.

The committee continues to monitor this situation and the iterations of Air Force proposals and strategies to appropriately resource critical test and evaluation functions within a constrained budget. The committee has been concerned in the past with the preservation of a robust test and evaluation capability, leading to establishment of the Test Resource Management Center in the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314), to provide oversight over proposed budgets and expenditures for the Major Range and Test Facility Base and to be cognizant of other test and evaluation facilities and resources.

In order to ensure that any reductions in test and evaluation workforce or capabilities are only undertaken after comprehensive and careful analyses of the costs, benefits, and impacts of such decisions on the Department of Defense, the committee directs the Air Force to provide planned actions, criteria used to determine acceptable risk, and supporting data to the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Director of the Test Resource Management Center. The committee directs the Director of the Test Resource Management Center to review and analyze existing and ongoing test and evaluation studies being conducted by the Air Force after their completion and to submit a report that provides the committee with any appropriate conclusions and recommendations on the studies, findings, or planned actions that affect the capabilities and capacity of the Major Range and Test Facility Base. The committee directs that this report shall be delivered to the congressional defense committees as soon as practicable after the completion of the Air Force studies, and that no implementation of proposed plans be initiated before 60 days after receipt of the Director of the Test Resource Management Center's report by Congress.

Director of Operational Test and Evaluation workforce study

The committee notes that the Director of Operational Test and Evaluation plays a critical role in determining that weapons systems are operationally effective. The Director's efforts help ensure that acquisition programs deliver systems that provide deployed forces with battlefield superiority. The committee notes that the duties of the office of the Director of Operational Test and Evaluation have expanded into areas such as information assurance, force protection, and non-lethal weapons, while continuing the extensive oversight and reporting functions required by statute and regulation. The committee is concerned that the office may not have the workforce required to perform its assigned duties.

Therefore, the committee directs the Director of Operational Test and Evaluation to undertake a comprehensive review and analysis of his workforce requirements and report back to the congressional defense committees no later than April 1, 2008. The report shall include an assessment of projected future workforce requirements, resources required to meet those requirements, and recommendations on additional personnel hiring and retention authorities that would support the Director in the conduct of his required duties.

Ground/air task-oriented radar

The budget request included $104.4 million in PE 26313M to develop a multi-function radar that would replace five existing single-purpose Marine Corps radar systems used for air defense surveillance and weapons engagement, counter-battery fire, and air traffic control.

The committee is aware that the Marine Corps requirements specified for this system resulted in selection of an S-band radar, and that the first of the four planned increments of the ground/air task-oriented radar (G/ATOR) program includes weapon cueing. S-band radar can do many tasks well, but it is not optimal for weapons engagement. Furthermore, the Marine Corps has terminated its planned weapons engagement system, the Complementary Low-Altitude Weapons System based on the Advanced Medium-Range Air-to-Air Missile.

The committee is concerned that the Department of the Navy has embarked on the development of a new radar system which may be poorly suited for the system's primary functions. Therefore, the committee directs the Secretary of the Navy to conduct an independent assessment and submit a report to the congressional defense committees, with the fiscal year 2009 budget request, on the Marine Corps acquisition of the G/ATOR system. The report shall address: (1) the Marine Corps requirement for weapons engagement, and verify that the planned S-band radar design will support that requirement; (2) an assessment of the phasing for planned increments, recognizing that the Marine Corps does not yet have a defined weapons engagement requirement (other than cueing of terminal weapons such as Stinger); and (3) an examination of the technical and program management resources needed to effectively execute this complex state-of-the-art development program.

National Security Agency acquisition management

The National Security Agency (NSA) has experienced significant problems over the last decade in transforming itself from the Cold War era to operate effectively in today's global information environment. The Congress and the executive branch concluded that poor acquisition management was a major cause of the NSA's relative lack of success, and the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136) prohibited the delegation of Milestone Decision Authority (MDA) to the NSA Director and designated the ongoing transformation program, TRAILBLAZER, as a major defense acquisition program (MDAP).

The Congress intended this action to cause the Senior Acquisition Executives (SAEs) in the Department of Defense (DOD) and the Office of the Director of National Intelligence (ODNI) to take vigorous action to improve the Agency's acquisition management capabilities, and to enforce acquisition discipline and accountability through process controls and milestone reviews.

Although some progress is evident, the TRAILBLAZER program was essentially abandoned, and its successor has significant problems. One of the most serious problems is that the NSA chose to structure the TURBULENCE architecture, a major element of its new Transformation 3.0 activity, as a series of loosely connected projects, not one of which met the threshold for designation as a major systems acquisition. This decision, while permitting the NSA to avoid external acquisition oversight, exacerbated the Agency's weaknesses in systems engineering and systems integration. The Department and the ODNI have tolerated this situation for almost 1.5 years.

The committee directs that TURBULENCE be designated as a major systems acquisition requiring milestone review and approval, and formal oversight, by the DOD and DNI MDAs. In addition, the committee directs that the Director of Operational Test and Evaluation exercise oversight over all major elements of the Agency's Transformation 3.0 architecture, including TURBULENCE and the remaining activities under TRAILBLAZER.

The committee supports the Agency's recent decision to create the position of Chief Technology Officer (CTO), whose responsibilities will include ensuring that all the major elements of the Transformation 3.0 effort are integrated at the enterprise level. The committee is concerned, however, that the Agency still lacks the skills necessary to manage a systems engineering and integration challenge of this size and complexity.

The committee directs that the TURBULENCE program may not proceed to Milestone B without a certification to the congressional defense and intelligence committees from the Under Secretary of Defense for Acquisition, Technology, and Logistics (USD(AT&L)), and the Deputy Director of National Intelligence for Acquisition (DDNI(A)), that: (1) the program managers for TURBULENCE and TRAILBLAZER are qualified and have the authority and resources necessary to carry out effective program management; and (2) the CTO has the authorities, personnel, funding, and plans necessary to effectively integrate the Agency's Transformation 3.0 activities.

Open Architecture

The Navy has made considerable investments over the past several years in an effort to transition development of surface ship systems to an open business model, commonly referred to as Open Architecture (OA). OA systems are characterized by modular design, public access to design specifications, software reuse, common interface standards, and seamless interoperability between system hardware and software applications. By rejecting proprietary and closed solutions, OA promises to bring to bear the critical elements of competition and innovation to achieve improved system performance and affordability.

Absent an open business model, the ability to modernize the surface force effectively, affordably, and routinely to keep pace against future threats becomes highly problematic. This is well exemplified by the challenges confronting the Navy with a protracted, 20-year plan to modernize the weapon system for Aegis cruisers and destroyers. However, the challenges with implementing OA for surface ship systems are highly problematic in their own right. Absent a comprehensive OA implementation plan that keeps faith with underlying OA principles, the Navy will expend critical financial, technical, and management resources without achieving measurable improvement to system performance or life cycle cost.

The Navy's success in building a future force of 313 ships, and with that, the Navy's ability to meet its long-range warfighting requirements, is directly linked to its success in implementing OA. However, despite having made significant OA investments to date, the Navy's overall progress in transitioning into OA business processes is disappointing. In view of the criticality of this overall effort, Congress needs a clear understanding of the full scope of the effort, the investment required, and the progress achieved towards the objectives outlined above.

Therefore, the committee directs the Secretary of the Navy to submit a report to the congressional defense committees, commencing with the fiscal year 2009 budget request, to be updated quarterly, that outlines the Navy's plan and progress with implementing OA. The report shall include: (i) an integrated schedule outlining OA development and the related surface ship fielding plan; (ii) an assessment of OA development, test, procurement, installation, and operating and support costs; (iii) the Navy's acquisition strategy for leveraging competition in software development; and (iv) the Navy's performance to the plan. Additionally, the report shall: (i) identify software that is intended to be available for reuse by third parties in support of the OA implementation plan; (ii) describe the Navy's progress in making that software and related documentation available through the Navy's Software, Hardware Asset Reuse Enterprise (SHARE) Library; (iii) describe how the Navy is assuring quality for software and related documentation deposited in the SHARE Library; (iv) describe how the Navy is driving reuse of SHARE Library software; (v) outline contracts which have reused third party software from the SHARE Library; and (vi) identify the impediments to entering outstanding Navy system software into the SHARE Library and the plan for managing these impediments.

To Top

TITLE III--OPERATION AND MAINTENANCE

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

Explanation of tables

The following tables provide the program-level detailed guidance for the funding authorized in title III of this Act. The tables also display the funding requested by the administration in the fiscal year 2008 budget request for operation and maintenance programs, and indicate those programs for which the committee either increased or decreased the requested amounts. As in the past, the Department of Defense may not exceed the authorized amounts (as set forth in the tables or, if unchanged from the administration request, as set forth in budget justification documents of the Department of Defense), without a reprogramming action in accordance with established procedures. Unless noted in this report, funding changes to the budget request are made without prejudice.

SUBTITLE B--ENVIRONMENTAL PROVISIONS

Reimbursement of Environmental Protection Agency for certain costs in connection with Moses Lake Wellfield Superfund Site, Moses Lake, Washington (sec. 311)

The committee recommends a provision that would authorize the Secretary of Defense to reimburse the Environmental Protection Agency for its costs incurred in connection with the former Larson Air Force Base, Moses Lake Superfund Site, Moses Lake, Washington, as requested by the Department of Defense.

