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Week Ending September 8, 2006

H.R.5631 Making appropriations for the Department of Defense for the fiscal year ending September 30, 2007, and for other purposes.

This Senate version of this bill would increase spending over the House version. The House would spend $427 billion including an additional $50 billion off-budget supplemental requested by the President for his war on terror. The spending does not include military construction, defense health and VA spending slated to receive $94 billion for 2007. The Senate would spend $377 billion, another $8 billion gleaned from budget cuts last year and the $50 billion supplemental for a total of at least $435 billion. The reference to ‘at least’ is born from comments by Senator Judd Gregg that in addition to the $50 billion requested off-budget in this bill for the war on terror and disaster relief the President will ask, in 2007, for an additional $127 billion off-budget, for the same purposes bringing Defense spending for FY 2007 to somewhere between $553 billion and $567 billion once again not including military construction and VA spending..

It was the amendment activity that discerned the Senate bill from the House particularly in the category of total expenditures. The first amendment to the bill would provide additional off-budget funds equaling $7.8 billion more for Army and $5.3 billion more for the Marines to replenish and repair equipment damaged in the current war adding $13 billion more to the above totals. Another amendment gathers $6.7 billion for other refurbishment Armed Forces-wide. Senators agreed unanimously that $1.8 billion would be spent by the National Guard to purchase and construct a triple layered fence 370 miles along the US Southwest border and 461 to 500 miles of vehicle barriers. Ten million in Air Force operations funds would be switched to spend on interoperable communications for the US Northern Command (NORCOM). $6.7 million from Army operations would go towards helping National Guard members reintegrate to society.

Another amendment would require a deal with the Iraq government that prohibits any US troop or military personnel from being tried in an Iraqi court.

Two amendments leaned towards concerns about radiation, it would appear. $5 million would be spent to buy radiation hardened microelectronics and a plan is required to procure medical countermeasures for treating forward deployed troops against acute radiation syndrome.

Senate Minority Leader Harry Reid (D-NV) introduced an amendment that speaks to the idea that new directions in Iraq are called for in the face of the opposition's view that 'Staying the Course' is not a recipe for success in Iraq. The Resolution calls for various measures including replacing Secretary of Defense Rumsfeld. The amendment was ruled by the Chair as not germane to the bill and therefore would not be considered or voted on. Details of that amendment and the White House response to the concept of new directions can be read HERE

An amendment offered by Senator Kennedy (D-MA) asking for "quarterly reports on progress toward military and political stability in Iraq" was tabled.

Republican Senator George Allen succeeded with an amendment that would "make available from Defense Health Program up to$12,000,000 for the Defense and Veterans Brain Injury Center"

A multifaceted amendment offered by Senator Kent Conrad (D-ND) included a request that "60 days after the date of the enactment of this Act, and every 90 days thereafter the House and Senate committees would be provided with "a classified report on progress made by the operations in the global war on terrorism for which funding is provided in this Act, including an assessment of the likely current location of terrorist leaders, including Osama bin Laden and other key leaders of al Qaeda, a description of ongoing efforts to bring to justice such terrorists, a description of the cooperation provided by the governments of any countries assessed as likely locations of top leaders of al Qaeda and by other relevant countries, a description of diplomatic efforts currently being made to improve the cooperation of any such governments, and a description of the status of, and strategy for bringing to justice, perpetrators of terrorism including the top leadership of al Qaeda" and would add $200 million to the search for Osama bin Laden.

Senator Barbara Boxer's (D-CA) amendment requiring that no cluster bombs be dropped near civilian areas failed against the argument that various treaties already regulate the activity.

The report on the House bill and details of bill contents follows:

In addition to the $50 billion Bridge Fund for future operations in Iraq and Afghanistan the bill would spend $84.9 billion for Military personnel needs, $120.5 for Operations and Maintenance, $81.8 billion for Procurement, $75.3 billion for Research and Development, and $2.4 billion for revolving funds and management. The Bridge Fund is largely for military pay and operations and maintenance spending ($43.4 billion). The Bridge Fund provision in this bill is a prior approval of a request for supplemental funds anticipated in early 2007 and would thereby be the seventh supplemental. Prior supplementals were: April 03-$62.6 billion, November 03-$64.9 billion, August 04-$25 billion, May 05 $75.7 billion, December 05 $50 billion, June 06 $65.8 billion and this current supplemental at $50 billion.

The Appropriations Committee took exception to the President’s request that would not seek full funding for the F-22 Fighter and the DD(X) destroyer but rather pay on an incremental basis. The Committee referred to the President’s request as ‘unorthodox’ in that they would require additional incremental funding in the middle of the production process. Referring to the process as one that ‘mortgages the future of the procurement budget’ the Committee found the request unacceptable and ordered full funding for those programs. The Committee also noted that increase in fuel costs has added greatly to the necessity of adding $6.1 billion to Operations and Maintenance.

Moving the military forces towards what is being called a modular military is in motion with the idea of creating a more deployable, more quickly deployable, a better protected and more sustainable military in the near future. Providing for a 2008 ‘lethal shoot down demonstration’ would bring laser weapons on aircraft, in space and elsewhere off the movie screen and into real life use.

Troops will see another pay raise this fiscal year of 2.2% that would go into effect in January 2007. The Committee is recommending $557 million increase for the Army Reserve and National Guard personnel that would make up for a recent funding cut based on current end strength levels as opposed to those that were authorized.

Replacing equipment for all branches and new Humvees, trucks, radios, Hellfire missiles and ammunition gets $5.6 billion. Rehabilitating Army and Marine equipment alone will spend $4.8 billion. The Improvised Explosive Devices wreaking such havoc on troops and equipment are a matter of investigation into how to thwart them through radio jammers since most IEDs are activated by cell phone. Military personnel will benefit from $725 million for personal protection including body armor.

Commanders Emergency Response, a system through which commanders in the field can order what is necessary to meet the needs of emergency civilian needs in Afghanistan and Iraq without going through a lengthy procurement process will find $500 million available for those purposes. $1 billion would go to train and equip Iraqi and Afghan Security forces.

Although the lion’s share of funds will be spent in the Middle East $500 million will help the National Guard with homeland defense and disaster response. The Army Future Combat System gets a $227 million raise to spend $3 billion developing the future needs of warfare.

Vehicles and Planes

100 Stryker vehicles are ordered  at the cost of $800 million and $285 million will be spent on the Bradley Fighting Vehicle but the Committee recommends and extra $480 million in anticipation of future war on terror needs.

The bill would spend $581 million on the UH-60 Blackhawk and $19.2 million on a medical evacuation helicopter for the Army. Other helicopter spending would include $583 million to modify the CH-47 Chinook and $776 million for the AH-64 Apache.

Naval

The Navy gets $11 billion to convert existing ships including $1.8 billion to buy a Virginia-class submarine, $1.1 billion for a LHA amphibious assault ship, $455 million for a T-AKE ammunition ship and $521  million for two Littoral Combat Ships and full funding-$2.6 billion-for a new DD(X) Destroyer ship. Navy will also benefit from $2.9 billion for 42 F/A 18 fighter jets, $1.3 billion for the V-22 aircraft, $300 million for the KC-130J tanker aircraft, and $1.1 billion for the Multi-mission Maritime Patrol Aircraft.

Air Defense

In the air war the Air Force would get $2.9 billion to buy 20 F/A-22 aircraft and $477 million to procure in advance 20 aircraft in 2008. $2.2 billion buys 12 C-17 planes and a bridge fund of $789 million is provided to replace 3 aircraft. The heavy lifter, the C-130J, will be procured with $697 million and $90 million for advanced procurement. The Joint Strike Fighter (Air Force and Navy) is being researched with $4.2 billion.

Missile defense receives $9 billion for ballistic missile defense. The amount is $1.3 billion over fiscal 2006 and includes $5 million for Asymmetric Warfare Initiative, $20 million for ballistic missile defense signals processor and open architecture, $405.5 million for the Kinetic Energy Interceptor and $631 million for the Airborne Laser program. An amendment would add three unmanned aircraft to the Special Operation Forces fleet for $65 million.

Outer Space

Operationally Responsive Space is the current description of the US programs that would put the US at a strategic advantage in space by weaponizing it. Congress tends to support this program and kicked in an additional $25 million. Among the projects getting less money are Space Radar (-$66.4 million), Transformational Communications Satellite (-$100 million), the Evolved,  Expendable Launch Vehicle (-$244.2 million), and the Global Positioning System IIF (-$73.3 million).

Miscellaneous

Drug Interdiction and Counter-drug Activities receive $937 million, an increase of $28.5 million over last year. DARPA, the Defense Advanced Research Projects Agency that invented the Internet will receive $3 billion with no indication what the funds would be spent on, The Chemical and Biological Defense Program gains $84 million this year to spend $1.542 billion.

Sponsor: Rep. C.W. Bill Young (R-FL-10^th)

Vote: Passed House 400 to 18 (RC 292) June 20, 2006. The Senate has begun amending the bill and is expected to vote on final passage September 6, 2006. The bill will then go to conference with the House to iron out any differences. Passed Senate to (RV 239) September 7, 2006.

Cost to the taxpayers: $377.6 billion plus $50 billion as a bridge fund for operations in Iraq and Afghanistan bringing the total to $427.6 billion. Last year the appropriation was $358.5 billion.

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MORE INFORMATION

TITLE I-MILITARY PERSONNEL Programs and Activities; End Strengths; End Strength Adjustments; Accuracy of Obligations, Guard and Reserve Cost Avoidance; Recruiting Incentives; Full-Time Support Strengths; Personnel: Army, Navy, Marine Corps, Air Force, Army Reserve, Navy Reserve Marine Reserve, Air Force Reserve; Army National Guard; Air Force National Guard.

TITLE II-OPERATIONS AND MAINTENANCE-Overview; Shortfalls; Rebasing; Increasing Costs; Recapitalization; Minority outreach; NPS Laboratory Modernization; Ship Depot Maintenance; Navy Call Center; Defense Security Service; Northeast Regional Training Center for Homeland Defense; overseas contingency and humanitarian disaster and civic aid; former Soviet Union Threat Reduction Account.

TITLE III-PROCUREMENT-Estimates; Special Interest Items; Missile ARMY: Air Craft; Tracked Vehicles; Howitzers; Ammunition; NAVY: Air Craft, ES-18G and F/A-18 E/F; weapons; torpedoes; Sonobouy; ship building thirty year shipyard plan; Destroyer; submarines.

TITLE IV- RESEARCH AND DEVELOPMENT, TESTING AND EVALUATION- Joint Common Missile; Special Interest Items; Biomass Conversion; Infrared Countermeasures for helicopters and regional jets; force protection research; environmental protection; surface and shallow water mine countermeasures; Space Radar; Airborne laser; ballistic missile defense; Chemical and Biological defence;

TITLE V- REVOLVING AND MANAGEMENT FUNDS

TITLE VI- OTHER DOD PROGRAMS-Chemical and munitions destruction; drug interdiction;

TITLE VII- RELATED AGENCIES-national Intelligence programs; CIA retirement.

TITLE VIII- GENERAL PROVISIONS

TITLE IX- ADDITIONAL APPROPRIATIONS

ADDITIONAL VIEWS

AMENDMENTS HOUSE 

AMENDMENTS SENATE

TITLE I-MILITARY PERSONNEL

ACTIVE AND RESERVE MILITARY PERSONNEL

The Committee recommends a total of $84,914,949,000 for active, Reserve and Guard military personnel, a decrease of $1,173,165,000 below the budget request. The Committee supports the budget request which proposed an increase in basic pay for all personnel by 2.2 percent, effective January 1, 2007, and agrees with the authorized end strength levels as requested for active duty and Selected Reserve personnel. The Committee also recommends restoring military personnel and operation and maintenance funds for the Army Reserve and Army National Guard that were reduced in the budget request below authorized levels.

SUMMARY OF MILITARY PERSONNEL RECOMMENDATIONS FOR FISCAL YEAR 2007

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

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

Fiscal year 2006                $83,017,553,000 

Fiscal year 2007 budget request  86,088,114,000 

Fiscal year 2007 recommendation  84,914,949,000 

Change from budget request       -1,173,165,000 

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

The Committee recommends an appropriation of $84,914,949,000 for the Military Personnel accounts. The recommendation is an increase of $1,897,396,000 above the $83,017,553,000 appropriated in fiscal year 2006. These military personnel budget total comparisons include appropriations for the active, reserve, and National Guard accounts. The following tables include a summary of the recommendations by appropriation account. Explanations of changes from the budget request appear later in this section.

The fiscal year 2007 budget request includes a decrease of 35,200 end strength for the active forces and a decrease of approximately 5,700 end strength for the selected reserve over fiscal year 2006 authorized levels.

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

OVERALL ACTIVE END STRENGTH

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

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

Fiscal year 2006 estimate                       1,367,500 

Fiscal year 2007 budget request                 1,332,300 

Fiscal year 2007 recommendation                 1,332,300 

  Compared with Fiscal year 2006                  -35,200 

  Compared with Fiscal year 2007 budget request     - - - 

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

OVERALL SELECTED RESERVE END STRENGTH

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

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

Fiscal year 2006 estimate                       848,500 

Fiscal year 2007 budget request                 842,800 

Fiscal year 2007 recommendation                 842,800 

  Compared with Fiscal year 2006                 -5,700 

  Compared with Fiscal year 2007 budget request   - - - 

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                                  FY 2006 Estimate Fiscal Year 2007--                                    

                                                       Budget Request Recommendation Change from Request 

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

Active Forces (end strength):                                                                            

Army                                       482,400            482,400        482,400               - - - 

Navy                                       352,700            340,700        340,700               - - - 

Marine Corps                               175,000            175,000        175,000               - - - 

Air Force                                  357,400            334,200        334,200               - - - 

Total, Active Force                      1,367,500          1,332,300      1,332,300               - - - 

Guard and Reserve (end strength):                                                                        

Army Reserve                               205,000            200,000        200,000               - - - 

Navy Reserve                                73,100             71,300         71,300               - - - 

Marine Corps Reserve                        39,600             39,600         39,600               - - - 

Air Force Reserve                           74,000             74,900         74,900               - - - 

Army National Guard                        350,000            350,000        350,000               - - - 

Air National Guard                         106,800            107,000        107,000               - - - 

Total, Guard and Reserve                   848,500            842,800        842,800               - - - 

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ADJUSTMENTS TO MILITARY PERSONNEL ACCOUNT

OVERVIEW

END STRENGTH ADJUSTMENTS

The Committee recommends the requested end strength levels as proposed in the budget request for active and Reserve components. The Committee recommends a total increase of $556,500,000 for the Army Reserve and Army National Guard military personnel and operation and maintenance appropriations to restore funds that were reduced in the budget request for these two components on the basis of their current (as opposed to authorized) end strength levels. The Committee is aware that the budget funds the baseline military end strength for active duty personnel and plans to seek additional funds for increases in end strength above the levels provided for in the budget request in a supplemental request. The Committee addresses these additional manpower expenses in title IX of the bill.