Reimbursement of Environmental Protection Agency for certain costs in connection with the Arctic Surplus Superfund Site, Fairbanks, Alaska (sec. 312)

The committee recommends a provision that would authorize the Secretary of Defense to reimburse the Environmental Protection Agency for costs incurred in connection with the Arctic Surplus Superfund Site, Fairbanks, Alaska, as requested by the Department of Defense.

Payment to Environmental Protection Agency of stipulated penalties in connection with Jackson Park Housing Complex, Washington (sec. 313)

The committee recommends a provision that would authorize the Secretary of the Navy to pay a stipulated penalty assessed by the Environmental Protection Agency against the Jackson Park Housing Complex, Washington, as requested by the Department of Defense.

SUBTITLE C--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS

Availability of funds in Defense Information Systems Agency Working Capital Fund for technology upgrades to Defense Information Systems Network (sec. 321)

The committee recommends a provision that would authorize the Defense Information Systems Agency (DISA) to use up to $500,000 of working capital funds to pay for any project directly related to technology upgrades to the Defense Information System Network (DISN). The committee appreciates that the rate of technological advances in information systems challenges the ability of DISA to keep pace with the opportunities to upgrade the system and provide better service to its users. Increasing the level of authorized investment from the working capital fund would allow DISA greater flexibility to technically refresh the system. The committee notes, however, that this increased authority is not intended to fund major technical insertions that substantially change the form, fit, or function of the DISN, which should continue to be funded through appropriated accounts.

Extension of temporary authority for contract performance of security guard functions (sec. 322)

The committee recommends a provision that would continue the orderly phase-out of the temporary authority for contract performance of security guard functions under section 332 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314). Under the provision, the Department of Defense would be required to continue reducing the number of contract security guards employed under section 332 from the baseline number of such personnel as of October 1, 2006. In 2010, the Department would be permitted to employ 70 percent of the baseline number; in 2011, 60 percent of the baseline number; and in 2012, 50 percent of the baseline number.

Report on incremental cost of early 2007 enhanced deployment (sec. 323)

The committee recommends a provision that would amend section 323 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) to include a reporting requirement on the incremental increase in reset costs related to the deployment of additional forces to Iraq. The committee remains concerned that the services accurately capture the costs and fully fund the reconstitution or reset of forces committed to the war in Iraq and Afghanistan. This provision requires the military departments to identify and project the increase in costs of reset based on the increase of forces under the new strategy in Iraq.

Individual body armor (sec. 324)

The committee notes the continuing controversy over the technical capabilities of commercially available individual body armor and whether it fails, meets, or exceeds the military's ballistic protection requirements. This kind of controversy can undermine peoples' confidence in the quality of the equipment we provide our troops. Therefore, the committee recommends a provision that would require, within 90 days of enactment of this Act, a joint technical assessment and classified and unclassified reports by the Director, Defense Research and Engineering (DDRE) and the Director, Operational Test and Evaluation (DOTE) of individual body armor systems currently available in the domestic market.

SUBTITLE D--WORKPLACE AND DEPOT ISSUES

Extension of authority for Army industrial facilities to engage in cooperative activities with non-Army entities (sec. 341)

The committee recommends a provision that would amend section 4544 of title 10, United States Code, to extend, until September 30, 2014, the authority for any working capital funded Army industrial facility to enter into a contract or cooperative arrangement with a non-Army entity to carry out specified military or commercial projects. The committee encourages and supports public-private industrial cooperation and partnerships to increase efficiency, reduce costs, and get the most out of public industrial capacity. However, the Army does not appear to have effectively used existing authority upon which to base a business case assessment of potential costs, benefits, or risks associated with these partnerships at its manufacturing facilities. Accordingly, the committee recommends extending the current authority for 5 years, allowing the Army additional time to enter into no more than eight long-term cooperative arrangements or partnerships. The provision would also provide for an annual report by the Secretary of the Army explaining how the Army is using this extended authority. The committee further recommends that not later than September 30, 2012, the Army submit a business case analysis on the advisability of making this authority permanent.

Two-year extension of Arsenal Support Demonstration Program (sec. 342)

The committee recommends a provision that would amend section 343 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398), to extend until September 30, 2010 the Arsenal Support Program Initiative. The committee notes that this demonstration program was created in fiscal year 2001 and was extended to fiscal year 2008. The committee recommends a 2-year extension of this program to allow for consideration of a report from the Secretary of the Army, due not later than July 1, 2007, on the results of the demonstration program. The Secretary's report will include the Army's views regarding the benefits of the program as well as an assessment of the success of the program in achieving the purposes specified in section 343. The report will also contain a comprehensive review of contracting at the Army manufacturing arsenals covered by the program and such recommendations as the Secretary considers appropriate regarding changes to the program. The committee recommends an extension of the Arsenal Support Program Initiative demonstration to allow for consideration of the Secretary of the Army's report and suggested changes.

SUBTITLE E--OTHER MATTERS

Enhancement of corrosion control and prevention functions within Department of Defense (sec. 351)

The committee recommends a provision that would amend section 2228 of title 10, United States Code, to provide for a permanent Director of the Office of Corrosion Policy and Oversight reporting directly to the Under Secretary of Defense for Acquisition, Technology, and Logistics (USD-ATL). The committee is concerned that the Department of Defense continues to place a low priority on the management, oversight, and funding of corrosion control policies and programs. The fiscal year 2008 budget request included only $12.0 million for projects to address the Department's estimated $380.0 million corrosion prevention and control-related requirements. With aggressive investment in corrosion control the Department could realize an industry standard 49 to 1 return on investment. The Government Accountability Office (GAO) reports that many Department weapons systems experience significant corrosion-related cost, readiness, and safety problems. Corrosion prevention and control planning is the most effective way to reduce these problems. However, the committee is concerned that the Department and military services have not comprehensively or effectively incorporated corrosion control planning in major defense acquisition or maintenance programs for both older and new systems.

The committee believes that the establishment of a Director for the Office of Corrosion Policy and Oversight and placing this function directly under the USD-ATL will result in a more comprehensive and aggressive approach to corrosion prevention and control throughout the Department. The committee also recommends provisions that would give the Director additional authorities for oversight of corrosion-related training, development of directives, and interaction with non-Department activities including taking advantage of opportunities for cooperative efforts in science and technology research and development. Finally, the committee recommends that the Department submit an annual report on the implementation of its corrosion control strategy.

Reimbursement for National Guard support provided to Federal agencies (sec. 352)

The committee recommends a provision that would amend section 377 of title 10, United States Code, to require federal agencies that receive law enforcement support or support to a national special security event provided by National Guard personnel performing duty under section 502(f) of title 32, United States Code, to reimburse the Department of Defense for the costs of that support. The provision would continue to exempt from the requirement for reimbursement support that is provided in the normal course of military training or operations, or when the support results in an operational or training benefit to the element of the Department providing the support.

Reauthorization of Aviation Insurance Program (sec. 353)

The committee recommends a provision that would amend section 44310 of title 49, United States Code, relating to the expiration of chapter 443, Aviation Insurance program. The provision would extend the authority of the Secretary of Transportation to provide insurance and reinsurance which would otherwise expire during fiscal year 2008. This government-provided insurance program for commercial air carriers supporting Department of Defense transportation activities is an essential requirement for activating the Civil Reserve Air Fleet during wartime.

Property accountability and disposition of unlawfully obtained property of the Armed Forces (sec. 354)

The committee recommends a provision that would amend chapter 661 of title 10, United States Code, to authorize the Secretary of the Navy to prescribe regulations for the accounting of Navy and Marine Corps property and to fix responsibility for such property. The provision would also add a new section for the Navy and Marine Corps similar to existing laws applicable to the Army and Air Force that prohibit improper disposition of military equipment and authorize seizure of such unlawfully transferred government property. The provision would also modify sections 4836 and 9836 of title 10, United States Code, to clarify the meaning and intent of those sections pertaining to property accountability in the Army and Air Force.

Authority to impose reasonable conditions on the payment of full replacement value for claims related to personal property transported at Government expense (sec. 355)

The committee recommends a provision that would amend section 2636a(d) of title 10, United States Code, to authorize the Secretary of Defense to require compliance with reasonable conditions for a military member or civilian employee of the Department of Defense to receive full replacement value for personal property lost or damaged while being transported at government expense.

The committee believes that the Office of the Secretary of Defense, U.S. Transportation Command, and the military departments must take more effective measures to ensure that accurate data about the performance of household goods movers is collected from service members and civilian employees of the Department of Defense following permanent change of station moves. Imposing a duty on service members and civilian employees to complete simple surveys about the quality of the moves is a key factor in measuring the relative merits of household goods movers and should be monitored and enforced.

Authority for individuals to retain combat uniforms issued in connection with contingency operations (sec. 356)

The committee recommends a provision that would allow the secretary of a military department to authorize members of the armed forces under their jurisdiction to retain combat uniforms issued as organizational clothing and individual equipment in connection with their deployment in support of contingency operations.

Modification of requirements on Comptroller General report on readiness of Army and Marine Corps ground forces (sec. 357)

The committee recommends a provision that would extend and expand the assessment and report required of the Government Accountability Office (GAO) by section 345 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). The committee notes that in January of this year the President announced a new strategy for Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF) that requires the deployment of additional combat and support forces to Iraq and Afghanistan. The committee remains concerned about the impact of sustained high operational tempo due to ongoing operations on the readiness of our ground forces and their ability to respond to other threats or contingencies.