ACCURACY OF OBLIGATIONS

The Committee recommends a reduction of $748,140,000 to the budget request, based on the Government Accountability Office (GAO) analysis of prior year unexpended military personnel account balances. The Services' accounting data continue to show a pattern of under executing their appropriated funds. The Committee believes the military personnel budget requests for fiscal year 2007 are overstated and can be reduced.

GUARD AND RESERVE COST AVOIDANCE

The Committee recommends a reduction of $98,210,000 to the budget request for the Guard and Reserve fiscal year 2007 military personnel accounts. The Government Accountability Office (GAO) found that updated monthly strength data, when compared to the monthly strength data in the fiscal year 2007 budget, had strength levels lower than budgeted.

RECRUITING INCENTIVES

The Department of Defense's military reserve components have initiated programs that provide cash incentives to current members who identify and aid in enlisting new recruits. While these programs have enhanced recruiting efforts, the potential for the misuse of cash incentives exists. The Committee believes the Department must exercise rigorous oversight of these incentive programs to ensure that funds are being used effectively and for the purposes intended. In this regard, the Committee directs the Department of Defense Inspector General to provide a report to the congressional defense committees that describes these cash incentive programs and the safeguards and oversight procedures implemented by the military components, and recommends additional oversight and accounting practices that should be implemented if warranted. This report shall be submitted not later than February 1, 2007.

FULL-TIME SUPPORT STRENGTHS

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

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

Full-time support end strength in all categories totaled 158,149 in fiscal year 2006. The fiscal year 2007 budget request is 158,401 end strength. The following table summarizes Guard and Reserve full-time support end strengths:

GUARD AND RESERVE FULL-TIME END STRENGTHS

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                      FY 2006 Estimate Budget Request Recommendation Change from Request 

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Army Reserve:                                                                            

AGR                             15,270         15,416         15,416               - - - 

Technicians .                    8,244          8,507          8,507               - - - 

Navy Reserve:                                                                            

AR                              13,392         12,564         12,564               - - - 

Marine Corps Reserve:                                                                    

AR                               2,261          2,261          2,261               - - - 

Air Force Reserve:                                                                       

AGR                              2,290          2,707          2,707               - - - 

Technicians                      9,942         10,214         10,214               - - - 

Army National Guard:                                                                     

AGR                             27,396         27,441         27,441               - - - 

Technicians                     27,163         27,650         27,650               - - - 

Air National Guard:                                                                      

AGR                             13,123         13,206         13,206               - - - 

Technicians                     23,321         23,605         23,605               - - - 

68,670                          69,976         69,976          - - -               - - - 

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

MILITARY PERSONNEL, ARMY

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

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

Fiscal year 2006 appropriation  $24,028,651,000 

Fiscal year 2007 budget request  25,423,998,000 

Committee recommendation         25,259,649,000 

Change from budget request         -164,349,000 

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

The Committee recommends an appropriation of $25,259,649,000 for Military Personnel, Army. The recommendation is an increase of $1,230,998,000 above the $24,028,651,000 appropriated for fiscal year 2006.

TITLE II

OPERATION AND MAINTENANCE

The fiscal year 2007 budget request for programs funded in title II of the Committee bill, Operation and Maintenance, is $122,449,410,000 in new budget authority, which is an increase of $8,016,016,000 above the amount appropriated for fiscal year 2006.

The accompanying bill recommends $120,541,265,000 for fiscal year 2007, which is an increase of $6,107,871,000 above the amount appropriated for fiscal year 2006, and $1,908,145,000 less than the request for fiscal year 2007. These appropriations finance the costs of operating and maintaining the Armed Forces, including the reserve components and related support activities of the Department of Defense (DoD), except military personnel and facilities sustainment, restoration and modernization costs. Included are pay for civilians, services for maintenance of equipment and, fuel, supplies, and spare parts for weapons and equipment. Financial requirements are influenced by many factors, including force levels such as the number of aircraft squadrons, Army and Marine Corps divisions, installations, military personnel strength and deployments, rates of operational activity, and the quantity and complexity of equipment such as aircraft, ships, missiles and tanks in operation.

OPERATION AND MAINTENANCE OVERVIEW

The President's fiscal year 2007 budget request for the base budget represents an increase of $8,016,016,000 above fiscal year 2006 in Title II, Operation and Maintenance, exclusive of supplemental funding provided for continuation of military operations in Afghanistan and Iraq. The Administration's request for fiscal year 2007 also assumes $50,000,000,000 in funding for the continuation of the global war on terror, but the Committee has not yet received a detailed justification nor a formal request. The Committee has allocated funding among various appropriations accounts in title IX of this bill to ensure continued full support for our forces operating in the combat zones. The Committee has provided $50,000,000,000 to ensure that funds are available to fully support the operating, personnel support, maintenance, transportation, and other wartime costs of the services, including purchase of all necessary force protection equipment. The funds provided in title IX will support continuation of operations for the first six months of fiscal year 2007, and will ensure that critical base operating and maintenance accounts need not be diverted to support the war effort.

The budget request for normal peacetime funding in title II would sustain flying hours, ship steaming and ground operating tempo at approximately fiscal year 2006 levels. The funding requested in Operation and Maintenance, Army supports a total of 42 combat brigades by the end of fiscal year 2007. Operation and Maintenance, Navy supports 10 active carrier air wings and 1,479 primary authorized aircraft, 285 ships, including 11 aircraft carriers, 52 nuclear attack submarines and 18 missile submarines. The Navy's Fleet Response Plan continues in 2007 with the goal of increasing availability of naval assets for duty worldwide. Increased funding for flying hours and ship operations primarily reflects increased cost of fuel. The Air Force flying hour program provides the funding necessary to maintain basic flying skills, and pilot development and production, and to provide trained aircrews to joint forces combatant commanders through ten aerospace expeditionary forces.

The Committee has fully supported the peacetime requirements of the military services for readiness training in flying hours, ship steaming and ground forces OPTEMPO training. Equipment maintenance and base support programs have been robustly resourced, including support for anti-terrorism and force protection efforts.

Funding is included to support a pay increase of 2.2 percent for civilian employees, the same level provided for military personnel. The budget request provides for the continued conversion of selected billets from military to civilian workers in all the services, in order to return military personnel from administrative duties to combat and combat support units.

RECOMMENDATIONS TO ADDRESS SHORTFALLS

Despite the robust funding in operation and maintenance accounts requested for fiscal year 2007, budget justifications and additional briefing material indicate that a certain degree of risk has been taken in some areas. For example, the budget request for the Navy's ship steaming day program is 36 deployed days per quarter, which falls short of the goal of 51 deployed days per quarter. The Committee recommended funding level restores funding so that the Navy can reach its steaming day goal. The Committee has also provided additional operating account funding to assist in addressing many of the Department's shortfalls. Funds have been added for individual soldier and Marine field equipment, general purpose tents and mobility shelters, improvements in control of logistics systems, enhanced training capabilities, foreign language training, training on urbanized terrain, military and civilian safety, education programs, and distance learning.

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

THE EFFECTS OF REBASING

The unprecedented combination of Army transformation, the base closure process, and the Integrated Global Presence and Basing Strategy (IGPBS) will shift thousands of military and DOD civilian personnel to new communities nationwide. The Committee is concerned about the effect these rebasing and relocation actions will have on communities, particularly their local school districts and economic infrastructure. Therefore, the Committee directs the Government Accountability Office (GAO) to assess the combined, incremental economic impact of DoD's base closure, Army transformation, and IGPSB initiatives on those military installations undergoing major realignments by receiving significant numbers of new personnel. This GAO analysis should include information regarding, but not limited to, the projected number and percentage increase in student enrollment, and the economic impact which may result from increased student enrollment. The GAO is encouraged to work with relevant Federal, state, and local agencies to develop its findings. The Committee intends to work with the GAO to define the specific parameters and process for this analysis, which shall be provided to the Committee not later than February 15, 2007.

INCREASING COSTS OF OPERATION AND MAINTENANCE

The Committee remains concerned about the increasing costs of operating our military forces. Over the years, higher operation and maintenance costs have resulted from the aging of our military infrastructure and equipment, and replacing legacy weapons systems with more technically sophisticated platforms. This trend, however, may have been exacerbated by efforts to contract out to the private sector a substantial portion of the military services' logistics and support activities. To gain better insight about the costs and consequences of contracting out as well as other factors generating an increase in operation and maintenance costs, the Committee directs Government Accountability Office (GAO) to prepare a comprehensive analysis of contracting out logistic, maintenance, and support activities that, heretofore, had been conducted by uniformed personnel, as well as other factors that may be driving an increase in such costs. This analysis shall cover the period fiscal years 1995-2005, include case studies comparing the costs of military and private sector performance on specific programs, and be submitted to the congressional defense committees not later than April 15, 2007. The Committee intends to work with GAO to define the scope, design, and focus of the analysis.

EQUIPMENT RECAPITALIZATION

The Committee continues to provide substantial resources to support the services' equipment recapitalization requirements, particularly given the stress to equipment due to ongoing contingency operations. To address the significant equipment recapitalization requirements, the Committee has included the full budget requests of the military services for depot maintenance, and has provided significant funding in title IX of this bill for this purpose. The Committee also supports a `zero mile/zero hour' recapitalization standard, and understands that this standard can reduce a system's subsequent operating and support costs while enhancing equipment capabilities. To the extent feasible, the Committee urges that the services adopt a `zero mile/zero hour' standard for equipment recapitalization.

MINORITY OUTREACH

The Committee recognizes the important role that minority owned and operated media serve in reaching key segments of the public, and the United States' Hispanic population in particular. Given the importance of reaching these communities, the Committee directs the Department of Defense (DoD) to consider these media and their constituencies when conducting national campaigns on behalf of the U.S. military. The Committee encourages DoD to dedicate the necessary resources to reach these communities through minority owned and operated media.

OPERATION AND MAINTENANCE BUDGET EXECUTION DATA

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

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

OPERATION AND MAINTENANCE REPROGRAMMINGS

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

Operation and maintenance, Army

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

Operation and maintenance, Navy

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

Operation and maintenance, Marine Corps

Operating Forces: Operational forces, Depot maintenance.

Operation and maintenance, Air Force

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

Mobilization: Airlift operations, Depot maintenance;

Basic Skills and Advance Training: Depot maintenance;

Logistics Operations: Depot maintenance.

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

Operation and maintenance, Army

Depot maintenance.

Operation and maintenance, Navy

Aircraft depot maintenance,

Ship maintenance.

Operation and maintenance, Marine Corps

Depot maintenance.

Operation and maintenance, Air Force

Air Operations, Depot maintenance;

Mobility Operations, Depot maintenance;

Basic Skills and Advanced Training, Depot maintenance; and

Logistics Operations, Depot maintenance.

OPERATION AND MAINTENANCE, ARMY

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

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Fiscal year 2006 appropriation  $22,031,807,000 

Fiscal year 2007 budget request  23,091,606,000 

Committee recommendation         22,292,965,000 

Change from budget request         -798,641,000 

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The Committee recommends an appropriation of $22,292,965,000 for Operation and Maintenance, Army. The recommendation is an increase of $261,158,000 above the amount appropriated for fiscal year 2006.

PROGRAM RECOMMENDED

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

FOREIGN LANGUAGE PROGRAMS--DLI LANGUAGE LABS

The Committee notes that there is a critical shortage of soldiers and officers who have a mastery of foreign languages. This is most apparent in Iraq and Afghanistan, but also affects Global War on Terror missions around the world, particularly in Southeast Asia. In an effort to enhance service members' language skills, the Committee has provided an additional $2,300,000 to complete the acquisition of 550 small language labs at the Defense Language Institute (DLI). This funding will complete the DLI upgrade for which the Congress provided $2,100,000 in the fiscal year 2006.

OPERATION AND MAINTENANCE, NAVY

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

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

Fiscal year 2006 appropriation  $28,363,907,000 

Fiscal year 2007 budget request  30,129,671,000 

Committee recommendation         29,853,676,000 

Change from budget request         -275,995,000 

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

The Committee recommends an appropriation of $29,853,676,000 for Operation and Maintenance, Navy. The recommendation is an increase of $1,489,769,000 above the amount appropriated for fiscal year 2007.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2007:

 [In thousands of dollars]

NPS LABORATORY MODERNIZATION

Modern engineering laboratories are essential to ensure that the Naval Postgraduate School's (NPS) students can analyze future warfighting technologies, and gain the education needed to apply those technologies to meet emerging U.S. defense requirements. Yet, NPS laboratories are outdated, having last been recapitalized in 1986. To address this issue, the Committee provides an additional $10,000,000 under this heading to modernize NPS' laboratories and related science and engineering library holdings. The Committee anticipates that the Department of the Navy will sustain this initiative by including funding in its fiscal year 2008 budget request and beyond.

SHIP DEPOT MAINTENANCE

From funds available in this Act, the Secretary of the Navy is directed to ensure sufficient funds are made available to complete scheduled depot maintenance on the USS George Washington and the USS San Francisco (SSN 711) during fiscal year 2007.

NAVY CALL CENTER

The Committee strongly urges the Secretary of the Navy to allocate sufficient funding from amounts available under this heading to ensure the continuation and successful implementation of the Navy's Human Resources Call Center pilot program in Washington County, Maine.

OPERATION AND MAINTENANCE, MARINE CORPS

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Fiscal year 2006 appropriation  $3,109,882,000 

Fiscal year 2007 budget request  3,405,821,000 

Committee recommendation         3,351,121,000 

Change from budget request         -54,700,000 

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The Committee recommends an appropriation of $3,351,121,000 for Operation and Maintenance, Marine Corps. The recommendation is an increase of $241,239,000 above the amount appropriated for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2007:

 [In thousands of dollars]

OPERATION AND MAINTENANCE, AIR FORCE

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Fiscal year 2006 appropriation  $28,182,761,000 

Fiscal year 2007 budget request  29,658,288,000 

Committee recommendation         29,089,688,000 

Change from budget request         -568,600,000 

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The Committee recommends an appropriation of $29,089,688,000 for Operation and Maintenance, Air Force. The recommendation is an increase of $906,927,000 above the amount appropriated for fiscal year 2006.

PROGRAM RECOMMENDED

The total amount recommended in the bill will provide the following program in fiscal year 2007:

 [In thousands of dollars]

OPERATION AND MAINTENANCE, DEFENSE-WIDE

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Fiscal year 2006 appropriation  $18,199,977,000 

Fiscal year 2007 budget request  19,989,270,000 

Committee recommendation         19,883,790,000 

Change from budget request         -105,480,000 

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The Committee recommends an appropriation of $19,883,790,000 for Operation and Maintenance, Defense-Wide. The recommendation is an increase of $1,683,813,000 from the amount appropriated in fiscal year 2006.