The committee notes that the GAO has nearly completed its analysis and report as directed by section 345. The GAO has provided the committee with useful interim reviews of their initial findings. The committee looks forward to receiving the next report on June 1, 2007. However, the decision to increase the commitment of U.S. ground forces to OIF and OEF and the subsequent deployment of additional combat brigades and support units to Iraq and Afghanistan indicate that the GAO should continue its assessment to account for these changes to the underlying reality of ground forces commitment.

The committee directs the GAO to include in its continuing analysis an assessment of the Army and Marine Corps ability to provide forces to meet specific contingency plans of the regional combatant commands. While detailed information on readiness and contingency plans are classified, the issues being assessed in this report are of enormous importance to the Department of Defense and the Congress and should be available for open discussion to the extent that classification rules allow. Therefore, this report should be provided in both classified and unclassified form. The various elements required by this report, as with the report required in section 345, may be provided separately, as long as all the required elements are submitted before March 1, 2008, and the information used to satisfy the reporting requirement is current.

The committee expects that the Department of Defense will cooperate fully with the Government Accountability Office throughout its assessment of ground forces readiness.

BUDGET ITEMS--ARMY

Extended cold weather clothing system

The budget request included no funding in Operation and Maintenance, Army (OMA) for the Extended Cold Weather Clothing system (ECWCS). The committee recommends an increase of $4.0 million in OMA for the ECWCS.

Manufacturing engineering training outreach program

The budget request included $2.0 billion in Operation and Maintenance, Army (OMA) for force readiness operations support, but no funds were provided for the Manufacturing Engineering Training Outreach program (METOP). This program assists the Department of Defense to meet the challenge of finding and preparing the next generation of manufacturing engineers. The committee recommends an increase of $5.0 million in OMA for the METOP.

Live fire ranges modernization and improvements

The budget request included $2.0 billion in Operation and Maintenance, Army (OMA) for operating forces facilities sustainment, restoration, and modernization. The committee notes that the Army will continue to depend upon home station ranges to prepare units for deployment to Iraq and Afghanistan. The heavy use of existing range and training support equipment accelerates wear and tear, undermining the quality of pre-deployment training. Therefore, the committee recommends an increase of $15.0 million in OMA for live fire training range upgrades.

BUDGET ITEMS--NAVY

Naval aircraft depot maintenance

The budget request included $40.0 billion for Operation and Maintenance, Navy (OMN) but only $1.1 billion for aircraft depot maintenance. The Chief of Naval Operations identified a shortage of resources for aircraft depot maintenance as an unfunded priority for fiscal year 2008. The committee recommends an increase of $77.0 million in Operation and Maintenance, Navy for aircraft depot maintenance.

Mk45 mod 5" gun depot overhaul

The budget request included $486.6 million in Operation and Maintenance, Navy (OMN) for weapons maintenance. The committee recommends an increase of $29.5 million in OMN for Mark-45 gun system overhauls.

Environmental impact assessment, outlying landing field

The committee is aware of growing opposition to the placement of an outlying landing field (OLF) at the Washington County, North Carolina site proposed by the Navy as the preferred alternative in their environmental impact statement. At the same time, the committee appreciates the need to establish an OLF within a suitable range of both Naval Air Station Oceana, Virginia and Marine Corps Air Station Cherry Point, North Carolina. Accordingly, the committee recommends an increase of $5.0 million to fund a follow-on supplemental environmental impact statement to assess the feasibility of alternative sites in the region.

Unobligated balances

The Department of Defense continues to underexecute its Operation and Maintenance (O&M) appropriations for the active and reserve components. According to the Government Accountability Office (GAO), the Department returned an annual average of $185.7 million in unexpended balances to the U.S. Treasury for fiscal years 1997 through 2001. The Department had $180.4 million in average yearly unobligated balances for fiscal years 2002 through 2006. The military departments, including their reserve components, returned an average of $1.0 billion in unexpended balances to the U.S. Treasury for fiscal years 1997 through 2001. The military departments had $942.8 million in average yearly unobligated balances for fiscal years 2002 through 2006. While the trend continues to improve, the committee remains concerned about the Department's inability to manage the funds which it is authorized and appropriated.

The committee recalls that 2 years ago the Department began to reduce the O&M portion of its annual funding request and future-years defense program before submission to Congress based, in part, on the GAO analysis of unobligated balances. The Department did not, however, reduce the fiscal year 2008 amounts in full accordance with the analysis, or as significantly in the out-years.

The committee notes that the challenges associated with the increased scope and pace of ground force operations in Iraq and Afghanistan create an unusually difficult fiscal management situation, especially for the Army and Marine Corps. This does not, however, relieve the Department or the services from their obligation to provide the best possible stewardship of taxpayer dollars. Therefore, the committee recommends a decrease of $174.6 million to the Department's O&M accounts, as follows: Operation and Maintenance, Navy, $60.6 million; Operation and Maintenance, Air Force, $60.0 million; and Operation and Maintenance, Defense-wide, $54.0 million.

Excess cash balances

An analysis of the defense working capital fund budgets shows that the Department of Defense significantly underestimated its fiscal year 2006 ending cash balance. Although the Army, Navy, Air Force, and defense-wide fiscal year 2007 budgets estimated that the year-end cash balance would be $3.4 billion, the actual cash balance, as reported in the fiscal year 2008 budget, was $4.9 billion--a difference of $1.5 billion, or 44 percent. These working capital funds provide important financial flexibility for critical defense support activities. When working capital fund activities earn a profit--revenues exceeding expenses--fund activities are supposed to adjust future rates charged to customers to reduce the excess. The working capital fund, however, needs sufficient levels of cash in order to meet its obligations and ensure its ability to provide uninterrupted services to the military departments and agencies. Department of Defense policy requires the working capital fund to maintain 7 to 10 days of cash.

Last year, the committee noted that the global war on terror, and especially operations in Iraq and Afghanistan, had created increased workflow in and out of working capital funds well over peacetime projections. This was especially true for the Army and defense-wide working capital fund activities that had high end-of-year positive operating balances and excess cash balances.

The committee's analysis of last year's budgets shows that the military departments significantly underestimated their fiscal year 2006 working capital fund cash balances. Specifically, the Army, Navy, Air Force, and defense-wide working capital funds reported actual cash balances in excess of the estimated budgeted cash balances by at least $300.0 million for each of the four funds--or a total of $1.2 billion. For example, while the Air Force estimated that it would end fiscal year 2006 with a cash balance of $1.0 billion, the reported actual cash balance was $1.4 billion. This indicates that the Department continues to base projections of their net operating result for fiscal year 2008 on low revenue estimates.

To ensure proper management of the funds, the committee recommends a decrease of $208.0 million in Operation and Maintenance accounts as follows: Operation and Maintenance, Navy, $80.0 million; Operation and Maintenance, Air Force, $88.0 million; and Operation and Maintenance, Defense-wide, $40.0 million.

BUDGET ITEMS--MARINE CORPS

Extended cold weather clothing system

The budget request included no funding in Operation and Maintenance, Marine Corps (OMMC) for the Extended Cold Weather Clothing system (ECWCS). The committee recommends an increase of $6.0 million in OMMC for the ECWCS.

Family of combat equipment support and services

The budget request included $867.7 million in Operation and Maintenance, Marine Corps (OMMC) for operational forces. The Commandant of the Marine Corps has identified an unfunded requirement in this account for the Family of Combat Equipment Support and Services. The committee recommends an increase of $10.0 million in OMMC for the Family of Combat Equipment Support and Services.

Rapid deployable shelters

The budget request included $876.7 million in Operation and Maintenance, Marine Corps (OMMC) but does not include funds for rapid deployable shelters. Tents and shelters are an essential deployable element of an expeditionary force. The committee recommends an increase of $6.0 million in OMMC for rapid deployable shelters.

Mobile corrosion protection and abatement USMC

The budget request included $502.4 million in Operation and Maintenance, Marine Corps (OMMC) for field logistics activities. The committee recommends an increase of $15.1 million in OMMC for mobile corrosion protection and abatement.

BUDGET ITEMS--AIR FORCE

National Security Space Institute

The budget request included $17.3 million for the National Security Space Institute (NSSI) in Operation and Maintenance, Air Force (OMAF) line 90, Global C3I and Early Warning. The committee recommends an additional $3.3 million for the NSSI. The NSSI is the Air Force school for space professionals, serving Air Force and other military services' space training requirements. The additional funding will allow the NSSI to expand the number of classes and students, accelerate development of the advanced space course, and undertake other educational activities. This program is on the Chief of Staff of the Air Force's unfunded priority list.

Mobile shear

The budget request included $845.7 million in Operation and Maintenance, Air Force (OMAF) for other service wide activities, but provides no funding for Mobile Shear. This equipment will assist Air Force installations to comply with environmental and Department of Defense demilitarization regulations. The committee recommends an increase of $525,000 in OMAF for Mobile Shear.

Transfer of funds from Air Force centralized asset management program to Air Guard and Air Force Reserve

The budget request included $41.4 billion for Operation and Maintenance, Air Force. Within this amount the Air Force consolidated $543.6 million of Air National Guard and Air Force Reserve Operation and Maintenance funds into a `Centralized Asset Management' (CAM) initiative.

The committee is concerned that consolidation of funds that support Air National Guard and Air Force Reserve operations, readiness, and facilities denies the Congress required visibility into the distribution and utilization of reserve component resources. Therefore, the committee recommends the transfer of $129.7 million to Operation and Maintenance, Air Force Reserve, and $413.9 million to Operation and Maintenance, Air National Guard from Operation and Maintenance, Air Force.