PROGRAM RECOMMENDED

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

DEFENSE SECURITY SERVICE

The Committee believes that the timely processing of industry Personnel Security Investigations (PSIs) is fundamental to the protection of our national security assets, and provides an additional $10,000,000 above the President's request for the Defense Security Service (DSS) to ensure that the defense industrial base will continue to properly serve the Department of Defense without interruption or other impediment.

The Committee notes that the DSS experienced a significant budget shortfall during fiscal year 2006 forcing the Department of Defense (DoD) to abruptly halt the processing of thousands of contractor PSI requests. The shortfall has exposed a budget process that appears fundamentally flawed and will likely continue unless the following factors can be avoided:

1. each budget submission is routinely devoid of PSI projections from the 23 other federal agencies on whose behalf the DSS administers the National Industrial Security Program for each fiscal year;

2. a six-month lag between the February budget submission and August rate adjustments by the Office of Personnel Management (OPM) inhibits reliable budgeting for the sizable premiums and surcharges that OPM may charge for each PSI;

3. unanticipated resubmissions of PSI requests (approximately 45,000 in fiscal year 2006); and

4. costly adjustments in the mix of initial secret ($200/investigation) and Top Secret ($3,750/investigation) clearance requests.

The Committee expects the Department of Defense to resolve these budgetary problems. Therefore, the Committee directs that not later than 90 days after enactment of this Act a report shall be submitted to the congressional defense committees that details plans to more accurately build future DDS budget submissions.

OPERATION AND MAINTENANCE, ARMY RESERVE

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Fiscal year 2006 appropriation  $1,751,322,000 

Fiscal year 2007 budget request  2,083,312,000 

Committee recommendation         2,064,512,000 

Change from budget request         -18,800,000 

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The Committee recommends an appropriation of $2,064,512,000 for Operation and maintenance, Army Reserve. The recommendation is an increase of $313,190,000 above the $1,751,322,000 appropriated for fiscal year 2006.

PROGRAM RECOMMENDED

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

OPERATION AND MAINTENANCE, NAVY RESERVE

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Fiscal year 2006 appropriation  $1,165,237,000 

Fiscal year 2007 budget request  1,236,628,000 

Committee recommendation         1,223,628,000 

Change from budget request         -13,000,000 

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The Committee recommends an appropriation of $1,223,628,000 for Operation and maintenance, Navy Reserve. The recommendation is an increase of $58,391,000 above the $1,165,237,000 appropriated for fiscal year 2006.

PROGRAM RECOMMENDED

The adjustment to the budget activities for Operation and maintenance, Navy Reserve is shown below:

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

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Fiscal year 2006 appropriation  $190,702,000 

Fiscal year 2007 budget request  202,332,000 

Committee recommendation         202,732,000 

Change from budget request          +400,000 

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The Committee recommends an appropriation of $202,732,000 for Operation and maintenance, Marine Corps Reserve. The recommendation is an increase of $12,030,000 above the $190,702,000 appropriated for fiscal year 2006.

PROGRAM RECOMMENDED

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

OPERATION AND MAINTENANCE, AIR FORCE RESERVE

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Fiscal year 2006 appropriation  $2,424,432,000 

Fiscal year 2007 budget request  2,663,951,000 

Committee recommendation         2,659,951,000 

Change from budget request          -4,000,000 

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The Committee recommends an appropriation of $2,659,951,000 for Operation and maintenance, Air Force Reserve. The recommendation is an increase of $235,519,000 above the $2,424,432,000 appropriated for fiscal year 2006.

PROGRAM RECOMMENDED

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

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

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Fiscal year 2006 appropriation  $4,053,617,000 

Fiscal year 2007 budget request  4,450,783,000 

Committee recommendation         4,436,839,000 

Change from budget request         -13,944,000 

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The Committee recommends an appropriation of $4,436,839,000 for Operation and maintenance, Army National Guard. The recommendation is an increase of $383,222,000 above the $4,053,617,000 appropriated for fiscal year 2006.

PROGRAM RECOMMENDED

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

ENTERPRISE RESOURCE PLANNING

The Committee recommends an increase of $3,600,000 above the budget request for Enterprise Resource Planning for Army National Guard Installation and Equipment Demand Planning only for the Pennsylvania National Guard.

NORTHEAST REGIONAL TRAINING CENTER FOR HOMELAND DEFENSE

The Committee recommends an increase of $1,000,000 above the budget request only for operations of the Northeast Regional Training Center for Homeland Defense.

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

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Fiscal year 2006 appropriation  $4,476,301,000 

Fiscal year 2007 budget request  5,080,695,000 

Committee recommendation         5,035,310,000 

Change from budget request         -45,385,000 

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The Committee recommends an appropriation of $5,035,310,000 for Operation and maintenance, Air National Guard. The recommendation is an increase of $559,009,000 above the $4,476,301,000 appropriated for fiscal year 2006.

PROGRAM RECOMMENDED

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

OVERSEAS CONTINGENCY OPERATIONS TRANSFER ACCOUNT

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Fiscal year 2006 appropriation              

Fiscal year 2007 budget request $10,000,000 

Committee recommendation                    

Change from budget request      -10,000,000 

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The Committee recommends no funding for the Overseas Contingency Operations Transfer Account. The recommendation is the same as the appropriation for fiscal year 2006, and $10,000,000 less than the request for fiscal year 2007. The Committee notes that there is approximately $10,000,000 in unobligated balances currently available in this account.

UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

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Fiscal year 2006 appropriation  $11,124,000 

Fiscal year 2007 budget request  11,721,000 

Committee recommendation         11,721,000 

Change from budget request                  

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The Committee recommends an appropriation of $11,721,000 for the United States Court of Appeals for the Armed Forces. The recommendation is an increase of $597,000 above the amount appropriated in fiscal year 2006.

OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

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Fiscal year 2006 appropriation  $60,931,000 

Fiscal year 2007 budget request  63,204,000 

Committee recommendation         63,204,000 

Change from budget request                  

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The Committee recommends an appropriation of $63,204,000 for Overseas Humanitarian, Disaster, and Civic Aid, an increase of $2,273,000 over the fiscal year 2006 enacted level.

FORMER SOVIET UNION THREAT REDUCTION ACCOUNT

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Fiscal year 2006 appropriation  $411,394,000 

Fiscal year 2007 budget request  372,128,000 

Committee recommendation         372,128,000 

Change from budget request                   

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The Committee recommends an appropriation of $372,128,000 for Former Soviet Union Threat Reduction. The recommendation is a decrease of $39,266,000 from the amount appropriated in fiscal year 2006.

To Top

TITLE II-OPERATIONS AND MAINTENANCE

OPERATION AND MAINTENANCE

In title II of the bill, the Committee recommends a total of $120,541,265,000 for operation and maintenance support to the military services and other Department of Defense entities, a reduction of $1,908,145,000 from the fiscal year 2007 budget request, and an increase of $6,107,871,000 above the amount appropriated for fiscal year 2006.

The Committee's recommendation fully funds the President's request for readiness training in flying hours and ground forces operational tempo training. The Committee recommends additional funds to restore Navy steaming day readiness to the goal of 51 deployed days per quarter. Requests for unit and depot level maintenance program funding have been fully supported. Funds not needed for home station activities due to units being deployed for military operations in Afghanistan and Iraq have been realigned for support of continuing combat and peacekeeping operations in Afghanistan and Iraq.

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

To Top

TITLE III-PROCUREMENT

PROCUREMENT

In title III of the bill, the Committee recommends a total of $81,781,819,000 for procurement, a decrease of $1,137,683,000 from the fiscal year 2007 budget request and an increase of $6,007,796,000 over the amount appropriated for fiscal year 2006. In addition, title IX of this bill includes a total of $5,598,524,000 in various procurement accounts.

Major initiatives and modifications include:

$198,677,000, the President's request, for the procurement of 39 Light Utility Helicopters;

$581,251,000, an increase of $26,700,000 above the budget request, to procure a total of 39 Blackhawk Helicopters, an increase of 1 above the fiscal year 2007 budget request;

$489,067,000, the President's request, for 108 Patriot surface-to-air missile systems;

$799,978,000, for the procurement of 100 Stryker vehicles;

$2,946,297,000 for 42 F/A-18 Hornet aircraft, 12 more than the request, as well as $52,954,000 in advance procurement;

a reduction of 12 EA-18G aircraft, which are transferred to the F/A-18 Hornet aircraft program, as described above;

$1,604,687,000 to fully support procurement of V-22 Osprey aircraft for the Marine Corps;

$10,491,653,000 in Navy shipbuilding and conversion, including $1,775,472,000 for a Virginia class submarine, $2,568,111,000 for 1 DD(X) destroyer, $1,135,917,000 for 1 LHA(R) amphibious assault ship, and $520,670,000 for 2 Littoral Combat Ships;

$454,999,000 for a T-AKE ship within the National Defense Sealift Fund;

$2,903,898,000 to fully fund procurement of 20 F/A-22 Raptors in fiscal year 2007, and $477,404,000 for advance procurement of 20 aircraft in fiscal year 2008;

$2,246,192,000 for procurement of 12 C-17 aircraft in fiscal year 2007, and $798,000,000 in title IX for procurement of three additional C-17 aircraft in fiscal year 2007;

$57,000,000 for procurement of Active Electronically Scanned Array v3 radars for Air National Guard F-15s;

$697,287,000 for the C-130J Air Force procurement program as well as $90,000,000 in advance procurement, and $253,179,000 for the Navy KC-130J program as well as $45,737,000 in advance procurement (in fiscal year 2007, the Air Force will procure 9 aircraft and the Navy will procure 4 tanker variants);

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

a reduction of $140,000,000 associated with procurement of the Joint Strike Fighter, and a reduction of $72,000,000 associated with advance procurement for the Air Force CTOL variant and a reduction of $122,000,000 associated with advance procurement for the Navy's STOVL variant.

LE III

PROCUREMENT

ESTIMATES AND APPROPRIATIONS SUMMARY

The fiscal year 2007 Department of Defense procurement budget request totals $82,919,502,000. The accompanying bill recommends $81,781,819,000. The total amount recommended is decrease of $1,137,683,000 below the fiscal year 2007 budget estimate and is $6,007,796,000 above the total provided for fiscal year 2006. The table below summarizes the budget estimates and the Committee's recommendations.

SPECIAL INTEREST ITEMS

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

REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

The Committee directs the Department of Defense to continue to follow the reprogramming guidance specified in the report accompanying the House version of the fiscal year 2006 Department of Defense Appropriations bill (H.R. 109-119). Specifically, the dollar threshold for reprogramming funds will remain at $20,000,000 for procurement, and $10,000,000 for research, development, test and evaluation. The Department shall continue to follow the limitation that prior approval reprogrammings are set at either the specified dollar threshold or 20% of the procurement or research, development, test and evaluation line, whichever is less. These thresholds are cumulative. Therefore, if the combined value of transfers into or out of a procurement (P-1) line or research, development, test and evaluation (R-1) line exceeds the identified threshold, the Department of Defense must submit a prior approval reprogramming to the congressional defense committees. In addition, guidelines on the application of prior approval reprogramming procedures for congressional special interest items are established elsewhere in this report.

REPROGRAMMING REPORTING REQUIREMENTS

The Committee directs the Under Secretary of the Department of Defense, Comptroller, to continue to provide the congressional defense committees quarterly, spreadsheet-based DD1416 reports for service and defense-wide accounts in Titles III and IV of this Act as required in the statement of the managers accompanying the conference report on the Department of Defense Act, 2006.

CLASSIFIED ANNEX

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

AIRCRAFT PROCUREMENT, ARMY

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Fiscal year 2006 appropriation  $2,626,748,000 

Fiscal year 2007 budget request  3,566,483,000 

Committee recommendation         3,529,983,000 

Change from budget request         -36,500,000 

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $3,529,983,000 for Aircraft Procurement, Army, which is $903,235,000 more than the amount provided in fiscal year 2006 and $36,500,000 less than the request for fiscal year 2007.

PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2007:

MISSILE PROCUREMENT, ARMY

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Fiscal year 2006 appropriation  $1,196,830,000 

Fiscal year 2007 budget request  1,350,898,000 

Committee recommendation         1,350,898,000 

Change from budget request                     

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,350,898,000 for Missile Procurement, Army which is $154,068,000 more than the amount provided in fiscal year 2006 and the same as the request for fiscal year 2007.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

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Fiscal year 2006 appropriation  $1,377,698,000 

Fiscal year 2007 budget request  2,301,943,000 

Committee recommendation         2,047,804,000 

Change from budget request        -254,139,000 

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $2,047,804,000 for Procurement of Weapons and Tracked Combat Vehicles, Army which is $670,106,000 more than the amount provided in fiscal year 2006 and $254,139,000 less than the request for fiscal year 2007.

LIGHTWEIGHT TOWED HOWITZER, M777A1

The Committee continues to provide strong support for the acquisition of the Lightweight 155mm Towed Howitzer, M777A1 for use by the regular Army and the Army National Guard. The Committee recommends full funding for the Administration's request of $187,489,000 in Procurement of Weapons and Tracked Combat Vehicles, Army to purchase 85 howitzers. The Committee strongly encourages the Army to make an equitable distribution of the new howitzers between units of the regular Army and units of the Army National Guard.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

PROCUREMENT OF AMMUNITION, ARMY

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Fiscal year 2006 appropriation  $1,715,693,000 

Fiscal year 2007 budget request  1,903,125,000 

Committee recommendation         1,710,475,000 

Change from budget request        -192,650,000 

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,710,475,000 for Procurement of Ammunition, Army which is $5,218,000 less than the amount provided in fiscal year

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

OTHER PROCUREMENT, ARMY

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Fiscal year 2006 appropriation  $4,548,090,000 

Fiscal year 2007 budget request  7,718,602,000 

Committee recommendation         7,005,338,000 

Change from budget request        -713,264,000 

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $7,005,338,000 for Other Procurement, Army which is $2,457,248,000 more than the amount provided in fiscal year 2006 and $713,264,000 less than the request for fiscal year 2007.

CONTAINER ROLL IN-ROLL OUT PLATFORM (M3 CROP)

The Committee strongly urges the Secretary of the Army to allocate sufficient funding from amounts available under this heading to ensure the continuation of the program to procure the Container Roll in-Roll out Platform (M3 CROP) in order to expedite logistical support to the war fighter.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

AIRCRAFT PROCUREMENT, NAVY

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Fiscal year 2006 appropriation  $9,677,001,000 

Fiscal year 2007 budget request 10,868,771,000 

Committee recommendation        10,590,934,000 

Change from budget request        -277,837,000 

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $10,590,934,000 for Aircraft Procurement, Navy, which is $913,933,000 more than the amount provided in fiscal year 2006 and $277,837,000 less than the request for fiscal year 2007.

EA-18G AND F/A-18 E/F PROCUREMENT

The Committee recommendation transfers 12 low rate initial production EA-18G aircraft to the F/A-18 E/F production program. The current multiyear contract for these two programs requires a total of 42 aircraft in fiscal year 2007, but allows flexibility in the mix of aircraft ordered. The EA-18G procurement schedule was established several years ago, when the legacy EA-6B fleet was experiencing serious fatigue life issues. Since that time, however, the EA-6B's service life and combat capability have been substantially upgraded, allowing more time for the EA-18G's development program to mature. According to the Government Accountability Office, under the Navy's current schedule, full capabilities equivalent to today's EA-6B will not be demonstrated until January 2009, only three months before the scheduled full production decision. About one-third of the total aircraft buy would be approved under low rate initial production, which is substantially higher than the departmental target of ten percent. Although the EA-18G development program is currently on schedule, the Committee recommendation allows more time for the aircraft to demonstrate critical functionality prior to a full production decision. This decision is made without prejudice to the EA-18G program, which the Committee continues to support. The Committee notes that the additional F/A-18 aircraft procured with these funds are on the Navy's Unfunded Program Requirements List, and are needed to address Global War on Terror losses and inventory shortfalls. The Committee recommendation results in a net savings of $143,098,000 from the budget request.

PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2007:

WEAPONS PROCUREMENT, NAVY

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Fiscal year 2006 appropriation  $2,633,380,000 

Fiscal year 2007 budget request  2,555,020,000 

Committee recommendation         2,533,920,000 

Change from budget request         -21,100,000 

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $2,533,920,000 for Weapons Procurement, Navy, which is $99,460,000 less than the amount provided in fiscal year 2006 and $21,100,000 less than the request for fiscal year 2007.

TORPEDO INVENTORY LEVELS

The Committee is concerned about the adequacy of the Navy's inventory of lightweight and heavyweight torpedoes to meet current and anticipated threats to the year 2020. The Navy has recently commissioned the Naval War College to analyze this issue. Consequently, the Committee directs the Navy to submit a report to the Congressional defense committees, not later than March 1, 2007, comparing the current and projected inventories of torpedoes to the required levels, and presenting a plan to address any inventory shortfalls.

SONOBUOY INVENTORY LEVELS

The Committee is concerned about the adequacy of the Navy's inventory of sonobuoys to meet current and anticipated threats to the year 2020. The Committee directs the Navy to submit a report to the Congressional defense committees, not later than March 1, 2007, comparing the current and projected inventories of sonobuoys to the required levels, and presenting a plan to address any inventory shortfalls. The report should specify current and planned annual usage rates for the various sonobuoy classes, for both training and operational purposes.

PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2007:

PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

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Fiscal year 2006 appropriation  $843,323,000 

Fiscal year 2007 budget request  789,943,000 

Committee recommendation         775,893,000 

Change from budget request       -14,050,000 

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $775,893,000 for Procurement of Ammunition, Navy and Marine Corps, which is $67,430,000 less than the amount provided in fiscal year 2006 and $14,050,000 less than the request for fiscal year 2007.

FIVE INCH/54 MILLIMETER AMMUNITION

The Committee recommends $29,947,000 for the procurement of Five Inch/54 Millimeter Ammunition, an increase of $5,400,000 above the budget request. The decision in the 2005 BRAC process to close the Riverbank Army Ammunition Plant will result in a shutdown of production for 5/54mm ammunition for at least three years, because the only deep draw presses in the United States capable of producing cartridge cases for this ammunition are located at Riverbank. The Navy had planned to utilize war reserve stocks if necessary, or reduce training, during the time of the shutdown. The Committee does not believe it prudent to reduce training or deplete the war reserve stocks over such an extended period. To maintain current training levels and an adequate war reserve, the Committee recommendation provides funds for the production of additional cartridge cases to fill the gap during the closure of the Riverbank facility.

PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2007:

SHIPBUILDING AND CONVERSION, NAVY

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Fiscal year 2006 appropriation  $8,936,959,000 

Fiscal year 2007 budget request 10,578,553,000 

Committee recommendation        10,491,653,000 

Change from budget request         -86,900,000 

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $10,491,653,000 for Shipbuilding and Conversion, Navy, which is $1,554,694,000 more than the amount provided in fiscal year 2006 and $86,900,000 less than the request for fiscal year 2007. In addition, the bill includes rescissions of prior year appropriations totaling $26,245,000. The following report and project level tables provide a summary of the Committee's recommendation.

THIRTY YEAR SHIPBUILDING PLAN

The Committee is pleased that the Navy has put stronger priority this year on the need for a robust and stable shipbuilding program. The fiscal year 2007 budget included funds for 7 new ships, compared to only 4 last year. The future years defense plan includes funds for 51 new ships between fiscal years 2007 and 2011, compared to 45 ships in last year's plan. The Navy has stated a requirement for 313 force level ships to meet the projected naval threat in the year 2020. Under the Navy's current plan, that level is reached in the year 2012 and sustained until 2026.

Despite these improvements, the Committee believes that the viability of the Navy's long range plan will remain tied to the service's ability to control costs in ship design and construction. Navy leadership agrees that cost control is essential, but the Navy has produced no plan or initiatives to meet the cost targets assumed in the long range shipbuilding plan. Furthermore, the recent history of ongoing shipbuilding programs indicates the trend in cost growth may be getting worse, and not better. The Committee encourages the Navy to set firm cost targets in its future shipbuilding programs, to develop specific initiatives addressing cost control, and to sign contracts that reduce the likelihood of cost growth.

DD(X) DESTROYER

The Committee recommends $2,568,111,000 for the procurement of 1 DD(X) destroyer. The budget requested $2,568,111,000 to incrementally fund 2 ships, with the balance of funding to be provided in fiscal year 2008. The Committee cannot support such a far-reaching policy change which has implications beyond the Navy's shipbuilding program. Further, the Navy's proposal requires special legislative authority to be executed, and this authority is not included in the House-passed National Defense Authorization Act, 2007 (H.R. 5122).

ATTACK SUBMARINE PROCUREMENT RATE

The Navy currently procures Virginia class submarines at the inefficient rate of one ship per year under a multiyear contract. Individual submarines are built in sections in three different shipyards in three different states. Over 90 percent of the sub-vendor base is constituted by single suppliers, many under sole source contracts. The Navy's plan to increase the procurement rate to two ships per year would cut unit cost, but the plan has been deferred many times due to budget constraints. Currently, two submarines per year is planned for fiscal year 2012. Although the Committee acknowledges the problem created by this situation, accelerating the higher production rate would cause significant instabilities in the Navy's outyear shipbuilding program, requiring the service to add as much as $7,000,000,000 in additional resources over the future years defense program (FYDP) or cut other programs. Because of this long-term uncertainty, the Committee bill does not include funding to accelerate the higher production rate at this time.

PRIOR YEAR SHIPBUILDING COSTS

The Committee remains concerned over the lack of cost control in Navy shipbuilding programs. In last year's report, the Committee noted the rising cost growth in ongoing ship construction contracts, and required the Navy to submit a plan on resolving these issues. That report was submitted two months late, and was little more than a summary of cost overruns in shipbuilding over the past two decades. The Committee is concerned about the gap between the Navy's public statements about the need for firm cost controls, and the programmatic and contractual actions needed to accomplish that objective. Navy briefings this year document a litany of programs, including the CVN-77 aircraft carrier and certain attack submarines of the Virginia class, that continue to defy attempts to control costs. The Navy estimates an overrun of $867,900,000 over the next 3 years alone in the CVN-77 production effort. These funds cannot be obligated without Congressional legislation to raise the current cost cap on the program--a cap that was put in place several years ago to control costs. The fiscal year 2007 budget requests $136,000,000 for further cost growth in the U.S.S. Texas (SSN-775), and cost performance on the U.S.S. North Carolina (SSN-777) is seriously below Navy expectations. In fact, current cost performance on the Virginia class jeopardizes the ability of the Navy to meet the performance goals of the multiyear contract signed in 2004 as well as cost targets needed to increase the submarine production rate in future years. The Committee is unwilling to provide increased appropriations for cost overruns in the absence of compelling justification or a realistic and detailed plan for cost control. The Committee recommendation provides $436,449,000 for Completion of Prior Year Shipbuilding Programs, a reduction of $141,400,000 from the request. The reduction should be allocated against the following programs: CVN-77 (-$30,000,000); SSN-777 (-$48,000,000); SSN-776 (-$10,000,000); SSN-775 (-$10,000,000); and the LPD-17 class (-$43,400,000).

PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2007:

OTHER PROCUREMENT, NAVY

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

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

Fiscal year 2006 appropriation  $5,389,849,000 

Fiscal year 2007 budget request  4,967,916,000 

Committee recommendation         5,022,005,000 

Change from budget request         +54,089,000 

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

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $5,022,005,000 for Other Procurement, Navy, which is $367,844,000 less than the amount provided in fiscal year 2006 and $54,089,000 more than the request for fiscal year 2007.

WEAPONS RANGE SUPPORT EQUIPMENT

The Committee defers the $19,164,000 requested for Project SC012, Shallow Water Training Range. This project includes funding for the proposed new East Coast Undersea Warfare Training Range (USWTR) as well as shallow water upgrades to ranges on the West Coast. The Committee notes that the USWTR draft environmental impact statement received 1,700 comments which must be resolved by the Navy, including significant concerns expressed by federal agencies including the National Oceanic and Atmospheric Administration. The Committee believes it likely that resolution of these comments will cause delays in the USWTR program, allowing these funds to be used for higher priority activities during fiscal year 2007.

COMBAT SURVIVOR EVADER LOCATOR RADIO

The Committee recommends a reduction of $10,000,000 for Navy acquisition of the Combat Survivor Evader Locator (CSEL) radio due to continued technical problems. Technical difficulties continue in this program many years after they began, and it is clear from the December 2005 Annual Report of the Director, Operational Test and Evaluation that much development and operational assessment remains to be done. The Committee directs the Office of the Secretary of Defense, with the assistance of the Director, Operational Test and Evaluation, to develop a plan for resolving issues in the CSEL program and for effective transition and fielding to the individual services, including the Navy. The funding of $5,494,000 provided in this appropriation for the CSEL program should be used for the procurement of legacy radio systems to serve as a gap filler until CSEL is ready for production.

PROGRAM RECOMMENDED

The total program recommended in this bill will provide the following in fiscal year 2007:

PROCUREMENT, MARINE CORPS

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

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

Fiscal year 2006 appropriation  $1,384,965,000 

Fiscal year 2007 budget request  1,273,513,000 

Committee recommendation         1,191,113,000 

Change from budget request         -82,400,000 

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

This appropriation provides funds for the procurement, delivery, and modification of missiles, armaments, communication equipment, tracked and wheeled vehicles, and various support equipment.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,191,113,000 for Procurement, Marine Corps, which is $193,852,000 less than the amount provided in fiscal year 2006 and $82,400,000 less than the request for fiscal year 2007. The following report and project level tables provide a summary of the Committee's recommendations.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

AIRCRAFT PROCUREMENT, AIR FORCE

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

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

Fiscal year 2006 appropriation  $12,609,842,000 

Fiscal year 2007 budget request  11,479,810,000 

Committee recommendation         11,852,467,000 

Change from budget request         +372,657,000 

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

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $11,852,467,000 for Aircraft Procurement, Air Force which is $757,375,000 less than the amount provided in fiscal year 2006 and $372,657,000 more than the request for fiscal year 2007.

F-22 INCREMENTAL FUNDING

The budget request proposes to incrementally fund the F-22 fighter procurement program. This proposal is contrary to the full funding requirement the Congress has required for aircraft procurement programs. The Department of Defense presented the Committee with essentially two options--agree to incremental funding, or find $1,400,000,000 in savings from other programs to fully fund F-22 procurement. The Committee has chosen the latter option and recommends an additional $1,400,000,000 for the procurement of 20 F-22 aircraft in fiscal year 2007. In making these changes and providing the additional funds, the Committee is reiterating the long standing requirement for full funding of major weapon system procurements.

JOINT STRIKE FIGHTER

The Committee recommends $729,700,000, for Joint Strike Fighter procurement, which is $140,000,000 and one aircraft below the request for fiscal year 2007. The Committee has provided full funding for four Air Force conventional take-off and landing (CTOL) aircraft and advance procurement for four Air Force CTOL aircraft and four Navy short take-off and vertical landing (STOVL) aircraft. The Committee recommends a reduction in advance procurement funds of $72,000,000, and four CTOL variants, and $120,000,000 and four STOVL variants below the request for fiscal year 2007.

In making these recommendations, the Committee notes its concerns that the Joint Strike Fighter program will be unable to keep the aggressive development and test aircraft production schedule currently planned. Recent indicators of performance validate these concerns. While the program has had a number of successes in preparation for the first flight of the first test article, plans for that flight have been delayed nearly three months with the potential for even longer delays. In addition, the program has already begun to experience delays in the manufacturing of the other 22 test aircraft. A recent re-plan of the test article production schedule has the next eleven aircraft in the production line delayed anywhere from five to eleven months when compared to last year's schedule.

C-17 PROCUREMENT

The Committee has provided an additional $798,000,000 in title IX of the bill for the procurement of 3 C-17 aircraft. The funds are provided for procurement of aircraft to address the extensive utilization and attrition of mobility assets since September 2001 caused by the global war on terror. The Committee notes that funds were provided in the Department of Defense Appropriations Act, 2006, for advance procurement of additional C-17 aircraft beyond the 180 currently on contract. The Committee expects that these funds will be made available for the procurement of the 3 additional aircraft provided for in this legislation.

The budget request for fiscal year 2007 assumes the shutdown of the C-17 production line and includes funding for costs associated with the line closure. Shutdown funds are not required and the request has been reduced accordingly.

GLOBAL HAWK

The Committee recommends $341,288,000 for Global Hawk procurement, which is $44,824,000 more than the amount provided in fiscal year 2006, and $88,000,000 less than the request for fiscal year 2007.

The Committee continues to note program delays in the production of Global Hawk aircraft. These delays are understandable due to the high operational tempo of limited aircraft assets, operators, maintainers, and spare parts all supporting the global war on terror. However, these facts should be considered in the production schedule and subsequent budget request.

An analysis of aircraft deliveries shows Lots 2 through 4 aircraft will be delayed five to twelve months with no delays occurring in Lots 5 and 6. The Committee finds this unrealistic. In fact, in response to questions from the Committee regarding the timeliness of the request for fiscal year 2007 funds, the Air Force responded that `from a purely fiscal perspective, the program funding appears to be early to need for 1-2 aircraft in the FY07 budget.' Accordingly, the Committee has reduced the request by two aircraft and $88,000,000. In addition, the Committee has reduced the request for advance procurement by $18,000,000 and two aircraft. This will allow the program to ramp up from fiscal year 2007 to fiscal year 2008 at a more realistic rate given recent program performance.