BUDGET ITEMS--DEFENSE-WIDE

Language training shortfalls

The budget request did not include any funding to cover costs associated with improving the language and cultural awareness training of Special Operations Forces (SOF).

Therefore, the committee recommends an increase of $8.7 million for U.S. Special Operations Command (SOCOM) language training needs in Operation and Maintenance, Defense-wide, Budget Activity 1.

$6.4 million of the total amount would fund a shortfall at the John F. Kennedy Special Warfare Center and School to pay for instructor hours, homework books, and reproduction of language and culture training CDs and books. The training programs are components of the Special Forces Qualification Course and are already operated on a very lean basis. This funding will allow for an increase in student load from 772 (Special Forces, Civil Affairs, and Psychological Operators) in 2004, to 1,500 personnel over several years, trained at a higher standard. This funding ensures that the growing training population in Special Forces, Civil Affairs, and Psychological Operations, authorized in the Quadrennial Defense Review, will continue to be trained to the higher 1/1/1 standard. This standard was raised in 2004 by the Commander of U.S. Army Special Operations Command (USASOC) and validated by the Commander of SOCOM as necessary in direct response to global war on terrorism-related capability shortfalls.

$526,000 of the total would be used to fund the foreign language proficiency sustainment training for USASOC units. This includes maintaining proficiency in unit core languages via unit-run training (classroom and live environmental training (LET)). All language requirements directly support SOCOM and regional combatant commander requirements. The 4th Psychological Operations Group (Airborne) and the 95th Civil Affairs Brigade require $526,000 to fund sustainment training. This includes: $277,600 for Foreign Language Training Center Europe and LET events in Bahrain, Colombia, China, Peru, Korea, Russia, France, Indonesia, and Costa Rica; $158,000 for additional instructor contract hours in unit language training facilities; $68,200 for training aids, books, supplies, and internet services; and $21,800 for travel to attend SOCOM training seminars. Without this funding, the command will be unable to fully support training of SOF for unconventional warfare missions, which are a critical SOF core competency. This funding allows units to conduct mission language training in support of operational deployments, and helps ensure that soldiers maintain and increase their language proficiency (part of the SOF for Life/Region for Life concept).

$950,000 of the total amount would fund language training for joint SOF personnel in tailored internet classes. Funding would be used to train about 16 students in full-length 1/1/1 courses and about 56 students in tailored sustainment and enhancement courses. This training would help SOCOM increase its ability to sustain and increase the proficiency of SOF across their careers regardless of their location, and it facilitates full-time courses for SOF teams that are `remissioned' and need a different language capability. Without this funding many operators would have little or no access to language training conducted by a qualified instructor due to geographic location and work schedule. These regionally-focused operators, preparing for deployment often, are faced with adding a lengthy temporary duty/temporary additional duty in front of a long mission deployment in order to take language classes. This further increases time away from family. Funding internet classes and similar initiatives begins to address this issue.

Defense Security Cooperation Agency

The budget request included $673.4 million in Operation and Maintenance, Defense-wide (OMDW) for the Defense Security Cooperation Agency. Of this amount, $500.0 million was requested for the Global Train and Equip program to build the capacity of foreign forces. The committee notes that the amount requested for the Global Train and Equip program exceeds the existing authority under section 1206 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163), as amended by section 1206 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), which is limited to $300.0 million of Operation and Maintenance funds in fiscal years 2007 and 2008.

The committee also notes that the request for the Defense Security Cooperation Agency included $7.4 million for the Center for International Issues Research (CIIR) program, which provides updates of open-source media reports. The committee recommends the elimination of this program as an unnecessary duplication of reporting available from other sources.

The request for the Defense Security Cooperation Agency included $5.0 million for the Stability Operations Fellowship program (SOFP). The committee notes that no authority currently exists for the Department of Defense to conduct this fellowship program.

Therefore, the committee recommends a decrease of $212.4 million to the Department's Operation and Maintenance, Defense-wide account for the Defense Security Cooperation Agency, as follows: Global Train and Equip--decrease of $200.0 million; CIIR--decrease of $7.4 million; and SOFP--decrease of $5.0 million.

Defense readiness reporting system and management tools

The budget request included $4.9 million in Operation and Maintenance, Defense-wide for the Defense Readiness Reporting System (DRRS). The committee recommends an increase of $12.0 million for DRRS including $2.0 million only for the acceleration of the Global Force Management Visibility Toolkit in support of U.S. Joint Forces Command requirements.

The committee notes the challenges associated with the accurate, reliable, and timely measurement and reporting of the readiness of military forces. The current readiness reporting system, Global Status of Resources and Training System (GSORTS), is inadequate to the demands of the force rotation strategy that supports operations in Iraq and Afghanistan. The Department of Defense, Joint Staff, and U.S. Joint Forces Command, the joint force provider, lack the visibility of deployed and non-deployed forces' capabilities and readiness required to manage global military commitments.

The committee supports the Department's development of DRRS as a management modernization and replacement for the current system. DRRS is scheduled to achieve full operational capability at the end of fiscal year 2007. Additional funds will accelerate the delivery of the basic system, programmed functionality expansion, support for system operations, training, and sustainment. The committee recommendation also supports the development and fielding of capabilities within the system that allow near real-time force management for contingencies including capability-gap analysis, risk mitigation, and the Global Force Management Visibility Toolkit.

Readiness and environmental protection initiative

The budget request included $30.0 million in Operation and Maintenance, Defense-wide (OMDW) for the Readiness and Environmental Protection Initiative (REPI). The committee is encouraged that this is $10.0 million more than requested in fiscal year 2007.

The committee believes that the military departments should continue to pursue voluntary agreements with other public and private entities as authorized under section 2684a of title 10, United States Code, to prevent the development or use of property that would be incompatible with the mission of an installation, and preserve habitat that is compatible with environmental requirements that might otherwise result in current or anticipated environmental restrictions on military bases.

The committee recommends an increase of $20.0 million in OMDW for the REPI and directs that the military departments should give priority to projects that benefit critical mission training sites that have the greatest potential to prevent or reduce encroachment through the creation of a compatible use buffer zone.

Strategic communication and integration

The budget request included $3.0 million for the Office of the Secretary of Defense for Strategic Communication and Integration. This funding would support a contractor to help institutionalize strategic communications and complete the implementation of the Strategic Communication Execution Roadmap.

Responsibility for strategic communication and public diplomacy rests with the President and Secretary of State, and any Department of Defense efforts to formulate a message should be informed and framed by those efforts. Moreover, public diplomacy, public affairs, and information operations are separate and distinct functions, with different purposes and guidelines for their use. Any attempt to integrate them could compromise the integrity of each of these functions. Nonetheless, the committee supports the use of the Operation and Maintenance funds of the respective offices conducting communications activities in order to improve the Department's communication efforts, including updating regulations and other activities being conducted as part of the strategic communication and integration effort. The level of funding requested is unjustified. Therefore, the committee recommends a decrease of $3.0 million in Operation and Maintenance, Defense-wide.

BUDGET ITEMS--ARMY RESERVE

Mobile corrosion protection and abatement USAR

The budget request included $84.7 million in Operation and Maintenance, Army Reserve (OMAR) for land forces readiness support activities. The committee recommends an increase of $4.0 million in OMAR for mobile corrosion protection and abatement.

BUDGET ITEMS--ARMY NATIONAL GUARD

Extended cold weather clothing system

The budget request included no funding in Operation and Maintenance, Army National Guard (OMARNG) for the Extended Cold Weather Clothing system (ECWCS). The committee recommends an increase of $4.0 million in OMARNG for the ECWCS.

National Guard interoperability upgrades

The budget request included no funds for command and control interoperability upgrades for the Army National Guard. The committee notes that interoperable communications are required for adequate command and control of federal, state, and local responses to domestic emergencies. The committee recommends an increase of $1.3 million in Operation and Maintenance, Army National Guard for command and control interoperability upgrades.

Integrated disaster and rapid data management systems

The budget request included $309.6 million in Operation and Maintenance, Army National Guard (OMARNG) for force readiness operations support, but did not include funds for the Integrated Disaster Management system (IDMS) or Rapid Data Management system (RDMS). These systems provide near real-time data management and analysis to and from field operators through deployable hand-held and cellular devices. The integration of IDMS and RDMS increases speed and efficiency of command and control during domestic emergencies. The committee recommends an increase of $6.9 million in OMARNG for IDMS and RDMS.

Mobile corrosion protection and abatement USARNG

The budget request included $109.5 million in Operation and Maintenance, Army National Guard (OMARNG) for land forces systems readiness activities. The committee recommends an increase of $4.0 million in OMARNG for mobile corrosion protection and abatement.

Operator driving simulator

The budget request included no funding for operator driving simulators for the Army National Guard. The committee notes that a number of casualties have occurred in Iraq and Afghanistan as a result of vehicle accidents, including single vehicle accidents. Ensuring vehicle operators have quality training is vital to the readiness of the armed forces as well as their safety. These driving simulators would ensure that training time for soldiers is maximized, even with limited vehicle assets. The fielding plan includes 79 simulator units at 27 sites, including Army National Guard sites at nine states. The committee recommends an increase of $5.0 million in Operation and Maintenance, Army National Guard, for operator driving simulators.

BUDGET ITEMS--AIR NATIONAL GUARD

Controlled humidity protection

The budget request included $3.0 billion in Operation and Maintenance, Air National Guard (OMANG) for aircraft operations, but included no funds for controlled humidity protection. The committee notes the high readiness costs associated with corrosion and that it is particularly harmful to sensitive and expensive aircraft components. The committee recommends an increase of $6.0 million in OMANG for controlled humidity protection.