F-15 ACTIVE ELECTRONICALLY SCANNED ARRAY RADARS

The Committee recommends $149,901,000 for F-15 modifications, which is $72,966,000 less than the amount provided in fiscal year 2006, and $57,000,000 more than the request for fiscal year 2007. The additional funds provided shall be for the procurement of APG-63(V)3 radars for the Air National Guard F-15s. Funds have also been included in Research, Development, Test and Evaluation, Air Force, to continue radar development and demonstration for improved capabilities.

C-17 AND AESA RADAR PROCUREMENT

The Committee has rescinded prior year funds for the procurement of additional F-15E aircraft. These funds had been provided to prevent a gap in the production line which is dependent on foreign military sales. Due to recent production orders, these funds are excess to need. Accordingly, the Committee recommends the rescission of $172,000,000. As noted elsewhere in this report, these funds have been reallocated to address the requirement for procurement of additional C-17 aircraft and to procure active electronically scanned array (AESA) radars for F-15 aircraft.

TANKER REPLACEMENT--KC-X ADVANCE PROCUREMENT

The Committee recommends no funding for advance procurement of KC-X aircraft, a reduction of $36,130,000 below the request for fiscal year 2007.

The Committee continues to strongly support development and acquisition of a replacement for the Air Force's aging KC-135 tanker fleet. To this end, the Committee has fully funded the request in Research, Development, Test and Evaluation, Air Force for the KC-135 Tanker Replacement Program. However, the Air Force has communicated to the Committee that advance procurement funds are early to need as the development program for the KC-135 tanker replacement only recently received authority to resume the acquisition process and issue a Request for Information. The Committee notes that should there be a requirement for procurement funds in fiscal year 2007, significant amounts remain available in the Tanker Replacement Transfer Fund.

PREDATOR ROADMAP

The Committee directs the Secretary of the Air Force to submit a report to the congressional defense committees on the allocation and beddown strategy for MQ-1 and MQ-9 aircraft within the active and reserve components for the period of fiscal year 2006 through fiscal year 2011. The report shall include funding requirements, unit destinations and planned aircraft inventory, approximate delivery schedule, associated personnel and training, and the number of orbits capable. The report shall be submitted by March 15, 2007.

C-130 CENTER WING BOX REPLACEMENT

The Committee recommends $190,177,000 for modifications to the C-130 fleet, which is $18,956,000 more than the amount provided in fiscal year 2006, and $27,500,000 less than the request for fiscal year 2007.

The Committee is strongly supportive of the ongoing efforts to replace failing center wing boxes. However, there does not appear to be sufficient production capability to ramp up from the 4 kits provided in the Department of Defense Appropriations Act, 2006, to the 21 kits in the fiscal year 2007 budget request. Accordingly, the Committee has provided funding for eighteen center wing box replacement kits.

C-32 WINGLET MODIFICATION

The Committee recommends $5,198,000 for C-32 modifications, which is $5,006,000 more than the amount provided in fiscal year 2006, and $5,000,000 more than the request for fiscal year 2007. These funds shall be used to install Blended Winglets on the 4 C-32 aircraft operated by the United States Air Force to demonstrate potential fuel savings, and/or increased operating range. Not more than one year after the modification of the first C-32 aircraft, the Secretary of the Air Force shall submit a report to the congressional defense committees assessing the utility of the winglet and making a recommendation if the program should be expanded to other types of aircraft.

T-38 EJECTION SEAT UPGRADE PROGRAM (ESUP)

The Committee notes that the Air Force's Fiscal Year 2005 Unfunded Priorities List included a high priority recommendation to modify a total of 199 T-38 aircraft with the safety and accommodation upgrade for T-38 ejection seats. This upgrade enhances safety and provides a career path through the T-38s for smaller and larger students. The Air Force is strongly encouraged to fully fund the Ejection Seat Upgrade Program for the T-38 fleet in the fiscal year 2008 budget.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

MISSILE PROCUREMENT, AIR FORCE

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

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

Fiscal year 2006 appropriation  $5,122,728,000 

Fiscal year 2007 budget request  4,204,145,000 

Committee recommendation         3,746,636,000 

Change from budget request        -457,509,000 

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

This appropriation provides for procurement, installation, and checkout of strategic ballistic and other missiles, modification of in-service missiles, and initial spares for missile systems. It also provides for operational space systems, boosters, payloads, drones, associated ground equipment, non-recurring maintenance of industrial facilities, machine tool modernization, and special program support.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $3,746,636,000 for Missile Procurement, Air Force which is $1,376,092,000 less than the amount provided in fiscal year 2006 and $457,509,000, less than the request for fiscal year 2007.

MINUTEMAN III PROPULSION REPLACEMENT PROGRAM

The Committee recommends $625,257,000 for Minuteman III modifications, which is $44,610,000 less than the amount provided in fiscal year 2006, and $66,400,000 less than the request for fiscal year 2007.

The request included $294,615,000 for procurement of 82 propulsion replacement kits, an increase of 4 kits over the fiscal year 2006 level. The Committee notes that the program comes to an end with the request for 43 kits in fiscal year 2008. The Committee believes that such a steep drawdown is inefficient and has provided funds for only 62 kits in fiscal year 2007. The remaining kits may be included in the fiscal year 2008 request to provide for a more efficient production rate.

EVOLVED EXPENDABLE LAUNCH VEHICLE (EELV)

The budget requests $936,490,000 for EELV, including $275,094,000 for launch services and $546,251,000 for launch capability and infrastructure. The Committee notes that the launches for GPS IIF vehicles six and seven have been delayed sufficiently to preclude procurement of the launch vehicles in fiscal year 2007. Additionally, the Committee is not yet convinced that the program has reached the proper balance of risk and return for the funds proposed to be spent for launch capability and infrastructure. Therefore, the Committee recommends $692,290,000 for EELV, reductions of $134,100,000 and $110,000,000, respectively, for launch services and launch capability and infrastructure.

Additionally, the Committee is concerned about the current acquisition strategy for the Buy-3 contract for launch services and infrastructure. The most troubling areas include cost accountability and introduction of new competition. First, the Air Force has not sufficiently developed the method by which costs for non-Department of Defense launches will be accounted for and credited to the Buy-3 contract. A lack of rigorous oversight in this area will provide unfair advantages to EELV contractors over outside competition for these launches, especially for launches in the commercial sector. Second, current structural constraints on the EELV program cause ordering inefficiencies throughout the program supply chain which will add significant cost to, and inhibit cost savings for, the program. The Committee believes a balance must be achieved to create an environment that optimizes economic efficiencies and promotes development and inclusion of outside competition.

Therefore, the Committee expects the Department of the Air Force to negotiate adjustments, in the form of reimbursements or credits, for launch services and launch capability and infrastructure costs associated with all non-Department of Defense EELV launches. Additionally, the Committee supports contracting procedures that facilitate competition and `best value' procurements. The Committee, therefore, directs the Department of the Air Force to adopt acquisition practices for the EELV program that will maximize economic efficiencies through fiscal year 2010 and create opportunities by which new entrants might more readily qualify for the EELV program, including opportunities for demonstration launches. This will facilitate competition and promote assured access to space.

GLOBAL POSITIONING SYSTEM

The budget requests $97,182,000 in procurement for Global Positioning System (GPS) satellites with an additional $43,259,000 in advanced procurement for vehicles 16 through 18. The Committee notes: (1) The GPS IIF program has been troubled by cost growth and significant delays; (2) the Department of Defense has chosen not to pursue vehicles 13 through 18; and (3) the program will not meet an acquisition decision for vehicles 10 through 12 as scheduled. The Committee recommends $67,182,000 in procurement and no funding for advanced procurement, a reduction of $30,000,000 and $43,259,000, respectively.

The Committee further recognizes that previous models of GPS satellites are operating longer than expected. Analysis indicates that through proper constellation planning and management, the corresponding launch schedule will most likely alleviate the need for vehicles 10-12 prior to the introduction of GPS III. Accordingly the Committee recommends the Department reassess the requirements for additional GPS IIF vehicles.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

PROCUREMENT OF AMMUNITION, AIR FORCE

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Fiscal year 2006 appropriation  $1,006,718,000 

Fiscal year 2007 budget request  1,072,749,000 

Committee recommendation         1,079,249,000 

Change from budget request          +6,500,000 

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This appropriation finances the acquisition of ammunition, modifications, spares, weapons, and other ammunition-related items for the Air Force.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,079,249,000 for Procurement of Ammunition, Air Force which is $72,531,000 more than the amount provided in fiscal year 2006 and $6,500,000 more than the request for fiscal year 2007.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

OTHER PROCUREMENT, AIR FORCE

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

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

Fiscal year 2006 appropriation  $13,920,106,000 

Fiscal year 2007 budget request  15,408,086,000 

Committee recommendation         15,423,536,000 

Change from budget request          +15,450,000 

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This appropriation provides for the procurement of weapon systems and equipment other than aircraft and missiles. Included are vehicles, electronic and telecommunications systems for command and control of operational forces, and ground support equipment for weapon systems and supporting structure.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $15,423,536,000 for Other Procurement, Air Force which is $1,503,430,000 more than the amount provided in fiscal year 2006 and $15,450,000 more than the request for fiscal year 2007.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

PROCUREMENT, DEFENSE-WIDE

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Fiscal year 2006 appropriation  $2,548,227,000 

Fiscal year 2007 budget request  2,861,461,000 

Committee recommendation         2,890,531,000 

Change from budget request         +29,070,000 

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This appropriation provides funds for the procurement, production, and modification of equipment, supplies, materials, and spare parts.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $2,890,531,000 for Procurement, Defense-Wide, which is $342,304,000 more than the amount provided in fiscal year 2006 and $29,070,000 more than the request for fiscal year 2007. The following report and project level tables provide a summary of the Committee's recommendations.

USSOCOM-EMERGENT CRITICAL COMBAT MISSION NEEDS

The Committee is aware that the United States Special Operations Command (USSOCOM) receives numerous Combat Mission Needs Statements from its war fighters in Iraq and Afghanistan to provide equipment urgently needed to fulfill unforeseen requirements. The Committee began a program in fiscal year 2006 to address these requirements and continues that effort by recommending an appropriation of $22,000,000 for such purposes. The Committee directs the Commander of USSOCOM to provide a quarterly report to the congressional defense committees on the use of these funds and strongly suggests that funds for this program be included in future budget requests.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

NATIONAL GUARD AND RESERVE EQUIPMENT

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

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

Fiscal year 2006 appropriation  $178,200,000 

Fiscal year 2007 budget request            0 

Committee recommendation         500,000,000 

Change from the budget request  +500,000,000 

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $500,000,000 for National Guard and Reserve Equipment, which is $321,800,000 more than the amount provided in fiscal year 2006 and $500,000,000 more than the request for fiscal year 2007. The Committee recommends that these funds be provided to the Army National Guard to continue an effort begun in fiscal year 2007 to meet the `Essential 10 Equipment Requirements for the Global War on Terror' as identified by the Chief, National Guard Bureau.

The Committee has also provided funds for National Guard and Reserve equipment consistent with the budget request within the procurement accounts and has earmarked funds as requested. The Committee has added funding for Guard and Reserve equipment above the request in several of the procurement accounts as described elsewhere in this report.

In addition, the Committee has provided funding in title IX for equipment for forces being deployed to Iraq and Afghanistan. The Committee expects the Department to provide deploying and deployed Guard and Reserve units with the same quality and quantity of equipment as they provide to the active duty components.

ARMY NATIONAL GUARD COMBAT BRIGADES

The Committee remains concerned about the Department of Defense's proposal to reduce 7 Army combat brigades from the level assumed under previous plans. Most of the change would occur in the Army National Guard's force structure plans; the Guard would field 28 combat brigades instead of 34 proposed previously. The Committee's review of this proposal indicates that the National Guard will have difficulty meeting its force generation and state security requirements with only 28 combat brigades. As the Department of the Army continues its examination of combat brigade requirements, the Committee strongly urges that this examination be conducted with the full participation and cooperation of both active and Guard officials at all levels. Moreover, the Committee will closely follow this issue over the coming months and will seek to ensure that sufficient funding is provided to field the number of Guard combat brigades necessary to meet its force generation and state security requirements, as authorized by law. As such, the Committee provides additional funding (described in other sections of this report) to fully fund the Army National Guard authorized end strength level of 350,000 and purchase additional equipment.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

DEFENSE PRODUCTION ACT PURCHASES

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

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

Fiscal year 2006 appropriation  $57,666,000 

Fiscal year 2007 budget request  18,484,000 

Committee recommendation         39,384,000 

Change from budget request      +20,900,000 

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

The Committee recommends an appropriation of $39,384,000 for Defense Production Act Purchases, which is $18,282,000 less than the amount provided in fiscal year 2006 and $20,900,000 more than the request for fiscal year 2007.

The Committee recommendation shall be distributed as follows:

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Project                                                                      Amount 

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Beryllium supply industrial base                                         $7,500,000 

Silicon carbide MMIC device production                                    3,167,000 

Lithium ion battery production                                            2,433,000 

Next generation radiation hardened microprocessors                        3,462,000 

Advanced technologies production initiative                               1,922,000 

Automated composite technologies and manufacturing center                 2,500,000 

ALON and spinel optical ceramics                                          3,500,000 

Flexible aerogel material supplier initiative                             3,000,000 

Production of affordable methanol fuel cells components                   2,000,000 

Armor and structures transformation initiative (ASTI)--steel to titanium  3,600,000 

Military lens fabrication and assembly                                    1,800,000 

Thermal battery industrial base infrastructure                            4,500,000 

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BERYLLIUM SUPPLY INDUSTRIAL BASE

The Committee recommendation includes $7,500,000 for continued efforts to maintain and support the beryllium supply industrial base. The Committee supports this critical ongoing initiative managed under the Defense Production Act program.

To Top

TITLE IV- RESEARCH AND DEVELOPMENT, TESTING AND EVALUATION

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

In title IV of the bill, the Committee recommends a total of $75,336,246,000 research, development, test and evaluation, an increase of $2,180,238,000 over the fiscal year 2007 budget request and an increase of $3,925,342,000 over the amount appropriated for fiscal year 2006.

Major initiatives and modifications include:

$3,326,448,000 for the Defense Advanced Research Projects Agency, $20,000,000 above the President's request;

$35,000,000 above the budget request to sustain the Joint Common Missile Program;

$2,984,677,000 for Future Combat Systems, a reduction of $325,800,000 from the budget request;

$332,271,000 for the Littoral Combat Ship (LCS), an increase of $12,600,000 above the budget request;

$166,622,000 in full funding for the Expeditionary Fighting Vehicle (EFV) of the Marine Corps;

$682,597,000 to fully support the budget request for the VH-71 Presidential helicopter program;

$268,461,000 in further development of the V-22 Osprey program;

$497,842,000 in full funding for development of the Navy Advanced Hawkeye aircraft;

$1,131,655,000 in full funding for further development of the Multi-Mission Maritime Aircraft;

$822,246,000 in development for the DD(X) destroyer and $9,282,000 for the CG(X) cruiser;

$30,000,000 for development of a non-nuclear variant of the Trident II submarine-launched ballistic missile;

$2,200,568,000 in the Air Force and $2,033,679,000 in the Navy in full funding for the Joint Strike Fighter (JSF) development program;

$25,598,000 for development of the Next Generation Bomber;

$203,932,000 for development of the KC-135 tanker replacement;

$8,955,487,000 for missile defense programs, an increase of $1,272,519,000 from fiscal year 2006 levels and a net decrease of $354,874,000 from the budget request; within this amount, an increase of $25,000,000 above the request is provided for sea-based mid-course defense.

TITLE IV

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

ESTIMATES AND APPROPRIATION SUMMARY

The fiscal year 2007 Department of Defense research, development, test and evaluation budget request totals $73,156,008,000. The accompanying bill recommends $75,336,246,000. The total amount recommended is an increase of $2,180,238,000 above the fiscal year 2007 budget estimate and is $3,925,342,000 above the total provided in fiscal year 2006. The table below summarizes the budget estimate and the Committee's recommendations.

JOINT COMMON MISSILE

Joint Common Missile (JCM) is a fixed and rotary wing aviation-launched missile system that provides advanced line-of-sight, and non-line-of-sight capabilities, including precision strike, passive, and fire-and-forget seeker technologies with increased range and lethality. JCM provides double the range of Hellfire (16,000 v. 8,000 meters for helicopter launches) allowing flight crews to take full advantage of target acquisition and guidance systems.

The Joint Common Missile (JCM) program was designed to mitigate missile credibility gaps identified by the Joint Capabilities Integration and Development System (JCIDS). The program had performed on schedule and on budget. In December 2004, the Department of Defense terminated the program choosing to assume temporary risk, and rely on less capable legacy missiles, or other guided munitions which address some of the same targets. In August of 2005, the Joint Requirements Oversight Council revalidated the requirement for Joint Common Missile.

Congress added funds in the Department of Defense Appropriations Act, 2006 to maintain the program ($26,000,000 in Research, Development, Test and Evaluation, Army and $4,000,000 in Research, Development, Test and Evaluation, Navy).

The Committee strongly encourages the Department of Defense to fully resource the Joint Common Missile program in order to provide flight crews with a weapon system that has greater engagement range, insensitive munitions technology and improved seeker, warhead and rocket motor technologies. Accordingly, the Committee recommends for Joint Common Missile in fiscal year 2007, appropriations of $30,000,000 in Research, Development, Test and Evaluation, Army and $5,000,000 in Research, Development, Test and Evaluation, Navy. The Committee strongly encourages the Department of Defense to fully fund the Joint Common Missile program in future budget requests.

SPECIAL INTEREST ITEMS

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

REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

The Committee directs the Department of Defense to continue to follow the reprogramming guidance specified in the report accompanying the House version of the fiscal year 2006 Department of Defense Appropriations bill (H.R. 109-119). Specifically, the dollar threshold for reprogramming funds will remain at $20,000,000 for procurement, and $10,000,000 for research, development, test and evaluation. The Department shall continue to follow the limitation that prior approval reprogrammings are set at either the specified dollar threshold or 20% of the procurement or research, development, test and evaluation line, whichever is less. These thresholds are cumulative. Therefore, if the combined value of transfers into or out of a procurement (P-1) line or research, development, test and evaluation (R-1) line exceeds the identified threshold, the Department of Defense must submit a prior approval reprogramming to the congressional defense committees. In addition, guidelines on the application of prior approval reprogramming procedures for congressional special interest items are established elsewhere in this report.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

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

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

Fiscal year 2006 appropriation  $11,060,666,000 

Fiscal year 2007 budget request  10,855,559,000 

Committee recommendation         11,834,882,000 

Change from budget request         +979,323,000 

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

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $11,834,882,000 for Research, Development, Test and Evaluation, Army which is $774,216,000 more than the amount provided in fiscal year 2006 and $979,323,000 more than the request for fiscal year 2007.

FUTURE COMBAT SYSTEMS (FCS)

The progress of the Army's Future Combat Systems (FCS) Program remains the focus of Army modernization. FCS is planned to make the Army combat brigade into a more deployable, lethal, survivable, and sustainable force. FCS fully embraces network centric operations including manned ground vehicles, unattended sensors, intelligent munitions, unmanned air vehicles and unmanned ground systems. Commonality in FCS manned ground systems should allow a reduced logistics tail, resulting in significant savings. However, the FCS program is expensive, with total investment cost estimated at $160,700,000,000, and approaching $200,000,000,000 when considering both FCS core elements and other Army programs that are required to deliver FCS's full potential. The FCS technology is very aggressive. The potential increase in military capability is impressive, but the Government Accountability Office reported in March 2006 that the program has not achieved the mature technologies and firm requirements that should have been achieved three years prior. Setting and refining FCS system-level requirements may not be complete until 2008. The FCS acquisition strategy calls for maturing technologies, designing systems, and preparing for production concurrently, a very high risk approach.

FCS program cost is estimated at $160,700,000,000, which is an increase of 76 percent since the program began. The Committee notes that the Department of Defense has not yet prepared an independent estimate to validate the Army's current cost estimate. Low-rate production is planned to start in fiscal year 2012, and full-rate production is expected to start in fiscal year 2016. By the end of fiscal year 2025, the Army plans to have equipped 15 FCS brigade combat teams.

The Committee is a strong supporter of the Army effort to field brigade combat teams that are more deployable, lethal, survivable, and sustainable, and the Committee continues to provide robust funding support for the FCS program. The Committee recommends an appropriation of $2,984,677,000 for Armored System Modernization Engineering Development for fiscal year 2007, an increase of $226,706,000 above the amount provided in fiscal year 2006. Additional FCS funding is provided for the Non Line of Sight Launch System and for the Non Line of Sight Cannon.

The Committee is mindful however that in the year 2025, the Army will have only 15 FCS brigade combat teams out of the total force of 70 brigade combat teams. The Army will have 55 brigades that are equipped with essentially the same equipment as today. The Committee believes it is essential that FCS cost be carefully controlled and that programs to reset, recap, and upgrade the Abrams tanks, Bradley fighting vehicles, and other key items of equipment be fully resourced and executed. The Committee will work with the Army to ensure the readiness of all 70 brigade combat teams.

BIOMASS CONVERSION DEFENSE APPLICATIONS

The Committee is aware of research into the use of renewable plant biomass as a source of fuel and chemical production, such as that being performed at the Michigan State University Biomass Conversion Research Lab. The Committee directs the Department of Defense to study the use of Biomass Conversion as a possible solution to the problems presented by rising petroleum prices to determine if this research has application to the military, and strongly urges the Department to provide resources for such research efforts if that is the case.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

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

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

Fiscal year 2006 appropriation  $18,803,203,000 

Fiscal year 2007 budget request  16,912,223,000 

Committee recommendation         17,654,518,000 

Change from budget request         +742,295,000 

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

The appropriation provides funds for the research, development, test and evaluation activities of the Department of the Navy, which includes the Marine Corps.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $17,654,518,000 for Research, Development, Test and Evaluation, Navy, which is $1,148,685,000 less than the amount provided in fiscal year 2006 and $742,295,000 more than the request for fiscal year 2007. The following report and project level tables provide a summary of the Committee's recommendation.

AFFORDABLE DISTRIBUTED APERTURE INFRARED COUNTERMEASURES FOR HELICOPTERS AND REGIONAL JETS

The Committee is aware of the need for a lower weight, affordable directional infrared countermeasures (IRCM) solution to protect helicopters and regional jets from advanced ground-based missile threats. The Committee applauds the Naval Research Laboratory's IRCM successes to date and provides an additional $5,000,000 to build on these successes and accelerate development of an affordable distributed aperture laser-based IRCM system to meet this requirement.

FORCE PROTECTION APPLIED RESEARCH

The Committee directs that none of the base reduction in this program shall be applied against the Explosive Resistant Coatings project. The Committee continues to support this effort as a high priority force protection measure for Navy ships.

WARFIGHTER SUSTAINMENT ADVANCED TECHNOLOGY

The Committee recommends a base program reduction of $19,900,000, to be distributed as shown in the table below. The recommendation allows approximately the same level of funding for these activities as received in fiscal year 2006, rather than the 33 percent increase proposed in the budget. Of the funds provided in this program, $2,500,000 is for the Validation of Prognostic and Health Management Systems.

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Name                                         Budget estimate Committee recommended 

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

Sea base planning, operations, and logistics     $13,329,000           $11,500,000 

Sea base mobility and interfaces                  19,145,000            13,000,000 

Sea Basing                                         9,320,000             7,000,000 

Friction drag reduction                            2,497,000                     0 

Manpower and personnel development                 6,998,000             3,100,000 

Training systems                                  12,045,000            10,194,000 

Turbine engine technology                         11,343,000            11,343,000 

Airframe/ship corrosion                            5,360,000             4,000,000 

Littoral combat                                    1,998,000             1,998,000 

                                                  82,035,000            62,135,000 

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ENVIRONMENTAL PROTECTION

The Committee recommends $7,763,000 for Marine Mammal Research, an increase of $3,500,000 above the request. Of the additional funds provided, $2,500,000 is a general program increase for the Navy's marine mammal research program. In addition, $1,000,000 would establish a new stranded mammal auditory electro-physiological (AEP) testing program. This program would allow significantly improved data on the potential effect of Navy sonar on marine mammals. Because of a lack of field data, the Navy currently extrapolates from one species of marine mammal to another when projecting the effects of sonar. Under the AEP program, hardware kits would be developed by the Navy Marine Mammal Program and transitioned for use by national marine mammal stranding network personnel in affected locations throughout the United States. The data collected through this program will improve the Navy's understanding of the effect of sonar on specific species, allowing the service to respond more accurately to the concerns of local communities, environmental groups and other federal agencies.

SURFACE AND SHALLOW WATER MINE COUNTERMEASURES

The Committee recommends a rescission of $16,879,000 in fiscal year 2006 funds reflecting delays in the award of development contracts for the 21-inch Mission Reconfigurable Unmanned Undersea Vehicle. Preliminary design for this effort has slipped from fiscal year 2006 to 2007, freeing up these funds for other needs.

76 MILLIMETER SUPER RAPID MEDIUM CALIBER GUN

The Committee recommends $1,800,000 to continue the 76 Millimeter Super Rapid Medium Caliber Gun program. The Committee expects the Navy to proceed in fiscal year 2007 with Weapon System Explosives Safety Review Board (WSESRB) qualification of this gun system and its associated ammunition.

DD(X) RESEARCH AND DEVELOPMENT

Consistent with the provisions of H.R. 5122, the National Defense Authorization Act for Fiscal Year 2007, the Committee urges the Secretary of the Navy to review the continuing need for additional research and development of a permanent magnet motor for the DD(X) destroyer, and to provide sufficient funds under this heading to maintain development of such an engine, if warranted.

CONVENTIONAL TRIDENT MODIFICATION

Consistent with the House-passed bill authorizing appropriations for the Defense Department, the Committee recommends $30,000,000 in RDT&E, Navy for development of a modification to the Trident Weapon System to accommodate non-nuclear payloads. The President's budget included $127,000,000 for this program, including $77,000,000 in research and development and $50,000,000 in procurement accounts. The Committee believes the proposed schedule for this program is unrealistic, and prejudges the outcome of internal planning and programming reviews, including the analysis of alternatives and the vetting and documentation of operational requirements. While agreeing to provide some funds for this new start, the Committee remains concerned that important strategic, international, and operational considerations have not been fully addressed, and the Department's acquisition community has not completed its review.

BONE MARROW REGISTRY

The Committee provides $31,500,000, to be administered by the C. W. Bill Young Marrow Donor Recruitment and Research Program, also known and referred to, within the Naval Medical Research Center, as the Bone Marrow Registry. This DoD donor center has recruited more than 375,000 DoD volunteers, and provides more marrow donors per week than any other donor center in the Nation. More than 2,100 service members and other DoD volunteers from this donor center have provided marrow to save the lives of patients. The Committee is aware of the continuing success of this national and international life saving program for military contingencies and civilian patients, which now includes more than 6,000,000 potential volunteer donors, and encourages agencies involved in contingency planning to continue to include the C. W. Bill Young Marrow Donor Recruitment and Research Program in the development and testing of their contingency plans. DD Form 1414 shall show this as a congressional special interest item, and the Committee directs that all of the funds appropriated for this purpose be released to the C.W. Bill Young Marrow Recruitment and Research Program within 60 days of enactment of the Department of Defense Appropriations Act, 2007.

UNMANNED COMBAT AIR VEHICLE ADVANCED COMPONENT DEVELOPMENT

The Committee recommends $189,163,000 for Unmanned Combat Air Vehicle--Navy (UCAV-N), a reduction of $50,000,000 from the budget estimate. This program has experienced significant delays during fiscal year 2006, as the Department of Defense restructures the now-terminated Joint Unmanned Combat Air System (J-UCAS) into a Navy-only effort called UCAV-N. Because of these delays and significant funding remaining from the fiscal year 2006 appropriation, the Committee believes a lower funding level will be sufficient for the program in fiscal year 2007.

PROGRAM RECOMMENDED

The total program recommended in the graphic folio 0091 HR504.166

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

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

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

Fiscal year 2006 appropriation  $21,779,654,000 

Fiscal year 2007 budget request  24,396,767,000 

Committee recommendation         24,457,062,000 

Change from budget request          +60,295,000 

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

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $24,457,062,000 for Research, Development, Test and Evaluation, Air Force which is $2,677,408,000 more than the amount provided in fiscal year 2006 and $60,295,000 more than the request for fiscal year 2007.

JOINT STRIKE FIGHTER ALTERNATE ENGINE DEVELOPMENT AND COST ANALYSIS

The budget request provided no funding for development of the F-136 engine for the Joint Strike Fighter program. The Committee recommends an additional $200,000,000 for continued development of this alternate engine source. The Committee directs the Under Secretary of Defense for Acquisition, Technology and Logistics to sponsor a comprehensive independent cost analysis of the Joint Strike Fighter engine program to be conducted by a federally funded research and development center (FFRDC) with demonstrated competence in this area. This analysis shall include but not be limited to: (1) a comparison of costs associated with the development of the F-135 and F-136 engines; (2) an evaluation of potential savings achieved by eliminating or continuing the development and production of an alternate engine over the program's life cycle; and (3) the potential effects on the industrial base of eliminating or continuing the development and production of an alternate engine over the program's life cycle. This analysis shall be transmitted to the congressional defense committees not later than March 15, 2007.