Weapons skills trainer

The budget request included $540.6 million in Operation and Maintenance, Air National Guard (OMANG) for mission support operations, but included no funds for the Weapons Skills Trainer (WST). The committee notes the high mobilization rates of members of the Air National Guard and their occasional use in non-traditional ground force roles. Individual and unit weapons training is enhanced by the availability of a multilevel weapons simulator such as the WST. The committee recommends an increase of $7.5 million in OMANG for the Weapons Skills Trainer.

BUDGET ITEMS--TRANSFER ACCOUNTS

Funding for formerly used defense sites

The budget request included $250.2 million in Operation and Maintenance, Defense-wide (OMDW) for environmental restoration of Formerly Used Defense Sites (FUDS). The committee notes that the budgeted amount is below the level authorized for this program in fiscal year 2007. The committee understands that it is the Department of Defense's goal to achieve a remedy in place or response complete at all FUDS by 2020 under the Installation Restoration program for hazardous substances, pollutants, or contaminants. It is also the Department's goal to complete preliminary assessments at all FUDS by 2007, and complete site inspections at all FUDS by 2010, under the Military Munitions Response program for clean-up of unexploded ordnance.

The committee recommends an increase of $20.0 million in OMDW to expedite the clean-up of FUDS and to move more aggressively to achieve the Department's goals. The committee expects the Department to demonstrate its commitment to these goals, and improve on them where it is possible to do so, by steadily increasing the amount of funding budgeted for this effort.

BUDGET ITEMS--MISCELLANEOUS APPROPRIATIONS

Building partnership capacity for humanitarian assistance

The budget request included $103.3 million for Overseas Humanitarian, Disaster, and Civic Aid (OHDACA). Of this amount, $40.0 million was included for building partnership capacity for humanitarian assistance. However, no authority was requested by the Department of Defense for this new program.

Therefore, the committee recommends that Operation and Maintenance, Defense-wide, Budget Activity 4 be decreased by $40.0 million.

ITEMS OF SPECIAL INTEREST

Comptroller General report on depot work

Section 2466 of title 10, United States Code, requires the Department of Defense to report annually on the expenditures for service contract and organic depot maintenance. This report contains the actual expenditures for the previous fiscal year, as well as projections for the current and future years. The committee directs the Comptroller General to review and make recommendations with respect to the current system of reports, assessments, analysis, or documents required by law or regulation to determine the compliance of the Department of Defense and military departments with the percentage limitation in section 2466(a) of title 10, United States Code. The committee is particularly interested to learn if there are better methods than the current system for meeting its oversight responsibilities of Department compliance with the requirements of this section. This report is due not later than March 1, 2008.

Department of Defense foreign language training

The budget request included $10.4 million for the Defense Language Institute in Operation and Maintenance, Army (OMA), specifically for satellite communications language training activities (SCOLA).

SCOLA is a unique and innovative satellite-based language training activity that provides television programming in a variety of languages from around the world. SCOLA also has an internet-based streaming video capability that greatly increases the availability of this training medium to military and civilian linguists, virtually anywhere they can obtain an internet connection. In addition, SCOLA is developing a digital archive that will allow users anywhere to review and sort language training on demand.

In the Senate report accompanying S. 2744 (S. Rept. 109-254) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), the committee commended the Department of Defense for increasing investment in language technology. That report noted that SCOLA can help sustain and improve foreign language skills and cultural understanding of military and civilian linguists in the Department.

The committee understands, unfortunately, that the Department has failed to obligate the funds that were authorized and appropriated in fiscal year 2007. There are indications that the Department may intend to wait until the last month of the fiscal year before doing so. The committee fails to understand what could have caused a delay in obligating funds for this important activity and encourages the Department to move more expeditiously to do so with the fiscal year 2008 funds.

Fee-for-service air refueling services

The committee remains concerned about the ability of the Department of the Air Force to provide adequate air refueling services to support all operational and training requirements. While the average age of the KC-135 fleet is more than 45 years old, the next generation KC-X aircraft is not scheduled to begin low-rate initial production until 2011. The committee is concerned about our ability to meet our air refueling requirements in the immediate future. At a time of historically low readiness levels, the Air Force cannot afford further degradation in air refueling capacity.

The committee is aware of several commercial providers of fee-for-service air refueling. Such an option was one of the alternatives considered in the analysis leading to the release of the KC-X request for proposals. In fact, Air Force officials have indicated a desire to investigate using fee-for-service air refueling services for some portion of their mission. They have referred to this as `Part B' of the KC-X acquisition strategy. This potential commercial capability has been estimated by some to save the Air Force up to 50 percent over current methods of organic air refueling operations. Due to the technological maturity of commercial concepts, the promising business cases presented by several of the commercial providers, and the growing capability gap in the air refueling arena, the committee directs the Secretary of the Air Force to initiate a competitive fee-for-service air refueling pilot program, utilizing currently available Operation and Maintenance funds. Furthermore, the committee directs the Secretary of the Air Force to seek `Part B' proposals to determine the practicality of relying on fee-for-service air refueling services for satisfying some portion of the Air Force refueling mission.

Next generation enterprise network

The committee understands that the Department of the Navy is attempting to develop the Next Generation Enterprise Network (NGEN) as a follow-on to the Navy/Marine Corps Intranet. This endeavor depends on seamless coordination between the Department of Defense's Chief Information Officers, the Department's Senior Acquisition Executives, the Navy and Marine Corps, and various other elements of the Department of Defense. Accordingly, the committee directs that the Secretary of the Navy coordinate the NGEN initiative with these relevant entities. The committee directs the Secretary of the Navy, jointly with the Assistant Secretary of Defense for Networks and Information Integration; the Under Secretary of Defense for Acquisition, Technology, and Logistics; and the Director of Operational Test and Evaluation; to produce a report for Congress describing the plans and schedule, including planned funding for the NGEN initiative. The report should include a description of NGEN's compliance with the policies and architectures of the Business Transformation Agency, testing plans and procedures, and review and coordination mechanisms with all relevant oversight agencies. The report should be delivered to the congressional defense committees no later than March 1, 2008.

Report on Department of Defense personnel access to the internet

The committee is concerned with the recent Department of Defense policy changes that seek to limit the access of military personnel to certain popular internet web sites. While the committee understands the need to preserve available bandwidth for military needs and the necessity of ensuring operational security, the potential negative effects on morale must also be carefully considered. Those deployed in Iraq, Afghanistan, and elsewhere around the world, sometimes for more than a year, deserve every opportunity to connect with their friends and family on a frequent basis. Social networking web sites facilitate that communication for this generation, in the same way letters, phone calls, and telegrams did for previous ones. The committee believes that access to the commercial internet can promote strong morale among personnel in the field as well as family members on the home front.

The committee directs the Secretary of Defense to develop a report that includes a detailed description of the measurable effect that the use of these sites has had on operations and a detailed analysis of any bandwidth or security challenges that their use poses, as well as a description of any policies and procedures in place for the provision of internet access for deployed personnel when operational security requires denial of access via Government systems. The report should be delivered to the congressional defense committees no later than September 1, 2007.

To Top

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

SUBTITLE A--ACTIVE FORCES

End strengths for active forces (sec. 401)

The committee recommends a provision that would authorize active-duty end strengths for fiscal year 2008, as shown below:

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

                    Fiscal year

             2007 authorization 2008 request 2008 recommendation

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

Army                    512,400      489,400             525,400

Navy                    340,700      328,400             328,400

Marine Corps            180,000      180,000             189,000

Air Force               334,200      328,600             328,600

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

The John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) authorized active-duty end strength for the Army at 512,400 and for the Marine Corps at 180,000. Additional authority was also provided in section 403 of that Act to increase active-duty end strength for the Army by up to 20,000 and for the Marine Corps by up to 4,000 above the fiscal year 2007 authorized levels of 512,400 and 180,000, respectively.

The committee recommends combining the base budget end strength with the end strength funded in recent years in emergency supplementals. Although the Department of Defense has again divided its fiscal year 2008 end strength request between its base and war-related budget requests, the committee believes that it is more appropriate to authorize the total end strengths available to the military services in an integrated manner without regard to whether they are `permanent' or war-related. In the committee's view, the total end strength that is needed to accomplish the military mission should be authorized in this section in a way that does not obscure the true cost that the actual end strength presents.

The committee remains concerned that the planned growth in ground forces will come too late to impact the war in Iraq, and 5 years from now, when the planned growth is scheduled to be complete, the requirements for a larger force may not remain. Nevertheless, the committee supports the planned increases in the ground forces for the coming fiscal year, but will continue to assess this growth on a year-to-year basis. The committee recommends an active-duty end strength for fiscal year 2008 for the Army and Marine Corps of 525,400 and 189,000, respectively.

The Navy and the Air Force continue large manpower reductions achieved through major changes in organizational structure, including deleting redundancies, retiring manpower-intensive platforms, incorporating new technology, and shifting non-core military functions from military personnel to civilians. These efforts continue to be challenging and will be monitored closely by the committee. The committee is concerned that the Navy and the Air Force may be cutting personnel too far and too fast, opting to spend money on procurement programs and weapons systems to the detriment of personnel. The committee recommends an active-duty end strength for the Navy and Air Force of 328,400 and 328,600, respectively.

SUBTITLE C--AUTHORIZATIONS OF APPROPRIATIONS

Military personnel (sec. 421)

The committee recommends a provision that would authorize the following amounts for military personnel for fiscal year 2008: (1) for the Army, $34,952,762,000; (2) for the Navy, $23,300,841,000; (3) for the Marine Corps, $11,065,542,000; (4) for the Air Force, $24,091,993,000; (5) for the Army Reserve, $3,701,197,000; (6) for the Navy Reserve, $1,766,408,000; (7) for the Marine Corps Reserve, $593,961,000; (8) for the Air Force Reserve, $1,356,618,000; (9) for the Army National Guard, $5,914,979,000; and (10) for the Air National Guard, $2,607,456,000.

The total authorized amount of $109,351,757,000 is $3,948,059,000, or 3.7 percent, above the base budget request. This increase includes a shift of funds from the supplemental budget to the base budget for the end strength requested in the supplemental budget, and an additional $302,000,000 for an across-the-board 3.5 percent pay raise, versus the budget request of 3 percent.

The Department of Defense has consistently underexecuted its military personnel funding authorization and appropriation since fiscal year 1995 for the active and reserve components. According to the Government Accountability Office, from fiscal years 2002 through 2005, the lowest annual unobligated balance was $271.2 million and the highest was $2,169.0 million. The committee recommends a decrease of $507.2 million to military personnel accounts to reflect anticipated unobligated balances.

To Top

TITLE V--MILITARY PERSONNEL POLICY

SUBTITLE A--OFFICER PERSONNEL POLICY

Increase in authorized strengths for Army officers on active duty in the grade of major to meet force structure requirements (sec. 501)

The committee recommends a provision that would amend the table in section 523(a)(1) of title 10, United States Code, to increase the authorized strength limits for active-duty Army officers in the grade of major to meet the Army's requirement for additional majors in its new modular structure.

Increase in authorized strengths for Navy officers on active duty in grades of lieutenant commander, commander, and captain to meet force structure requirements (sec. 502)

The committee recommends a provision that would amend the table in section 523(a)(2) of title 10, United States Code, to increase the authorized strength limits for active-duty Navy captains, commanders, and lieutenant commanders to meet the Navy's force structure requirements for additional officers in these grades.

Expansion of exclusion of military permanent professors from strength limitations for officers below general and flag grades (sec. 503)

The committee recommends a provision that would amend section 523 of title 10, United States Code, to increase from 50 to 85 the number of permanent professors for each of the United States Military Academy and the United States Air Force Academy and professors of the United States Navy who are career military professors who may be excluded from the authorized number of commissioned officers who may be serving on active duty in that grade.

Mandatory retirement age for active-duty general and flag officers continued on active duty (sec. 504)

The committee recommends a provision that would amend section 637(b)(3) of title 10, United States Code, relating to deferral of retirement and continuation on active duty of regular officers to conform with recently enacted extended age limits for mandatory retirement of general and flag officers serving on active duty included in section 502 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364).

Authority for reduced mandatory service obligation for initial appointments of officers in critically short health professional specialties (sec. 505)

The committee recommends a provision that would amend section 651 of title 10, United States Code, to authorize the Secretary of Defense to waive the 8-year minimum service obligation for initial appointments of commissioned officers in critically short health professional specialties. The minimum period of service under such a waiver would be the greater of 2 years or the period of obligated service associated with receipt of an accession bonus or special pay.

Increase in authorized number of permanent professors at the United States Military Academy (sec. 506)

The committee recommends a provision that would amend section 4331(b) of title 10, United States Code, to increase from 22 to 28 the authorized number of permanent professors at the United States Military Academy. Although the Military Academy has made numerous changes to the structure of the academic departments, the authorized number of permanent professors has not been increased since 1978. The additional authorization for permanent professors would allow assignment of a permanent professor as deputy department head for each academic department and as Vice-Dean.

The committee understands that the performance of permanent professors at the Military Academy is formally reviewed every 5 years. The committee is concerned that a formal review every 5 years is not sufficient to document the quality of performance and potential for increased responsibility expected of officers in their positions. The committee directs that permanent professors receive a formal evaluation at least annually, consistent with the practice for evaluating other Army officers.

Expansion of authority for reenlistment of officers in their former enlisted grade (sec. 507)

The committee recommends a provision that would amend sections 3258 and 8258 of title 10, United States Code, to authorize regular Army and Air Force officers to reenlist under certain conditions in their former enlisted grade. Under current law, only reserve officers are authorized to reenlist in their former grade.

Enhanced authority for reserve general and flag officers to serve on active duty (sec. 508)

The committee recommends a provision that would amend section 526(d) of title 10, United States Code, to exclude from the limitations on the number of general and flag officers on active duty certain reserve general and flag officers serving on active duty for not more than 365 days. The total number of these officers could not exceed 10 percent of the number of reserve component general and flag officers authorized to be in an active status under section 12004 of title 10, United States Code.

Promotion of career military professors of the Navy (sec. 509)

The committee recommends a provision that would authorize promotion of Navy permanent professors to the grade of captain or colonel pursuant to regulations prescribed by the Secretary of the Navy. The regulations would include a competitive selection board process to identify those permanent professors best qualified for promotion. The promotion would be effective not earlier than 3 years after the selection of the officer as a permanent professor.

SUBTITLE B--ENLISTED PERSONNEL POLICY

Increase in authorized daily average of number of members in pay grade E-9 (sec. 521)

The committee recommends a provision that would amend section 517(a)(1) of title 10, United States Code, to authorize an increase to the upper limit on the authorized daily average of active-duty enlisted members in pay grade E-9 from the current 1 percent of the enlisted force to 1.25 percent.

SUBTITLE C--RESERVE COMPONENT MANAGEMENT

Revised designation, structure, and functions of the Reserve Forces Policy Board (sec. 531)

The committee recommends a provision that would amend section 10301 of title 10, United States Code, to redesignate the Reserve Forces Policy Board as the Reserve Policy Advisory Board and restructure it to provide the Secretary of Defense with independent advice and recommendations on matters relating to the reserve components.

This provision implements a recommendation of the Commission on the National Guard and Reserves to reconstitute the Reserve Forces Policy Board with a goal of generating and providing the best possible advice to the Secretary of Defense on reserve policy matters.

Charter for the National Guard Bureau (sec. 532)

The committee recommends a provision that would amend section 10503 of title 10, United States Code, to require the Secretary of Defense, in consultation with the Secretary of the Army, the Secretary of the Air Force, and the Chairman of the Joint Chiefs of Staff, to prescribe a charter for the National Guard Bureau.

This provision implements a recommendation of the Commission on the National Guard and Reserves that the Secretary of Defense be responsible for drafting the charter for the National Guard Bureau to accurately reflect the full scope of the Bureau's required duties and activities.

The committee recognizes that the role of the National Guard in performing federal missions at home and overseas and in assisting governors in responding to State and local emergencies has grown significantly. This dual role and the competing demands for National Guard forces underscores the vital role of the National Guard Bureau as a channel of communication with the States, and of the Chief of the National Guard Bureau as an advisor to the Secretary of Defense, the Secretaries and Chiefs of Staff of the Army and Air Force, the Chairman of the Joint Chiefs of Staff, the Commander, U.S. Northern Command, and State governors on National Guard matters. The committee believes that an updated charter which takes into account the various missions being performed by the National Guard is essential and urges the Secretary to complete this at the earliest possible time.

Appointment, grade, duties, and retirement of the Chief of the National Guard Bureau (sec. 533)

The committee recommends a provision that would amend section 10502(d) of title 10, United States Code, to increase the grade of the Chief of the National Guard Bureau from lieutenant general to general and to require that an officer appointed to this position be recommended by his or her Governor and by the Secretary of the Army or the Air Force, have at least 10 years of federally recognized commissioned service in an active status in the National Guard, be in the grade of major general or above, have significant joint duty experience, and have successfully completed such other assignments and experiences so as to possess a detailed understanding of the status and capabilities of National Guard forces and the missions of the National Guard Bureau. The provision would also designate the Chief of the National Guard Bureau as an advisor to the Secretary of Defense, through the Chairman of the Joint Chiefs of Staff, on matters involving the National Guard not employed in a federal status and would amend section 14512(a) of title 10, United States Code, to authorize the President to defer the mandatory retirement age of an officer serving as Chief of the National Guard Bureau until age 68.

This provision implements a recommendation of the Commission on the National Guard and Reserves to increase the grade of the Chief of the National Guard Bureau to general and serve as a senior advisor to the Chairman of the Joint Chiefs of Staff and, through the Chairman, to the Secretary of Defense, for matters pertaining to the National Guard in its non-federal role.

The committee believes that this provision reflects the increasing importance of the role of the National Guard in homeland defense and civil support missions, as well as an operational force. The Chief of the National Guard Bureau would be able to provide the Chairman of the Joint Chiefs and the Secretary of Defense with valuable advice across a broad spectrum of issues related to the use of non-federalized National Guard forces in these missions.

Mandatory separation for years of service of Reserve officers in the grade of lieutenant general or vice admiral (sec. 534)

The committee recommends a provision that would amend section 14508 of title 10, United States Code, to require transfer of reserve officers to the Retired Reserve or discharge from the officer's reserve appointment 30 days after completion of 38 years of commissioned service. This change is consistent with the requirement for mandatory separation for years of service of regular officers in the grade of lieutenant general or vice admiral.

Increase in period of temporary Federal recognition as officers of the National Guard from six to twelve months (sec. 535)

The committee recommends a provision that would amend section 308(a) of title 32, United States Code, to increase from 6 to 12 months the period of temporary federal recognition as an officer of the Army or Air National Guard that can be granted to an individual during the period that the individual's appointment as a reserve officer of the Army or Air Force is pending. This provision would allow additional time for processing of appointments for permanent federal recognition and avoid hardships resulting from delays in appointment.

SUBTITLE D--EDUCATION AND TRAINING

Grade and service credit of commissioned officers in uniformed medical accession programs (sec. 551)

The committee recommends a provision that would amend sections 2114(b) and 2121(c) of title 10, United States Code, to require that medical students at the Uniformed Services University of the Health Sciences and persons participating in the armed forces Health Professions Scholarship and Financial Assistance Programs who have prior commissioned service, serve, while on active duty, in pay grade 0-1, or in pay grade 0-2 if they meet specified promotion criteria prescribed by the service secretary. The provision would also amend section 2004a of title 10, United States Code, to impose the same limitations regarding the pay grade and service credit exclusion on officers on active duty with prior commissioned service who are detailed as students at medical schools under section 2004a.

The committee believes that limiting the amount of prior service commissioned officer credit for purposes of rank for medical students in military-sponsored programs is necessary in order to achieve career progression objectives. The limitations should be uniformly applied in various programs for medical students. The committee notes that the services have not implemented the authority extended in section 2004a of title 10, United States Code, despite ongoing difficulty in achieving health professional recruiting goals. The committee urges the Secretary of Defense to conduct a review of all health professional commissioning programs with the objective of identifying and remedying impediments to successful recruiting of the most highly qualified students.

Expansion of number of academies supportable in any State under STARBASE program (sec. 552)

The committee recommends a provision that would amend section 2193b(c) of title 10, United States Code, to authorize the Secretary of Defense to support, with Department of Defense funds, the establishment and operation of up to four STARBASE academies in a State.

The committee recognizes the Department of Defense STARBASE program as an effective educational program focused on science, math, technology, and engineering. It has reached over 350,000 youths at 54 locations associated with active, guard, and reserve commands throughout the United States. The STARBASE program seeks to heighten the interest of students in pursuing careers requiring skills in science, technology, math, and engineering that are in high demand in the Department of Defense. Raising the limit on the number of Department of Defense-funded STARBASE academies per state would enable expansion of this program in States where there is a particularly strong justification for establishing new STARBASE programs.

Repeal of post-2007-2008 academic year prohibition on phased increase in cadet strength limit at the United States Military Academy (sec. 553)

The committee recommends a provision that would amend section 4342 of title 10, United States Code, to extend the authority of the Secretary of the Army to increase by up to 100 cadets per year the size of the Corps of Cadets at the United States Military Academy to a maximum of 4,400 cadets. This would afford the Secretary of the Army the flexibility to respond to the Army's requirement for additional company grade officers to support the Army's projected increased end strength and force structure.

Treatment of Southold, Mattituck, and Greenport High Schools, Southold, New York, as single institutions for purposes of maintaining a Junior Reserve Officers' Training Corps unit (sec. 554)

The committee recommends a provision that would authorize the Southhold, Mattituck, and Greenport High Schools, located in Southold, New York, to be treated as a single institution for the purposes of maintaining a Navy Junior Reserve Officers' Training Corps (JROTC) unit. This provision would allow the Navy to continue a very successful JROTC program in a unique setting.

SUBTITLE E--DEFENSE DEPENDENTS' EDUCATION MATTERS

Continuation of authority to assist local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees (sec. 561)

The committee recommends a provision that would authorize $35.0 million in Operation and Maintenance, Defense-wide (OMDW), for continuation of the Department of Defense assistance program to local educational agencies that are impacted by enrollment of dependent children of military members and civilian employees of the Department of Defense. The committee also recommends authorization of $10.0 million in OMDW, for assistance to local educational agencies with significant changes in enrollment of military and civilian school-aged dependent children due to base closures, force structure changes, or force relocations.

Impact aid for children with severe disabilities (sec. 562)

The committee recommends a provision that would authorize $5.0 million in Operation and Maintenance, Defense-wide, for impact aid payments for children with disabilities under section 8003(d) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(d)), using the formula set forth in section 363 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398), for continuation of the Department of Defense's assistance to local educational agencies that benefit dependents with severe disabilities.

Inclusion of dependents of non-Department of Defense employees employed on Federal property in plan relating to force structure changes, relocation of military units, or base closures and realignments (sec. 563)

The committee recommends a provision that would amend section 574(e)(3) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), to include dependents of personnel who work on federal property but are not members of the armed forces or civilian employees of the Department of Defense in the plan and annual reports required to identify and assist local educational agencies experiencing growth in enrollment due to force structure changes, relocation of military units, or base closure and realignments. The provision would make the definition of `military dependent students' consistent with the definition used for purposes of computation of payments under the Federal Impact Aid program authorized in section 7703 of title 20, United States Code.

Authority for payment of private boarding school tuition for military dependents in overseas areas not served by Department of Defense dependents' schools (sec. 564)

The committee recommends a provision that would authorize the Secretary of Defense to pay tuition for attendance at private boarding schools in the United States for military dependents in overseas areas not served by Department of Defense schools. Under current law, such dependents are sent to other overseas schools rather than to boarding schools in the United States.

SUBTITLE F--MILITARY JUSTICE AND LEGAL ASSISTANCE MATTERS

Authority of judges of the United States Court of Appeals for the Armed Forces to administer oaths (sec. 571)

The committee recommends a provision that would amend section 936 of title 10, United States Code, to authorize judges of the United States Court of Appeals for the Armed Forces to administer oaths.

Military legal assistance for Department of Defense civilian employees in areas without access to non-military legal assistance (sec. 572)

The committee recommends a provision that would clarify the authority of the service secretaries to provide legal assistance to civilian employees of the Department of Defense in locations where legal assistance from non-military legal assistance providers is not reasonably available.

Modification of authorities on senior members of the Judge Advocate Generals' corps (sec. 573)

The committee recommends a provision that would require that the Judge Advocates General of the Army, Navy, and Air Force serve in the grade of lieutenant general or vice admiral, and would exclude them from the authorized number of officers serving in grades above major general or rear admiral. The provision would also authorize the position of Legal Counsel to the Chairman of the Joint Chiefs of Staff, and would require that the officer appointed to this position serve in the grade of brigadier general or rear admiral (lower half) and be recommended by a board of officers convened by the Secretary of Defense.

The need for enhanced authority and independence by the most senior military attorneys of the services has become increasingly apparent during the global war on terrorism. The committee believes that the Judge Advocates General and the Legal Counsel to the Chairman of the Joint Chiefs of Staff should serve in higher grades than presently assigned, commensurate with the vital importance of their duties and responsibilities.

SUBTITLE G--MILITARY FAMILY READINESS

Department of Defense Military Family Readiness Council (sec. 581)

The committee recommends a provision that would establish a Department of Defense Military Family Readiness Council to review and make recommendations on Department of Defense policy and plans for the support of military family readiness; to monitor requirements for the support of military family readiness; and to evaluate and assess the effectiveness of military family readiness programs and activities of the Department of Defense. The council would consist of the Under Secretary of Defense for Personnel and Readiness, who would serve as chair, one representative from each of the services, and three individuals from representatives of military family organizations.

The committee has received testimony of senior leaders from throughout the Department of Defense stressing the importance of support for military families. Yet, from a Department-wide perspective, many of these efforts appear to be independent and ad hoc. Creation of the council authorized by this provision would facilitate a coordinated approach across all services for the development and sustainment of such programs and improved oversight by the Office of the Secretary of Defense. The committee strongly recommends that the Department move toward the creation of structures similar to the Army Family Action Plan, which has proven to be singularly successful in identifying family readiness needs at the highest levels of Army leadership in a systematic and effective manner.

Department of Defense policy and plans for military family readiness (sec. 582)

The committee recommends a provision that would require the Secretary of Defense to develop a policy and plans for the support of military family readiness. The policy would ensure that military family readiness programs and activities are comprehensive, effective, and supported; continuously available to military families in peacetime and in war; available to military families of the regular and reserve components; included in Department of Defense plans, programs, and budgeting activities; and that they undergo continuous evaluation. The plans would include an ongoing identification and assessment of the effectiveness of military family readiness programs and activities; a description of the resources required to support them; an ongoing identification of gaps in the programs and activities and resources required to address those gaps; and a summary of the allocation of funds for major categories of military family readiness programs and activities. The provision would also require the Secretary of Defense to conduct surveys of service members, family members, and survivors beginning in fiscal year 2009, and not less frequently than once every 3 years thereafter.

The committee has received testimony on numerous Department of Defense and service-specific programs which support military families in important and effective ways. However, these programs appear to be independent and ad hoc.

The committee believes that family readiness is an enduring need and is concerned that many support programs, such as non-medical counseling and family support services, are funded primarily, or completely, by supplemental appropriations.

The committee expects that the policy and plans required by this provision will ensure that effective family readiness support programs will be included in the basic planning, programming, and budgeting activities of the Department of Defense.

SUBTITLE H--OTHER MATTERS

Enhancement of carryover of accumulated leave for members of the Armed Forces (sec. 591)

The committee recommends a provision that would amend section 701 of title 10, United States Code, to increase for all service members the number of days of accumulated leave they may carry over from one fiscal year to the next from 60 to 90 days. The provision would also increase by 1 year the amount of time available to service members to use leave accumulated under the special leave accrual provisions of section 701(f) of title 10, United States Code. Finally, the provision would amend section 501(b) of title 37, United States Code, to allow enlisted service members who have accumulated more than 120 days of leave under section 701(f)(1) of title 10, United States Code, to sell back, on a one-time basis, up to 30 days of such leave in excess of 120 days.

The committee recognizes that the ongoing high operations tempo has resulted in many service members accumulating more leave than they can use or carry over into the next fiscal year. In section 542 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136), Congress authorized service members deployed in certain areas to accumulate up to 120 days of leave and allowed those service members 3 additional years to use that leave. Unfortunately, even under these conditions, some service members eligible for this benefit have lost leave. This provision would enable these members, on a one-time basis, to sell back up to 30 days of that leave in excess of 120 days.

The committee believes it is essential for military and civilian leaders to ensure that their subordinates maintain adequate leave balances for emergencies but that they are encouraged, if not required, to take leave whenever possible for their good and the good of their service. While the enhanced leave carryover authorized by this provision is needed in today's operational environment, the committee expects the services to ensure that all officer and enlisted personnel understand the need to plan to use their excess leave so as to avoid losing this important benefit or to adversely affect their unit's mission.

Uniform policy on performances by military bands (sec. 592)

The committee recommends a provision that would provide uniform policy for Department of Defense bands regarding when public performances are permitted, the conditions under which band members may perform in their personal capacities, and recording of music for distribution to the public.

Waiver of time limitations on award of medals of honor to certain members of the Army (sec. 593)

The committee recommends a provision that would waive the statutory time limits and authorize the President to award the Medal of Honor to Woodrow W. Keeble for valor during the Korean War; Leslie H. Sabo, Jr., for valor during the Vietnam War; Philip G. Shadrach for valor during the Civil War; Henry Svehla for valor during the Korean War; and George D. Wilson for valor during the Civil War.

ITEMS OF SPECIAL INTEREST

Army company-grade officer retention

The committee is concerned about the increasing attrition rate among company-grade officers in the Army, particularly graduates of the United States Military Academy and the Reserve Officers' Training Corps scholarship program, and the potential effects of this trend on the capabilities of the officer corps. This trend is particularly alarming as the Army strives to increase its end strength in a time of war.

The committee applauds the Army's initiatives to improve retention of high caliber company-grade officers, and particularly notes the promising response to the Army's advanced civilian education program. This program has value beyond increased officer retention, expanding the intellectual and professional growth of officers, allowing respite from operational demands, and laying the foundation for the future senior leaders of the Army. The committee urges the Army to continue this program and to explore expanding its use.

The committee directs the Secretary of the Army to review the programs and incentives in place to increase company-grade officer retention, including identifying additional opportunities to increase the use of advanced civilian education options in exchange for increased service obligations and the use of the critical skills retention bonus to retain officers serving in designated critical branches. The committee further directs the Secretary to report on this review to the congressional defense committees by March 1, 2008.

Comptroller General study of implementation by the military departments of sexual assault policies and mental health issues related to sexual assault

The committee is concerned about reports of sexual assaults on service members during deployment and the impact on the mental health of victims of such assaults. The committee expects the military departments to continue to examine ways to ensure that applicable policies aimed at preventing and rapidly and effectively responding to sexual assault are properly executed at all levels of command, in deployed areas as well as on installations in the United States.

The committee directs the Comptroller General to conduct a review of the policies and systems in place within the military departments in response to section 577 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375) and in response to the comprehensive policies on sexual assault put in place by the Department of Defense. In particular, the Comptroller General should assess the adequacy of mental health resources available to victims of sexual assault, both in deployed environments and on installations in the United States, and whether current Department of Defense policies, surveys, assessments, and training of military and civilian personnel are effective and adequate to identify and respond to such needs. The Comptroller General should report on this review by August 2008.

Counter-remote controlled improvised explosive device systems

The committee is concerned that the Joint Improvised Explosive Device (IED) Defeat Office has become too dependent on a single source of supply for counter-Remote Controlled IED (RCIED) jamming systems and system components, thereby limiting innovation and potentially preventing more effective systems from being fielded. The committee further believes the Joint IED Defeat Office (JIEDDO) should consider identifying and qualifying additional sources for counter-RCIED systems. The committee therefore directs the JIEDDO and the military departments to identify and, as appropriate, qualify additional sources for counter-RCIED systems and system components.

Explosive ordnance disposal personnel

The committee recognizes the strains experienced by explosive ordnance disposal (EOD) personnel in the wars in Iraq and Afghanistan. The committee applauds the professionalism, dedication, and skill of these highly proficient technicians and acknowledges the tremendous danger associated with bomb disposal missions. The committee notes that, in addition to frequent combat tours with limited dwell time in the Unites States, EOD personnel are performing backfill requirements at military installations, as well as supporting the United States Secret Service in their mission to protect the President and other officials. The committee is concerned, however, that EOD personnel are being stretched too thin for their various missions.

The committee therefore directs the Secretary of Defense to report to the congressional defense committees on the health and viability of the EOD force by March 1, 2008. The report shall: (1) evaluate whether the EOD force is properly sized, trained, and equipped for the tasks assigned; (2) analyze the sufficiency of pays and incentives available to EOD personnel in light of force requirements and recruiting and retention trends; (3) identify means to reduce operational demands on EOD units; (4) evaluate the need, feasibility, and costs associated with increasing the number of EOD units and personnel in the National Guard; and (5) evaluate the current placement of EOD units within each respective service, specifically evaluating whether EOD units and personnel are more properly organized under a joint command or the U.S. Special Operations Command.

Feasibility of expanding access to mental health professionals in military units

The committee is concerned about the stigma associated with seeking mental health services in the military, the availability of mental health care to service members, and the ability of military leaders to identify service members with mental health conditions. Access to mental health care is generally not available at the unit level, requiring service members to go to a military hospital or to a combat stress control team to receive such care.

The committee is interested in the potential value of embedding military mental health professionals in units in a manner similar to the current utilization of military chaplains. The committee directs the Secretary of Defense to assess the efficacy of creating positions within subordinate military organizations, particularly at the battalion level, in which mental health care professionals would serve. The Secretary's assessment shall include, but not be limited to, an evaluation of: (1) the impact on force structure of such a program; (2) the potential value of increasing the number of military mental health professionals; (3) the value of embedding military mental health professionals in subordinate units, particularly at the battalion level; (4) the appropriate professional skills that would be required of mental health professionals placed in such positions; (5) whether such a program would reduce the stigma for service members seeking mental health care; and (6) whether such a program would increase the capability of unit leaders to identify service members with mental health needs. The committee directs the Secretary to submit the results of the assessment, including findings and recommendations, to the Committees on Armed Services of the Senate and the House of Representatives by March 1, 2008.

Implementation of clarifying changes to jurisdiction under the Uniform Code of Military Justice

Section 552 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) amended section 802(a)(10) of title 10, United States Code, to clarify the application of the Uniform Code of Military Justice (UCMJ) to persons serving with or accompanying an armed force in the field.

Prior to the enactment of section 552, section 802(a)(10) provided that `[i]n time of war, persons serving with or accompanying an armed force in the field' would be subject to the UCMJ. In the 1970 case of United States v. Averette, 19 U.S.C.M.A. 363, the United States Court of Military Appeals interpreted the phrase `in time of war' to mean a war formally declared by Congress. Section 552 modified the provision to apply `in time of declared war or a contingency operation.'

A number of contractor groups have expressed the view that this provision is `both broad and vague.' According to these groups:

The Secretary of Defense is unilaterally authorized to declare any military activity a `contingency operation;' in addition, national disaster declarations made by the President also trigger the `contingency operation' function. Hurricane Katrina was a military `contingency operation.' Most of the homeland security operations of the Defense Department's Northern Command are considered `contingency operations.'

In fact, section 101(13) of title 10, United States Code, authorizes the Secretary of Defense to declare a military operation a `contingency operation' only if members of the military are or may become involved in `military actions, operations, or hostilities against an enemy of the United States or against an opposing military force.' A national emergency may also trigger a `contingency operation,' but only if it results in the call or order to active duty (in federal status) of the reserve components. This authority was not used in the response to Hurricane Katrina and has never been used in the case of any other natural disaster. Moreover, section 802(a)(10) applies, by its terms, only to persons accompanying an armed force `in the field.' The phrase `in the field' has been consistently interpreted to mean in the face of an enemy force. None of the hypothetical situations raised by contractor groups meet any of these tests.

The contractor groups have also expressed concern that the Department of Defense has yet to issue guidance or regulations as to which provisions of the UCMJ will apply to contractor employees accompanying an armed force in the field, and under what circumstances. This issue is appropriately addressed through revisions to the Manual for Courts Martial implementing the new legislation. The committee urges the Department of Defense to expeditiously issue such revisions. The committee expects that the Manual for Courts Martial will implement the provision in a manner that is consistent with the longstanding definitions of terms such as `contingency operations' and `in the field' and mindful of U.S. Supreme Court precedent regarding the application of the UCMJ to civilians.

Report on programs assessing feasibility of hotlines and video surveillance in recruiting stations

In response to a requirement contained in the statement of managers accompanying the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), the Secretary of Defense submitted a report on programs designed to prevent recruiter misconduct. Two methods for preventing incidents of recruiter misconduct used by individual services include use of `hotline' numbers for recruits to call and report violations and employment of video surveillance in recruiting stations.