The Committee is supportive of required studies included in the House-passed version of the National Defense Authorization Act, 2007, and intends that this cost analysis be complementary to those studies.

PERSONNEL RECOVERY SYSTEMS--COMBAT SEARCH AND RESCUE--X (CSAR-X)

The Committee recommends $224,310,000 for Personnel Recovery Systems, which is $133,203,000 more than the amount provided in fiscal year 2006, and $30,000,000 less than the request for fiscal year 2007.

The Committee is concerned about continued delays in implementing the Combat Search and Rescue Program (CSAR-X). The Committee provided clear direction to the Department of Defense regarding an acquisition strategy in the statement of the managers accompanying the conference report on the Department of Defense Appropriations Act, 2006. The Committee reiterates its strong support for this strategy that minimizes risk and controls research and development cost by advocating, to the maximum extent possible, the integration and procurement of off-the-shelf (OTS) technologies.

The Committee notes that ongoing delays in the award of a system development and demonstration contract have made a significant amount of the fiscal year 2007 request early to need. The Committee has reduced the budget request by $30,000,000 accordingly. This reduction is taken without prejudice to the program or the requirement.

KC-135 TANKER REPLACEMENT

The fiscal year 2007 budget request included $203,932,000 for development of the KC-135 tanker replacement. The Committee has fully funded the request.

The Committee's action should be taken as an indication of its strong support for expediting a development and subsequent procurement program to begin replacement of these aging assets. The Committee directs that the funds provided are only for development of a tanker replacement and shall not be used as a source for reprogramming.

MODERNIZATION CENTERS

The Committee commends the Air Force and its Air Logistics Centers for the initial efforts to inject new technology into aging weapon system parts in order to substantially increase reliability, decrease operational costs, and improve overall weapon system availability. This innovative application of available technology is key to ensuring future performance of these rapidly aging systems while attacking the ever increasing complexity of the sustainment of these systems due to the diminishing vendor situation. The Air Force is encouraged to effect policies and procedures to institutionalize this modernization practice by utilizing industry, academia, and organic repair centers.

NATIONAL AEROSPACE LEADERSHIP INITIATIVE

As charged by Congress, the National Aerospace Leadership Initiative (NALI) has been initiated under the direction of the Secretary of the Air Force. This initiative is designed to counter the pervasive and growing global challenge to United States aerospace leadership and the potential adverse effects on our national defense. A primary focus of NALI is to develop programs that will enhance the U.S. aerospace manufacturing supply chain and attract qualified scientists and engineers into the aerospace field. The Committee appreciates the Air Force's response to this initiative and strongly encourages the service to continue to work with the Committee and the participating public and private sector entities to further the goals of this program. As such, the Committee recommends an additional $25,000,000 under this heading for NALI. However, the Committee anticipates that future funding for NALI will be included in the Air Force's fiscal year 2008 budget request and subsequent requests.

COMBATANT COMMANDERS' INTEGRATED COMMAND AND CONTROL SYSTEM (CCIC2S)

The budget requests $50,908,000 for the CCIC2S. CCIC2S will provide combatant commanders a command and control system for threat warning that incorporates air, missile defense, and space components. The Committee notes that separate but similar and related efforts are currently in development (e.g., Joint Space Operation Center for Space and Joint National Integration Center for Missile Defense). The Committee believes that the Department of Defense has not facilitated sufficient communication between the multiple stakeholders involved in CCIC2S for the current plan to be coordinated across the Department, free of duplication, optimized for the users, and planned in the most efficient and cost effective manner. Therefore the Committee recommends $16,408,000 for core recapitalization and current operations, a reduction of $34,600,000. A similar reduction is made in Other Procurement, Air Force based on the same criteria.

The Committee directs the Secretary of Defense initiate a working group to develop a comprehensive and coordinated plan for the Department. The plan, which should be delivered to the congressional defense committees by February 28, 2007, should include the system capability objectives, a nominal information technology architecture, and the resources required to execute the plan. Further, the Committee directs the Department delay further development and integration of the missile defense and space components. The Department should focus on core recapitalization and current operations until this plan has been approved and funds for it are provided.

OPERATIONALLY RESPONSIVE SPACE

The budget requests $35,386,000 for Operationally Responsive Space, of which $19,524,000 are for the Affordable Responsive Space-lift (ARES) program and $16,000,000 are for the FALCON small launch vehicle program. The Committee is pleased to see the Air Force initiate a program element for this project, but is concerned with the current structure.

The Committee notes that several entities have attempted to frame their projects as Operationally Responsive Space and is not convinced that ARES fits the definition. The Committee believes that ARES is a general technology development project outside of responsive space and should be funded as such. Therefore, the Committee has transferred $12,024,000 of the $19,524,000 budgeted for the ARES program from PE 604857F to PE 603211F to execute the program, but these funds are fenced until the Air Force meets the request for a suitable description of a comprehensive plan for the future of space launch. Future technology development towards any demonstration should be funded from this program element. Additionally, the Committee directs that the remaining $7,500,000 be used for the purposes described in the classified annex.

The Committee recognizes, within the FALCON small launch vehicle program, that phase 2 has not been completed and insufficient funding has been allocated to complete the program. However, preparation for launch is prematurely funded in fiscal year 2007. The Committee directs the all $3,240,000 associated with the launch preparation be applied to the completion of phase 2 in order to reach a demonstration launch as soon as possible.

SPACE RADAR

The budget requests $266,401,000 for Space Radar, an increase of $166,401,000 or 166% over the appropriated level for fiscal year 2006. The Committee is concerned about the executability of such a large increase and therefore recommends $200,000,000, a reduction of $66,401,000.

The Committee is pleased with the restructuring of the program that has occurred beginning in late fiscal year 2005. However, the Committee is concerned about the possibility of a premature decision to initiate an operational system. For a successful Space Radar program, the Air Force must fully leverage all current or planned--radar systems--ground, air, or space----to pursue the development of ground exploitation capabilities, horizontal integration, radar technology maturation, and new technology breakthroughs that will achieve program affordability.

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

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

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

Fiscal year 2006 appropriation  19,600,607,000 

Fiscal year 2007 budget request 20,809,939,000 

Committee recommendation        21,208,264,000 

Change from budget request        +398,325,000 

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

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $21,208,264,000 for Research, Development, Test and Evaluation, Defense-Wide. The following report and project level tables provide a summary of the Committee's recommendation.

MISSILE DEFENSE AGENCY PROGRAM ELEMENT RESTRUCTURE

As stated in the report accompanying the House version of the fiscal year 2006 Department of Defense Appropriations Act (House Report No. 109-119), the Missile Defense Agency has been allowed considerable financial flexibility by Congress in order for the agency to respond rapidly to achieve its Initial Defensive Capability. Now that a working system operated by trained warfighters has been fielded, the Committee is concerned about continuing to allow the Missile Defense Agency this financial flexibility. Accordingly, the committee has restructured the Products program element (PE-0603889C) to allow for greater visibility and oversight of programs and directs the Missile Defense Agency to follow the format in future budget submissions.

MISSILE DEFENSE AGENCY

SPACE TRACKING AND SURVEILLANCE SYSTEM (STSS)

The budget requested $390,585,000 for STSS, including $97,000,000 for the Block 2012 space system. The Committee recommends $323,585,000, a reduction of $67,000,000. The Committee notes that two demonstration satellites will be launched in fiscal year 2007 and that exploitation of data from these satellites will allow the Missile Defense Agency to develop sensor requirements and a concept of operations that will drive the Block 2012 space system. As a result, the Committee believes it is premature to award the Block 2012 space system contract and directs the Missile Defense Agency to pursue sensor technology development and risk reduction with the remaining Block 2012 funds.

MISSILE DEFENSE AGENCY COST REPORTING

The Committee is concerned that funds appropriated for Blocks 2004 and 2006 are being moved between various elements and programs. While it was important for the Missile Defense Agency (MDA) to have a flexibility to optimize the use of funds to field an initial capability, it is equally important to have an audit trail for appropriated funds. During Block 2004, MDA requested funds to develop, deploy, verify, and characterize a Block 2004 fielded configuration of the Ballistic Missile Defense System. However, the Committee understands that MDA delayed some of these activities until Block 2006 to cover Block 2004 contractor cost issues. The Committee is concerned that MDA is requesting funds during Block 2006 for the delayed activities although funding was already provided for them during Block 2004. The Committee directs the Director, MDA to submit a report to the congressional defense committees no later than sixty days after the date of enactment of this Act that details the cost of all work that traveled from Block 2004 (as defined by the Block 2004 Fielding Goals submitted to Congress in February 2003) to Block 2006 and that explains how MDA used the funds originally appropriated for these activities. In addition, the report should identify the elements that lost funds appropriated for their use to other programs.

Additionally, it has also come to the Committee's attention that the Block 2006 fielded configuration baseline delivered to the Congress with the fiscal year 2006 budget is also changing, which makes it difficult to account for the use of appropriated funds. To better understand the Block 2006 fielded configuration baseline, the Committee directs the Director, MDA to submit a report to the congressional defense committees no later than sixty days after the date of enactment of this Act that clarifies the cost of the Block 2006 fielded configuration as laid out in MDA's BMDS Block Statement of Goals and Baselines dated March 14, 2005 and ties the cost to specific quantities of assets being fielded and to specific activities for which the funds are requested. The report should (1) detail the cost of research, development, test, and evaluation, fielding, and operation and sustainment for each program that contributes to the Block 2006 fielded configuration; (2) considering these elements of cost, detail the cumulative cost of the Block 2006 fielded configuration; and (3) for fiscal years 2006 and 2007, identify the assets and major activities that the funds support. Further, the Director, MDA is directed to use the March 14, 2005 quantity, performance, and cost baseline as its fielded configuration baseline in the December 31, 2006 Selected Acquisition Report and to report all variances against this baseline.

The Committee expects MDA to follow this same format for all future Blocks of the Ballistic Missile Defense System.

AIRBORNE LASER (ABL)

The Committee is encouraged by the recent technical progress that the Airborne Laser (ABL) program has made over the last two years with the accomplishment of the firing of the high energy laser and the flight testing of the associated beam control/fire control system. The Committee also notes that these technical challenges were accomplished while the program stayed within the government determined schedule and budget.

As the acknowledged Primary Boost Phase Defense, the Committee is concerned by the recent decision of the Missile Defense Agency (MDA) to slip the planning for the development of an operational ABL by two years later than proposed in the fiscal year 2006 budget submittal. The Committee believes that if the ABL succeeds in the next two years of testing and accomplishes its main test objectives leading towards a lethal shoot down demonstration in late 2008, MDA should move the program into development of an operational ABL configuration at the earliest date.

Therefore, the Committee encourages MDA to re-evaluate funding in the Future Year Defense Plan to ensure that funding levels for ABL are consistent with its status as the Primary Boost Phase Defense. Further, the Committee recommends MDA develop a plan that would allow for the development of an advanced ABL configuration in the shortest time after a successful lethal shoot down demonstration. This plan should be delivered to the interested defense related committees 90 days after the enactment of this Act.

MISSILE DEFENSE AGENCY

COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) PROGRAM

The Committee recommends $239,906,000 for the Command and Control, Battle Management and Communications (C2BMC) program, which is a $26,524,000 more than fiscal year 2006 and $30,000,000 less than the President's request. In fiscal year 2006, funding for the C2BMC program was reduced by $30,000,000; yet during the year of execution, the Missile Defense Agency increased funding for C2BMC by over $50,000,000 by using funds in other program elements to restore the congressional reduction. The Committee is concerned about the use of funds from various other program elements being used to offset congressional reductions. Accordingly, the Committee reinstates the fiscal year 2006 congressional reduction and directs the Missile Defense Agency to fully comply with congressional intent. Additionally, the Committee directs the Missile Defense Agency to follow the reprogramming guidance specified in this report and in the report accompanying the House version of the fiscal year 2006 Department of Defense Appropriations Act (House Report No. 109-119) as it pertains to guidelines allowing agencies to reprogram funds from one program element or appropriation to another.

AEGIS BALLISTIC MISSILE DEFENSE SYSTEM

The Committee commends the Missile Defense Agency (MDA) for showing progress and promise for continued success in its Aegis Ballistic Missile Defense System. The Committee strongly urges that MDA refrain from transferring funds out of the Aegis program to other missile defense programs during the year of execution and in the Future Years Defense Program (FYDP) and expects MDA shall fully fund and execute the Aegis program as Congress intends.

CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM

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

PROGRAM RECOMMENDED

The total program recommended in the bill will provide the following in fiscal year 2007:

OPERATIONAL TEST AND EVALUATION, DEFENSE

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

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

Fiscal year 2006 appropriation  $166,774,000 

Fiscal year 2007 budget request  181,520,000 

Committee recommendation         181,520,000 

Change from budget request                   

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

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $181,520,000 for Operational Test and Evaluation, Defense. The following report and project level tables provide a summary of the Committee's recommendation.

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TITLE V- REVOLVING AND MANAGEMENT FUNDS

TITLE V

REVOLVING AND MANAGEMENT FUNDS

DEFENSE WORKING CAPITAL FUNDS

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

Fiscal year 2006 appropriation  $1,143,391,000 

Fiscal year 2007 budget request  1,345,998,000 

Committee recommendation         1,345,998,000 

Change from budget request                     

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

The Committee recommends an appropriation of $1,345,998,000 for the Defense Working Capital Funds. The recommendation is $202,607,000 more than the amount provided in fiscal year 2006 and the same as the request for fiscal year 2007.

NATIONAL DEFENSE SEALIFT FUND

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

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

Fiscal year 2006 appropriation  $1,078,165,000 

Fiscal year 2007 budget request  1,071,932,000 

Committee recommendation         1,071,932,000 

Change from budget request                     

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,071,932,000 for the National Defense Sealift Fund, which is $6,233,000 less than the amount provided in fiscal year 2006 and the same as the request for fiscal year 2007.

T-AKE MAIN PROPULSION DIESEL ENGINE

The Committee is aware of the serious currency fluctuation losses that have occurred on the T-AKE main propulsion diesel engine contract. These losses have continued to accrue over several years even though the vendor's performance has met Navy expectations. The Committee directs the Navy to review this situation and submit a plan for addressing it to the congressional defense committees not later than February 1, 2007.

PENTAGON RESERVATION MAINTENANCE REVOLVING FUND

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

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

Fiscal year 2006 appropriation               

Fiscal year 2007 budget request $18,500,0000 

Committee recommendation         18,500,0000 

Change from budget request                   

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

The Committee recommends an appropriation of $18,500,000 for the Pentagon Reservation Maintenance Revolving Fund. The recommendation is the same as the request for fiscal year 2007.

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TITLE VI- OTHER DOD PROGRAMS

TITLE VI

OTHER DEPARTMENT OF DEFENSE PROGRAMS

CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY

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

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

Fiscal year 2006 appropriation  $1,386,819,000 

Fiscal year 2007 budget request  1,277,304,000 

Committee recommendation         1,277,304,000 

Change from budget request                     

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

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

COMMITTEE RECOMMENDATION

The budget requested $1,277,304,000 for the Chemical Agents and Munitions Destruction, Army program, a decrease of $109,515,000 from the fiscal year 2006 appropriation. The Committee recommends 1,277,304,000, fully funding the President's budget request.

CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY

The Committee has been supportive of the Department's recent requests to modify execution and obligation authorities of funds provided for the Chemical Weapons Demilitarization program. Accordingly, for fiscal year 2007 the Committee recommends only one appropriation of $111,283,000 for the Chemical Stockpile Emergency Preparedness Program and an extension in the obligational authority for those funds until September 30, 2008.

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

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

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

Fiscal year 2006 appropriation  $908,474,000 

Fiscal year 2007 budget request  926,890,000 

Committee recommendation         936,990,000 

Change from the budget request   +10,100,000 

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

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $936,990,000 for Drug Interdiction and Counter-drug Activities, Defense, which is $28,516,000 more than the amount provided in fiscal year 2006 and $10,100,000 more than the request for fiscal year 2007.

EXPLANATION OF PROJECT LEVEL CHANGES

[In thousands of dollars]

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Indiana National Guard Counter-Drug Activities             +1,000 

Nevada National Guard Counter-Drug Activities              +3,750 

Florida National Guard Counter-Drug Activities             +3,000 

Regional Counter-Drug Training Academy                     +2,000 

Southwest Border Fence                                     +8,000 

RINGGOLD Linguists for the Washington State National Guard   +350 

Multi-Jurisdictional Counter-Drug Task Force Training      +3,500 

Young Marines                                              +2,500 

SOUTHCOM                                                   -7,000 

NORTHCOM                                                   -2,000 

PACOM                                                      -1,000 

CENTCOM                                                    -2,000 

Intelligence and Technology                                -2,000 

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OFFICE OF THE INSPECTOR GENERAL

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

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

Fiscal year 2006 appropriation  $207,590,000 

Fiscal year 2007 budget request  216,297,000 

Committee recommendation         216,297,000 

Change from budget request             - - - 

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

The Committee recommends an appropriation of $216,297,000 for the Office of the Inspector General. Of this amount, $214,897,000 shall be for operation and maintenance, and $1,400,000 shall be for procurement. The recommendation is an increase of $8,707,000 above the amount appropriated for fiscal year 2006.

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TITLE VII- RELATED AGENCIES

TITLE VII

RELATED AGENCIES

NATIONAL INTELLIGENCE PROGRAMS

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

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

CLASSIFIED ANNEX

The Committee's budget reviews are published in a separate detailed and comprehensive classified annex. The intelligence community, Department of Defense and other organizations are expected to fully comply with the recommendations and directions in the classified annex accompanying the Department of Defense Appropriations Act, 2007.

CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND

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Fiscal year 2006 appropriation  $244,600,000 

Fiscal year 2007 budget request  256,400,000 

Committee recommendation         256,400,000 

Change from request                          

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This appropriation provides payments of benefits to qualified beneficiaries in accordance with the Central Intelligence Agency Retirement Act of 1064 for Certain Employees (P.L. 88-643), as amended by Public Law 94-522. This statute authorized the establishment of the CIA Retirement and Disability System (CIARDS) for certain employees and authorized the establishment and maintenance of a fund from which benefits would be paid to those beneficiaries.

COMMITTEE RECOMMENDATION

The Committee recommends the budget request of $256,400,000 for the Central Intelligence Agency Retirement and Disability System fund. This is a mandatory account.

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

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Fiscal year 2006 appropriation  $418,121,000 

Fiscal year 2007 budget request  634,811,000 

Committee recommendation         597,111,000 

Change from request              -37,700,000 

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The Committee recommends an appropriation of $634,811,000 for the Intelligence Community Management Account, a decrease of $37,700,000 below the budget request. Of the amount appropriated under this heading, $39,000,000 is for transfer to the Department of Justice for operations at the National Drug Intelligence Center (NDIC).

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TITLE VIII- GENERAL PROVISIONS

TITLE VIII

TITLE VIII

GENERAL PROVISIONS

The accompanying bill includes 98 general provisions. Most of these provisions were included in the Department of Defense Appropriations Act for fiscal year 2006 and many have been included in the Defense Appropriations Act for a number of years.

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

DODEA SCHOOLS

Section 8097 has been added requiring the Secretary of Defense to submit a report detailing the efforts by the Department of Defense Education Activity (DoDEA) to address dyslexia in its students. The report shall evaluate for each grade level (K-12) and preschool:

(1) How many students at DoDEA schools suffer from dyslexia, and the methodology used for developing this data;

(2) The diagnostic services provided to students with dyslexia;

(3) The types of consulting services provided to school personnel and parents to assist them in the assessment, diagnosis, and instructional programming for dyslexic students;

(3) The professional development opportunities or other support DoDEA provides to school faculty and staff to help them understand the origin and nature of dyslexia, identify dyslexic students, and design appropriate education intervention plans; and,

(4) Specific instructional approaches that are used by DoDEA teachers to help dyslexic students, including programs for teaching phonological awareness and teaching structured, synthetic phonics, decoding, and spelling.

The Secretary also shall report on how any funding provided in previous Department of Defense Appropriations Acts was used to address dyslexia in DoDEA schools.

DEFINITION OF PROGRAM, PROJECT AND ACTIVITY

For purposes of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177) as amended by the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100-119) and by the Budget Enforcement Act of 1990 (Public Law 101-508), the following information provides the definition of the term `program, project, and activity' for appropriations contained in the Department of Defense Appropriations Act. The term `program, project, and activity' shall include the most specific level of budget items, identified in the Department of Defense Appropriations Act, 2007, the accompanying House and Senate Committee reports, the conference report and the accompanying joint explanatory statement of the managers of the Committee in Conference, the related classified reports, and the P-1 and R-1 budget justification documents as subsequently modified by Congressional action.

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

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

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

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TITLE IX- ADDITIONAL APPROPRIATIONS

TITLE IX

ADDITIONAL APPROPRIATIONS

INTRODUCTION

The Committee is recommending $50,000,000,000 in funding for overseas contingency operations for the first six months of fiscal year 2007 in order to ensure the uninterrupted delivery of resources to our troops in the field, and to avoid any disruption in funding for the global war on terrorism. The appropriation of these funds for contingency operations related to the global war on terrorism and other unanticipated defense-related operations is made pursuant to section 402 of H. Con. Res. 376 (109th Congress), the concurrent resolution on the budget for fiscal year 2007. The Committee is determined to ensure continuity of combat operations in Iraq, Afghanistan, and elsewhere around the world as part of the global war on terrorism.

The President's budget request for fiscal year 2007 included an allocation of $50,000,000,000 for contingency operations related to the global war on terrorism. However, the Congress has yet to receive a formal budget amendment for these funds. The Committee recommendations are based on authorizations contained in the National Defense Authorization Act for Fiscal Year 2007 (H.R. 5122) as passed by the House of Representatives and/or on requirements identified by the military services as their highest priorities for maintaining and enhancing our ability to wage the global war on terrorism. Almost eighty-seven percent of these funds are dedicated to military personnel compensation accounts and operation and maintenance accounts. The remainder is allocated to cover increased fuel costs ($1,000,000,000) and to procure high priority items necessary to replace battle losses or worn-out equipment, or to enhance the ability of the war fighter ($5,598,524,000).

COMMITTEE RECOMMENDATIONS

In this title, the Committee recommends total new appropriations of $50,000,000,000. Funding by category is as follows:

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Military Personnel            $5,992,050,000 

Operation and Maintenance     37,409,426,000 

Procurement                    5,598,524,000 

Defense Working Capital Funds  1,000,000,000 

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Funds are provided for specific appropriations accounts, and would be available upon enactment of this bill. Quarterly reports are required on the obligation of funds.

The Committee bill provides transfer authority for funds in this title, permitting up to $2,500,000,000 to be reprogrammed among activities following approval by the congressional defense committees through regular order prior-approval notification and reprogramming procedures.

The Committee bill also includes certain authorities providing war-related support to allied forces, and training and equipping Iraqi and Afghan military and security forces, consistent with similar authorities provided in Public Law 109-148.

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

[In thousands of dollars]

CLASSIFIED PROGRAMS

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

REPORTING REQUIREMENTS

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

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

Additionally, the Committee directs that the reporting requirements of section 9010 of Public Law 109-148, the Department of Defense Appropriations Act, 2006, regarding military operations and stability in Iraq shall apply to the funds appropriated in this Act.

MILITARY PERSONNEL

The Committee recommends a total of $5,992,050,000 for the active duty and Guard and Reserve military personnel accounts. Of the amount provided, the Committee provides $4,435,011,000 for three months incremental wartime costs of pays and allowances for active duty and Reserve personnel deployed in support of Operation Iraqi Freedom, Operation Enduring Freedom, and Operation Noble Eagle; $251,000,000 to restore Army National Guard funds that were reduced on the basis of their current (as opposed to authorized) end strength levels; and $113,489,000 for Foreign Language Proficiency Pay for service members.

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

OPERATION AND MAINTENANCE

The Committee recommends $37,409,426,000 for operation and maintenance accounts. Funds are provided for personnel support requirements including travel, subsistence, individual and organizational equipment, reserve component activation costs, and incremental civilian personnel costs. Increases for operating support costs include funds for military operations, including spare parts and consumable supplies, transportation, pre-deployment training and training in theater, forward base operating costs, communications, vehicle maintenance, and contracts for linguists, logistic and infrastructure support.

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

[In thousands of dollars]

PROCUREMENT

The Committee recommends $5,598,524,000 for the procurement accounts. The following table provides details of the recommendations for the procurement accounts:

DEFENSE WORKING CAPITAL FUNDS

The Committee recommends an additional $1,000,000,000 for the Defense Working Capital Funds. These funds are recommended to address shortfalls due to unforeseen fuel price increases as well as to provide for the increased rate of consumption during wartime.

GENERAL PROVISIONS--THIS TITLE

Title IX of the Committee bill contains twelve general provisions. Several of these extend or modify war-related authorities included in Public Law 109-148, enacted in December 2005. A description of the recommended general provisions follows.

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

Section 9011 contains a technical correction to clarify the designation of certain funds appropriated in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2066.

Section 9012 has been included which prohibits funds to be used to enter into a basing rights agreement between the United States and Iraq.

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

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

Section 9004 has been included which deems funds appropriated in this Act for intelligence activities to be authorized by the Congress until an Intelligence Authorization Act for fiscal year 2007 is enacted.

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

Section 9006 has been included which provides that not to exceed $1,000,000,000 of operation and maintenance funds made available in title IX may be used to train and equip military or security forces in Iraq and Afghanistan, and that such authority is in addition to any other authority to provide assistance. The provision also includes a requirement to notify congressional committees prior to providing assistance under the authority of this provision.

Section 9007 has been included which makes available $500,000,000 of operation and maintenance funds provided by title IX to fund the Commander's Emergency Response Program. In addition, the provision requires quarterly reports to the congressional defense committees, places certain limitations on the use of funds, and requires the Secretary of Defense to issue guidance on activities eligible for funding. The Committee directs that the Department of Defense conform to the reporting requirements on this program as identified in House Report 109-388.

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

Section 9009 has been included which provides that for construction projects in Iraq and Afghanistan funded with operation and maintenance funds, supervisory and administrative costs may be obligated when the contract is awarded.

Section 9010 has been included which establishes certain reporting requirements for the use of funds provided in this title.

Section 9011 contains a technical correction to clarify the designation of certain funds appropriated in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006

Section 9012 has been included which prohibits funds to be used to enter into a basing rights agreement between the United States and Iraq.

HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS

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

CHANGES IN THE APPLICATION OF EXISTING LAW

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

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

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

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

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

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

Those additional changes in the fiscal year 2007 bill, which might be interpreted as changing exiting law, are as follows:

APPROPRIATIONS LANGUAGE

Language has been amended in `Operation and Maintenance, Army' which changes the amount provided for emergency and extraordinary expenses; amends funds provided for Fort Baker; and deletes language which provides funds to the Army Distaff Foundation.

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

Language has been amended in `Operation and Maintenance, Defense-Wide' which changes the amount provided for emergency and extraordinary expenses; deletes language which provides funds for certain Civil Military programs; amends language which provides funds for a wind test demonstration project; and deletes language which provides funds for the Procurement Technical Assistance Cooperative Agreement Program.

Language has been amended in `Operation and Maintenance, Army National Guard' which deletes funds available for the Joint Interagency Training Center-East and the Center for National Response at the Memorial Tunnel.

The appropriations account `Overseas Contingency Operations Transfer Account' has been deleted.

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

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

Language has been deleted in `Aircraft Procurement, Army' which provides funds for Blackhawk helicopters for the Army Reserve; and includes language which provides funds for one HH-60L medical evacuation variant Blackhawk helicopter only for the Army Reserve.

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

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

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

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

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

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

Language has been included which creates a new appropriations account `Pentagon Reservation Maintenance Revolving Fund'.

Language has been amended in `Chemical Agents and Munitions Destruction, Army' which earmarks funds for the Assembled Chemical Weapons Alternatives (ACWA) program; and amends language which earmarks funds for the Chemical Stockpile Emergency Preparedness Program.

Language has been amended in `Intelligence Community Management Account' which earmarks funds for the Advanced Research and Development Committee.

GENERAL PROVISIONS

Section 8005 has been amended which increases the level of general transfer authority for the Department of Defense.

Section 8007 has been amended which requires 30 days prior notification to the congressional defense committees before initiating a special access program.

Section 8008 has been amended to include language which provides multiyear authority for C-17 Globemaster; MH-60R Helicopters, MH-60R Helicopter mission equipment, and V-22 Osprey programs; and amends language with regard to full funding requirements for multiyear procurement contracts.

Section 8022 has been amended which earmarks $36,188,000 for the Civil Air Patrol Corporation.

Section 8023 has been amended to change the number of staff years of technical effort that may be funded for defense Federally Funded Research and Development Centers (FFRDCs); deletes language on the number of staff years that may be funded for defense studies and analysis by FFRDCs; amends language to include the Military Intelligence Program (MIP) referenced in this provision; and amends the amount for reduction for FFRDCs.

Section 8025 has been amended to delete language concerning the definition of `congressional defense committees.'

Section 8038 has been amended to make a technical correction concerning grants through the Office of Economic Adjustment.

Section 8039 has been amended to include language which rescinds $823,122,000 from the following programs: